As per the findings of a latest report by Amadeus at Arabian Travel Market 2015, Middle East’s online travel market value is projected to advance from $18 billion to US$35 billion in the next three years.
The report released by Amadeus- ‘Middle East online travel review’ indicates that the growing smartphone invasion and connectivity amid the youth paired with a booming airline industry in the region is anticipated to shape the multi-segmented online travel industry.
Breaking down, gross bookings across UAE from direct supplier websites are expected to account for 51 per cent of all online revenue, mobile for 17 per cent and OTAs for 32 per cent.
The tendency to travel nearly four times in a year by the prospering affluent middle-class have increased nearly three folds of UAE’s online gross bookings over a period of five years.
In partnership with PhoCusWright, the Amadeus-commissioned report forecasts a 42 per cent online travel penetration in the UAE market over the next three years, outpacing the entire Gulf region’s 36 per cent growth outlook during the same period.
According to the report, Gross bookings across UAE from direct supplier websites are expected to account for 51 per cent of all online revenue, mobile for 17 per cent and OTAs for 32 per cent.
The report highlighted that traditional airlines are likely to acquire 59 per cent of online revenue via their own websites- an increase from 23 per cent to 33 per cent in the next three years. However, low-cost carriers are expected to soar 80 per cent from 70 per cent, by 2018.
At the same time, hotels will gain only 21 per cent of their online revenue. Subsequently, hotels will generate 75 per cent of online revenues via OTAs.
Source: khaleejtimes.com
Author: Anush Mathews
Anush works as QA Lead in Teknokraaft and works with our OTA team.