December 11, 2023

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UAE residents’ 2023 summer time journey spending surges by 20% as demand for ‘reasonably priced luxurious’ rises

3 min read

Dubai: UAE residents are spending a minimum of 20 per cent extra on their summer time journey this yr, in comparison with their 2022 budgets. Business sources attribute the surge in spending to a ten to fifteen per cent rise in flight ticket costs in 2023.

Sapna Aidasani, Advertising and marketing Director at Pluto Travels, mentioned that in 2022, the common journey budgets per particular person ranged from Dh3,500 to Dh4,000. Nonetheless, presently, residents usually are not hesitating to spend Dh4,500 to Dh5,000. For vacationers in search of immersive and luxurious experiences, budgets have additional elevated to Dh18,000 per particular person from Dh15,000, surpassing even the pre-2019 ranges.

Travellers are choosing extra luxurious choices in land preparations, together with motels and sightseeing. And that is contributing to the general hike in journey prices. Visa Inc. on Wednesday (July 26) reported that fee quantity climbed 9 per cent to $3.17 trillion within the fiscal third quarter ended June 30 attributable to shoppers’ willingness to spend on journey and leisure.

“The lion’s share of the journey bills has gone up due to a steep hike in airfares (34 per cent in comparison with fares final yr) to hottest journey locations,” mentioned Aidasani. Whereas resort each day room charges haven’t risen considerably, travellers now go for five-star lodging (in comparison with three-star and four-star properties), in search of extra experiential and immersive journey experiences.

Persons are keen to allocate larger budgets for these choices, transferring past sightseeing. They need experiential and immersive experiences, even when it means larger journey budgets.

– Sapna Aidasani

Increased airfares

The airline trade returned to profitability final yr because of strong demand and travellers’ willingness to pay larger fares. And by the seems of it, tendencies are persevering with to develop this yr as nicely, contributing to the steep rise in journey bills.

Furthermore, even common travellers are choosing Premium Financial system or Enterprise Class seats, mentioned Raheesh Babu, COO of

Many are selecting to raise their journey experiences with Premium Financial system flights and minimal 4-star lodging

– Raheesh Babu

In line with Airports Council Worldwide (ACI), UAE recorded a staggering 34 per cent improve in ticket costs between This autumn-2019 and This autumn-2022. Return Financial system charges to Istanbul averaged Dh1,741 (on Pegasus Airways and flydubai) in comparison with about Dh1,500 in 2019-2022.

Return airfares to Bangkok (on Emirates) are going for Dh3,965-Dh4,384, in comparison with the Dh2,154 summer time fares since 2019. These to London are at Dh3,019-Dh4,252 (on British Airways) in comparison with Dh1,779 in 2019. Enterprise Class and Premium Financial system airfares to those locations averaged Dh7,415 (Tel Aviv) to Dh 19,095 (London) on varied airways.

Immersive experiences

The newly launched Ras Al Khaimah-based vacation spot administration firm Safarak Journey and Tourism lately revealed a (luxurious) journey expenditure breakdown of UAE residents. “The survey (shared with 500 UAE residents) revealed the common expenditure of respondents on varied points of a 7-day vacation, per particular person,” mentioned Cathy Mead, Basic Supervisor of Safarak Journey and Tourism.

The figures embody Dh 11,202 for lodging, Dh11,462 on flights, Dh 8,363 for transfers, Dh 8,504 for buying, Dh 8,652 for leisure/actions, Dh 8,205 for clothes, Dh 7,984 for insurance coverage, Dh 8,109 for foods and drinks. Pre-2019 and 2022 figures had been a minimum of 20 per cent lesser.

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Throughout August, households and people within the UAE are embarking on prolonged trip journeys.

“The common period is 5-6 nights; nevertheless, some are extending their getaways to 10 days,” mentioned Babu. He added, “This yr, we have now witnessed an distinctive rise in leisure packages booked, with over 15,000 packages bought, greater than doubling our pre-2019 numbers.”

Alongside the demand for reasonably priced luxurious, UAE travellers are more and more in search of journey sports activities and cultural immersion, including distinctive components to their holidays, which raises prices.

High vacation locations

The highest 5 most popular vacation locations amongst respondents for the following 12 months embody the Caribbean (26 per cent), France (25 per cent), Germany (20 per cent), China (17 per cent), and Greece (17 per cent). “Just below a fifth (19 per cent) of respondents indicated a choice for activity-focused holidays, comparable to snowboarding, climbing, or browsing,” mentioned Cathy.

Social media performs an enormous position

In line with Cathy, social media performs a vital position in shaping respondents’ vacation selections, with 36 per cent citing it as their main supply of inspiration.

Instagram emerged as the popular social media platform, with 61 per cent of respondents actively utilizing it for travel-related content material.

– Cathy Mead

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