As per MRFR analysis, the GCC Online Travel Market Size was estimated at 14.14 (USD Billion) in 2023.The GCC Online Travel Market Industry is expected to grow from 16(USD Billion) in 2024 to 25 (USD Billion) by 2035. The GCC Online Travel Market CAGR (growth rate) is expected to be around 4.141% during the forecast period (2025 - 2035)
Key GCC Online Travel Market Trends Highlighted
The GCC Online Travel Market is experiencing significant shifts driven by several key market drivers. The rising use of the internet and mobile phones in the region has made booking travel online easier and more convenient, which has resulted in people moving away from using traditional travel agencies to utilizing online portals. Government policies like the Saudi Vision 2030 and the increasing emphasis on tourism by the UAE are promoting travel and tourism, which also increases the use of online travel options. Moreover, the increasing income levels within the population and the younger audience who prefer technology-enabled solutions is also boosting the online travel market.
There is clear potential to be tapped in the GCC Online Travel Market, particularly with the growing domestic tourism market resulting from domestic travel programs and global travel restrictions. As GCC countries continue to develop local tourism infrastructure and services, these places can be marketed using travel websites through local wonders, events and experiences that appeal to tourists and residents alike. In addition, there is room for the use of artificial intelligence for providing personalized travel services, as well as using virtual reality for enriching the pre-trip experience. There is an increase of mobile bookings, and the focus on user experience in forms of optimized software applications and website interface design has grown recently, which are also signs of these movements in the GCC Online Travel Market.
More travel inspirations are trending on social media; thus, attention is now turning there. On the other hand, consumers in this region are becoming more eco-conscious, thus turning to less damaging travel options, hence the creation of green travel packages and services. The gradual development of payment methods, including the use of online wallets and the purchase of products with cryptographic tokens, is improving the possibilities of online shopping in this exciting marketplace.
GCC Online Travel Market Drivers
Increasing Internet Penetration and Smartphone Usage
The GCC Online Travel Market Industry is experiencing substantial growth driven by the rapid increase in internet penetration and smartphone usage across the region. According to recent statistics from the Telecommunications Regulatory Authority (TRA) in the UAE, the internet penetration rate reached approximately 99% in 2021, making it one of the highest globally. Furthermore, smartphone ownership in the GCC has skyrocketed, with reports indicating that around 90% of the population now owns a smartphone.This connectivity facilitates seamless online travel bookings, allowing users to plan and manage their travel itineraries more efficiently. As a result, the ease of access to travel information and booking services online is expected to bolster the GCC Online Travel Market Industry, contributing significantly to its overall growth. With major players like Booking.com and Expedia investing in localized services and mobile-friendly platforms, the region is becoming increasingly attractive for digital travel solutions.
Government Initiatives to Boost Tourism
The GCC governments are undertaking various initiatives to diversify their economies and promote tourism, which positively influences the GCC Online Travel Market Industry. For instance, Saudi Arabia's Vision 2030 aims to increase the number of annual visitors to the country to 100 million by 2030, which will likely lead to an expansion in travel services and infrastructure. Similarly, the UAE has implemented 'Tourism Strategy 2025' aimed at attracting 20 million visitors annually by 2025.These strategic plans are designed to foster a competitive environment for tourism-related businesses, thus encouraging travel expenditure and promoting online travel services as a convenient option for booking.
Rising Disposable Income and Changing Consumer Preferences
As the economies within the GCC continue to flourish, there is a concurrent rise in disposable income levels among residents and expatriates. According to the World Bank, GDP growth in the GCC region is projected to rebound strongly, suggesting an increase in consumer spending capacity. As residents have more disposable income, there is a noticeable trend towards experiential spending, including travel. This shift in consumer preferences favors online travel services, as travelers are increasingly inclined to seek personalized travel experiences, access a wider array of options, and benefit from competitive pricing available through digital platforms.Established online travel agencies operating in the GCC are adapting their offerings to match this trend, making the GCC Online Travel Market Industry more robust.
Growth of Travel Ecosystem and Partnerships
The GCC Online Travel Market Industry is being propelled by the growth of a vibrant travel ecosystem facilitated by strategic partnerships among local and international players. For example, the collaboration between multiple airlines in the region, along with hospitality chains and travel technology firms, is enhancing the travel experience. The establishment of travel apps and platforms that aggregate flights, accommodations, and local experiences is leading to greater convenience for travelers.In addition, the GCC is witnessing increased participation from travel startups, which inject innovation into the market, creating tailored packages for both leisure and business travelers. These partnerships are optimizing the travel supply chain, strengthening the GCC Online Travel Market Industry by providing comprehensive solutions that meet modern traveler demands.
GCC Online Travel Market Segment Insights
Online Travel Market Platform Type Insights
The GCC Online Travel Market is experiencing significant growth, particularly when looking at the Platform Type segment. With an overall expected valuation of 16.0 billion USD in 2024, the market demonstrates a strong upward trajectory. This segment further branches into two essential categories: Mobile/Tablets Based and Desktop Based platforms, both of which play a crucial role in shaping consumer behavior and preferences in online travel services. The Mobile/Tablets Based platform has been gaining traction rapidly, driven by increased smartphone penetration, favorable internet connectivity, and the growing trend of mobile-driven services across the GCC region.
As a result, it not only provides travelers with the ease of planning and booking on-the-go but also offers personalized experiences via mobile applications, enhancing overall customer satisfaction and engagement.In contrast, the Desktop Based segment has maintained its importance, particularly among travelers who prefer utilizing larger screens for a more comprehensive view of travel options, pricing, and itineraries. The Desktop Based platform often appeals to business travelers and those planning complex itineraries, where detailed information and comparisons are essential. As such, it remains a significant channel for travel bookings, emphasizing the diverse preferences of customers in the GCC region. Trends indicate a shifting focus where the youth population increasingly favors Mobile/Tablets Based services, while more traditional demographics continue to rely on Desktop based methods.
This divergence represents both a challenge and an opportunity for businesses to optimize their platforms and cater to varying consumer needs. Furthermore, the market has witnessed innovations such as augmented reality and virtual tours being integrated into mobile applications, significantly boosting user engagement. However, the online travel service providers face challenges such as cybersecurity issues and high competition among service providers, which could impact user trust and, consequently, revenue. The GCC Online Travel Market demonstrates resilience despite these challenges, fueled by an increase in disposable income, a rise in tourism, and government initiatives aimed at enhancing the tourism sector, thereby expanding the customer base for both Platform Type categories.
Companies that effectively harness technology and adapt to the evolving preferences of their audience are likely to capitalize on the growing market opportunities. The segmentation and specific trends within the Platform Type of the GCC Online Travel Market highlight the importance of understanding customer behavior and tailoring services accordingly to achieve sustained growth.
Online Travel Market Mode of Booking Insights
The Mode of Booking segment within the GCC Online Travel Market has witnessed substantial transformation as digital solutions grow increasingly integral to travel planning. This segment comprises two major categories: Online Travel Agencies (OTAs) and Direct Travel Facilitators. OTAs are significant players, providing diverse options, convenience, and competitive pricing, which appeals to the burgeoning number of tech-savvy travelers in the GCC region. Their ability to leverage data and analytics enhances user experience, making them a preferred choice for many consumers.Meanwhile, Direct Travel Facilitators, such as airlines and hotels, are gaining momentum by offering personalized services and direct booking incentives, ensuring better customer engagement. This approach allows them to maintain control over their pricing strategies and customer data, creating a more streamlined experience for travelers.
The ongoing digital transition in the GCC is supported by government initiatives aimed at advancing e-commerce, alongside an overall increase in internet penetration and mobile usage, providing fertile ground for growth in both categories.As the region continues to embrace technological advances, the importance of these booking modes in shaping the future landscape of the GCC Online Travel Market is undeniable.
Online Travel Market Service Type Insights
The GCC Online Travel Market exhibits a diverse Service Type segmentation, primarily encompassing Transportation, Accommodation, and Vacation Packages, which play crucial roles in shaping the region's travel landscape. Transportation services greatly contribute to the market, facilitating movement across GCC nations renowned for their connectivity and transport infrastructure. Accommodation options, ranging from luxury hotels to budget lodgings, significantly impact the region's tourism appeal, catering to various traveler preferences and bolstering the hospitality sector.Vacation Packages are gaining traction, combining travel arrangements with experiences, which enhances convenience for tourists seeking curated adventures.
This segment is pivotal as it aligns with the growing trend of experiential travel, indicating a shift in consumer behavior towards preferring comprehensive itineraries. As the region attracts increasing numbers of international visitors, the GCC Online Travel Market showcases a promising landscape filled with opportunities for growth and adaptation, driven by evolving consumer trends and the region's commitment to enhancing its tourism offerings.
GCC Online Travel Market Key Players and Competitive Insights
The GCC Online Travel Market is characterized by a rapidly evolving landscape, driven by increasing internet penetration, a growing preference for digital solutions, and an expanding middle class with disposable income eager to explore travel opportunities. As a result, the competitive scenario is marked by a diverse range of players, from established global travel platforms to local startups vying for market share. The market is not only about the services offered but also about the customer experience and technological innovations that enhance booking convenience and tailor itineraries based on user preferences.
Factors such as ease of navigation, competitive pricing, availability of customer support, and the integration of technological advancements like AI and big data are becoming pivotal differentiators. This dynamic environment necessitates that companies continually adapt to shifting consumer demands and leverage local insights to build trust and loyalty among travelers in this region.Skyscanner has established a significant presence in the GCC Online Travel Market, thanks to its comprehensive travel search engine, which offers consumers the ability to compare flight, hotel, and car rental prices in real-time. The platform is recognized for its user-friendly interface and robust filtering options, which empower users to find the best deals tailored to their needs. Its strengths lie in its extensive database, which captures a wide range of travel options, and its partnerships with numerous airlines and service providers, making it a reliable platform for travelers in the GCC.
The company has effectively localized its services, making it appealing to consumers looking for a seamless travel planning experience across the region. Furthermore, Skyscanner's engagement in ongoing technological advancements allows for real-time updates and customized recommendations, solidifying its competitive edge in the burgeoning online travel space.Tajawal has emerged as a significant player in the GCC Online Travel Market, leveraging its focus on providing an all-in-one travel solution tailored specifically for the regional audience. The platform offers key services including flight bookings, hotel reservations, and holiday packages, making it a convenient choice for travelers. Tajawal's strength lies in its localized market knowledge, allowing it to curate travel packages and deals that resonate well with GCC consumers.
The company's strategic partnerships with local and international airlines, hotels, and service providers position it competitively in the market. Moreover, Tajawal has undertaken efforts to enhance its services through mergers and acquisitions, broadening its portfolio to include complementary travel offerings, thereby addressing the diverse needs of travelers. As it continues to expand its footprint within the GCC region, Tajawal's emphasis on customer service, innovative marketing strategies, and collaboration with key industry players facilitates a strong competitive stance in this dynamic landscape.
Key Companies in the GCC Online Travel Market Include
GCC Online Travel Market Industry Developments
In the GCC Online Travel Market, recent developments have shown a significant rebound following the pandemic, with companies like Emirates, Qatar Airways, and Airbnb capitalizing on the surge in travel activities in 2023. The UAE tourism sector recorded a boost, reaching pre-pandemic levels, and platforms such as Tajawal and Cleartrip reported increased user engagement and bookings. In April 2023, Wego partnered with various airlines and hotel groups to enhance travel options for consumers in the region.
Additionally, the 2022 acquisition of Travelgenio by Booking Holdings has had a profound impact on market share distribution. The online travel agency sector is trending towards collaboration, as evidenced by Kayak's integration of various service providers to deliver comprehensive travel solutions. Moreover, as the global travel market grows, companies such as MakeMyTrip and expedia are observing substantial growth in their valuations, driving competition within the GCC. Investments are being made to streamline operations and enhance technological capabilities, positioning GCC firms favorably in the regional and global travel landscape.
GCC Online Travel Market Segmentation Insights
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 14.14(USD Billion) |
| MARKET SIZE 2024 | 16.0(USD Billion) |
| MARKET SIZE 2035 | 25.0(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 4.141% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | Skyscanner, Tajawal, Cleartrip, Airbnb, Travelocity, ibibo, Kayak, Tripadvisor, MakeMyTrip, almosafer, Emirates, Booking Holdings, Wego, Expedia, Qatar Airways |
| SEGMENTS COVERED | Platform Type, Mode of Booking, Service Type |
| KEY MARKET OPPORTUNITIES | Mobile booking growth, Personalized travel experiences, Eco-friendly travel options, Digital payment integration, Localized content and services |
| KEY MARKET DYNAMICS | Growing smartphone penetration, Increased internet accessibility, Rising disposable incomes, Shift towards experiences over goods, Demand for personalized travel solutions |
| COUNTRIES COVERED | GCC |
Frequently Asked Questions (FAQ) :
The GCC Online Travel Market is expected to be valued at 16.0 billion USD in 2024.
By 2035, the market is anticipated to reach a value of 25.0 billion USD.
The expected compound annual growth rate for the GCC Online Travel Market from 2025 to 2035 is 4.141%.
In 2035, the market for Mobile/Tablets Based platforms is projected to be valued at 11.5 billion USD, surpassing the Desktop Based segment.
The Desktop Based segment of the GCC Online Travel Market is expected to be valued at 8.8 billion USD in 2024.
Some of the major players in the market include Skyscanner, Airbnb, Cleartrip, Expedia, and Booking Holdings.
The market for Mobile/Tablets Based platforms is expected to reach 7.2 billion USD in 2024.
Key growth drivers include the increasing adoption of mobile technology and the rising preference for online travel services.
The competitive landscape features both established players and new entrants striving for market share, creating a dynamic environment.
Anticipated trends include greater integration of mobile technologies and a shift towards personalized travel experiences.
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Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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