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UAE residents face soaring end-of-year ticket prices amid demand for top destinations

The surge in seasonal travellers drives up demand for flights, vacation packages, enabling airlines, hotels, and travel agencies to increase their rates

Published: Sun 13 Oct 2024, 3:07 PM

Updated: Thu 24 Oct 2024, 5:14 PM

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As the end-of-year travel season approaches, residents and expats in the GCC are busy planning vacations or trips back home. However, airfares to some of the most popular destinations for GCC travellers are all pricier this year.

Ticket prices are likely to be 10.81 per cent higher on average than during the same period last year. Meanwhile, flight ticket prices to Kuwait are the sole outlier, being 7.33 per cent cheaper than last winter.

Mamoun Hmedan, chief business officer of Wego, stated that the price increase is a forecast for the top ten destinations for GCC travellers. Explaining the reason behind this price hike, Mamoun said, "This surge in prices is driven by several factors, including heightened travel demand, inflationary pressures, and rising fuel costs. Airlines have adjusted pricing to balance the increased demand with escalating operational expenses."

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However, Mamoun said data reveals that despite higher fares, travellers from GCC are eager to visit popular destinations like London, Paris, and Dubai, "reflecting continued recovery and growth in the global travel sector, even as the cost of air travel rises."

According to Wego, a travel app and online marketplace, Cairo is the most popular city for GCC travellers. Jeddah, Istanbul, Cochin, Bangkok, Lahore, London, Dubai, and Kuwait round out the top ten most-searched cities, according to Wego's search data so far. Travellers to these destinations are advised to book tickets as early as possible to avoid further rising prices.

UAE residents, gearing up for their Christmas and New Year celebrations journeys, already feel the pinch of this price hike.

Antonio Dicipulo, who has booked his tickets to Manila said, "Airfare tends to be significantly higher during December due to peak season demand. This time, I have noticed prices are a bit elevated compared to my last trip. But there was nothing I could do as I wanted to be with my family during festive season."

The 45-year-old Filipino booked his tickets well in advance in anticipation of price hike. "Booking closer to your travel date usually results in higher fares, which can differ from one airline to another. Additionally, it's important to compare prices among carriers, as they can vary greatly."

Egyptian expat Hussain Mahmoud was shocked to see airfares to Cairo nearly double. The last time she travelled home, a round trip in July cost her Dh1,830. "But now, when I checked with the same airline, a one-way ticket is Dh1,155."

Weighing in on the reason for the price increase, Geoffrey Salatan, CEO of Geof Travel, said, "Rates typically rise during the winter due to increased demand, driven by several factors. One major reason is the winter school break, which coincides with major holidays like Christmas and New Year. This period is often considered ideal for family vacations or visiting loved ones, making it a popular time for group travel.

"The high volume of travellers during this season leads to increased demand for flights, accommodations, and vacation packages, which allows airlines, hotels, and travel agencies to raise prices. Additionally, with limited availability due to the surge in bookings, prices naturally increase as people compete for the best options. These factors make winter one of the busiest and most expensive times for travel."

Winter travel insights

Wego's data suggests that much of the interest in the top destinations stems from the substantial Egyptian and Indian expat populations in the GCC. Expats from Egypt and India are expected to take advantage of the year-end break to visit their home countries.

Wego’s research highlights a growing interest among GCC travellers in Europe as a prime destination for festive year-end getaways. While London remains a perennial favourite, thanks to the ease of entry for GCC citizens who can obtain an Electronic Travel Authorisation (ETA), other European cities are gaining popularity for their unique experiences and convenient accessibility.

Moscow, with its enchanting winter landscapes and rich cultural heritage, is an appealing choice for travellers seeking a magical winter atmosphere. Meanwhile, cities like Baku and Tbilisi have emerged as attractive options, offering a blend of modern amenities and rich history, all within a short distance from the GCC. Direct flights to these destinations typically take under 4 hours, making them ideal for a quick, hassle-free escape.

Additionally, cosmopolitan cities like Milan and Paris continue attracting travellers seeking to indulge in world-class shopping, fine dining, and festive celebrations. The charm of these cities during the winter season, from their holiday markets to cultural events, offers GCC travellers a sophisticated and festive retreat.

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