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Flights - United Arab Emirates

United Arab Emirates

The Flights market in the United Arab Emirates is predicted to observe a substantial increase in revenue in the coming years.
By 2024, the revenue is estimated to reach US$1.54bn.
Furthermore, an annual growth rate of 2.20% is expected from 2024 to 2028, which will lead to an increase in market volume, reaching US$1.68bn by 2028.
The number of users in this market is also expected to increase and reach 1.91m users by 2028.
User penetration, which is projected to be 19.6% in 2024, is expected to decrease slightly and amount to 19.3% by 2028.
The average revenue per user (ARPU) is estimated to be US$0.82k.
In 2028, it is expected that 91% of total revenue in the Flights market will be generated through online sales.
Lastly, when compared globally, it is projected that China will generate the most revenue in this market, with an estimated revenue of US$136bn in 2024.
The United Arab Emirates' aviation industry continues to thrive, with world-class airlines such as Emirates and Etihad Airways leading the way in innovation and customer service.

Key regions: Germany, China, Saudi Arabia, Malaysia, Thailand

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Analyst Opinion

The Flights market in United Arab Emirates is experiencing significant growth and development.

Customer preferences: Customers in United Arab Emirates have shown a strong preference for air travel due to its convenience and efficiency. With a growing middle class and increasing disposable income, more people are choosing to travel by air for both business and leisure purposes. Additionally, the country's strategic location as a global transportation hub has attracted a large number of international travelers, further driving the demand for flights.

Trends in the market: One of the key trends in the Flights market in United Arab Emirates is the rise of low-cost carriers. These airlines offer affordable fares and have gained popularity among budget-conscious travelers. The presence of low-cost carriers has not only increased competition in the market but has also made air travel more accessible to a wider range of customers. Another trend in the market is the increasing focus on sustainability and eco-friendly practices. Airlines are investing in fuel-efficient aircraft and implementing measures to reduce their carbon footprint. This trend is driven by both customer demand for environmentally responsible travel options and the government's commitment to sustainability.

Local special circumstances: The United Arab Emirates is home to two major international airlines, Emirates and Etihad Airways. These airlines have played a significant role in shaping the Flights market in the country. With their extensive route networks and high-quality services, they have attracted a large number of international passengers and have positioned the United Arab Emirates as a global aviation hub. Furthermore, the United Arab Emirates has invested heavily in the development of world-class airports, such as Dubai International Airport and Abu Dhabi International Airport. These airports offer state-of-the-art facilities and provide seamless connectivity to various destinations around the world. The presence of modern infrastructure has contributed to the growth of the Flights market in the country.

Underlying macroeconomic factors: The growth of the Flights market in United Arab Emirates is supported by several underlying macroeconomic factors. The country's strong economic growth, fueled by its diversified economy and investments in sectors such as tourism and hospitality, has led to an increase in air travel demand. Additionally, the government's efforts to promote tourism and attract foreign investment have further boosted the Flights market. Moreover, the United Arab Emirates has a favorable regulatory environment for the aviation industry. The government has implemented policies to encourage competition and attract foreign airlines to operate in the country. These policies have created a conducive business environment and have contributed to the growth of the Flights market. In conclusion, the Flights market in United Arab Emirates is experiencing significant growth and development, driven by customer preferences for air travel, the rise of low-cost carriers, the focus on sustainability, the presence of major international airlines, the development of world-class airports, and favorable macroeconomic factors.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and online shares of flights.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, third-party studies and reports, federal statistical offices, industry associations, and price data. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as demographic data, GDP, consumer spending, internet penetration, and device usage. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, the S-curve function and exponential trend smoothing methods are applied.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.