While once-upon-a-time a region less travelled, the Middle East, particularly the GCC countries, are finding themselves high on an increasing number of travellers’ bucket lists.
Over the last year, tourism to the Middle East reached an all-time high, with an incredible 29% increase in arrivals compared to 2019. Qatar and Saudi Arabia, countries that only a decade ago would have been disregarded by most tourists, are leading the charge in the region’s tourism growth with over 63 million visitors between the two destinations in the first six months of 2024 alone.
While the United Nations recently attributed the Middle East’s thriving tourism industry to a mix of marketing, events, infrastructure and air connectivity, the billionaires over at the World Economic Forum (WEF) believe technology may actually be the bigger driver.
In a recent post, the WEF considered the role of technology in the democratization of global travel aka the distribution of tourism to once lesser known or visiting regions (such as the Middle East).
Millennials and Gen Z, technology’s biggest consumers, were praised as being the force behind the shift in the industry. In the piece, WEF explained that innovative technology has enabled these two generations to access travel despite their economic status being weaker than previous generations.
When it comes to deciding on a holiday destination, around 92% of younger travellers admit they’re being influenced by social media and technology. Platforms such as TikTok, YouTube, Instagram and even Netflix, are being consulted before booking. Young travellers said they’re using these sites and streaming content to discover and access new destinations.
The power of social media was recently supported by a Lighthouse study that found emerging destinations captured consumer attention in 2024, many of which were driven to book because of the affordable alternatives, unique experiences and presence on social media.
The study found that social media influencers have, in some cases, become more effective for destination marketing than brand-only campaigns. Around three-quarters of travellers studied said they drew inspiration for travel from social media and platforms such as Instagram, Facebook and YouTube, now represent a powerful direct route-to-market for hoteliers.
For the Middle East, Dubai is on top of its social media game thanks to the innovative Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, who has used his platform to promote the city since the early days of Instagram. Today, #Dubai has over 130 million posts on Instagram and is one of the most popular destinations on TikTok. Dubai is also leading the charge in marketing through content streaming with hit Netflix shows Dubai Bling and Love is Blind: Habibi, as well as Bravo’s The Real Housewives of Dubai.
Vertical AI was also acknowledged as shifting the industry by improving the customer service and optimising availabilities and rates. Lighthouse also found that AI transformed business operations and consumer behaviour throughout 2024.
The use of AI in large markets such as North America increased by 7% between August 2023 and March 2024, reaching 41%. With this significant growth, AI is believed to be an essential tool for the travel industry, particularly hotels.
One third of the Middle East is currently investigating the potential of AI including Saudi Arabia. The Kingdom recently launched ‘SARA’, a beta version of an AI-powered smart guide while Qatar’s flag carrier, Qatar Airways, is using an AI-powered virtual assistant Sama 2.0, as an innovative experience for online users.
“With the help of advanced travel technology and vertical AI, we are witnessing a new era where more people can explore the world, discover new cultures and create lasting memories,” the article read. “As we continue to innovate and adapt to changing traveller preferences, the future of travel looks brighter and more accessible than ever before.”
With technology at the forefront of the travel industry, Lighthouse suggested tourism organisations, including travel agents, can adapt their business to the shifting dynamics.
Among the top recommendations were adopting AI tools to save time and boost revenue, and make an effort to discover emerging destinations which will accommodate adventurous travellers seeking affordable, off-the-beaten-path experiences.
Photo by Kyriacos Georgiou/Unsplash
The full list of seven recommendations are:
- Optimise pricing for value: Where possible, attract budget-conscious travellers by offering value-packed deals such as bundles and special promotions.
- Discover emerging destinations: Where applicable, target adventurous travellers looking for affordable, unique experiences off the beaten path.
- Adopt AI tools: Leverage AI to automate dynamic room pricing across the business’ connected distribution channels to not only save time, but increase revenue.
- Tailor to regional trends: Adopt and adapt sales and marketing strategies according to local market conditions by utilising predictive demand intelligence.
- Harness the power of social media: Enhance the brand’s social presence to enable easy and convenient bookings through social platforms to attract today’s social savvy travellers.
- Tap into business travel: Capture the growing corporate market with customised packages that offer flexible bookings, exclusive amenities, and services tailored to the modern business traveller.
- Be aware of regulatory shifts: Staying updated on regulations allows the business to adapt quickly, maintain a positive reputation, and provide a seamless experience for guests, while also safeguarding the operation.
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