The Arabian Travel Market 2025, happening in Dubai’s WTC, has leading travel experts worldwide sharing insights on how global tourism is seeing new shifts, advancements, and growth.
Experts shared insights into the region’s remarkable potential as new trends in entertainment, travel, education, tweak the way companies are positioning their outlook.
Research and travel M&A consultancy, VIDEC, shared insights from its latest research examining market opportunities in the air and hotel sectors across the UAE, Saudi Arabia, and India for online travel agencies (OTA).
VIDEC estimates the UAE’s Total Air Market (TAM) will 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.
“UAE, Saudi Arabia, and India have a majority young and digitally connected population”
Virendra Jain, Founder and CEO, VIDEC Consultants, said, “UAE, Saudi Arabia, and India have a majority young and digitally connected population with purchasing power that’s conducive for the rapid growth of online travel. The UAE is an ultimate global village, and its cosmopolitan nature as well as its recognition as a major shopping centre, makes it a favoured destination for both Saudis and Indians.”
He added, “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.”
In terms of bookings, the total value of air tickets booked online through OTA’s in the Emirates was estimated to be USD679 million in 2024, up 20% 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.
What drives this growth?
According to VIDEC, this growth is driven by airlines’ robust booking interfaces and compelling loyalty programmes.
Major airlines such as “Emirates and Etihad” are increasingly prioritizing online direct channels, enhancing customer engagement through personalized travel experiences, while flydubai has enriched its customer experience by integrating with Emirates Skywards.
The report states that the UAE presents a dynamic landscape for OTA’s due to diverse airline choices and a large expatriate population. VIDEC suggests that although this poses challenges in terms of retaining a loyal customer base, this has created one of the most competitive and lucrative OTA markets in the world.
With digital adoption steadily rising, online channels are becoming the preferred medium for travel bookings in the UAE. OTA’s have emerged as key enablers, according to VIDEC, leveraging advanced technology, consumer-centric features, and fintech solutions to deliver seamless travel experiences.
