RateGain’s PULSE powered by Adara suggests that the Middle East Would Lead the Growth in Travel Demand in 2023
Analyzing Adara’s travel-intent data, the world’s most comprehensive travel-intent data platform, the report highlights that business travel to the MEA region is soaring high in 2023
RateGain Travel Technologies Limited (RateGain), a global provider of SaaS solutions for travel and hospitality, through its latest PULSE report powered by Adara, shared that the Middle East region will beat all other travel markets in the rate of recovery for travel demand In the upcoming quarter.
Analyzing Adara’s travel-intent data, the world’s most comprehensive travel-intent data platform, the report highlights that business travel to the MEA region is soaring high in 2023 after having surpassed the pre-pandemic levels in December 2022 itself. International arrivals in MEA are estimated to be 15% higher in summer 2023 than the all-time high figures of 2019.
Turkey has received the maximum leisure travel bookings for the next quarter, while UAE continues to be the top business arrival destination. Way ahead of the global travel recovery, foreign arrivals in Turkey will be at a YoY high of 40–50% for the upcoming quarter. Demand for leisure travel is being driven by travelers from the U.S. and Europe, while business travel demand in the region comes from the APAC region. Travelers from the U.S. have been keen on their travel intent as 25-30% of searches for hotel bookings in MEA are seen to originate in the U.S.
Countries with the Highest Inbound Traffic in the Middle East
In the upcoming quarter, we estimate that the Middle East and Africa region will maintain its growth pattern and exceed business travel spending levels seen before the pandemic. We can observe this growth through the surge in prices of flights to Dubai from Asia-Pacific and a comparatively higher ADR for hotel bookings in Egypt and Saudi Arabia vis-à-vis last year, propelled by the demand during Ramadan.
Demand for hotel rooms with ADR> $400 for Egypt over the past few years
The region’s ability to adapt and innovate in response to changing circumstances was a vital driver of the recovery. The price and proximity of travel destinations from key demand regions have also been significant factors that steered the recovery in the market. While the West has been facing inflationary issues, the MEA region has become a lucrative market for travel expenditure. Leisure travelers choose to spend their vacations in countries with attractive exchange rates. Unsure of the probability of favorable currency exchange lasting long, travelers also book their holidays well in advance when they can reap the benefits of their stronger currency.
The region is also evolving to drive more leisure travel, innovative experiences, and sustainable tourism. The pandemic has changed how people travel, and there is a rise in group, family, and couple vacations. Shorter vacations are in and planned advance bookings are on the rise. People are more mindful about their travel and look at it as a way of investing in themselves. To cater to their demand for personalized, independent, and safe travel, travel organizations must understand the demand well, and act quickly upon it.
Adara’s travel-intent data platform and solutions, powered by over 270+ brands with over 24 billion data elements and 1.5 billion digital identities, is used by leading airlines, hotel chains, tourism organizations, OTAs as well as luxury retailers to segment their audiences better and drive higher ROI on their marketing spends.