UAE residents may not see immediate relief in summer travel costs despite the US-Iran peace deal improving regional stability. However, travel agents say confidence is gradually returning, with more holidaymakers beginning to finalise their plans after weeks of uncertainty.
Industry players told Khaleej Times that while high airfares continue to discourage some travellers, the improving outlook has prompted families who had delayed booking decisions to resume planning their summer getaways.
Stay up to date with the latest news. Follow KT on WhatsApp channels.
Travel agencies have already started seeing signs of renewed confidence among UAE residents.
“Yes, we have noticed a positive change in travel enquiries,” said Firoz Maliyakkal, Founder and CEO of Thahira Tours & Travels.
“Many travellers who were waiting for more clarity are now actively planning their holidays. We are seeing increased interest in summer destinations, especially among families looking to finalise their travel plans.”
“As far as outbound travel from the UAE is concerned, we are entering into a summer peak holiday season now,” said Sudheesh TP, General Manager of Deira Travel. “Though the reopening of Hormuz will reduce the fear of prolonged aviation fuel supply disruptions, it will not help to reduce the airfares immediately and the passengers travelling this summer may not be able to enjoy the reduced fare benefits.”
He noted that many carriers had already sold a significant portion of their summer inventory.
“Generally, they keep their fares high when demand is strong, supply is less and the seats are selling well,” he said. “Due to the uncertain conditions and the operational restrictions, most of the carriers have trimmed their frequencies and reduced the seat capacity to and from the Gulf and it will take a few more months for them to stabilise the operational schedules and capacity enhancement.”
Maliyakkal echoed the view that travellers should not expect immediate price reductions.
“For now, airfares are expected to remain mostly stable,” he said. “Since it is the peak summer travel season, demand is still strong. Factors such as airline capacity, fuel prices, and overall travel demand will continue to influence ticket prices.”
According to TP, travellers could begin seeing more competitive rates from August if regional stability continues and airlines restore capacity.
“We expect reduced rates or pre-crisis deals from the month of August onwards,” he said.
Other travel agents said the recent uncertainty had already altered consumer behaviour, with many residents postponing travel decisions or abandoning leisure plans because of rising costs.
“As per last year, it’s a huge difference we faced this year. You can say 40 to 45 per cent,” said Divya Jagga, Founder and CEO of Travel Finder. “Some are scared to travel and some are not okay with the package because of pricing issues.”
She added that despite receiving around 90 to 100 enquiries daily, only a small proportion progressed to confirmed bookings.
“Out of those enquiries, after discussion, we are left with hardly 10 to 15 per cent of the enquiries open,” she said. “Some clients asked us not to process the enquiry when we discuss the budget and pricing.”
According to Jagga, destinations including Jordan, Egypt and several CIS countries such as Georgia, Armenia, Azerbaijan, Kazakhstan and Kyrgyzstan have seen a decline in demand as travellers reconsider holiday plans.
At the same time, trips to home countries have remained resilient.
“India, Pakistan, Morocco and Europe are seeing stronger interest,” she said.
Maliyakkal said travellers had adjusted their destination choices during periods of uncertainty.
“During the uncertainty, some travellers preferred destinations that were seen as more stable and easily accessible,” he said. “We noticed stronger demand for destinations such as Georgia, Azerbaijan, Thailand and parts of Europe.”
Travel agents stressed that demand itself has not disappeared.
“The air travel demand never disappeared from our market; but it was deferred due to the uncertainties and airspace restrictions,” TP said. “Even now, the passengers are cautious and eagerly analysing the situation as the peace agreement still needs to be formally signed and properly implemented.”
He added that there was a “positive sentiment among travellers” and that industry stakeholders were hopeful of recovering business losses in the coming months.
TP expects corporate travel and inbound tourism to rebound relatively quickly, helped by attractive offers from hotels and tourism partners.
“Corporate travel is likely to recover first and the inbound movement also will improve fast as the hotels and other stakeholders are offering best deals to increase the numbers and volume of businesses,” he said.
For leisure travel, Europe is likely to remain a preferred choice among higher-income travellers, while destinations in Asia could benefit from price-conscious consumers.
“Europe is likely to be the biggest beneficiary as it is the most preferred summer destination for many UAE locals and resident expatriates,” he said.
“As for Asian holiday destinations such as Thailand, Malaysia, Singapore and Indonesia, they should also perform strongly as they are highly price-sensitive and attractive packages could quickly stimulate demand.”
While many families have already finalised their summer arrangements, travel agents believe improving stability could encourage hesitant travellers to move forward with their plans.
“By July it should start picking up,” Jagga said. However, she expects an even stronger rebound later in the year.
“In my point of view, September onwards response will be better as compared to now, and during the National Day holidays we are expecting good numbers.”
While agents remain optimistic about the months ahead, they cautioned that travellers hoping for major discounts this summer may have to wait.
“If regional stability continues, travellers can expect better fares and more attractive holiday packages in the coming months, especially after the peak summer season,” Maliyakkal said. “While a significant drop in airfares is unlikely in the short term due to strong demand, improved confidence and stable market conditions should lead to more competitive offers from airlines and travel companies.”
Source: Khaleej Times