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Monday, March 27, 2023

International travel ‘set to see even greater growth in 2023’

International travel ‘set to see even greater growth in 2023’

According to Musafir.com, the UAE’s leading online travel agency, the international travel market will experience faster growth in 2023 compared to the previous year.

“Tourism accounts for nearly 10% of global GDP1 and national authorities have been working together to achieve the levels of safety, hygiene and comfort the industry needs to regain lost ground,” said co-founder Sachin Gadoya. Also CEO of Musafir.com and Musafir Business.

“Thus, a steady recovery in leisure and business travel in FY2022 due to significantly lower pandemic-related risks, global travel regulatory easing, increased traveler confidence, and a desire at the corporate level to resume production-personnel engagement. This trend will only continue in the Strengthened in 2023.”

Data and trend forecasts collected through inquiries and bookings on the Musafir Business platform indicate that business travelers will continue to opt for first and business class despite an increase in ticket prices of around 10-15%. The premium economy travel model further expands the options for such travelers.

All in all, the average corporate travel budget in 2023 will increase by 15-20%, to levels comparable to pre-pandemic levels.

Gadoya added: “Insights gained from the Musafir business platform show very clearly that organizations in the UAE prefer face-to-face interactions to build trust and long-term business relationships. The average annual business travel spend of 2019 will grow by 15-20% – from AED 185,000 (US$ 50,300) (2022) to AED 220,000 (in 2023), which is indeed very close to the pre-pandemic figure of 2019, That’s Dh250,000.”

GCC, India, UK, EU countries and US will continue to be the main inbound and outbound destinations for business travelers in the region, not only for regular meetings with colleagues/partners in various offices, but also to pass Attend exhibitions, conferences, trade shows and more to build new relationships.

Covid is challenging the cruise market like never before. Cruises will be one of the top travel trends in 2023, offering travelers the unique opportunity to discover new destinations combined with plenty of activities for everyone on board.

In terms of leisure, Kazakhstan, Georgia, Azerbaijan, Armenia, Serbia, Albania, Kyrgyzstan, and Uzbekistan are the key choices of holiday destinations for UAE tourists in 2022.

Musafir.com expects the CIS countries to continue to be the top choice for leisure travelers in the UAE.

“Passengers from the UAE like to visit these countries due to the cooler weather and acceptable 3-4 hour flight time. Not only are these places suitable for holidays with families and kids, but there are plenty of budget hotels and great shopping at these destinations There are good value hotels to choose from. Overall, these resorts provide customers with great value for their money,” adds Gadoya.

This preference for value propositions such as airfare and accommodation will also continue into 2023. Gardoya also highlighted that leisure travel to the UK and EU countries, especially the UK, France and Switzerland, is expected to increase by 2023 compared to returning home.

“Travel restrictions and visa challenges caused by the pandemic are not allowing many travelers to visit these destinations. Demand for holidays in the UK and EU countries will soar in 2023 as the situation eases,” Gadoya explained.

Additionally, leisure travelers from the UAE prefer to visit countries that offer hassle-free and easy visas, which may be e-Visa, visa-on-arrival or visa-free destinations.

Holiday spending per capita is also expected to increase by 15-20% from AED 2,500 in 2022 to AED 3,000 in 2023, mainly due to higher airfares. Therefore, pricing flexibility and available options may influence travelers’ choice of airlines and hotels.

“Based on the learnings and insights processed at our Technology and Innovation Centers in the UAE and India, the industry should be poised to offer a balanced mix of budget and luxury options for outbound leisure travelers. We expect budget and luxury travel demand to remain at 50% each % level. Furthermore, we see a clear bias in the demand for flexible fares in the coming year,” Gadoya added. – trade arab news agency

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