Online travel company: Flight bookings from the UAE fall 20 per cent year on year

Fares to some destinations have fallen in response to the decrease

D791WX Modern architecture at Terminal 3 at Dubai International Airport United Arab Emirates

March is usually a time for bumper holiday bookings from the Emirates as schools roll towards spring break, but international flight bookings from the UAE have fallen 20 per cent in the past two weeks when compared to the same period last year.

The ongoing spread of Covid-19 means spring travel has taken a dip this year, according to global online travel company Cleartrip.

“We have seen a much sharper decline in market demand in the second half of February as compared to the first, and this decline has continued in March,” said Amit Taneja, chief commercial officer at Cleartrip.

Countries that have been badly affected by Covid-19 such as China, Iran, Japan, Italy and Korea have predictably seen a major drop in flight bookings, but other destinations are also seeing a drop in demand from travellers from the UAE.

Which destinations have seen the biggest drop in bookings?

- Cleartrip recorded fewer flight bookings from the UAE to the UK, with a percentage drop of 33 per cent, compared to the same period last year.

- Lebanon had a 33-per-cent dip in demand, and flight bookings to France with Cleartrip have decreased by 31 per cent.

- Travel to neighbouring Oman is also slowing, with flight bookings down 28 per cent.

- India has recorded a drop in demand, with flight bookings from the UAE down 27 per cent, according to the travel company.

And cancellations?

Travel restrictions, travel bans and the last-minute change of dates for spring break in the UAE has also led to a rise in cancellation rates, said Cleartrip. The travel company recorded a 23-per-cent increase in cancellations in the last week of February and first week of March, when compared to the rate in January.

Destinations with the highest cancellation rates from UAE travellers include Saudi Arabia, Bahrain, Kuwait and Sudan (statistics were tabulated before the temporary suspension of flights from the UAE to Saudi Arabia).

"We have had high increases in cancellations along Mena destinations, such as Saudi, Bahrain, Kuwait and Sudan, followed by Singapore, Italy, France, Germany and Turkey," Mr Taneja said.

Several airlines are offering refunds or rebooking options to passengers forced to cancel trips due to the coronavirus crisis. UAE teachers who had travel booked for the original spring break period have been offered a full refund on flights from Etihad, the national airline of the UAE. Other airlines are also relaxing booking policies.

Longer-term outlook

While spring travel typically sees a rise in bookings from the UAE to several countries to coincide with Easter and school holidays, the impact of the coronavirus crisis is expected to change this pattern.

"Usually we see a spike in bookings to the Philippines around February and March. This hasn't happened to the expected levels this time around. Travel to France, Ireland, Spain, Portugal, Germany and Europe in general has seen the biggest fall-off this week," Mr Taneja said.

It also seems that the longer the crisis lasts, the more travellers are opting to cancel rather than delay travel plans.

“We haven't seen drastic increases in rebookings, maybe because people are still a bit apprehensive and want to see how everything pans out before making travel plans,” he said.

Dip in UAE hotel bookings

Despite a drop in international flight bookings and a rise in cancellation rates on flights from the UAE, the local market is not reaping the benefits of travellers staying put.

According to Cleartrip, there has been a 27-per-cent drop in local hotel bookings compared to the same holiday period last year. Local hotelier Bin Majid Hotels & Resorts recorded a drop in bookings at its Longbeach Campground in Ras Al Khaimah. The glamping destination, which has recently opened on weekdays in addition to weekends, estimated a 5 per cent to 7 per cent drop in bookings for this time of the year, compared to last year.

Drop in ticket prices

With this drop in demand for travel has come a dip in ticket prices for flights to some destinations. Cleartrip recorded a 15-per-cent drop in average posted fares over the past two weeks, versus the fares of the same period in 2019.

Countries in South Asia such as India, Pakistan and Nepal had the highest drop in ticket prices from the UAE, with close to a 20 per cent reduction in average fares.

Other parts of Asia had a 14 per cent average drop in ticket prices, with destinations such as Manila, Singapore and Bangkok recording cheaper ticket prices on flights.

Regionally, Cleartrip recorded a 12 per cent drop in fare prices for Mena destinations such as Riyadh, Cairo, Muscat and Beirut, compared to the previous year. But some destinations that have had a slow-down in flight bookings have not had a similar drop in fares.

According to Cleartrip, cities across Europe including London, Munich, Milan and Amsterdam have had a marginal drop in flight prices, with fares down by 2 per cent on average.