Hotel demand in Dubai had declined to between 7% and 14% of pre-geopolitical disruption levels during the March to May period. The market is now entering a phase of stabilisation, with gradual improvement anticipated from June onwards.
The recovery remains limited but positive, supported by the progressive restoration of air capacity, strengthening demand flows and the return of key events within the MICE segment. While demand continues to remain below historical levels, the current trajectory indicates the beginning of a normalisation phase rather than a full recovery.
The improvement is also linked to a partial recovery in air connectivity and the gradual return of regional and business travellers, reinforcing Dubai’s position as a global tourism hub under constrained operating conditions.
Anurag Jain, EVP for APMEA at RateGain, said: “In markets highly dependent on external factors such as air connectivity or geopolitical stability, recovery does not follow a linear path but unfolds in phases, often with rapid shifts in demand. In this context, true competitive advantage lies not only in reacting with agility, but in anticipating market movements before they materialize. Artificial intelligence is transforming this ability to anticipate, enabling hoteliers to analyze demand signals in real time, dynamically adjust pricing strategies, and optimize occupancy even in uncertain environments. This combination of data, prediction, and automation is redefining hotel management in destinations like Dubai.”
Artificial intelligence is emerging as a central driver in this transition, enabling operators to anticipate demand changes, interpret real-time market signals and make faster, more precise operational decisions in volatile environments.
“As market cycles become increasingly unpredictable, the ability to anticipate and adapt in real time, powered by data and predictive models, is becoming a critical competitive differentiator for the industry. Market performance at the beginning of 2026, with demand levels between 82% and 88%, is a strong indicator of the destination’s recovery potential as operating conditions continue to normalize,” Jain added.
RateGain continues to expand its AI-powered SaaS solutions for the hospitality sector, supporting hotels in anticipating demand trends, optimising revenue strategies and responding to evolving market conditions.
Tags: Dubai Anurag Jain, RateGain
