As the summer of 2023 unfolds, UAE residents are embarking on a journey of unparalleled travel experiences, with budgets reflecting their willingness to indulge in the art of luxurious exploration. This feature story delves into the reasons behind the surge in travel expenses, the growing demand for immersive experiences, and the top preferred holiday destinations.
The Rising Travel Expenses
Industry sources reveal that UAE residents are spending at least 20% more on their summer travel this year compared to 2022. The spike in spending can be attributed to a notable increase of 10% to 15% in flight ticket prices throughout 2023. The lion’s share of travel expenses is primarily due to steep airfare hikes of up to 34% to popular destinations. Despite these soaring costs, residents are not hesitating to splurge on their wanderlust dreams.
The Quest for Luxurious Experiences
According to Sapna Aidasani, Marketing Director at Pluto Travels, the average travel budgets per person ranged from Dh3,500 to Dh4,000 in 2022. However, this year, residents are more than willing to spend Dh4,500 to Dh5,000, showcasing their desire for richer travel experiences. For those seeking immersive luxury, budgets have soared to Dh18,000 per person, surpassing even the pre-2019 levels.
Beyond just lavish flights, travelers are increasingly opting for luxurious accommodations, including five-star hotels and engaging sightseeing activities. The shift towards more opulent land arrangements has contributed to the overall hike in travel costs, as reported by Visa Inc., whose payment volume climbed 9% to $3.17 trillion in the fiscal third quarter of 2023 due to consumers’ spending on travel and entertainment.
Airfare Trends and the Pursuit of Premium Travel
The airline industry’s return to profitability in the past year, fueled by robust demand and a willingness to pay higher fares, has led to continuing trends in 2023. Many regular travelers are now choosing Premium Economy or Business Class seats, elevating their travel experiences to new heights.
The Airports Council International (ACI) reports a staggering 34% increase in ticket prices between Q4-2019 and Q4-2022 in the UAE. For instance, return Economy rates to Istanbul averaged Dh1,741 compared to Dh1,500 in the period of 2019-2022. Return airfares to Bangkok on Emirates are now going for Dh3,965 to Dh4,384, compared to Dh2,154 during summer fares in 2019. Business Class and Premium Economy airfares have surged, reaching Dh7,415 to Dh19,095 for destinations like Tel Aviv and London.
Immersive Experiences: A New Standard
The desire for immersive experiences has led UAE residents to redefine their holiday expenditures. Recently, the newly launched destination management company Safarak Travel and Tourism revealed a luxury travel expenditure breakdown. According to the survey shared with 500 UAE residents, respondents now allocate more funds for various aspects of a 7-day holiday per person, including accommodation, flights, transfers, shopping, entertainment/activities, clothing, insurance, and food and drink.
Comparing the figures to pre-2019 and 2022, it becomes evident that residents are now willing to invest at least 20% more in creating unforgettable experiences during their vacations. Families and individuals are opting for extended vacation journeys, with the average duration ranging from 5-6 nights and some even extending their getaways to 10 days.
Top Holiday Destinations and Social Media Influence
The top five preferred holiday destinations among respondents for the next 12 months include the Caribbean, France, Germany, China, and Greece. Notably, 19% of respondents expressed a preference for activity-focused holidays, such as skiing, hiking, or surfing.
The influence of social media on travel choices cannot be overlooked. According to Cathy Mead, General Manager of Safarak Travel and Tourism, 36% of respondents cite social media as their primary source of inspiration for planning their holidays, highlighting its pivotal role in shaping travel preferences.
The summer of 2023 is witnessing a remarkable transformation in UAE residents’ travel habits, driven by a passion for immersive and luxurious experiences. Despite the rise in travel expenses, travelers are embracing the art of experiential travel, seeking to explore new destinations and indulge in lavish accommodations. With social media as a guiding light, residents are venturing into a world of unparalleled exploration, redefining the way they enjoy their leisure time.
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