MakeMyTrip dominates UAE’s online travel agency air market – ET TravelWorld

India-based travel research and advisory firm VIDEC Consultants has conducted a pioneering study sizing the travel market opportunity across the GCC and Egypt, utilizing a robust demand-side methodology to provide insights into the air and hotel segments. The analysis spans Saudi Arabia, UAE, Qatar, Kuwait, Oman, Bahrain, and Egypt, with a specific focus on the role of online travel intermediaries.

This independent and comprehensive research emphasizes bookings made through local points of sale (POS), offering a detailed view of the UAE’s actual travel market dynamics. The UAE’s total air market was valued at USD3.9 billion in 2023, with projections reaching USD5.4 billion by 2028. This positions the UAE as the second-largest air market in the region, trailing only Saudi Arabia, which is valued at USD6.3 billion in 2023.

Within the UAE’s air market, the online segment is estimated at USD1.3 billion in 2023, representing 34 per cent of the total air market. Of this, 55 per cent comes from airline direct channels (websites and apps), while 45 per cent is attributed to online travel agencies (OTAs).

The UAE OTA air market, one of the world’s most competitive, was valued at USD566 million in 2023. Indian OTA leader MakeMyTrip has leveraged its technological expertise and product innovation to secure a dominant position in this market, capturing a 44 per cent share. It is followed by Cleartrip MEA. The UAE OTA air market is forecasted to double, reaching USD1.1 billion by 2028, as OTAs expand into non-B2C segments like corporate travel and traditional travel retailing.

VIDEC’s CEO and co-founder, Virendra Jain, commented on the findings: “We are thrilled to release this research, which offers a foundational reference for assessing the GCC and Egypt’s travel market potential. The UAE’s large expat population and diverse diaspora from South and Southeast Asia create a fertile environment for regional and global brands. Additionally, as a hub offering numerous airline and destination options, the UAE provides OTAs with an ideal platform to deliver choice and convenience to travelers.” The study underscores the UAE’s status as a dynamic and evolving market, with significant growth potential for online travel agencies and related sectors.