Flights, hotel rates go up by 30% but only 3% of residents may cancel travel plans
The cost of travel has surged by around 30%, encompassing increased flight and hotel rates, yet only a minimal 3% of UAE residents appear inclined to cancel or postpone their travel plans. Visa's 2023 Global Travel Intentions Study highlights this trend, revealing a robust demand for post-pandemic travel experiences despite the heightened expenses.
Mohamed Bardastani, Visa's chief CEMEA Economist, emphasizes the sustained elevation of travel expenses, spanning airfares and accommodations, without a notable decline post-Covid. Several factors contribute to this price surge, including global inflation, geopolitical tensions, and energy market constraints. Nonetheless, consumers remain steadfast in their desire for travel, prioritizing personal leisure experiences.
The survey underscores that while 77% of consumers acknowledge the rise in travel costs, a substantial 45% express no intention of altering their travel plans. This steadfast attitude towards travel reflects the enduring value individuals place on their leisure experiences, particularly in the post-pandemic era.
Raheesh Babu, COO of the UAE-based online travel agency Musafir, corroborates the upward trajectory of travel expenses, noting significant increases across all aspects of travel. Flight prices have surged by 20-30%, attributed to heightened demand and capacity limitations, while hotel rates have also seen a comparable rise, partially driven by the resurgence of business travel post-pandemic.
Despite the escalating costs, the Visa survey unveils the robust travel habits of UAE residents, who embarked on an average of two international trips lasting approximately 10 days each over the past year. Notably, India, Egypt, and Saudi Arabia emerged as top destinations for UAE travelers, with relaxation being the primary motive followed by familial visits, exploration, and adventure-seeking.
In conclusion, while the surge in travel expenses poses a notable financial challenge, it has not dampened the enthusiasm of UAE residents for globe-trotting adventures. The resilience of consumer demand underscores the enduring significance of travel experiences in people's lives, even amidst economic uncertainties and rising costs. As individuals prioritize leisure and exploration, the travel industry continues to adapt to meet the evolving needs and preferences of travelers in the post-pandemic landscape.
By: Sahiba Suri
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