Travel demand in the UAE is expected to recover in phases following the ceasefire, with agents expecting traveller confidence to rebound and return to pre-war levels within two to three months if the ceasefire holds
Traveller confidence will take a few months to rebound and return to pre-war levels should the ceasefire hold, say UAE travel agents.
While initial enquiries have picked up, industry executives told Khaleej Times a broader rebound will depend on how quickly flight operations normalise and traveller confidence returns.
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Bharat Aidasani, of Pluto Travels, said he expects demand to steadily grow over the coming weeks and for the Eid season to pick up again. Eid Al Adha is expected to fall on either Tuesday (May 26) or Wednesday (May 27) this year, which would give UAE residents a long public holiday.
The Eid seasons are popular among residents who look to use this time to travel overseas. However, plans were put on hold for some during Eid Al Fitr (March 20th) due to the regional conflict and disrupted travel plans caused by limited airspace closure.
If the ceasefire holds for these two weeks, and subsequently endures for longer, Aidasani said it can take two to three months for traveler confidence to return to prewar levels.
Pent-up demand
Raheesh Babu, COO of Musafir.com, said he anticipates a significant uptick in travel demand in the near term following the ceasefire announcement, driven by strong pent-up demand. He noted that many travellers, particularly those planning trips during India’s April and May school holidays, had delayed bookings due to the crisis.
A full recovery would depend on key factors such as airlines reopening their full inventory, authorities lifting remaining restrictions, and ticket prices stabilising, he noted.
Babu said traveller confidence would return in stages, starting with emergency travel and visits to friends and relatives, followed by leisure and corporate travel as the situation stabilises. He also expects a surge in last-minute bookings as travellers who had been waiting for clarity begin confirming their plans.
He added that ticket prices are likely to decrease in the coming weeks as airline capacity improves, alongside easing fuel costs and insurance premiums.
Much-needed relief
Geoffrey Salatan, CEO of Geof Travel, said that one of the travel industry’s biggest challenges was the pressure on business cash flow from transaction adjustments.
He said the ceasefire brought on a much-needed relief for his agency as well as the travel industry as a whole, which has been heavily affected. The UAE’s airspace was temporarily closed during the start of the war and has since been opened, though UAE carriers are operating on a decreased flight schedule.
Other international carriers have suspended all flights in the region.
The travel agent said his agency he is hopeful that normal business transactions will continue as normal “very soon” and that “travel agents will rise strong again.”
