The UAE’s air travel market is projected to soar to USD 5.4 billion by 2028, driven by strong digital adoption and evolving consumer demand, according to new research revealed at Arabian Travel Market (ATM) 2025.
Digital-first travel growth
Speaking at ATM’s Future Stage, Virendra Jain, Founder and CEO of travel consultancy VIDEC, highlighted the dynamic growth of online travel in the region.
“The 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,” Jain said.
“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.”
Market projections through 2028
According to VIDEC’s study, titled ‘Travel Market Sizing and OTA Benchmarking’, the UAE’s Total Air Market (TAM) will grow at a CAGR of 6.9% from USD 4.2 billion in 2024 to USD 5.4 billion by 2028. The report excludes transit traffic and foreign bookings, focusing solely on local demand to present an accurate market picture.
OTAs gaining momentum
Online travel agencies (OTAs) in the UAE recorded USD 679 million in air ticket bookings in 2024, a 20% rise from the previous year. Direct bookings via airline websites or apps made up 56% of total online air sales, totalling USD 851 million.
Airlines like Emirates and Etihad continue to lead through improved digital experiences and loyalty programs, while flydubai strengthens its reach via partnerships like Emirates Skywards.
Competitive, yet challenging market
With a large expatriate base and multiple airline options, the UAE presents both opportunity and complexity for OTAs. While competition is fierce, the potential for innovation and growth remains high, especially across segments like religious, luxury, wellness, and VFR travel.
Middle East travel surging globally
Tourism Economics, an Oxford Economics company, also presented at ATM, forecasting a record-breaking year for global travel.
Dave Goodger, Managing Director EMEA, said over 85% of the Middle East’s accommodation growth will be driven by international visitors. “We are seeing people prioritising travel over many other aspects of spending,” he added.
Trip.com Group echoed this optimism, pointing to new high-potential categories such as entertainment, educational, and elderly tourism. CEO Jane Sun highlighted the Middle East’s strategic position linking three continents, supported by improved visa policies, flight connectivity, and tourism infrastructure.
With a tech-savvy population, strategic location, and strong investment in tourism, the UAE is on course to remain a global leader in travel and hospitality. As the industry evolves, digital innovation and regional partnerships will be key to sustaining long-term growth.
tanvir@dubainewsweek.com
