Global travel will hit new record levels this year, converging back on the pre-pandemic trend, with international and domestic demand rebounding across all world regions.
It is expected to see that people are prioritising travel over many other aspects of spending, with the Middle East being a popular destination. In the GCC, growth is outpacing the global average, and travel in the region is primarily driven by international demand, with over 85% of the expected increase in Middle East accommodation demand coming from international travel.”
The Middle East presents tremendous growth opportunities and is a crucial node connecting Europe, Africa, and Asia. Convenient entry policies, increased direct flights, and robust investments in tourism have contributed to its rapid recovery.
UAE, Saudi Arabia, and India have a majority of young and digitally connected populations with purchasing power that is conducive to the rapid growth of online travel. The UAE is an ultimate global village, and its cosmopolitan nature and recognition as a major shopping centre make it a favoured destination for both Saudis and Indians. All three markets enjoy cultural and religious affinity and enviable air connectivity. Religious, luxury, VFR, and wellness are some of the primary tenets that would continue to perpetuate high-growth for this travel and tourism corridor.”
The UAE’s Total Air Market (TAM) is expected to reach USD5.4 billion by 2028, growing at a CAGR of 6.9%. From USD4.2 billion in 2024, reflecting a 32% increase from 2019. TAM measures the market opportunity using a demand-side methodology, taking into account only the bookings made from the local point of sale (POS). It excludes transit/transfers and bookings made from other POS, to arrive at the true potential of the UAE’s travel demand.
In terms of bookings, the total value of air tickets booked online through OTAs in the Emirates was estimated to be USD679 million in 2024, up 20 percent from the previous year. Meanwhile, the total value of bookings through airline websites or apps comprised 56% of the online air GBV in 2024 and one-fifth of the UAE’s TAM, representing a market size of USD851 million.
Major airlines such as Emirates and Etihad are increasingly prioritising online direct channels, enhancing customer engagement through personalised travel experiences. FlyDubai has enriched its customer experience by integrating with Emirates Skywards.
The report states that the UAE presents a dynamic landscape for OTAs due to diverse airline choices and a large expatriate population.
With growing digital adoption, online channels are becoming the preferred medium for travel bookings in the UAE.
