Travel in the United Arab Emirates

Government adopts dynamic approach to ensure a positive performance for the travel industry

With economic growth slow at home as well as in many source markets and changing market dynamics such as the implementation of value added tax, concerns have been raised among hotel operators regarding the competitiveness of the United Arab Emirates as an international tourism destination. In particular, the oversupply of lodging is suppressing occupancy levels in key destinations and the government has responded to rising challenges by taking appropriate measures to keep the performance of the entire tourism sector on track.

Online travel platforms foster online bookings across all categories

Online travel sales continue to generate remarkable growth rates fuelled by the increased conversion of website visitors engaged in price inquiries to online reservations. This is occurring as consumer confidence in completing payments via online platforms improves as well as online platforms entering into partnerships with banks to offer price promotions and discounts, a strategy to remain competitive in a continuously evolving space.

Airlines rethink profitability strategies

Emirates Airlines code sharing partnership with low cost sister airline enabled the airline to minimise value share losses in airlines in 2018 as other Middle Eastern schedule airlines and low cost carriers eroded the airline’s sales base. Emirates continues to focus on its transit routes and with its loyalty programmes being merged with that of low-cost carrier Flydubai, code sharing is likely to be key to maintaining consumer satisfaction.

Online platforms fill gaps in demand by launching micro booking models

In an effort to encourage consumers to opt for available travel related services at a time of low consumer confidence and careful spending, digital platforms are attempting to carve out a niche through the micro-booking concept. Car rental companies Udrive and Elkar have begun providing pay-per-minute pricing models and these have been well received.

United Arab Emirates set to a remain highly competitive destination over the forecast period

Despite various challenges and the competition coming from burgeoning travel and tourism industries in other GCC countries, the United Arab Emirates is expected to remain a competitive international tourist destination during the forecast period. Consistent government efforts to expand tourism offerings and facilitate favourable tourist experiences throughout the country are set to be the main reason for this.

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