(MENAFN- Khaleej Times) Breaking down gross bookings across UAE from direct supplier websites are expected to account for 51 per cent of all online revenue mobile for 17 per cent and OTAs for 32 per cent.
Middle East’s online travel market value is projected to advance from $18 billion to US$35 billion in the next three years according to a report.
The report titled ‘Middle East online travel review released by Amadeus indicates that growing smart-phone penetration and connectivity among the youth coupled with a thriving airline industry in the region is anticipated to shape the multi-segmented online travel industry.
Furthermore over a period of five years UAE’s online gross bookings have increased approximately three-folds on the back of a burgeoning affluent middle-class possessing an inclination to travel nearly four times in a year.
Amadeus released the findings at a Press conference at Arabian Travel Market on Tuesday.
Addressing the media Amadeus vice-president for Mena region Antoine Medawar said it is encouraging to see such positive forecasts for the region.
“We can all feel optimistic signs of growth in the online travel sector across most countries in the region which is certain to have a halo effect on the overall GDP.”
In partnership with PhoCusWright the Amadeus-commissioned report forecasts a 42 per cent online travel penetration in the UAE market over the next three years outpacing the entire Gulf region’s 36 per cent growth outlook during the same period.
Breaking down gross bookings across UAE from direct supplier websites are expected to account for 51 per cent of all online revenue mobile for 17 per cent and OTAs for 32 per cent.
The report highlighted that traditional airlines are likely to acquire 59 per cent of online revenue via their own websites- an advance from 23 per cent to 33 per cent in the next three years. However low-cast carriers are expected to soar 80 per cent from 70 per cent by 2018.
Meanwhile hotels will gain only 21 per cent of their online revenue. Subsequently hotels will generate 75 per cent of online revenues via OTAs.
“It is imperative that the travel industry gets ready for this phenomenon and much of what Amadeus has on display at the Arabian Travel Market this year reflects our commitment to addressing these future trends” Medawar said.
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