UAE Market Report May 2018
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- Eileen Francis
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1 UAE Market Report May 2018 Visit Finland Country Representative Nour Aridi
2 Semiannual Report United Arab Emirates: Winter season and outlook for summer 2018 CONTENTS Factors affecting the results of the winter season Outlook for the summer season 2018 Prospects for the autumn/winter season Trends and other relevant travel related topics Facts and figures - Market review data
3 Factors affecting the results of the winter season Reasons for the increase/decrease in overall outbound travelling from your market? The United Arab Emirates is reflecting a stable economy growth of 2% year over year with a sustainable growth in both major two emirates Dubai and Abu Dhabi. According to the Ministry of Economy the UAE is forecasting a 3.6% overall increase by the end of 2018 impacted by healthy changes in the oil prices and will be boosted further by the hosting of Dubai Expo Overall Middle East North Africa region is expecting an increase of 3.2% with inflation averaged by 6.6% which might be increased to 8.6% impacted by the introduction of the VAT in January Safety & security is a major concern of the Government of UAE which pride themselves as being a country with a multicultural and open society that counteract discrimination based on race, religion or nationality. Shariah Law is governing all activities and being the focal concern of all related activities. Vacations are well recognized within the UAE having one key long vacation of 3 months (summer), two short vacation periods of 7 days (small feast- Eid) and 11 days (large feast- Eid); Schools spring vacation is considered as an opportunity, it usually begins at the end of March or the beginning of April. Other short vacations which are connecting to National days, Islamic Days such as Islamic New Year, Prophet s Mohammed birthday etc Extended BLeisure are seen in the UAE outbound travel market.
4 Factors affecting the results of the winter season Reasons for the increase/decrease in travelling to Finland? Changes in demand Multiple season had impacted the demand positively with more tendency to discover new destination as well as local salary increase allowing more people to travel favoring close by destination or easy accessible one (airline connectivity) Changes in distribution The distribution channel with the UAE and the rest of the Gulf Cooperation Council (GCC) market remains well recognized in a clear leadership from the B2C channels that represent more 60% of the outbound travel flows headed by Booking.com and followed by Expedia, Trivago, HotelCombined and Wego plaforms. The B2B (classic travel agents) followed with more than 20% of the total outbound travel flows where there is no Tour Operators business from the UAE in the market. Direct Bookings could be an opportunity with less than 20% of the total outbound travel flow of the Emirates. Finland s image as a travel destination Finland as a new destination remain an opportunity for the UAE Market due to several environmental and natural benefits. Marketing for Finland will be a key pillar for the success of increasing number of travellers from Emirates knowing that UAE travellers are considered a key influencers for the rest of the GCC citizens.
5 Factors affecting the results of the winter season Reasons for the increase/decrease in travelling to Finland? Lapland is the main attractive region for the UAE travellers having strong interest for the newness, activities such as Northern lights the views of the auroras and their outdoor activities and adventure. More travellers have been with an interest to Finland due to its environment and atmosphere (cold weather, nature, landscape, greenery, fresh air). Educational expertise remain an asset in attracting travellers from the UAE and several GCC countries. The contribution of Finland during the Arabian Travel Market in Dubai 2018 as unique Scandinavian/Nordic country has helped to position Finland within the key interesting destination and helped to increase the awareness and visibility with the market.
6 Outlook for the summer season 2018 The overall outlook of travelling to Finland for the coming summer? The summer 2018 remains a mystery and depends on the marketing activities which currently on going by several meetings on both B2B and B2C platform and could be boosted forward by upcoming activities to take in consideration. The summer 2018 will be the longest vacation in three years as the holy month of Ramadan being early in 2018 allowing three months of uninterrupted vacation (15 th of June till 15 th September). Europe with its weather will remain a key impact factor since most of UAE citizens visiting cooler destinations to avoid hot weather in the region. New summer products Lakeland, Archipelago will be the key products to boost during the summer 2018 with a focus on Midnight Sun, family destinations with high-end cottages and villas. New sales channels B2C channels will be the focus during the summer 2018 for its potential to drive larger numbers of bookings with a prospect focus on the B2B market through the four key wholesalers present in the market (GTA, Hotelbeds, Destinations of the World and Lots of Hotels)
7 Outlook for the summer season 2018 The overall outlook of travelling to Finland for the coming summer? The summer 2018 will oversee multiple combined travel patterns (close by destinations/long haul destinations): - Short haul (Egypt/Lebanon/Turkey and new emerging market such as Azerbaijan/Georgia/Armenia) - Long haul (traditional European destinations France/UK/Germany, USA and Southeast Asia) Long summer will impact the length of stay of the travel patterns which is expected to increase from 4.6% to 6.8 % as an average. Summer is considered for family travellers which will impact the occupancy level having in consideration the large family size in UAE compared to traditional family. Which are the traveller segments? Leisure is considered a key and major segment from UAE with a leadership of millennials and families, using B2C as a key distribution platform.
8 Outlook for the summer season 2018 Ad hoc marketing opportunities B2C Joint Campaign with big players such Expedia and Booking.com to boost bookings via their platforms from UAE as a source market. B2B Joint Marketing Campaign with the 2 key players (GTA/Hotelbeds and DOTW) to support Finland as a destination during summer 2018 and stimulate demand from classic travel agents in UAE. Promotional blast campaigns to classic travel agents to increase the visibility and awareness of Finland. Airlines Joint Campaign with Emirates Holidays to push Finland as Twin Destination with neighboring countries. PR/Social Media and Networking Influencer Fam Trip to be organised to maximise awareness and visibility of Finland Travel Agents Fam trip to be organised in order to position Finland within key outbound destinations
9 Prospects for the autumn/winter season The overall outlook of travelling to Finland? More focus on marketing and digital campaign to expose Finland unique selling point as an adventure destination. More contribution is required with Airlines / holidays section to drive more packages and increase demand during autumn/winter season. A need to create an easy slogan to ensure being connected to UAE travellers and be more simpler in term of distribution (ex: Feel Finland) Which present target groups should be considered to increase the demand? Millenials/ Young Emiratis Families Which new target groups should be considered to increase the demand? Solo Travellers Educational related groups Health and Wellness travellers
10 Trends and other relevant travel related topics Trends Summer 2018 vacation approaching UAE with new trends: Discover of new destination and new adventures influenced by his Highness Sheikh Fazaa Crown Prince loving new challenges and activities. Safaris/ Diving destinations are becoming very popular in the UAE B2C : Booking.com leading the platform with different destinations promotions to Cyprus, Turkey, Saudi Arabia, Germany and Egypt. B2B: Key wholesalers and travel agents are pushing hot deals to Egypt, Turkey, Paris, London, Indonesia, Armenia, Georgia, Azerbaijan. New distribution channels Your suggestion on how to develop business with them: what needs to be done? Since Finland is new in the UAE market, no previous campaigns have been conducted on the B2B distribution channels let by Booking.com and Expedia thus recommendation will be to ensure positioning Finland on both channels before the end of the summer to make sure of positive conversion of booking sales.
11 Trends and other relevant travel related topics Competitors actions Norway has been present in the market, seen as a winter destination promoting urban cities and mainly Tromso for the northern lights and winter activities, the success of their market awareness has been conducted though multiple joint-promotion activities with the UAE travel trade mainly seen in co-marketing activities with top travel management destination such as Dnata travel. The accessibility of Norway by Emirates Airlines and Norwegian Airlines is facilitating the travel plannings of the UAE travellers. Switzerland and Austria are two destinations that are known for their greenery landscape and quality lifestyle that the UAE travellers are looking for. In addition Switzerland known similaryly for winter activities such as skiing in the alps, lakes beauty but sees strong potential for education and is eying the UAE as a source market for medical tourism. We saw a tremendous rise in emerging markets from Western Europeans countries equally Azerbaijan, Georgia, Armenia and recently Albania offering visa free for UAE citizens have seen a strong growth in the number of people from visiting these respectives countries owing to close by destinations, multiple accessibility and good value for money. Mostly all these destinations has been partnering with wholesalers such as GTA, hotelsbeds, lotsofhotels anf Online Travel Agencies mainly Booking.com, Expedia and Musafir.com.
12 Trends and other relevant travel related topics Free word We would need to work closely with marketing influencers and bloggers in this market and to create a fam trip to introduce Finnish travel agents to different partners in UAE. To work on twin way approach by creating fam trips from UAE travel partners to Finland as well organising a roadshow for Finnish travel to come to UAE that will ensure better communication between both partners and product positioning. UAE is considered as one of the niche outbound travel market due to the fact of low population number however they remain one of the highest purchasing power traveller.
13 UAE Market review data
14 UAE overnights in Finland 2017 Year 2017: (+3) Winter (Nov-Apr): (+43%) Summer (May-Oct): (+34%) 2 37% 49 % 51 % 3% 2% 2% 3% 2% 66% 3% 3% 54% 3% 3% 79% 6% Sources: Visit Finland Statistics Service Rudolf, Statistics Finland
15 UAE overnights in Finland Seasonal overnights in Finland Winter 2017 (Dec-Feb): (+28%) Spring 2017 (Mar-May): (+70%) Summer 2017 (Jun-Aug): (+40%) Autumn 2017 (Sep-Nov): (-) Winter 2018 (Dec-Feb): (+25%) Coast & Archipelago Winter 2017: 200 (+57%) Spring 2017: 300 (+188%) Summer 2017: 400 (+56%) Autumn 2017: 200 (+1) Winter 2018: 200 (+18%) Lapland Winter 2017: 900 (+38%) Spring 2017: 600 (+60%) Summer 2017: 100 (-15%) Autumn 2017: 200 (-2) Winter 2018: (+37%) Helsinki area Lakeland Winter 2017: 100 (-4%) Spring 2017: < 100 (-38%) Summer 2017: 200 (-36%) Autumn 2017: 100 (-43%) Winter 2018: 100 (-42%) Winter 2017: (+23%) Spring 2017: (+70%) Summer 2017: (+5) Autumn 2017: (+6%) Winter 2018: (+22%) Source: Visit Finland Statistics Service Rudolf, Statistics Finland
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