4-star staycations surge as hotel rates drop in the UAE

by Tanvir Awan
Published: Updated:
UAE visa fees

The UAE residents are increasingly prioritizing affordable luxury during Ramadan, with 4-star hotels dominating staycation bookings in the UAE, according to new data from Wego, the region’s largest online travel marketplace.

The findings show that 4-star hotels account for 40.15% of all hotel bookings, as travellers seek a balance of quality and value during the holy month.

Average hotel rates in Dubai

Average hotel rates in Dubai have plummeted by over 54% compared to last year, driving a noticeable 3% increase in local staycation searches.

This trend highlights a growing preference for staycations among residents looking to enjoy luxurious experiences at more accessible prices during Ramadan.

Most popular destinations

Wego’s analysis also revealed a significant rise in international travel demand, with searches for international flights up by 32.45% compared to last year.

Countries like Egypt, India, Pakistan, Saudi Arabia, and Jordan top the list of popular destinations, with some locations like Nepal and Pakistan seeing remarkable growth, with searches increasing by 214.76% and 82.65%, respectively.

Rise in airfares

While international travel remains a top priority, the increased demand comes with a noticeable rise in airfares.

Prices to most of the top 10 destinations have risen, with Egypt and Lebanon seeing some of the sharpest increases of up to 42.29% and 40.94%, respectively.

However, Jordan remains an exception, with a slight decrease in airfare prices compared to last year. As the end of Ramadan and Eid Al Fitr draw near, experts warn that airfares could rise even further.

Many UAE travellers are also planning their international trips well in advance. Wego’s data shows that most Ramadan flight bookings are made more than a month ahead of time, a trend expected to continue in 2025.

Overall, the combination of affordable luxury options for staycations and rising interest in international travel reflects a diverse travel appetite among UAE residents, as they look to make the most of the holy month, whether at home or abroad.

tanvir@dubainewsweek.com

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