Business travel in the Middle East region is seeing a rebound, pushing up airfares and car rentals, a latest market study said.
Economy class tickets from MENA to Europe, Asia, and America average $510 currently, while business class fares for these routes reach $2,084, the joint study by Tumodo, the UAE-based online travel platform, and Admitad, a partnership marketing platform, showed.
“Each sub-region [in MENA] showcases its unique trends, such as the UAE, where business travel represents 14.5 percent of the region’s total,” said Vladimir Kokorin, founder of Tumodo.
“This data underscores the market’s significant growth and evolving dynamics,” he said.
An overwhelming majority – 88 percent – of the tickets for business travel were for economy class, 10 percent for business class, and 2 percent for first class, the study said.
The recent months also saw a 17 percent increase in car rentals during business trips compared to 2023, indicating a preference for flexible transportation options, it said.
Regional business travel rebounds
The surge in business trips in the region comes amidst the Global Business Travel Association projecting the Middle East’s business travel industry to grow at 11.2 percent in 2024.
Last year, the region surpassed its pre-Covid spending levels, reaching $17 billion in business travel expenditures.
Globally, the segment is expected to reach $1.48 trillion this year.
Regarding destinations, the study said Pakistan, Kuwait, and Saudi Arabia as top destinations for travellers from Dubai.
The study also revealed changes in how business travellers are making their bookings, highlighting the spike in mobile sales.
“From 2022 to 2024, there has been a noticeable increase in mobile sales, growing to 32 percent,” Anna Gidirim, CEO of Admitad, said.
“This rise can be attributed to several factors, including companies’ focus on user-friendly interfaces, transparent spending monitoring, and integrating new AI-driven technologies,” she said.
The study also showed that in Q1 2024, the top sources of purchases were targeted and contextual ads, accounting for 25 percent of sales, and content platforms, contributing 22 percent of sales.
“These figures suggest a diversification in booking channels and highlight the importance of a multi-channel approach for travel companies,” the study said.
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