Travel bookings for the Middle East have plummeted 50 per cent in the past two months, according to Travelport GDS, one of the world's largest global distribution system (GDS) providers representing 1,300 travel agencies in the region.
Travelport is the "plumbing" of the travel industry, providing online booking capabilities to travel agencies in more than 145 countries and also operating a business intelligence unit that offers consultancy services.
"Over the past months, we noticed that the Middle East has been experiencing double-digit growth in terms of travel bookings, but now it's a single-digit growth," said Gordon Wilson, the chief executive of Travelport.
Rohit Talwar, the chief executive of the UK hospitality consultancy Fast Future, was not surprised.
"This summer, we have already seen occupancy rates in Dubai hotels dropping by 25 per cent and now, when we are at the height of economic slowdown, Middle East tourism is bound to be affected," he said, adding that both airlines and hotels in the UAE had to consider slashing prices.
During the first six months of this year, the Middle East's revenue per available room (revPAR) grew by 21.6 per cent to US$135 (Dh496) compared with the same period last year, according to a recent study by the research firm Deloitte Middle East.
"The region also had the highest occupancy and average room rates in the world at 75.3 per cent and $180, respectively," said Rob O'Hanlon, the tourism, hotel and leisure partner at Deloitte Middle East.
In Dubai, revPAR grew at a slower pace than last year, up 9.6 per cent to $274. The emirate also achieved the highest occupancy and average room rates of any city in the Middle East, at 85.3 per cent and $321.
"But in order to sustain this growth, tourism authorities in the country have to realise that people have less money to spend on a holiday now," said Mr Talwar.
In an effort to tap into the online travel market, which now dominates the travel booking market, Etihad Airways has signed a partnership agreement with Travelport GDS to provide it with information about its customers. "We are basically IT tools that will help track trends in the market, like the most popular destinations, and this in turn will help boost their growth," said Mr Wilson.
Travelport's new tool combines the ability to analyse booking data from various sources such as ticketing, sales, revenue and cost data in a single tool with a common user interface. Previously, airlines would use one tool to analyse booking data and another to analyse ticketing data.
Mr Talwar believes that using IT solutions that would be able to aid the travel industry in the Middle East is a crucial step towards growth. "So far, we have seen a robust growth in the ... region but right now, when the climate is not in favour of this industry, it's time for businesses to move online and use technology to boost their business."
A study by Mintel, a UK-based research company, found that almost 40 per cent of UK holidaymakers now booked their travel independently, via websites - a figure that has doubled in the past five years.
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COMPANY PROFILE
Name: Xpanceo
Started: 2018
Founders: Roman Axelrod, Valentyn Volkov
Based: Dubai, UAE
Industry: Smart contact lenses, augmented/virtual reality
Funding: $40 million
Investor: Opportunity Venture (Asia)
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0-100km/h: 3.4sec
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Top speed: 312km/h
Max electric-only range: 60km (claimed)
On sale: Q3
Price: From Dh1.2m (estimate)
Indoor cricket World Cup:
Insportz, Dubai, September 16-23
UAE fixtures:
Men
Saturday, September 16 – 1.45pm, v New Zealand
Sunday, September 17 – 10.30am, v Australia; 3.45pm, v South Africa
Monday, September 18 – 2pm, v England; 7.15pm, v India
Tuesday, September 19 – 12.15pm, v Singapore; 5.30pm, v Sri Lanka
Thursday, September 21 – 2pm v Malaysia
Friday, September 22 – 3.30pm, semi-final
Saturday, September 23 – 3pm, grand final
Women
Saturday, September 16 – 5.15pm, v Australia
Sunday, September 17 – 2pm, v South Africa; 7.15pm, v New Zealand
Monday, September 18 – 5.30pm, v England
Tuesday, September 19 – 10.30am, v New Zealand; 3.45pm, v South Africa
Thursday, September 21 – 12.15pm, v Australia
Friday, September 22 – 1.30pm, semi-final
Saturday, September 23 – 1pm, grand final
SUZUME
Director: Makoto Shinkai
Stars: Nanoka Hara, Hokuto Matsumura, Eri Fukatsu
Rating: 4/5
Opening weekend Premier League fixtures
Weekend of August 10-13
Arsenal v Manchester City
Bournemouth v Cardiff City
Fulham v Crystal Palace
Huddersfield Town v Chelsea
Liverpool v West Ham United
Manchester United v Leicester City
Newcastle United v Tottenham Hotspur
Southampton v Burnley
Watford v Brighton & Hove Albion
Wolverhampton Wanderers v Everton
COMPANY PROFILE
Name: SmartCrowd
Started: 2018
Founder: Siddiq Farid and Musfique Ahmed
Based: Dubai
Sector: FinTech / PropTech
Initial investment: $650,000
Current number of staff: 35
Investment stage: Series A
Investors: Various institutional investors and notable angel investors (500 MENA, Shurooq, Mada, Seedstar, Tricap)
Company profile
Company name: Fasset
Started: 2019
Founders: Mohammad Raafi Hossain, Daniel Ahmed
Based: Dubai
Sector: FinTech
Initial investment: $2.45 million
Current number of staff: 86
Investment stage: Pre-series B
Investors: Investcorp, Liberty City Ventures, Fatima Gobi Ventures, Primal Capital, Wealthwell Ventures, FHS Capital, VN2 Capital, local family offices
Kill
Director: Nikhil Nagesh Bhat
Starring: Lakshya, Tanya Maniktala, Ashish Vidyarthi, Harsh Chhaya, Raghav Juyal
Rating: 4.5/5
What is hepatitis?
Hepatitis is an inflammation of the liver, which can lead to fibrosis (scarring), cirrhosis or liver cancer.
There are 5 main hepatitis viruses, referred to as types A, B, C, D and E.
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Engine: 2.0-litre, turbocharged in-line four-cylinder
Gearbox: Eight-speed automatic
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Starring: Denzel Washington, Rami Malek, Jared Leto
Four stars
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Dir: Taika Waititi
Starring: Chris Hemsworth, Tom Hiddleston, Cate Blanchett, Jeff Goldblum, Mark Ruffalo, Tessa Thompson
Four stars