Middle East 23.10.2019
UAE price forecast: tours will become cheaper due to excess of transportation
UAE price forecast: tours will become cheaper due to excess of transportation
Travel industry experts are discussing a possible shortage of hotel rooms and at the same time, excess of transportation in the UAE destination in the coming season. Experts note that regular flights offer cheaper tickets than charters or at a comparable price: Pobeda can fly for 13 thousand Rubles (188 Euros), Aeroflot - for 17 thousand Rubles (239 Euros) and the cost of a charter’s seat starts from 18 thousand Rubles (253 Euros).
“Due to competitive prices, the demand for tours with included regular flights has increased,” said Ekaterina Frosina, the UAE section manager of the tour operator Sectrum.
At once several tour operators - Tui, Unicorn and Intourist - announced their own charter programs. Taken into account that the demand for tours to the Emirates is predicted to grow by no more than 15%, new volumes may create excess of transportation. The companies that have historically operated in the destination with large volumes - Coral Travel, Anex Tour and Biblio-Globus - do not reduce their programs.
“The adding of new players will lead to the fact that now they will be forced to compete with each other in price, so dumping is inevitable in the destination,” comments Arthur Muradyan.
Another problem is connected with the number of rooms at the most popular resorts of the Emirates, primarily in Dubai. “Not only Russia, but also other countries have increased their presence in the UAE. This leads to a shortage of inexpensive room (especially at peak dates). I think that the situation will worsen for New Year’s and other peak dates, while in other periods there will be no acute shortage,” one of the experts predicts.
According to the data of FSB Border Service of Russia, in 2018 among countries of the far abroad the United Arab Emirates showed the maximum increase in the number of Russians who visited the country (+23,25%, 996 thousand people).