In 2009, low-cost carriers in the United Arab Emirates (UAE) and Saudi Arabia consisted of 8.8% of all seats sold within their respective markets and this had almost doubled to 16.3% by 2021 according to GlobalData’s Passenger Airlines Database. The leading data and analytics company finds that these statistics show that demand for low-cost airlines is growing rapidly in the Middle East, suggesting that travel behaviours within the region are changing.

Craig Bradley, Associate Travel & Tourism Analyst at GlobalData, comments; “Over the last few years, European low-cost carriers WizzAir and Ryanair have dipped their toes in the Middle Eastern market, establishing routes to destinations such as Jordan and Abu Dhabi. In addition, Middle Eastern Low-Cost Carriers (LCCs) such as flydubai, Air Arabia and Jazeera Airways have cashed in on growing low-cost demand. Despite this, the market is yet to reach its full potential.”

While the luxurious pull of destinations such as the UAE, Qatar and Bahrain can whet the appetites of high spending travelers, the global leisure market still values low-cost fares above all else. According to a GlobalData Q3 2021 Global Consumer Survey, 58% of respondents said that cost was the most influential reason for booking a holiday. Furthermore, 57% of respondents from the UAE, the Gulf Corporation Council’s second largest outbound market, also agreed with this sentiment. The research clearly shows that there is demand for low-cost airlines from both inbound and outbound tourists in the Middle East, maximizing the opportunity for LCC growth in the region.

Bradley adds: “Once a region that seemed to be exclusively aimed at the luxury tourist, destinations in the Middle East are now diversifying into mainstream leisure markets, while remaining conscious of the need to not overdilute their luxury image. With travel budgets tightening due to the pandemic and growing demand for affordable luxury, the Middle East could witness a significant shift towards the LCC market to fulfil aspirations of holidaying in a luxurious destination.

The pressures of inflation and economic hardship due to the pandemic and the need for hedonistic, unique experiences are driving demand in this sector. As such, low-cost airlines have a prime opportunity to tap into this untouched region. Other tourism businesses have already had significant success using this concept, turning over millions each year. Examples include Secret Escapes and Groupon, which offer luxury travel products and experiences at low prices, helping to sustain the affordable luxury trend.”

Bradley concludes: “The rise in popularity of LCCs and demand for affordable luxury pairs well with the Middle East’s ambitious growth plans to become one of the world’s most popular tourism regions. This will see the low-cost airline industry boom in the region over the coming years.”