Nasdaq-listed MakeMyTrip Emerges as the Market Leader in UAE’s OTA Air Landscape
India-based travel research and M&A advisory company VIDEC Consultants, for the first time, has sized the GCC & Egypt travel market opportunity from a highly complex demand-side methodology.
VIDEC undertook an independent, rigorous and unbiased, multi-client syndicated research covering air and hotel categories for Saudi Arabia, UAE, Qatar, Kuwait, Oman, Bahrain and Egypt, with an emphasis on the role of online travel intermediaries. By focusing exclusively on bookings made through local point of sale (POS), the study offers a pertinent assessment of UAE’s true travel market potential.
The UAE total air market is valued at $3.9 billion from the demand-side in 2023, and is projected to reach $5.4 billion by 2028. This makes UAE the second biggest air market in the region, only behind Saudi Arabia ($6.3 billion in 2023).
Online air market was estimated at $1.3 billion in 2023, which is 34% of the total air market of $3.9 billion. The airline.com/app has 55% share and online travel agency (OTA) has 45% share in the online air market.
UAE’s online travel agency (OTA) air market, one of the most competitive and dynamic worldwide, is valued at $566 million in 2023, which is 45% of online air market. Banking upon its technology and product prowess, the Indian OTA market leader MakeMyTrip, has managed to replicate its playbook in UAE. It has gained a strong leadership position in UAE OTA air market with 44% market share, followed by Cleartrip MEA. The UAE OTA air market is estimated to double, reaching $1.1 billion by 2028, as the OTAs pursue growth in non-B2C categories, especially corporate and traditional travel retailing.
Adding to this Virendra Jain, CEO and co-founder of VIDEC, said, “We are super stoked to release this research which will serve as the foundational reference for the GCC & Egypt’s travel market potential. UAE has a large share of expat pop and a vast diaspora from South and Southeast Asian countries. This makes it a conducive market for many regional & global brands. Moreover, UAE being a hub creates a plethora of airline and destination choices, making it a fertile ground for OTAs whose primal role is to offer choice and convenience to travelers.”
Last Updated on 3 weeks by News Desk 1
