In 2024, global business travel is projected to reach a staggering $1.48 trillion, with the Middle East and North Africa (MENA) region showing an impressive growth rate of 11.2%. Last year, the MENA region surpassed its pre-COVID business travel spending levels, reaching $17 billion, signaling a robust recovery and instilling confidence in its future.
A recent study by Tumodo, an online business travel platform, and Admitad, a partnership marketing platform, reveals significant trends shaping business travel in the MENA region for 2024. Analyzing over 500,000 travel purchases from Q1 2022 to Q1 2024, the report highlights increased car rentals, shifting destination preferences, and a growing trend toward mobile bookings.
Rising Ticket Prices and Travel Preferences
According to the study, the average price of airline tickets within the MENA region has risen to $205, primarily due to seasonal inflation. For economy class travel from MENA to Europe, Asia, and America, the average ticket price is $510, while business class fares reach $2,084. The distribution of ticket types in business travel is also telling: 88% of tickets are for economy class, 10% for business class, and just 2% for first class.
Notably, car rentals during business trips have increased by 17% compared to 2023, indicating a growing preference for flexible transportation options among business travelers.
Top Business Travel Destinations
The study highlights Pakistan, Kuwait, and Saudi Arabia as key destinations for travelers departing from Dubai. Saudi Arabia and the UAE, in particular, remain leading destinations for Pakistani workers, with over 450,000 individuals leaving Pakistan in 2023 for employment opportunities in these countries. This trend underscores the strong economic ties and business connections within the MENA region.
"Each sub-region showcases its unique trends. For instance, in the UAE, business travel accounts for 14.5% of the region’s total, underscoring significant growth and evolving dynamics," said Vladimir Kokorin, founder of Tumodo.
Shift to Mobile Bookings and Digital Trends
The report also reveals a noticeable shift towards mobile bookings, with mobile sales growing to 32% between 2022 and 2024. This increase can be attributed to companies’ focus on user-friendly interfaces, transparent spending monitoring, and the integration of AI-driven technologies.
Anna Gidirim, CEO of Admitad, noted,
"The rise in mobile sales reflects the evolving demands of business travelers. Companies are increasingly leveraging technology to enhance user experience and streamline travel management."
Diversification of Booking Channels
In Q1 2024, the top sources for business travel bookings were targeted and contextual ads, which accounted for 25% of sales, followed by content platforms, contributing 22% of sales. These figures highlight the importance of a multi-channel approach for travel companies, as business travelers continue to diversify their booking channels.
Globally, business travel spending reached $933 billion in 2022, with the MENA region accounting for $23 billion, or approximately 2.5% of the total spending within the sector. As business travel in the region continues to evolve, the trends identified in this study point toward a future of increased digitalization, personalization, and flexibility.
News Source: Tumodo and Admitad
