Business travel in the Middle East is rebounding, leading to higher airfares and car rental rates, according to a recent market study.
Economy class tickets from MENA to Europe, Asia, and America now average $510, while business class fares reach $2,084, according to research by Tumodo, a UAE-based online travel platform, and Admitad, a partnership marketing platform.
“Each sub-region in MENA has its own trends, like the UAE, where business travel accounts for 14.5 percent of the region’s total,” said Vladimir Kokorin, founder of Tumodo, highlighting the market’s growth and evolving dynamics.
The study found that 88 percent of business travel tickets were for economy class, 10 percent for business class, and 2 percent for first class. It also noted a 17 percent increase in car rentals for business trips in recent months compared to 2023, indicating a preference for flexible transportation.
The rise in business travel coincides with the Global Business Travel Association’s forecast that the Middle East’s business travel sector will grow by 11.2 percent in 2024. Last year, the region’s business travel spending exceeded pre-Covid levels, reaching $17B.
Pakistan, Kuwait, and Saudi Arabia were identified as the top destinations for travellers from Dubai. The study also noted a significant shift towards mobile bookings, which have grown to 32 percent between 2022 and 2024, driven by user-friendly interfaces, transparent spending, and AI-driven technologies.
In Q1 2024, targeted and contextual ads accounted for 25 percent of purchases, while content platforms contributed 22 percent, highlighting the need for a multi-channel approach for travel companies.
