UAE residents’ 2023 summer travel spending surges by 20% as demand for ‘affordable luxury’ rises

UAE residents’ 2023 summer travel spending surges by 20% as demand for ‘affordable luxury’ rises

Dubai: UAE residents are spending at least 20 per cent more on their summer travel this year, compared to their 2022 budgets. Industry sources attribute the surge in spending to a 10 to 15 per cent rise in flight ticket prices in 2023.

Sapna Aidasani, Marketing Director at Pluto Travels, said that in 2022, the average travel budgets per person ranged from Dh3,500 to Dh4,000. However, currently, residents are not hesitating to spend Dh4,500 to Dh5,000. For travelers seeking immersive and luxury experiences, budgets have further increased to Dh18,000 per person from Dh15,000, surpassing even the pre-2019 levels.

Travellers are opting for more luxury options in land arrangements, including hotels and sightseeing. And this is contributing to the overall hike in travel costs. Visa Inc. on Wednesday (July 26) reported that payment volume climbed 9 per cent to $3.17 trillion in the fiscal third quarter ended June 30 due to consumers’ willingness to spend on travel and entertainment.

“The lion’s share of the travel expenses has gone up because of a steep hike in airfares (34 per cent compared to fares last year) to most popular travel destinations,” said Aidasani. While hotel daily room rates haven’t risen significantly, travellers now opt for five-star