Apps ‘to boost travel bookings by UAE residents 25%’

Growth of 25 per cent is expected for UAE residents booking travel on their mobile phones.

This is on track to reach a record Dh2.9 billion in 2018 from a year earlier, boosted by the widespread availability of travel apps, a new study shows.

The market for online mobile travel sales will continue growing at a compound annual rate of 16.4 per cent over the next five years as more apps targeting Arabic speakers become available. The projection is based on analysis by the Dubai Chamber of Commerce and Industry, using data from Euromonitor International.

“UAE travellers increasingly turn to online platforms to research, book travel and accommodation, and take advantage of special deals,” the report said.

Passenger numbers for the Middle East are expected to grow by 4.3 per cent annually over the next five years, according to aviation industry body International Air Transport Association (Iata).

The industry is a major pillar in regional economies. Aviation supports 2.4 million jobs and $130bn in economic activity across the Mena region, according to Iata.

That represents 3.3 per cent of all employment and 4.4 per cent of all GDP in the region.

The value of UAE online travel sales in 2018 is forecast to have reached Dh7.3bn, driven by a growing population, an increasing number of tourists and UAE residents’ shift towards digital services, according to the report. It did not provide a comparative figure for 2017.

The study revealed that direct online sales for 2018 are expected to hit Dh9bn, supported by higher airline sales. Meanwhile, intermediary travel booking companies accounted for Dh8.3bn worth of online sales in the same year.

Leisure tourism accounted for 52 per cent of the intermediaries’ online travel sales in the UAE, with the value of transactions in this category expected to reach Dh4.3bn by the end of 2018.

Business travel accounted for the remaining 48 per cent of UAE intermediaries’ travel online sales in 2018, valued at an estimated Dh3.9bn.

“International online travel agencies, such as Booking. com and Expedia, account for the largest share of the UAE’s online travel market.

“This is thanks to their strong links to leading hoteliers and airline companies, strong digital marketing, a wide variety of booking options and easyto-use websites,” according to the report.