The travel industry is going through a major transformation thanks to technology. In 2022, people spent a whopping USD10.2 trillion on online shopping for goods and services, with travel sales accounting for over 10% of that. Companies like Expedia, Airbnb, and Uber have made booking travel super easy, and as technology advances, we’re seeing cool new stuff like Artificial Intelligence (AI) and cloud computing making the travel experience even better. The Middle East and Africa are becoming big players in this digital revolution, especially with the rise of smartphones and mobile internet access.
The pandemic really sped things up, pushing five years’ worth of digital progress into just one year. Now, over 50% of travel sales are happening online, but in the Middle East and Africa, it’s a bit lower at 30%. This shows that the region still has some catching up to do when it comes to digital infrastructure and internet access.
But hey, it’s not all bad news! The digital gap also brings some cool opportunities for growth and innovation. In fact, over 40% of people in the Middle East and Africa are now connected to the internet, which is double the rate from ten years ago. This is all thanks to smartphones and the support of governments and regulations that are pushing for more digitalisation.
The younger generation is really driving this digital revolution. With over 48% of the population in the region under 20 years old, it’s the millennials and Generation Z who are leading the charge. They’re all about that tech-savvy lifestyle and want personalised experiences when they travel. This has pushed the region towards more mobile-first strategies, blending the digital and physical worlds for a totally immersive travel experience.
Travel companies in the Middle East and Africa are stepping up their game by using innovative technology to meet the demands of modern travellers. These new technologies are changing the way we plan, book, and experience our journeys, shaking up the traditional business models. Things like Artificial Intelligence (AI), the internet of things, generative AI, and robotics are set to make a big impact on the industry, driving better search capabilities and consumer engagement.
Each country in the region is tackling the digital transformation in its own way. Saudi Arabia is introducing instant e-visas to attract 100 million visitors by 2030, while the United Arab Emirates is using facial recognition technology and check-in robots to revolutionise the travel experience. Qatar’s mobile app offers 360-degree views of iconic sites, and Egypt’s virtual reality tourism campaign is promoting ecotourism with immersive VR tours of protected areas. In Kenya, platforms like Viutravel, Jumia Travel, Booking.com, and Airbnb are making bookings easier with mobile payment options like M-Pesa.
The future looks bright for online travel booking sales in the Middle East and Africa, with a projected 7% annual growth from 2023 to 2028. As technology and travel become more intertwined, the industry is set to break boundaries and create a world where exploration knows no limits. To stay relevant, travel operators need to embrace technology and understand the changing needs of travellers. By doing so, they can tap into the region’s digital potential and drive tourism growth through innovative strategies.
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