VIDEC Consultants has released insights from its latest VIDEC’s GCC & Egypt Travel Market Study, 2019-2028.
VIDEC is a boutique research, consulting, and M&A advisory company with a singular domain focus on the global travel, tourism, and hospitality industry. The company undertook an independent, rigorous and unbiased research covering air and hotel categories, with an emphasis on the role of online travel intermediaries in the six GCC markets and Egypt. The research employs a highly complex demand-side methodology, taking in-to account only the bookings made from the local point of sale (POS). It excludes transit/transfers and bookings made from other POS, to pertinently arrive at the true potential of the UAE’s travel demand.
Key takeaways:
- The UAE’s air market is valued at US$4.2 billion in 2024, with an online penetration of 37%, as long-haul flyers and blue-collar workforce tend to book air offline.
- The UAE’s OTA air market reaches $679 million in 2024. MakeMyTrip dominates the UAE OTA air market with 44% market share.
- Hotel market in the UAE is estimated at $2.9Bn in 2024 with 44% of the hotel GBV booked online.
- The UAE’s OTA hotel market was valued $940 million in 2024, with Booking.com as the market leader controlling over half of the OTA hotel market.
The study highlights that UAE continues to remain one of most competitive and lucrative market for both regional and global online travel agencies (OTAs). Driven by a strategic geographical location, diverse expatriate population, and rising consumer preference for digital convenience, the UAE OTA market exhibits significant dynamism.
OTA air market benchmarking
The study shares that the UAE OTA air Gross Booking Value (GBV) was valued at $679 million in 2024, marking a substantial 20% increase over the previous year. By 2028, it is estimated to cross $1.1 billion, growing at a 12.6% compound annual growth rate (CAGR) during 2024-2028.
This growth is fueled by the UAE’s dynamic market environment, characterized by an extensive network of airlines and large, diverse diasporas, particularly from Southeast Asia and South Asia, who actively seek competitive airfares.
Key insights from the research includes:
- MakeMyTrip Dominates: With 44% market share and $300 million in GBV in 2024, MakeMyTrip remains the leading OTA air player, benefiting from strong brand resonance among the substantial Indian diaspora. Leveraging its robust playbook from India, MakeMyTrip’s strategic investment in technology, content, and supplier relationships has positioned it ahead of competitors.
- Cleartrip Path to Recovery: Cleartrip, the second-largest OTA in the air category with a 21% market share, continues to enjoy brand recall in the UAE. Cleartrip Arabia recently completed a management buyout of Cleartrip’s Middle East business from Flipkart. Led by original team members, the company’s new direction posits well for it to regain its lost ground.
- Emergence of Regional and Global Competitors: Book on Wego, the merchant arm of the GCC region’s largest metasearch platform Wego, the recent foray of China’s Trip.com, as well as a meaningful presence of the home-grown OTA Travelwings further precipitates the UAE’s competitive OTA landscape.
OTA hotel market benchmarking
The study reveals that the UAE’s OTA hotel market, valued at $940 million in 2024, is equally robust, reflecting an ongoing consumer shift toward digital bookings. Owing to their early entry, the global players dominate the UAE’s OTA hotel landscape. As category builders, global OTAs have had a first-mover advantage besides their deep relationships and commercial prowess with regional and global hotel chains.
Key insights from the research includes:
- Accelerating Growth: The OTA hotel market is forecasted to expand at an 11.1% CAGR during 2024-2028 to reach $1.4 billion.
- Booking.com Leads Hotel OTA Segment: Booking.com maintains its dominant position with a commanding 54% market share and a GBV exceeding half a billion dollars in 2024.
- Global Players Remain Strong: Agoda, the other Booking Holdings brand, stood third with an 18% market share. It is close on the heels of Expedia Group, the second largest OTA with 21% hotel OTA market share. Expedia with an estimated GBV of $195 million still has a meaningful presence in the region’s B2B hotels.
“We are exuberant about the research findings which will serve as the foundational reference for the UAE’s travel market opportunity. The UAE remains a strategic aviation and travel hub, providing unparalleled opportunities for local, regional, and global OTA players,” said Virendra Jain, Co-founder and CEO at VIDEC. “The UAE is an ultimate global village, and its cosmopolitan nature presents unique challenges yet rewarding potential for those adept at catering to its diversified customer base.”
Collectively, local and international OTA players continue to leverage technology, market knowledge, and strategic alliances, cementing the UAE’s position as a hotspot for travel innovation and future growth.
This article is part of a series on the UAE, Saudi and other GCC travel markets, written by Virendra Jain. He will be headlining a session called ‘Uncovering the Middle East Travel Market’ at WiT Phocuswright Middle East on April 25, 2025. The session aims to be a critical analysis of the Middle East travel market, while highlighting recent developments in the hospitality and travel industry as well as some key trends on the regions suppliers and intermediary nuances.
Virendra Jain will be speaking at our upcoming event, WiT Phocuswright Middle East, on April 25 at Grand Plaza Mövenpick Media City, Dubai. Jain will provide a critical analysis of the Middle East travel market, and highlights of recent developments in the hospitality and travel industry as well as some key trends on travel customer preferences, decision making process and personas. Get your tickets now.
