Total value of air tickets booked online through OTAs in the Emirates was estimated to be $679 million in 2024
Published: Wed 30 Apr 2025, 6:29 PM
By Somshankar Bandyopadhyay
The UAE’s Total Air Market (TAM) will reach $5.4 billion by 2028, growing at a CAGR of 6.9 per cent from $4.2 billion in 2024, reflecting a 32 per cent increase from 2019, research showed on Wednesday.
Tourism Economics, an Oxford Economics company, revealed insights from the ‘ATM Trends Report: Leisure, Luxury and MICE – Leading Trends for the Middle East’. The report explored the key forces shaping the travel sector in the Middle East and Arabian Gulf, providing an in-depth analysis of emerging travel trends, evolving travel preferences and economic impacts in the region.
According to research and travel M&A consultancy, VIDEC, the total value of air tickets booked online through OTA’s in the Emirates was estimated to be $679 million in 2024, up 20 per cent from the previous year. Meanwhile, the total value of bookings through airline websites or apps comprised 56 per cent of the online air GBV in 2024 and one-fifth of the UAE’s TAM, representing a market size of $851 million.
VIDEC shared findings from its ‘Travel Market Sizing and OTA Benchmarking’ study, which outlines opportunities for online travel agencies (OTA’s) in key markets
According to VIDEC, this growth is driven by airlines’ robust booking interfaces and compelling loyalty programmes. Major airlines such as Emirates and Etihad are increasingly prioritising online direct channels, enhancing customer engagement through personalised travel experiences, while flydubai has enriched its customer experience by integrating with Emirates Skywards.
The report states that the UAE presents a dynamic landscape for OTAs due to diverse airline choices and a large expatriate population. VIDEC suggests that although this poses challenges in terms of retaining a loyal customer base, this has created one of the most competitive and lucrative OTA markets in the world.
With digital adoption steadily rising, online channels are becoming the preferred medium for travel bookings in the UAE. OTA’s have emerged as key enablers, according to VIDEC, leveraging advanced technology, consumer-centric features and fintech solutions to deliver seamless travel experiences.
Introducing the report, Dave Goodger, Managing Director EMEA, Tourism Economics (An Oxford Economics Company) said: “Global travel will hit new record levels this year, converging back on the pre-pandemic trend, with international and domestic demand rebounding across all regions of the world. We are seeing people prioritising travel over many other aspects of spending, with the Middle East being a popular destination. In the GCC, growth is outpacing the global average and travel in the region is largely being driven by international demand, with over 85 per cent of the expected growth in Middle East accommodation demand coming from international travel.”
Virendra Jain, Founder and CEO, VIDEC Consultants said: “UAE, Saudi Arabia and India have a majority young and digitally connected population with purchasing power that’s conducive for the rapid growth of online travel. The UAE is an ultimate global village, and its cosmopolitan nature as well as its recognition as a major shopping centre, makes it a favoured destination for both Saudis and Indians. All three markets enjoy cultural and religious affinity, and enviable air connectivity. Religious, luxury, VFR and wellness are some of the primary tenets that would continue to perpetuate high-growth for this travel and tourism corridor.”
ATM 2025 concludes tomorrow at the Dubai World Trade Centre. Welcoming over 55,000 attendees this week from 166 countries, the event has showcased more than 2,800 exhibitors. The 32nd edition of the show has centred on “Global Travel: Developing Tomorrow’s Tourism Through Enhanced Connectivity”, exploring how the future of tourism will be shaped by connectivity across borders, industries and communities.
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