ATM 2026 unveils new VIDEC research highlighting the growing influence of OTAs across Middle East travel
Online travel channels are set
to play an increasingly important role in the UAE travel market’s recovery, with online
air penetration forecast to rise to 52% by 2030, according to new research from
VIDEC presented at Arabian Travel Market (ATM) 2026.
UAE Air Market Value:
Forecast to reach US$6.5 billion by 2030, driven by online channels and corporate travel recovery.
Online Penetration:
- 42% in 2025
- 46% in 2026
- Projected to hit 52% by 2030
Passenger Traffic:
- UAE airports handled 160 million passengers in 2025
- Low-cost carriers (LCCs) accounted for 35% of traffic
- LCC passenger volumes rose 81% (31M in 2019 → 56M in 2025)
- Network carriers carried 103M passengers in 2025 (vs. 97M in 2019)
Gross Booking Value (GBV):
UAE is the region’s largest air market, valued at US$55 billion in 2025.
Airline Segment Trends
- Full-service carriers: Still operating 15–25% below pre-war capacity.
- Low-cost carriers: Recovering faster, expected to end 2026 near 2025 capacity.
- Key players: Air India Express, flynas, IndiGo, plus UAE-based LCCs.
- Focused on short-haul, point-to-point regional demand.
OTA Competitive Landscape
- Air OTA Market:
- MakeMyTrip leads, supported by South Asian diaspora and higher fares.
- Trip.com rapidly growing, now second-largest after entering UAE recently.
- Hotel OTA Market:
- Booking.com + Agoda together hold ~70% market share.
Industry Perspectives
- Virendra Jain (VIDEC): LCCs are leading the rebound, while full-service carriers lag.
- Danielle Curtis (RX Global): Technology and changing booking behavior are reshaping the market, creating opportunities for both established OTAs and new entrants.
- Panel Discussion – “The Future of OTAs in 30 Minutes”:
- Speakers from Wego, MakeMyTrip, Trip.com explored:
- Localisation
- Customer experience
- Payments
- Loyalty strategies
ATM 2026 Context
- Theme: Travel 2040: Driving New Frontiers Through Innovation and Technology
- Dates: 14–17 September 2026, Dubai World Trade Centre
- Role: Leading Middle East travel event, fostering partnerships and exploring future tourism trends.
This research underscores how digital booking channels and LCCs are shaping the UAE’s aviation recovery, while OTAs battle for dominance in both air and hotel segments.
