By Zubaida Hamadna

Online travel channels are expected to play an increasingly important role in the recovery of the UAE travel market, with new research by VIDEC, reviewed during Arabian Travel Market 2026, indicating that online flight bookings are expected to rise to 52% by 2030.
A study titled “The size of the travel market in the GCC and Egypt and a comparison of the performance of online travel agencies, 2019–2030 ,” prepared by VIDEC, addresses the fastest-growing travel sectors, market forecasts and distribution trends that are shaping the travel sector in the UAE and the wider region, including the growing influence of online travel agencies.
The study anticipates that the UAE’s air travel market, based on a demand-side approach and relying on bookings made through local points of sale, will reach US$6.5 billion by 2030 , driven primarily by online channels and a recovery in corporate travel demand. Online booking penetration is expected to rise from 42% in 2025 to 46% in 2026, and then to 52% by the end of the decade .
The findings also shed light on the broader size of the UAE aviation market. The country’s airports are projected to handle approximately 160 million passengers in 2025 , with low-cost carriers accounting for 35% of total passenger traffic . The number of passengers traveling on low-cost carriers is expected to increase by 81% , from 31 million in 2019 to 56 million in 2025, while airlines with integrated flight networks are projected to carry 103 million passengers in 2025 , compared to 97 million in 2019.
VIDEC also estimates that the UAE represents the largest air travel market in the region in terms of total booking value , with a value of US$55 billion in 2025 across local and global points of sale.
On this occasion, Virendra Jain, CEO and co-founder of VIDEC, said : “The UAE travel market had a strong start in 2026, with UAE airlines recording strong growth between 2023 and 2025, especially low-cost carriers. This momentum continued during the first two months of 2026, before the market experienced a noticeable decline thereafter.”
Full-service airlines’ operating capacity remains 15% to 25% below pre-war levels, while low-cost carriers, both domestic and those like Air India Express, Flynas, and IndiGo, are recovering at a faster pace and are expected to end 2026 with capacity levels close to those of 2025. Low-cost carriers are leading this recovery thanks to their adoption of the point-to-point flight model and their ability to meet regional demand for short-haul flights, making this sector the fastest to return to activity.
Competition in the online travel agency market is also witnessing a significant increase. According to VIDEC, MakeMyTrip maintained its leading position in the UAE’s online air travel agency market in 2026, supported by the South Asian community and rising airfares, while Trip.com experienced rapid growth, enabling it to become the second largest online air travel agency, despite entering the UAE market relatively recently.
In the category of online travel agencies specializing in hotel bookings, Booking.com and Agoda together hold about 70% of the market .
On this occasion, Danielle Curtis, Regional Portfolio Manager for RX Global in the UAE, stated : “The results of the VIDEC study illustrate how technology and changing booking behaviors are reshaping the UAE travel market. As online booking rates continue to rise, the relationship between travelers, online travel agencies, and travel service providers is rapidly evolving, creating opportunities for both established platforms and new entrants into the market.”
Making research of this depth available, and integrating its findings with the insights and experiences of some of the world’s leading online travel companies, is an important part of the Arabian Travel Market’s role in helping the sector understand the direction the market is taking and identify the opportunities that will help shape its next phase.”
Following the presentation of the VIDEC study results , the changing competitive landscape was discussed during a session entitled: “ The Future of Online Travel Agencies in 30 Minutes” , which brought together: Ross Fitch, CEO of Wego ; Raj Rishi Singh, CEO of Business, Corporate, Airline and GCC at MakeMyTrip ; and Schubert Lowe, CEO of Trip.com .
The 33rd edition of the Arabian Travel Market concludes today at the Dubai World Trade Centre, confirming its position as a leading international event in the Middle East travel and tourism sector. The event brought together the global travel community under one roof to promote partnerships, exchange knowledge, and explore trends that will shape the next era for the tourism sector.

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