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Business travel witnesses a surge in the Mena region

Data shows 35% rise in booking value

The business travel sector in the Mena has grown since last year, surpassing $17 billion, data shows.

Internal data from Tumodo, an online business travel platform, indicates a 35 per cent increase in booking value, a 20 per cent reduction in carbon dioxide emissions, and the incorporation of AI-driven predictive analytics to optimise budget forecasts, implement effective travel policies, and maximise savings.

Business travellers predominantly choose airlines such as Emirates, Turkish Airlines, Qatar Airways, and Flydubai, respectively. Throughout the year, Dubai remained a central hub for travel, with round-trip journeys to London, Riyadh, and Cairo being consistently popular. As the year progressed, new routes emerged, such as round trips between Yerevan and Belgrade, and one-way flights from Dublin to Belgrade. Furthermore, there was a shift in passengers’ choice of travel class: 70 per cent opted for economy, 29 per cent chose business class, and less than 1 per cent selected first class.

Train travel has also gained traction among customers, reflecting a growing preference for sustainable options. Through its operations, Tumodo actively supports this shift towards eco-friendly transportation, contributing to the UAE Environment Vision 2030 goals and promoting environmentally conscious choices. For example, the sectors most actively utilising Tumodo’s services encompass energy, mining and extraction, information technology, gaming, construction, and real estate development.

Tumodo reported a 250 per cent increase in bookings in 2024 compared to the previous year. The average booking value has risen by 35 per cent, with the average trip duration averaging 5 to 6 days. September emerged as the most active month for reservations, signalling the onset of the business season in the Middle East.

Vladimir Kokorin, the founder of Tumodo, commented: “The rapid growth we have seen this year mirrors our clients’ changing needs. Our new reports and analytics, featuring robust filters, AI predictions, and CO2 tracking, help companies save up to 15 per cent while refining travel policies and budget forecasts. Additionally, integrations with platforms that enhance operational efficiency.”

Tumodo has observed a surge in demand for additional services: visa support increased by 15 per cent, transfers by 11 per cent, and events by 7.25 per cent. Additionally, customer preferences for hotel categories have shifted: 39 per cent favour five-star hotels, followed closely by 36 per cent opting for four-star. Meanwhile, 13 per cent prefer three-star establishments, 2 per cent select two-star properties, and nearly 9 per cent choose not to specify their preference.

Industry experts foresee that by 2024, business travel expenditures across the Middle East, notably including the UAE, will soar to $1.48 trillion globally, buoyed by a vigorous regional growth rate of 11.2 per cent.

This expanding market is being transformed by the rise of online travel services and prompt a shift in industry leadership. A major upcoming innovation is multimodal transportation, where clients provide basic details and receive personalised, efficient itineraries based on their preferences, ideal for complex logistical situations. The preference for minimal human interaction and comprehensive technological solutions addressing all aspects of business travel, from booking to cost optimisation, will continue to shape the industry’s evolution.