Making money out of gifts

Dubai: As gifts go, this one surely merits a closer look. The Dubai-based Dreamdays has seen its gift experience concept flourish in its home market and is now all set to stretch it to Turkey and Lebanon. India beckons as well.

Established in 2005, the internet-based company offers over 200 packages ranging from cruises, spa treatments, hotel accommodation, local excursions and customised holiday travel packages.

"The idea of gifting experiences is very popular in Europe, so I brought the idea here," said Farshid Rahimkhani, managing director of Dreamdays.ae told Gulf News.

"At that time, no one had started such a thing in Dubai. Gifting experiences wasn't that popular before. People used to give objects."

Since its founding, the company has been recording yearly growth rates in the high three-digit numbers, except in 2009. Obviously, with the recession on, people were less inclined to gift.

An early breakthrough for the company was achieved through alliances with leading corporate houses, including Nestle, Deloitte and Dubai Electricity and Water Authority. It has grown nicely to the extent that corporate business currently accounts for 70 per cent of Dreamdays' business.

Good presents

"Because of the nature of the experiences, they make good corporate presents," said Rahimkhani. "We offer a variety of experiences which is one way you can make sure the person who receives it is happy.

"The first step is to grow our corporate market. There are areas we need to go inside, especially with the other emirates."

Recently, the company launched its operations in Iran (www.dreamdays.ir), and now plans to break into Abu Dhabi within the next few months.

According to market observers, there is a palpable return of optimism about the economy being on the mend. In keeping with this sentiment, there is going to be a discernible upturn in people looking to travel.

All of which would suit Dreamdays and Rahimkhani just fine. Plans are at an advanced stage for an entry into new territories such as Turkey and Lebanon. "Because of the demand we received from other countries we decided to expand and open new branches," said Rahimkhani.

"The market is still huge with enough room for all competitors. Very few of our competitors offer as many experiences [and] the majority are niche companies. Dreamdays offers the whole range."

On the consumer side of things, Dreamdays is targeting a higher inflow of new business by catering to certain well-defined demographics. This means working on dedicated collections for children, sports as well as for health and fitness. "We want to concentrate on the direct selling of the product to consumers," said Rahimkhani.

The vouchers can be bought on-line and at outlets such as Virgin Megastore and Geant. They are valid for 12 months and recipients can use the vouchers at their own convenience.

Colour coding

According to Rahimkhani, the colour vouchers are proving particularly popular. "The main thing in buying a gift is budget," he said. "We divide them in different budgets and give them different colours.

"Each colour comes with a collection of 30 to 40 experiences. The most popular are the adventure sports experiences such as sky diving, and the second are the spa and beauty experiences. Dining experiences are also very popular."

• Be passionate and love every aspect of what you do.
• Remain focused and determined to help the company grow.
• Have a clear market penetration strategy.
• There should be good financial planning.
• Be service oriented to the extreme.

Offerings

• Dreamdays tries to make its offerings as seasonal as possible. During Ramadan, the company had a number of Iftar and cultural experiences on offer.
• With an eye on this year's F1 event in Abu Dhabi, they are looking to offer experiences themed around the race.