The recovery in travel modes sales is proving a gradual one, given the size of the losses seen in 2020, when the pandemic decimated the travel and tourism industry with its lockdowns, border closures and general restrictions on mobility. While there was a strong rebound in 2021, with another dynamic performance seen in 2022, travel modes sales are not currently expected to return to their pre-pandemic levels until 2025 in real value terms.
This report comes in PPT.
Travel revenues collapsed in Middle East and Africa in 2020, with COVID-19 and the measures taken to control its spread more than halving transportation value sales in this industry. While recovery started immediately in 2021, despite the continued presence of the virus, and continued at a healthy pace in 2022, it is expected to take some time for sales to return to their 2019 levels, particularly in real value terms.
With consumers concerned about their carbon footprint, one way in which airlines could respond is to transition to electric aircraft. The United Arab Emirates is striving to be one of the world leaders in sustainable aviation, including the development of electric vertical take-off and landing aircraft (eVTOLs). For example, Volocopter, a next-generation manufacturer with its eVTOL aircraft, has plans to be fully operational in Dubai by 2030.
The pandemic accelerated the shift online – with stores and offices closed during the various lockdowns there was a general lack of offline outbound travel bookings. More consumers were exposed to online platforms for travel sales during such periods. This shift will continue in the coming years, with the convenience of pure online travel intermediaries such as Booking.com and Expedia making it easier than ever to quickly and easily compare prices and make bookings. Although, it should be noted that online sales are much more advanced in air travel in this region than in surface travel.
Travel modes will see their sales finally reach pre-pandemic levels again in 2025 in real value terms, according to current forecasts for 2022-2027. Air travel will continue to be the main revenue generator, although its CAGR will be similar to that of surface travel modes over the forecast period, with rail and bus seeing strong growth, but ferry travel continuing to struggle.
Travel encompasses several categories including tourism flows, lodging, travel modes, in-destination spending and booking.
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