Travellers are advised to reach airport early to beat the Eid rush. Photo: DXB
Travellers are advised to reach airport early to beat the Eid rush. Photo: DXB
Travellers are advised to reach airport early to beat the Eid rush. Photo: DXB
Travellers are advised to reach airport early to beat the Eid rush. Photo: DXB

Families opt for budget airlines and longer travel as Eid and summer airfares rise


Anjana Sankar
  • English
  • Arabic

Soaring ticket prices during peak season for air travel from the UAE are forcing families to rethink their travel plans.

Eid Al Adha holidays next week, followed by the summer rush of families travelling to their home countries or cooler climes, have seen an increase in airfares to many popular destinations.

The end of the school holidays sees a yearly surge in summer travel. However, finding affordable flights to their desired destinations is becoming increasingly difficult, many expat families have said.

Frill-free travel

Many have said they are opting for budget airlines, taking longer, connecting flights, or even exploring alternative, less expensive travel destinations to circumvent the burden of exorbitant ticket costs.

Italian couple Marilene Lusci and her husband Paolo Lusci, both oil and gas professionals in Abu Dhabi, said they swapped the luxury of premium airlines with frill-free travel to avoid paying high prices for their summer holiday.

“A return ticket from Abu Dhabi to Rome costs Dh5,500. So, for a family like ours, the ticket price alone would come to Dh27,500, which is a lot,” said Ms Lusci, who has three children aged 13, 11 and 9.

Matteo, Jacob and Tommaso Lusci are ready to travel to Italy this week
Matteo, Jacob and Tommaso Lusci are ready to travel to Italy this week

“We managed to buy tickets on Wizzair for just Dh1300. We made a massive saving by flying a low-cost airline,” she said.

The couple travels twice a year, during summer and Christmas.

“That is the only time when we can travel when schools close for holidays. So, it is not practical for us to book flights during off-peak season,” said Ms Lusci.

Taking longer routes

Another Abu Dhabi-based expat, and a mother of three, said her family decided to take a circuitous trip to Cairo in August, via Portugal and London, due to the high price of the direct flight.

“We are travelling from Dubai to Portugal on a budget airline that costs around Dh1,500 per person. And from Portugal, we are flying to London for Dh500 on another budget airline. After a few days in London, we will fly to Cairo and spend our summer holiday,” said the mother, who did not want to be named.

The family booked their London-Cairo flight for Dh2,000 per person with a promotional offer in January.

“Tickets for a return flight from Abu Dhabi-Cairo would have cost my family around Dh20,000. We are still paying a lot but at least we feel it is better value for money as we get to see London and Portugal.”

She said they will wait for a last-minute price drop at the end of August to book their return tickets from Cairo to Abu Dhabi.

“It is a big drain on pockets for families that wait for a year to go home,” the mother said.

Steep rise for India flights

Ticket prices have also risen on flights to London and India, two destinations that typically see huge summer rush.

Advait Arya, a student at the University of Warwick in Coventry, told The National he was shocked at the difference in the ticket price for a Dubai-London flight compared to previous prices.

“I came back to the UAE from the UK for summer break. I was looking to go back to London next month and was absolutely stunned by the ticket [price].

“Normally, I booked tickets at a price of Dh2,600 to Dh2,700 but now I can't seem to find anything cheaper than Dh3,600 and the ones I do are very inconvenient with many layovers. I have booked the ticket nonetheless.”

Shaheeda Abul Khader, an Indian expat, said she forked out Dh2,220 for a one-way ticket from Dubai to Bangalore for her summer travel.

“In the 2000s, we used to go to Bangalore round trip on first class or business for the same amount,” said Ms Khader, a long-time UAE resident.

Shaheeda Abdul Kader booked flights from Dubai to Bangalore for Dh2,200 one way
Shaheeda Abdul Kader booked flights from Dubai to Bangalore for Dh2,200 one way

Afi Ahmed, chief executive and founder of Smart Travel, said ticket prices to some Indian states like Kerala, which has the largest number of UAE expats, have increased up to ten times.

“The off-season rates from Dubai to Kochi are between Dh300 to Dh500 (one way), depending on the airline you are travelling. During the Eid holidays and also at the beginning of summer holidays, the same tickets would cost up to Dh3,000 and even Dh3,500.”

Kiran Kannan, an Indian expat with two kids, said he managed to beat the prices because he booked his ticket to Kochi in January.

“I paid Dh746 per person, which now costs more than Dh2,000 now,” said Mr Kannan, whose return flight is around Dh850.

Indan expat Kiran Kannan, wife Jingy Kiran and kids, Ila and Zid are travelling to Kochi, Kerala, for a long summer break
Indan expat Kiran Kannan, wife Jingy Kiran and kids, Ila and Zid are travelling to Kochi, Kerala, for a long summer break

A return ticket on Air Arabia's Abu Dhabi-Kochi flight on June 28 currently costs Dh3,500. Flights to Mumbai on the same dates costs anything between Dh2,830 to Dh3,500.

“We anticipated the price increase as it happens every year and planned our leave days accordingly,” he said.

Eid rush

During the week-long Eid Al Adha holidays starting June 26, families looking for a quick holiday also face higher-than-normal ticket prices.

Emirati businessman, Omar Al Busaidy, said he was shocked to see prices from Dubai to Muscat more than double during the Eid holidays.

“I paid Dh2,700 on a Flydubai flight to Muscat. Usually, the ticket would have cost me less than Dh1000,” said Mr Busaidy.

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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Should late investors consider cryptocurrencies?

Wealth managers recommend late investors to have a balanced portfolio that typically includes traditional assets such as cash, government and corporate bonds, equities, commodities and commercial property.

They do not usually recommend investing in Bitcoin or other cryptocurrencies due to the risk and volatility associated with them.

“It has produced eye-watering returns for some, whereas others have lost substantially as this has all depended purely on timing and when the buy-in was. If someone still has about 20 to 25 years until retirement, there isn’t any need to take such risks,” Rupert Connor of Abacus Financial Consultant says.

He adds that if a person is interested in owning a business or growing a property portfolio to increase their retirement income, this can be encouraged provided they keep in mind the overall risk profile of these assets.

Dirham Stretcher tips for having a baby in the UAE

Selma Abdelhamid, the group's moderator, offers her guide to guide the cost of having a young family:

• Buy second hand stuff

 They grow so fast. Don't get a second hand car seat though, unless you 100 per cent know it's not expired and hasn't been in an accident.

• Get a health card and vaccinate your child for free at government health centres

 Ms Ma says she discovered this after spending thousands on vaccinations at private clinics.

• Join mum and baby coffee mornings provided by clinics, babysitting companies or nurseries.

Before joining baby classes ask for a free trial session. This way you will know if it's for you or not. You'll be surprised how great some classes are and how bad others are.

• Once baby is ready for solids, cook at home

Take the food with you in reusable pouches or jars. You'll save a fortune and you'll know exactly what you're feeding your child.

START-UPS%20IN%20BATCH%204%20OF%20SANABIL%20500'S%20ACCELERATOR%20PROGRAMME
%3Cp%3E%3Cstrong%3ESaudi%20Arabia%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EJoy%3A%3C%2Fstrong%3E%20Delivers%20car%20services%20with%20affordable%20prices%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EKaraz%3A%3C%2Fstrong%3E%20Helps%20diabetics%20with%20gamification%2C%20IoT%20and%20real-time%20data%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMedicarri%3A%3C%2Fstrong%3E%20Medical%20marketplace%20that%20connects%20clinics%20with%20suppliers%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMod5r%3C%2Fstrong%3E%3A%20Makes%20automated%20and%20recurring%20investments%20to%20grow%20wealth%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStuck%3A%3C%2Fstrong%3E%20Live%2C%20on-demand%20language%20support%20to%20boost%20writing%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EWalzay%3A%3C%2Fstrong%3E%20Helps%20in%20recruitment%20while%20reducing%20hiring%20time%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EUAE%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EEighty6%3A%20%3C%2Fstrong%3EMarketplace%20for%20restaurant%20and%20supplier%20procurements%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFarmUnboxed%3A%20%3C%2Fstrong%3EHelps%20digitise%20international%20food%20supply%20chain%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ENutriCal%3A%3C%2Fstrong%3E%20Helps%20F%26amp%3BB%20businesses%20and%20governments%20with%20nutritional%20analysis%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EWellxai%3A%3C%2Fstrong%3E%20Provides%20insurance%20that%20enables%20and%20rewards%20user%20habits%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EEgypt%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EAmwal%3A%3C%2Fstrong%3E%20A%20Shariah-compliant%20crowd-lending%20platform%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EDeben%3A%3C%2Fstrong%3E%20Helps%20CFOs%20manage%20cash%20efficiently%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EEgab%3A%3C%2Fstrong%3E%20Connects%20media%20outlets%20to%20journalists%20in%20hard-to-reach%20areas%20for%20exclusives%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ENeqabty%3A%3C%2Fstrong%3E%20Digitises%20financial%20and%20medical%20services%20of%20labour%20unions%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EOman%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMonak%3A%3C%2Fstrong%3E%20Provides%20financial%20inclusion%20and%20life%20services%20to%20migrants%3C%2Fp%3E%0A
Forced%20Deportations
%3Cp%3EWhile%20the%20Lebanese%20government%20has%20deported%20a%20number%20of%20refugees%20back%20to%20Syria%20since%202011%2C%20the%20latest%20round%20is%20the%20first%20en-mass%20campaign%20of%20its%20kind%2C%20say%20the%20Access%20Center%20for%20Human%20Rights%2C%20a%20non-governmental%20organization%20which%20monitors%20the%20conditions%20of%20Syrian%20refugees%20in%20Lebanon.%3C%2Fp%3E%0A%3Cp%3E%E2%80%9CIn%20the%20past%2C%20the%20Lebanese%20General%20Security%20was%20responsible%20for%20the%20forced%20deportation%20operations%20of%20refugees%2C%20after%20forcing%20them%20to%20sign%20papers%20stating%20that%20they%20wished%20to%20return%20to%20Syria%20of%20their%20own%20free%20will.%20Now%2C%20the%20Lebanese%20army%2C%20specifically%20military%20intelligence%2C%20is%20responsible%20for%20the%20security%20operation%2C%E2%80%9D%20said%20Mohammad%20Hasan%2C%20head%20of%20ACHR.%3Cbr%3EIn%20just%20the%20first%20four%20months%20of%202023%20the%20number%20of%20forced%20deportations%20is%20nearly%20double%20that%20of%20the%20entirety%20of%202022.%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3ESince%20the%20beginning%20of%202023%2C%20ACHR%20has%20reported%20407%20forced%20deportations%20%E2%80%93%20200%20of%20which%20occurred%20in%20April%20alone.%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3EIn%20comparison%2C%20just%20154%20people%20were%20forcfully%20deported%20in%202022.%3C%2Fp%3E%0A
Violence%20
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Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

Company profile

Date started: 2015

Founder: John Tsioris and Ioanna Angelidaki

Based: Dubai

Sector: Online grocery delivery

Staff: 200

Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends

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Key findings of Jenkins report
  • Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
  • Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
  • Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
  • Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
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JOKE'S%20ON%20YOU
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UAE currency: the story behind the money in your pockets
What can victims do?

Always use only regulated platforms

Stop all transactions and communication on suspicion

Save all evidence (screenshots, chat logs, transaction IDs)

Report to local authorities

Warn others to prevent further harm

Courtesy: Crystal Intelligence

Dubai Bling season three

Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed 

Rating: 1/5

COMPANY PROFILE
Name: Mamo 

 Year it started: 2019 Founders: Imad Gharazeddine, Asim Janjua

 Based: Dubai, UAE

 Number of employees: 28

 Sector: Financial services

 Investment: $9.5m

 Funding stage: Pre-Series A Investors: Global Ventures, GFC, 4DX Ventures, AlRajhi Partners, Olive Tree Capital, and prominent Silicon Valley investors. 

 
Updated: June 23, 2023, 3:00 AM