UAE: Flights, Hotel Rates Go Up By 30% But Only 3% Of Residents May Cancel Travel Plans

UAE: Flights, Hotel Rates Go Up By 30% But Only 3% Of Residents May Cancel Travel Plans

About 77 per cent of travellers in the UAE have noted an increase in travel expenses, a survey has found. However, only three per cent would consider postponing or cancelling their trips, according to Visa’s 2023 Global Travel Intentions Study. The survey found a “significant surge in travel activity with no signs of slowing down” even amid rising costs.

Mohamed Bardastani, chief CEMEA Economist at Visa, told Khaleej Times that travel expenses from airfares to accommodations have risen significantly post-Covid and remained “somewhat elevated for a sustained period without a meaningful retreat”.

“There were several reasons behind this price surge — from global inflation pressures, rising geopolitical tensions, tightening energy markets, etc. But none of this has curtailed consumers’ insatiable demand for travel, with consumers increasingly prioritising and valuing their ‘me time’, especially their travel experiences. Our research shows while 77 per cent of consumers were aware of the rise in travel costs, 45 per cent said this is unlikely to change their travel plans.”

A top executive from UAE-based online travel agency Musafir said all aspects of travel costs have increased. Raheesh Babu, COO of the travel management company, explained: “While travel expenses have undoubtedly increased compared to pre-pandemic levels, it’s remarkable