DUBAI – The online travel industry in the Middle East is flourishing at an unprecedented rate with online bookings growing by nearly a third this year, a new study carried out by global travel market research company PhoCusWright and co-sponsored by Travelport revealed. The research found out that online travel sales in the Middle East will grow 31 percent from 2011 to almost $10.4 billion this year and are set to reach $15.8 billion by 2014. This means that in 2014, online bookings will make up nearly a quarter (22 percent) of all travel bookings made in the region. The research also showed the rapid development of regional online travel agencies (OTAs), which are growing at a compound annual growth rate of 18 percent between 2010 and 2014. In 2011, 39 percent of all online bookings in the Middle East were made via OTAs and the gross booking value via OTAs is set to nearly double from $3.1B to $6 billion by 2014. “The online travel industry in the Middle East is growing at an unprecedented rate", said Rabih Saab, President and Managing Director, Middle East and Africa, Travelport. “The Middle East is one of the world's fastest growing tourism destinations and source markets, and the online potential is immense. “To remain competitive in the online world, travel agents have to offer travellers more choice, a comprehensive range of content and a better shopping experience. At Travelport we work closely with travel agents to help them meet these demands by offering broader content through faster distribution and sharing our expertise so they can firmly establish themselves in this rapidly evolving industry." Air remains the strongest category online, accounting for 67 percent of all online travel bookings in 2011. Online hotel sales in the Middle East accounted for 32 percent in 2011 and car rentals made up the remaining 1 percent. Notably, 59 percent of all online hotel bookings were made through Online Travel Agencies as opposed to direct bookings via hotel websites. “Nearly two thirds of all online hotel bookings in the Middle East were made through intermediaries last year," commented Saab, “and we expect this trend to continue into the future. With this foresight, Travelport has increased its focus on the hospitality sector in the past year and we continue to invest heavily in our GDS hospitality offering and Travelport Rooms and More – our online hospitality solution. This has paid off, as we have tripled the number of hotel properties available on Rooms and More since its launch last year, and continue to add key suppliers to our GDS platform." The study, called “Assessing the Online Travel Opportunity: The Middle East", was carried out across 10 Middle East Countries involving UAE, Saudi Arabia, Egypt, Jordan, Lebanon, Syria, Kuwait, Bahrain, Qatar and Oman and looks at online travel trends in the region between 2010 and 2014. Over 50 in-depth executive interviews were carried out with intermediaries (travel agencies and GDSs), travel suppliers (air, car, hotel), technology providers and media sites. – SG
