Newly released ATM
2016 research from Phocuswright highlights online first for region as traveller
confidence and reliance on mobile devices prompts increased opportunities for Middle East OTAs
Newly
released data from travel industry research authority, Phocuswright, has
revealed that mobile transactions from Middle East travellers are set to hit
double digits for the first time ever in 2016 as consumers become increasingly
comfortable using their handheld devices for travel purchases.
Addressing
a full house at a special half-day Fast Track session, that took place
yesterday (Tuesday, 26 April 2016) at the new ATM Global Stage, Phocuswright’s
Middle East analyst, Jeff Strachan, chaired the interactive event, at which
regional analyst’s examined the latest consumer and technology trends driving
the market.
“Transactions from mobile devices
are expected to cross 10% this year, reaching double digits for the first time
in 2016, With exciting trends like ever-improving technology infrastructure and
a young population with an appetite for travel, the Middle East region is
poised for enormous growth in the next three years, both online and off; and
companies need to stay ahead of the curve in order to remain competitive in the
area,” said Strachan.
The
latest round of Phocuswright research also highlights the growth in online
penetration in the region, which is on
track to hit 31% of total revenues in 2016, up from 25% in 2014 and 27% in 2015;
with 19% of all revenues delivered online via supplier-direct websites, and 12%
of all revenues emanating from online travel agencies (OTAs).
OTAs are also gaining hotel revenue
share according to the data. In 2014, 56% of all OTA revenue was attributed to
airlines; whilst in 2016, 46% is forecast to go to hotels, with airline share
dropping to 52%.
“There’s been a huge surge in confidence in the
security of online transactions in the Middle East in the last 12 months and,
as more and more people across the region start to rely on their mobile devices
as a speedy, secure and reliable way to get things done, this can only
increase. From everyday transactions such as bill paying to bigger and more
emotionally driven purchases such as hotel stays and holidays, online is
rapidly replacing offline interaction,” said Nadege Noblet-Segers, Exhibition
Manager, Arabian Travel Market.
According to Phocuswright, OTAs
represent 75% of all online revenues to hotels, and 28% of all online bookings
to airlines, who have a much better online direct performance (61% from website
direct and 11% via mobile).
“The Phocuswright session at ATM 2016 provided
invaluable market and consumer insight, and was clearly a must-attend event for
the region’s travel community with a packed space and plenty of questions at
the end of the half-day session,” she added.
The
mini sessions included an overview of global trends, starting with a
presentation by Florence Kaci,
Director, Sales, EMEA and European Market Specialist, for Phocuswright, after
which Jeff Strachan hosted a special executive roundtable to discuss the Arabic
effect on online travel.
Online travel agency representatives including
Stephen Ekbergh, Founder and CEO TravelStart; Mark Forrester, Managing
Director, Occupancy Marketing; and Ross Veitch, Co-Founder & CEO, Wego Pte
Ltd, highlighted the challenges and opportunities for online distribution in
the region.
One such area that was highlighted
was the importance of offering localised language options in the online arena,
According to Phocuswright, key source markets including India and Saudi Arabia
are making rapid movement to online travel transactions with language playing a
significant role in search, particularly in Saudi Arabia where over 50% of
hotel and air search terms are in Arabic language.
Understanding the Indian marketplace
was examined in a single session with an executive interview with Indian online
travel company, Ezeego. Its CEO & Director, Neelu Singh, shared insight
into how Middle Eastern destinations can better get to grips with the
requirements and interests of Indian tourists in order to drive inbound visitor
numbers and increase spend.
ATM
2016 will build on the success of this year’s edition with the announcement of
an additional hall as Reed Travel Exhibitions looks to add to its
record-breaking achievements earlier this year. ATM 2015 witnessed a
year-on-year visitor attendance increase of 15% to over 26,000, with exhibiting
companies increasing by 5% to 2,873. Business deals worth more than US$2.5
billion were signed over the four days.
For
more information on Arabian Travel Market 2016, please log on to: www.arabiantravelmarket.com