More than half of UAE residents plan to spend more on travel in 2024 when compared to this year, with up to 90 per cent saying they will take at least the same number of trips.
That is according to a new report by Skyscanner, Travel Trends: Redefining value through experience in 2024, which was released on Monday.
The data, which was taken in August with a sample of 1,000 UAE respondents, reveals the most popular destinations, travel trends and emerging traveller types.
Budget is a key factor
Value for money is a key factor for UAE travellers, with the cost of the hotel (16 per cent) and flight (32 per cent) being the biggest elements that determine destination choice.
A total of 56 per cent are budgeting to spend more on travel next year than this year, while 31 per cent will spend the same.
For anyone looking for budget-friendly destination, the Skyscanner report also includes the biggest airfare price drops for next year, including Orlando, Florida (a 72 per cent drop), Male in the Maldives (58 per cent drop) and Rome (52 per cent).
Munich, Brussels, New York, Bangkok, Antalya, Istanbul and Los Angeles have all had price drops, too.
Cultural experiences on top
Almost half (42 per cent) of UAE respondents say they now rate the overall “vibe” of a destination as the most important factor when choosing where to go on holiday – even more so than budget friendliness.
The experience factor is powering four trends right now, the report states, including sleep retreats, destinations seen in films and on TV, culinary experiences and catching a music concert.
Sleep retreats are becoming increasingly popular, the Skyscanner reports. Nearly half of UAE travellers (46 per cent) say they’re not getting the recommended seven to eight hours of sleep a night, and say getting a good night's sleep is high on their holiday agendas.
About 38 per cent of fans say they would fly short haul to watch their favourite musician live, while 19 per cent would commit to long haul. Thirty-eight per cent of those aged 25 to 34 plan to attend a gig in India next year.
Emily in Paris is providing UAE travellers with the most destination inspiration, with 40 per cent saying they want to experience the French capital like protagonist Emily Cooper, while more than a quarter want to head to Venice Beach like Barbie.
That said, while 92 per cent of UAE travellers say they have been inspired to take a trip based on what they've seen on the big or small screen, only 59 per cent go on to book.
As for restaurants, 46 per cent of UAE travellers say they've visited a destination to go to a specific restaurant, while 46 per cent more say it's something they want to do.
Emerging traveller types
Analogue adventurers is one of the emerging traveller types reported for 2024, which means Gen Z travellers are ditching digital devices in favour of analogue techniques. For example, 26 per cent of 18 to 24 year olds in the UAE are taking Polaroid cameras on holiday with them, 22 per cent take vinyl records and 15 per cent pack a 35mm film camera.
Many passengers from the UAE are also celebrating big milestones on holiday, with 72 per cent having taken a group trip to mark a birthday or anniversary. A further 23 per cent say it's something they would love to do. Saudi Arabia, Thailand and Turkey are the most popular places in the report for friends and families planning to celebrate.
A third type is called “luxe-for-less seekers”, as 37 per cent of travellers are planning to upgrade their flight to business or first class. Forty-two per cent plan to buy airport lounge access.
Osaka is the most favoured destination
While European capitals are trending next year, the list of top 10 destinations UAE travellers are planning to go to starts with Osaka, in Japan, which has had a 305 per cent spike on year-on-year searches.
This is followed by Antalya in Turkey (273 per cent), Tokyo (250 per cent), Rome (154 per cent) and Berlin (96 per cent). Amsterdam, New York, London, Athens and Paris round out the top 10.
Food, attractions and the weather are the three biggest factors for UAE travellers when deciding where to go. Historical tours, heading to the beach and trying local food are the favourite cultural activities.
Other activities being favoured next year include snow sports (21 per cent), sporting events (20 per cent) and heading to a gallery (19 per cent).
“Skyscanner’s 2024 Travel Trends report highlights a growing emphasis on cultural exploration among travellers for the coming year,” said Naomi Hahn, vice president of strategy at Skyscanner. “We're witnessing a diverse range of cultural interests in travel, from music enthusiasts embarking on journeys to see their favourite artists to budget-conscious food enthusiasts seeking the finest culinary experiences without breaking the bank.”
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
The specs
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Power: 272hp at 6,400rpm
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Transmission: 8-speed auto
Fuel consumption: 9.7L/100km
On sale: now
Price: Dh149,000
The five pillars of Islam
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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About Housecall
Date started: July 2020
Founders: Omar and Humaid Alzaabi
Based: Abu Dhabi
Sector: HealthTech
# of staff: 10
Funding to date: Self-funded
The bio
Favourite book: The Alchemist by Paulo Coelho
Favourite travel destination: Maldives and south of France
Favourite pastime: Family and friends, meditation, discovering new cuisines
Favourite Movie: Joker (2019). I didn’t like it while I was watching it but then afterwards I loved it. I loved the psychology behind it.
Favourite Author: My father for sure
Favourite Artist: Damien Hurst
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
