Summer has traditionally been a popular time to get out of the UAE, and this year should be no different. But while it might be cheaper to travel this year, we won’t necessarily be spending less.
“The cost per room per night is lower, but room stays are up,” Rob Arrow, Head of Product at dnata Travel, tells GN Focus. “Therefore, customers are spending similarly but just staying longer.”
Michelle Smith, Marketing Manager at Flight Centre, agrees that UAE travellers are better off this year. “The combination of a steady inflation rate in Europe, the strengthening dollar and an increase in competition within the airline space in the Middle East has driven down the cost of travel for UAE travellers, especially for those travelling to the UK and Europe.”
That said, the industry as a whole isn’t losing out. Smith says global air passenger volume increased by 6 per cent last year and the global GDP from travel and tourism grew by 5 per cent.
“So while the cost of travel is lower, we have found travellers are spending increasingly more on their holidays, whether through an increase in the number of trips taken each year — which is on average 4 trips for UAE residents — or through increasing the duration of stay.”
As for airfare, Arrow says the falling oil price has had an effect on global markets, driving prices down. This, combined with amazing offers in the market are great for the end user.
More players
Retail travel outlet Flight Centre highlights the role of increased competition. The company has seen a marked reduction over the past year in the price of airfare to the UK, particularly London. “There are 20 direct daily flights from the UAE to London each day, so as carriers fight to fill capacity, the customer has benefited with lower fares to what is undoubtedly the UAE’s favourite travel destination,” Smith tells GN Focus.
“Legacy carriers have been coming out with some incredible tactical fares, making travel incredibly affordable and empowering UAE residents to travel cheaply. We recently had airfare on a five-star airline flying to Paris return in economy for Dh1,835.”
Unlike other regions, though, low-cost carriers aren’t putting as much pressure on legacy carriers to be more competitive. “In fact, I would even suggest that regionally our legacy carriers are putting pressure on the low-cost carriers to raise the bar in their service offerings, especially as more low-cost carriers are opening more destinations in Europe and expanding their networks,” says Smith, although she concedes that it does have an effect on pricing to destinations within the GCC.
“On long-haul flights, consumers will still pay to have comfort and extras that come free of charge in legacy carriers,” explains Arrow. “In the GCC region you will find that low-cost carriers in some cases compliment legacy carriers. Flydubai feeds Emirates from many destinations.”
What about calamity?
According to reports, the recent spate of terrorist attacks in Turkey have seen summer bookings fall by 50 per cent over 2015. There have been six bombings in the past eight months, the most recent — a suicide bomb in Istanbul last month — killing five people. This has caused holiday companies to focus on other Mediterranean countries.
However, some look at the silver lining, with UK-based a1travel calling Turkey the “best value holiday destination of the year”. The company offers weeklong, five-star vacations from as little as Dh773 — including return flights.
This is in line with what Smith and Arrow refer to as the “resilience of the Middle East market” in terms of travelling to places marked by conflict or disaster. “While we have seen some minor changes in some corporate clients’ travel policies, Europe remains our strongest destination for leisure travel, despite the recent tragic events in Brussels and Paris,” says Smith.
“Weather and geopolitical situations do have a short-term effect on travellers’ plans, but in the long run if the situation quietens down then travellers will return,” says Arrow. “This can be seen in Bangkok or Japan, post unsettled periods or natural disasters.”
Off the beaten track
According to TripAdvisor’s recent TripBarometer study, the top industry trend this year is travellers seeking new experiences, with 69 per cent of travellers planning to try something new in 2016. About one-in-five will be trying a cruise for the first time, 17 per cent will give solo travel a shot and some 15 per cent 15 per cent will try adventure travel.
Arrow implores travellers to try a new destination, suggesting Croatia, or Greece and its islands. Furthermore, he says Vietnam, Cambodia and Myanmar offer fantastic experiences while remaining wallet friendly.
“Also Georgia, Armenia and Azerbaijan are offering very cost-effective travel experiences, but without compromising on luxury, especially in Azerbaijan.”
Vietnam tops Smith’s list for the modern traveller looking for an authentic experience that won’t break the bank. “It is a foodie’s paradise, with an exotic mix of colonial French and contemporary Asian influences, serving dishes like bahn mi and the famous pho noodle soup to ravenous foodies by roadside market stalls.
“Travellers to Vietnam are stunned by its natural beauty — from the lush green rice fields of Sa Pa to the awe-inspiring limestone islands rising from the emerald waters of Halong Bay.
“A mid-range holiday to Vietnam will cost approximately $50 per day, and with direct flights to Ho Chi Minh City, the undiscovered gem of Asia has opened up to travellers from the UAE. My tip is to discover Vietnam while it remains relatively untapped to soak up an authentic off-the-beaten-track experience.”
Smith says there’s really never been a better time for travellers. “Regional carriers are expanding to new routes, all the while at an increasingly more affordable price tag. With more players in the market, travellers are undoubtedly reaping the benefits.
“Shakespeare famously wrote, ‘The Golden Age is not behind us but before us,’ and we couldn’t agree more for the state of travel, especially in the Middle East.”
Biggest travel trends
With its finger on the pulse of travel trends, UAE-based travel company dnata says this year Asia has emerged as a big beach destination. “Especially Phuket and Koh Samui in Thailand and Bali in Indonesia,” says Rob Arrow, Head of Product at dnata Travel.
That said, established cities such as Kuala Lumpur and Bangkok remain popular, even amidst the pull of destinations such as Seoul and Tokyo, which landed third on Skyscanner’s list of top destinations for 2016. The country has been focusing on its ski, honeymoon and adventure tourism offerings.
While short weekend breaks have decreased in popularity, family holidays are trending, as well as honeymoons.
According to Flight Centre, mobile bookings are growing exponentially. “In China 75 per cent of digital travel sales happen on mobile,” says Michelle Smith, Marketing Manager.
“We are also seeing more demand from consumers to receive more information on their mobile, like flight delays and check-in services. Dubai International Airport continues to innovate the travel industry and has done so most recently with the launch of its Apple Watch app.
“Mobile is the new ecosystem and where our customers are dreaming, planning and now even booking their holidays; and once at their destination using mobile to share their experiences.”
