One of the key hurdles lies in the economics of last-mile delivery
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UAE residents are now getting more options to choose new tourist destinations at much lower prices as budget carriers expand their networks to popular destinations in Western Europe and Southeast Asia.
Travel industry insiders say that both Emirati and expat families are increasingly opting for budget travel to save money, which they can spend on their hotel and travel experiences.
UAE's low-cost airlines such as Air Arabia, Flydubai, Air Arabia Abu Dhabi and Wizz Air have introduced numerous new destinations across different regions, allowing travellers to explore new destinations that they have not yet explored.
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These carriers are aggressively expanding their aircraft fleets which allow them to serve destinations beyond a five-hour travel radius such as the Indian subcontinent, the Middle East, Georgia, Armenia and other similar places.
Air Arabia this month announced the launch of its service to Vienna (Austria) in December 2024, selling one-way tickets to Vienna for only Dh399. The Sharjah-based airline has also launched its service to Athens (Greece), Krakow (Poland) and Phuket (Thailand).
Flydubai also operates flights to the Greek cities of Corfu and Santorini, Dubrovnik (Croatia) and Olbia (Italy). Similarly, other low-cost airlines serve many destinations that are not served by full-fledged airlines.
Interestingly, UAE residents can book return tickets to European destinations on budget carriers for less than Dh1,977 for nil baggage and Dh2,140 for a 20kg baggage allowance. This is compared to Dh3,500 on a full-fledged commercial airline.
Regionally, Oman’s low-cost carrier Salam Air also has some connecting flights that UAE residents can benefit from.
According to aviation consultancy OAG, low-cost carriers in the Middle East have increased their share of the market by one per cent in July 2024, up to 28 per cent. Flyadeal, Air Arabia, FlyDubai and Jazeera Airways are all recording steady growth in July, ranging from 5-7 per cent year-on-year.
Raheesh Babu, COO of musafir.com, said the additions of new and unserved destinations by low-cost carriers are giving more choices to UAE travellers to explore cost-effectively.
“There will be price benefits and families will have more choices for their holiday trips to popular European and Asian tourist destinations.”
Mir Wasim Raja, manager for MICE and holidays at Galadari International Travel Services, said many UAE residents are choosing low-cost carriers because airfares are cheaper and they can spend the saved money on experiences and better quality hotels.
“Residents used to cancel their travel plans to such popular tourist destinations of five-plus hours because it was beyond their budgets. But now, low-cost carriers are serving many new destinations. People now think that it is a matter of just six hours, so they choose low-cost carriers and spend more on high-end hotels and experiences at the destination. Demand is growing from both expat and Emirati families for such options,” he said.
Shamsheed CV, senior consultant for outbound travel operations at Wisefox Tourism, said the introduction of Wizz Air Abu Dhabi was a game-changer in the local aviation sector, especially for budget-conscious travellers.
“Now, families and young people fly in groups and prefer budget carriers for long-haul places due to the affordability factor.”
Mir Wasim Raja added that airfares on low-cost carriers are around Dh1,000 to Dh1,500 less than full-fledged carriers on popular destinations such as Vienna and Phuket, allowing UAE travellers to save around 40 per cent per person on their travel tickets.
Raheesh Babu said families in the UAE could easily save 30 to 35 per cent with their long-haul trips on low-cost airlines to popular tourist destinations.
“Demand for budget carriers for such spots is strong and growing. Earlier, middle-class families were travelling only within a three-to-four hour travel radius due to budget constraints. But now, they can go to popular tourist places beyond the five-hour flight radius at the same cost, thanks to budget carriers who have introduced new destinations." he said.
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