In 2024, global business travel is set to reach an astonishing $1.48 trillion, and the Middle East and North Africa (MENA) region is leading the way with an impressive growth rate of 11.2%. Last year, the MENA region’s business travel spending hit $17 billion, surpassing pre-COVID levels. This strong recovery signals a promising future for business travel in the region.
Key trends influencing business travel in the MENA area for 2024 are revealed by a recent study carried out by partnership marketing platform Admitad and online business travel platform Tumodo. The study, which examined more than 500,000 travel-related transactions between Q1 2022 and Q1 2024, identifies a number of noteworthy trends, such as an increase in car rentals, a shift in destination preferences, and an increasing trend toward mobile reservations.
Rising Ticket Prices and Travel Preferences
One of the study’s key findings is the increase in airline ticket prices within the MENA region. The average price for a domestic ticket has risen to $205, driven largely by seasonal inflation. The average cost of a ticket in economy class for travel from the MENA region to Europe, Asia, and America is $510, but the average cost in business class is $2,084.
Notable is also the distribution of ticket kinds for business travel. According to the report, just 2% of business travel tickets are for first class, 10% are for business class, and 88% are for economy class. This indicates that the majority of business travelers in the region are opting for cost-effective travel options, possibly due to rising costs.
In addition to air travel, the study highlights a 17% increase in car rentals during business trips compared to 2023. This suggests that business travelers are increasingly valuing the flexibility that comes with renting a car, allowing them to navigate their destinations with ease and on their own schedule.
Top Business Travel Destinations
The study also identified key destinations for business travelers from the MENA region, particularly those departing from Dubai. Saudi Arabia, Kuwait, and Pakistan are emphasized as major travel destinations. With over 450,000 people departing Pakistan in 2023 in search of work, Saudi Arabia and the United Arab Emirates continue to be particularly significant for Pakistani workers. This is a reflection of the MENA region’s strong business and economic linkages.
The creator of Tumodo, Vladimir Kokorin, claims that “each sub-region showcases its unique trends.” For example, in the United Arab Emirates, business travel makes up 14.5% of all travel in the region, indicating notable expansion and changing dynamics.”
Shift to Mobile Bookings and Digital Trends
The survey identifies the growing tendency of mobile bookings as one of the most important developments. From 2022 to 2024, mobile sales increased to 32%, reflecting a changing landscape in how business travelers plan and manage their trips.
There are a number of reasons behind the increase in mobile reservations. Businesses are concentrating on developing mobile device interfaces that are easy to use, enabling travelers to plan and organize their travels while they are on the go. Additionally, there is an increased emphasis on transparent spending monitoring, allowing businesses to keep track of travel expenses more effectively. Improving the entire user experience also involves integrating AI-driven technology.
Anna Gidirim, CEO of Admitad, noted, “The increasing demand from business travelers is reflected in the growth of mobile sales. Businesses are using technology more and more to improve customer satisfaction and expedite travel arrangements.”
Diversification of Booking Channels
The study also reveals a shift in how business travelers are booking their trips. With 25% of sales in Q1 2024, targeted and contextual ads were the main sources of business trip reservations. Content platforms came in second, accounting for 22% of sales. These numbers highlight how crucial it is for travel agencies to adopt a multi-channel strategy as business travelers vary in how they make their reservations.
This trend towards diversified booking channels highlights the need for travel companies to adapt to the changing preferences of their customers. By utilizing a variety of platforms and channels, companies can reach a broader audience and meet the needs of modern business travelers.
Business Travel Spending in MENA
In 2022, business travel expenditures amounted to $933 billion worldwide, of which $23 billion, or around 2.5%, came from the MENA area. This highlights the significant role that the MENA region plays in the global business travel market.
The study’s findings indicate that business travel in the region will likely become more personalized, digitalized, and flexible in the future. From rising ticket prices and a preference for car rentals to the growing importance of mobile bookings and diversified booking channels, the MENA region is adapting to the changing landscape of business travel.
The MENA region is experiencing robust growth in business travel, with a projected 11.2% increase in 2024. As travel preferences shift and technology continues to shape the industry, businesses and travelers alike must stay informed and adapt to these trends. Whether it’s rising ticket prices, the growing popularity of car rentals, or the shift towards mobile bookings, the future of business travel in the MENA region looks dynamic and promising.
Also read:- Dubai RTA Says 6% Increase in H1 2024 Users of Public Transport