Travel and Hospitality Digitalization in the Middle East: statistics and benefits

The travel and hospitality industry has seen significant growth in recent years, particularly in the Middle East and North Africa (MENA) region, including countries like Bahrain, Oman, United Arab Emirates, Saudi Arabia, Qatar, and Kuwait.

The travel sector in the Middle East is booming and Milies couldn’t resist researching the latest digital trends of travel industry in this region to share our tech insights with our readers!

Based on Future Market Insights, the travel industry in the Middle East is anticipated to expand by 5.1% annually by 2034. That implies that by then, it will be worth $453 billion!

In a word, technology is taking over the travel and hotel industry in the Middle East! It's like everything is going digital, from booking your trip to checking in at your hotel. It's changing the way we experience travel. No wonder why. It relates to several factors.

Why the Middle East Tends to Digitalize the Tourism Industry

• Ambitious Government-led programs. To strengthen their economies, the Middle Eastern countries are placing a high priority on tourism. By modifying visa regulations, streamlining entrance processes, organizing major events, and showcasing cultural exhibits, they are facilitating travelers' access to the region. Some examples of such programs are:

  • Saudi Arabia wants to attract 100 million visitors every year by 2030 It's part of their larger Vision 2030 plan to transform the country's economy.

  • The UAE announced plans to attract $27 billion in tourism-related investments, having tourism generate $112.5 billion in revenue by 2031.

  • By 2030, Qatar aims to welcome 6 million tourists yearly. Furthermore, $3.7 billion would be invested through the recently created Events Investment Fund to construct sports, entertainment, and cultural venues around the nation.

• Infrastructure development is at a lightning pace. Countries like the UAE, Qatar, and Saudi Arabia are making great efforts to become popular travel destinations. They're creating incredible attractions and making it easy for people to get around. Great hotels and easily accessible transportation will encourage more visitors to come and experience an amazing time.

• Younger generations have a big influence on the travel industry. Millennials and Gen Zs primarily aged 26-35 — the ones who grew up with smartphones — are totally changing how we think about travel. They all like going on trips and posting about them online, and they are all tech-savvy. No wonder they have a significant impact on changing the travel scene, particularly in the Middle East and North Africa (MENA).

Future Market Insights reveals that the leading booking channel for tourism in the Middle East is online booking. In 2024, the total value share of the online booking channel will be 36.8%.

Travel to the Middle East may be easily planned and organized with the help of online booking tools. With a smartphone and internet, travelers can book flights, hotels, and activities from anywhere, anytime. It's like having a travel agent in your pocket. These platforms also offer good deals and discounts, saving money for travelers. Plus, they confirm bookings instantly, so travelers don't have to wait.

In general, online booking systems have simplified, increased flexibility, and improved security of travel for travelers in the Middle East.

Top 12 Benefits of Digitalization in Tourism and Hospitality

1. Enhanced Customer Experience

   Travel companies use digital tools to give personalized service. This means they can recommend destinations, hotels, and activities that match customers’ preferences, without the urge to visit multiple travel agencies. Trip-planning websites and apps make it simple to compare prices and find great deals.

2. Automation of Tasks

   Digital trip management software helps simplify tasks like booking confirmations and customer inquiries. This means less work for staff and allows them to focus on providing better service.

3. Data Management

   Travel management solutions make organizing and finding information simple. This helps travel companies manage trips, customer data, booking details, and feedback more quickly and accurately.

4. Resource Optimization

   Online travel agency tools with CMS help make staff scheduling and inventory management more efficient. This leads to fewer mistakes and better resource use, making everything run more smoothly.

5. Online Payments

   Online payment systems for travel services make the whole process simple, safe, and fraud-free.

6. Digital IDs and E-Tickets

   Check-ins are faster and more secure when digital IDs and e-ticket systems are used.

7. Emergency Communication

   Tour agency digital tools help emergency responders communicate and work together more effectively, allowing help to arrive faster when it's needed.

8. Virtual Tours

   Virtual tours let the customers check out places on the Internet before they visit them. It helps in determining their destination and activities while there.

9. Language Translation

   Using translation apps makes it simpler to go about and interact with locals in a foreign language by enabling travelers to speak and comprehend many languages.

10. Data-Informed Decision Making

    Travel analytics and reporting tools help travel companies determine what customers like and what's popular. This lets to provide better services and experiences.

11. Predictive Analytics

    By using predictive analytics, businesses can estimate the number of tourists who wish to travel and then make sure there are enough flights or other services available. Airlines, for instance, may determine when a large number of people wish to go and then modify their timetables to guarantee they have enough flights.

12. Tracking Progress

    Digital prediction tools help track and analyze the performance of tourism services. By using this data, services may be enhanced, and clients can be satisfied.

Overall, digital technology is generally benefiting the tourism industry by enhancing customer service, streamlining operations, and expanding advertising options. It also improves accessibility, safety, and environmental quality. By using tourism-related digital tools, the travel industry players offer better services and make traveling more fun for their customers.

Now let’s explore the Middle East’s big players in the travel and hospitality industry.

Top Travel Agencies in the Middle East

Kanoo Travel

Kanoo Travel is the largest travel company in the Middle East, with a team of travel specialists, operating a network of over 140 offices in the region. Their team of experts knows the travel industry inside and out. With unrivaled quality awards and accomplishments, Kanoo Travel offers extensive and specialized services in the travel business, ensuring the greatest levels of client satisfaction.

Al Rais Travel

One of the most respected and well-known travel companies in the United Arab Emirates is Al Rais Travel. They have offered a variety of services since its 1977 establishment, from booking airline tickets to organizing vacations. They are one of the biggest independent freight companies in the UAE and help businesses move products all over the world. Al Rais is a one-stop shop for all travel requirements; they even represent some of the most well-known airlines.

Omeir Travel Agency

Omeir Travel Agency is the biggest and most well-known travel agency in the United Arab Emirates. They are the country's oldest and most respected travel agency, having been in business since 1956. With more than 500 employees and more than 50 sites, they provide specialized travel solutions in the Middle East. Omer Travel Agency is always looking for fresh, cutting-edge technical solutions to improve their business processes and give clients faster, more effective services.

Satguru Travel

Founded in 1989 in Kigali, East Africa, Satguru Travel has grown from a small travel agency to a well-known international travel company. They provide a wide array of travel-related services and are experts in providing all-inclusive corporate travel management packages. They have a presence in over 68 countries worldwide, with their headquarters in Dubai. One of their unique selling points is that they provide services for Wildlife Safaris. They guarantee that their clients have access to cutting-edge booking technology, insightful analytics, global alliances, and first-rate customer support.

RAG Tours and Travels

One of the well-known corporate travel agencies in the Middle East, RAG Tours and Travels, offers customized and optimized business travel. The company is an IATA-approved travel agency in Qatar (with branches and operations in other parts of the region), focused on catering to the cost and comfort requirements of businesses across the world. The agency also offers organized business travel management solutions through various automation systems and technological advancements.

Victoria Travels

Since 2014, Victoria Travels, a renowned travel company in Qatar, has provided travel and tourism services. By offering a wide variety of services, including the development of customized policies, automated expense management solutions, and dedicated support for business travelers during their visits, the company streamlines business travel. In addition to booking flights with more than 400 airlines worldwide, Victoria Travels is an IATA-accredited travel agency that provides a wide range of services, such as assistance with visa applications, travel insurance, cruise and train reservations, ground logistics such as airport transfers, inbound and outbound tours, and MICE (Meetings, Incentives, Conventions/Conferences, and Exhibitions) travel services.

Musafir

Named after the Arabic word for ‘traveler’, Musafir is a globally recognized travel agency operating primarily in the Middle East and is UAE's leading online travel management company. Originally catering to leisure customers, Musafir branched out into business travel in 2017, now having 10 branches spread across the UAE, India, Qatar, and Saudi Arabia. With more than 15 years of expertise in the travel sector, they provide their clients with hotel reservations and affordable flight deals.

Rehlat

Rehlat is making it super easy to travel around the Middle East. Since its founding in 2014, they have assisted citizens of Kuwait, the United Arab Emirates, and other countries with the booking of their accommodations, trips, and events. Their website serves as a one-stop shop for anything relating to travel. Due to their good relationships with all the main airlines, such as Emirates, Saudi Airlines, and Kuwait Airways, they can provide some of the lowest prices available.

Rayna Tours

Rayna Tours is a top-notch travel agency based in UAE. They have won lots of awards for their travel planning services. They assist in organizing the ideal vacation, whether being a corporation or an individual. Their website provides everything from hotel reservation systems to event planning portals and guided city tours.

Travel Software Solutions FAQ

Q: Why do travel agencies in the Middle East need software solutions?

A: Travel agencies can make their lives a lot easier with travel software platforms. They may automate their work, keep their customers satisfied, and book flights, hotels, and excursions all in one site. It's like having a super-powered travel assistant. These systems automate processes that would otherwise need a lot of manual work.

Q: What features should a good travel software have?

A: Travel agencies need digital tools that would help their customers with online hotel and flight booking, inventory management, customer tracking, payment processing, as well as mobile travel management apps.

Additionally, it would be fantastic if the software could provide:

• • visa management solution,

  • loyalty management software,

  • cargo management solution,

  • smart travel accounting software,

  • travel itinerary management tools,

  • travel risk management solutions,

  • tour operator software,

  • multilingual help,

  • demand-driven pricing adjustments,

  • artificial intelligence-based recommendations for activities and trips,

  • and travel analytics and reporting tools.

This would make the end-to-end automation of the travel business smooth and hassle-free.

Q: Are travel software solutions customizable for local markets?

A: Yes, many travel software platforms may be tailored to meet specific regional requirements. These may include linguistic and currency support, adherence to local laws, and integration with native payment and supplier networks.

Q: Can small and medium-sized travel agencies afford software development?

A: Absolutely! Numerous software providers offer adaptable pricing schemes to suit the requirements of smaller enterprises. For example, when offering a project proposal, Milies takes into consideration the project length, team size, and complexity to provide the best price.

Q: How does travel software improve customer experience?

A: Planning a vacation is made simple with travel software. Online booking is easy and offers quick confirmation, round-the-clock online support, and chatbot assistance for tours, flights, and hotels. In addition, travelers receive recommendations that are tailored to their tastes.

Q: How do travel agencies benefit from data-driven software solutions?

A: Travel companies may utilize data to track customer behavior, identify industry trends, and evaluate their productivity. They may utilize this data to improve their marketing, make more informed business decisions, and provide their customers with a better-customized experience.

With this great demand for travel software solution development, unfortunately, in the Middle East and the MENA region, there are very few custom software development companies that specialize in travel software development. Milies is one such company, offering tailored tour agency software to our clients in these regions. Whether you need a hotel, flight, car, or train booking system, tour booking software, or a travel agency CRM, our experienced team would be happy to provide you with a free IT consultation on your travel software needs.

Make sure to book a call via the website form or simply send a message to business@milies.net.