- Exclusive VIDEC research presented at ATM 2026 reveals online channels will play a key role in the UAE travel market’s recovery, with online air penetration forecast to reach 52% by 2030
- VIDEC forecasts the UAE local point-of-sale air market will reach US$6.5 billion by 2030, driven predominantly by online channels and a recovery in corporate travel demand
- Senior leaders from Wego, MakeMyTrip and Trip.com explored the sector’s next phase during ‘The Future of OTAs in 30 Minutes’
Dubai, United Arab Emirates, 17 September 2026: 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.
VIDEC’s GCC & Egypt Travel Market Sizing & OTA Benchmarking Study, 2019–2030 examines the fastest-growing travel segments, market projections and distribution trends shaping the UAE and wider region, including the growing influence of online travel agencies (OTAs).
The research forecasts that the UAE air market, measured using a demand-side methodology based on bookings made at the local point of sale (POS), will reach US$6.5 billion by 2030, driven primarily by online channels and the recovery of corporate travel demand. Online penetration is forecast to increase from 42% in 2025 to 46% in 2026 and 52% by the end of the decade.
The findings also highlight the scale of the wider UAE aviation market. UAE airports handled approximately 160 million passengers in 2025, with low-cost carriers accounting for 35% of traffic. Passenger volumes among low-cost carriers increased by 81%, from 31 million in 2019 to 56 million in 2025, while network carriers carried 103 million passengers in 2025, compared with 97 million in 2019.
VIDEC also estimates the UAE to be the region’s largest air market in gross booking value (GBV) terms, valued at US$55 billion in 2025 across local and global points of sale.
Virendra Jain, CEO and Co-Founder of VIDEC, said: “The UAE’s travel market opened strong in 2026. Between 2023 and 2025, Emirati carriers recorded robust growth, particularly the low-cost carriers. That momentum carried into the first two months of 2026, after which the market saw significant setbacks.
“Capacity for full-service carriers remains 15–25% below pre-war levels, while low-cost carriers (LCCs) – local as well as the likes of Air India Express, flynas and IndiGo – are recovering faster and are expected to end 2026 closer to their 2025 capacity. Flying point-to-point and catering primarily to short-haul regional demand, LCCs are leading the rebound as this segment is the first to return.”
Competition within the OTA market is also intensifying. According to VIDEC, MakeMyTrip maintained its leadership of the UAE air OTA market in 2026, supported by the South Asian diaspora and higher fares, while Trip.com has grown rapidly to become the second-largest air OTA after entering the UAE market more recently. In the hotel OTA category, Booking.com and Agoda together account for approximately 70% of the market.
Danielle Curtis, Regional Portfolio Director – UAE, RX Global, said: “VIDEC’s findings demonstrate how technology and changing booking behaviour are reshaping the UAE travel market. As online penetration continues to increase, the relationship between travellers, OTAs and travel suppliers is evolving rapidly, creating opportunities for both established platforms and newer market entrants.
“Providing access to research of this depth, and bringing the findings together with perspectives from some of the world’s leading online travel businesses, is an important part of ATM’s role in helping the industry understand where the market is heading and identify the opportunities that will shape its next phase.”
Following the VIDEC research presentation, the changing competitive landscape was explored during The Future of OTAs in 30 Minutes, which brought together Ross Veitch, CEO, Wego; Raj Rishi Singh, Chief Business Officer – Corporate, Flights and GCC, MakeMyTrip; and Schubert Lou, CEO, Trip.com.
The panel examined the future role of OTAs as regional and global platforms compete for a greater share of the increasingly digital traveller journey. The discussion explored how evolving consumer expectations and new technologies are changing online travel, as well as the importance of localisation, customer experience and payments in building loyalty and capturing growth.
Taking place from 14–17 September 2026 at Dubai World Trade Centre, the 33rd edition of Arabian Travel Market is being held under the theme ‘Travel 2040: Driving New Frontiers Through Innovation and Technology’, bringing the global travel community together to strengthen partnerships, exchange knowledge and explore the trends shaping the next era of tourism.
Concluding today, ATM is now in its 33rd edition and remains the leading international travel and tourism event in the Middle East, bringing together the global travel community to develop partnerships, share knowledge and explore new business opportunities across the sector.
