The Middle East is a region defined by its young population and increased digital adoption, both of which are fueling rapid growth in the travel sector.
According to data from Phocuswright’s Middle East Travel Market Report 2025, by 2024, the regional travel market exceeded pre-pandemic levels by 23%, with gross total bookings reaching $101.2 billion. The growth is only anticipated to continue, with a 7% compound annual growth rate through 2030 and the potential to reach $135.7 billion in total gross bookings.
Travel suppliers’ increased adoption of mobile-first and online channels has also seen an uptick, and they're projected to rise from 48% in 2024 to almost 60% by 2028.
“Travelers today are digitally native, increasingly opting to research, plan and book their journeys via mobile apps, online platforms and even messaging services,” said Muzzammil Ahussain, CEO of online travel agency Almosafer, for which WhatsApp has become a preferred booking channel.
Social media is also key for this technically savvy generation.
“We’re seeing platforms like Instagram, TikTok and YouTube move from top-funnel inspiration to almost a direct influence over decision-making,” said John Bevan, CEO of Dnata Travel Group.
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Younger travelers are more likely to book at the last minute, planning trips without performing months of research.
“Shorter booking windows and spontaneous getaways have become more common, particularly for weekend trips and leisure escapes. Younger generations, especially millennials and Gen Z, are driving this trend, opting for last-minute bookings and promotional deals while expecting flexibility in cancellation and payment terms,” Ahussain said.
That’s not to say they won’t ever plan anything in advance—these travelers just like “mixing it up,” Bevan said.
“They’ll plan some trips well ahead but also book something spontaneous just a few weeks out if the price and timing line up. Weekend breaks, staycations or short haul hops around the GCC tend to fall into that last-minute category.”
But booking windows vary due to the introduction of more flexible booking terms and dynamic customer behavior, Ahussain said.
“For long-haul visitors heading to the region—especially for luxury stays or major events—you’re looking at bookings being made three to six months in advance. Families planning their one big holiday tend to book early to lock in the best options,” Bevan said.
Almosafer’s data also suggests that travelers, particularly families, are staying longer in the Middle East, with trip lengths up by 15%.
Growing markets
There’s significant movement in market growth across the Middle East, but the UAE stands out.
“Dubai International Airport saw 46 million passengers just in the first half of this year, which is pretty remarkable,” Bevan said.
“If things stay on track, we’re looking at nearly 100 million for the full year. That tells you a lot about how strong demand still is for the UAE, not just as a destination but as a transit and business hub, too.”
According to Phocuswright data showed, the UAE accounted for 51% of the regions total gross bookings in 2024, equivalent to $51.2 billion. Steven Greenway, CEO of Saudi Arabian low-cost airline Flyadeal, also noted increased flexibility for female travelers, namely in Dubai. More women are traveling without chaperones, albeit in groups, with this now becoming “a huge market.”
Oman is also facilitating growth via a five-year partnership with TUI Group to align with Oman Vision 2040. The strategic alliance will see the opening of five hotels in the Dhofar Governorate, the first of which will open as early as winter 2028.
There’s a lot of stuff that we weren’t planning for that is in our immediate backyard. That is something that is very, very appetizing for us.
Steven Greenway, Flyadeal
Earlier this year, TUI announced another partnership with Oman Air to reach new customer bases and emphasize Oman’s role as a travel destination.
Egypt is expanding too, posting 20% growth in the first quarter of 2024, Bevan said.
“People are rediscovering the depth of its cultural offering, especially now that infrastructure and connectivity are improving,” Bevan said, pointing to growth in Jordan and Bahrain.
As for Flyadeal, Greenway said it will continue to grow domestically, but international expansion is top of mind.
“We now have four destinations in Pakistan. We didn’t have anything only six months ago,” Greenway said. And although the conflict in Israel has increased challenges, things continue to “open up.”
“When I came on board, I could have never imagined that we could be flying to Iraq, as an example. We now fly to Baghdad and Najaf. We will start services to Damascus in Syria on the first of October, and I hope to expand into Aleppo and other parts of Syria now that things are opening up and stabilizing,” he said.
Expansion will continue in Flyadeal’s “backyard” destinations, with the carrier hoping to add a route to Lebanon before the end of the year, now that civilian flights can pass through Syrian airspace.
“Who knows, we might be able to go to Iran in the next six months,” Greenway said, conceding that these opportunities can vanish as suddenly as they arise.
"There’s a lot of stuff that we weren’t planning for that is in our immediate backyard. That is something that is very, very appetizing for us.”
Opportunity in Saudi Arabia
While markets across the Middle East are seeing increased traffic, Saudi Arabia offers “a whole story in itself,” Bevan said.
“Just a few years ago, it wasn’t even on the leisure travel radar—and now, with places like the Red Sea resorts and NEOM opening in phases, it’s becoming a major player. The kingdom’s gone from around 3.5 million tourists to over 27 million in just a couple of years. That kind of growth doesn’t happen by accident,” Bevan said.
In 2024, specifically, Saudi Arabia saw 29.7 million inbound visitors, an 8% year-over-year increase and a record high, according to the 2024 annual report from The Saudi Ministry of Tourism. In March 2024 alone, the country saw 3.2 million inbound tourists amid the Formula 1 Saudi Arabian Grand Prix at Jeddah Corniche Circuit.
The annual report also cited 86.2 million domestic tourists last year, and Greenway likewise pointed out that Saudis are now able to “discover their own country.”
“That’s stimulating domestic markets, so that’s growing at about 15% a year.” Greenway said, noting the opening of tourist attractions such as the city of AlUla.
Saudi’s Vision 2030 is making religious travel easier too, with Muslim travelers coming to Mecca for Hajj or Umrah. Travel for the latter is on the rise as the pilgrimage can be performed all year round, Greenway said.
In the past, travelers were restricted when making plans with length of stay and scheduling.
“You had to go through certain tour operators. You could only come for three days. You had to go into Jeddah, leave Jeddah. Your feet don’t even touch the ground and you’re on a bus to Mecca,” Greenway said.
But that changed in 2023. Following strict limitations during the COVID-19 pandemic, Saudi Arabia adjusted visa policies, lifting age restrictions and allowing any Hajj mission to use any licensed company that met pilgrimage requirements.
"That's all opened up now, and it’s akin to a tourism visa, where you can come in by yourself, you can book your time, you do your thing and then you can go looking around in the kingdom. So, this is all new to us as well,” Greenway said.
Experiences, luxury travel
Across the country and the Middle East region, there is also heightened demand for unique experiences.
According to Phocuswright’s research, travel suppliers in the Middle East are diversifying offerings with access to historical sites, cultural experiences and entertainment options.
In the GCC, specifically, researchers from PwC and Mabrian Technologies found that arts and culture are the top visitor interests in Saudi Arabia (24.5%), Qatar (28.5%) and the UAE (26.6%).
For Almosafer, experiences are a worthwhile investment.
“Our data shows that travelers are particularly interested in culturally focused events, attraction tickets, cruises and immersive seasonal experiences,” Ahussain said.
The online travel agency is aiming to meet this demand through its “Almosafer Activities” marketplace launched alongside Klook and geared towards the Saudi and regional market.
Our data shows that travelers are particularly interested in culturally focused events, attraction tickets, cruises and immersive seasonal experiences.
Muzzammil Ahussain, Almosafer
“We are also working closely with local partners, tourism boards and cultural institutions to bring traditionally offline experiences online, enabling users to browse, book and plan immersive activities with ease,” Ahussain said.
“This effort not only supports the digital transformation of the sector but also ensures that travelers, both inbound and outbound, can explore the richness of a destination beyond hotel stays and flights.”
Similar to experiences, luxury travel was once largely offline but is now becoming more readily available on digital platforms. And when it comes to luxury experiences, travelers are again craving more immersive and authentic options.
In Qatar, for example, 43% prioritize dining at high-end restaurants and 41% seek luxury accommodations—but an even bigger percentage of travelers, 48%, want to be immersed in local cultures, PwC found.
“Homegrown and design-led concepts like Desert Rock and Shebara [resorts] are carving out a niche for immersive, nature-integrated escapes. Culinary experiences are also playing a central role in the luxury narrative, where international names coexist with local fine-dining innovators to offer culture-rich, sensorial journeys,” Ahussain said.
“What makes this luxury segment truly distinct is its focus on access, privacy and authenticity, delivering moments money cannot easily replicate.”
Ongoing innovation
When asked about innovation in the Middle East, Bevan simply said that it’s “everywhere.”
“You’ve got these enormous developments like NEOM and the Red Sea resorts coming online, and they’re not just adding beds—they’re completely reimagining what a holiday in the Middle East could look like. Think regenerative tourism, luxury eco-lodges, undersea adventures, you name it.”
The UAE is also boosting competition with a Disney-branded theme park and investments at its airport.
Travel to the region is being aided by the 2023 approval of the GCC Grand Tours Visa, which will allow travel access across Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE under one application. The initiative is expected to launch this year as a “collaborative effort to promote tourism across the region.”
“Visa liberalization is also making a real difference—streamlining entry processes for visitors from key source markets,” Bevan said. “These are all pointing towards a future where the Middle East is becoming less of a stopover destination and more of the main one.”
When talking innovation and the future of travel, artificial intelligence is another area that can’t be ignored.
According to Ahussain, “AI is revolutionizing booking behavior across the Middle East” by enabling “hyper-personalized journeys.”
Travel can be emotional, nuanced and sometimes complex. We want to make sure that as we bring in new tech, we’re not taking away the magic or making things feel transactional.
John Bevan, Dnata Travel Group
“Travelers now expect recommendations that align with their context, preferences and real-time needs, and AI enables exactly that,” he said.
Since adding AI capabilities, Ahussain said Almosafer has seen an uptick in conversion rates and repeat bookings.
For Bevan, however, AI-inspired changes are subtler.
“At Dnata Travel Group, we’re quite far along when it comes to using AI in the background—whether it’s managing large volumes of data or improving operational efficiency. That’s where AI really shines right now: helping us work smarter behind the scenes so we can serve our customers better,” he said.
The company is taking a more measured approach with customer-facing AI tools.
“We see the potential, especially in areas like personalization and smart search, but we’re also mindful of maintaining that human connection because that’s still such a big part of why people turn to us. Travel can be emotional, nuanced and sometimes complex. We want to make sure that as we bring in new tech, we’re not taking away the magic or making things feel transactional, while still offering a unique service to our customers.”
WiT Phocuswright Middle East
Join us at WiT Phocuswright Middle East on May 1, 2026, in Dubai to explore the latest technology, innovation and distribution and marketing trends in the region.