The GCC countries’ travel agency services industry is poised for robust growth in the next decade. It is anticipated to grow from an estimated USD 44.3 billion in 2025 to USD 141.8 billion by 2035, reflecting a CAGR of 12.3% from 2025 to 2035. This growth is driven by rising demand for luxury travel experiences, the expansion of online booking platforms, and increased tourism investments across the region.
Market Overview
Attribute | Value |
---|---|
Estimated GCC Industry Size (2025E) | USD 44.3 billion |
Projected GCC Value (2035F) | USD 141.8 billion |
Value-based CAGR (2025 to 2035) | 12.3% |
The primary drivers of growth in the GCC travel agency services market are an increase in high-net-worth consumers looking for personalized experiences, increases in airline and hotel network growth, and initiatives by the government such as Saudi Arabia's Vision 2030, aimed at developing the region as a world tourism hub. The rising demand for eco-tourism and wellness tourism is also helping in making the market dynamic.
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The following chart provides a snapshot of the anticipated changes in CAGR from the base year of 2024 to 2025, capturing shifts in regional market trends.
CAGR Values for GCC Travel Agency Services Industry (2024 to 2025)
The GCC Travel Agency Services Industry is expected to grow at a CAGR of 11.8% in the first half of 2024, with a slight increase to 12% in the second half. By H1 2025, the growth rate is projected to rise to 12.1% and reach 12.3% in H2 2025, driven by increasing regional and international demand for luxury and personalized travel services.
Category | Details |
---|---|
Market Value | The GCC Travel Agency Services Industry generated USD 39.5 billion in 2024, contributing 50% of the region's total travel services market. |
Domestic Market Share | Domestic tourists account for 60% of the market, with popular destinations including Dubai, Abu Dhabi, and Oman’s Muscat. |
International Market Share | International tourists make up 40%, with key markets including travelers from Europe, Asia, and neighboring Middle Eastern countries. |
Key Destinations | Key destinations include Dubai’s Burj Khalifa, the cultural city of Doha, and the ancient sites in Petra, Jordan. |
Economic Impact | The industry generates significant revenue through high-end luxury packages, desert safaris, and cultural tours, adding billions to regional economies. |
Key Trends | Growth in luxury travel, eco-tourism, wellness retreats, and immersive cultural experiences. Additionally, customized services like yacht rentals and private desert safaris are becoming increasingly sought after. |
Top Travel Seasons | Winter and spring dominate as peak seasons, with travelers flocking to the GCC for the Dubai Shopping Festival, Abu Dhabi’s Formula 1 Grand Prix, and the Oman Khareef festival. |
The GCC travel agency services market is experiencing strong growth, fueled by both domestic and international tourism. While local travelers continue to explore regional destinations, international tourists-especially from Europe and Asia-are increasingly drawn to the region's luxury offerings.
Cities like Dubai, Abu Dhabi, and Qatar are known for their world-class hotels, upscale shopping malls, and exclusive experiences, which appeal to high-net-worth individuals seeking opulent vacations. In addition to luxury, the GCC is transforming as a hub for wellness and eco-tourism.
Oman and Bahrain, in particular, are emphasizing sustainable tourism activities, such as eco-friendly experiences of nature reserves, eco-lodges, and environmental excursions. Oman's unspoiled geography, such as the Dhofar mountains and unspoiled beaches, presents a perfect setting for sustainable travel.
This increasing focus on sustainability appeals to green-conscious travelers who desire to merge luxury with eco-friendliness, and the GCC thus becomes a diversified and appealing market for all types of travelers.
Date | Development & Details |
---|---|
Jan 2025 | Launch of Exclusive Desert Safari Packages: Al Maha Desert Resort & Spa in Dubai partnered with local agencies to introduce exclusive, customized desert safari experiences, offering private dinner options and star-gazing tours. |
Dec 2024 | Expansion of Cultural Travel Packages: Qatar Tourism Authority launched a range of cultural tours including exclusive access to the Museum of Islamic Art and private tours of historical sites in Doha. |
Nov 2024 | Growth in Luxury Cruise Offerings: MSC Cruises announced new luxury cruise itineraries for the GCC region, including stops in Dubai, Abu Dhabi, and Muscat, offering VIP packages tailored to high-net-worth individuals. |
Oct 2024 | Focus on Eco-Tourism: The UAE Ministry of Tourism launched eco-tourism packages to promote sustainable travel, including private eco-friendly tours of nature reserves in Ras Al Khaimah. |
Sept 2024 | New Wellness Tourism Partnerships: Leading agency Al Tayer Travel partnered with luxury resorts in the UAE to offer wellness retreats focused on health and rejuvenation in exclusive desert settings. |
Full-Service Travel Arrangements Dominate the Market
Full-service travel arrangements will lead the GCC travel agency services market by 2025 and will hold a 70% share of the total market. This trend speaks volumes about how more and more people are craving customized, luxurious travel experiences with every detail of a trip arranged with utmost care to provide maximum comfort and exclusivity.
High-end travelers are no longer looking for generic packages that offer the standard holiday experience, but rather for highly customized packages that embrace individualized itineraries, complete private jet charters, and experiences with unique access to the most prized destinations.
Airlines like Emirates Holidays and Abercrombie & Kent are pioneering this transformation with extensive packages that blend beautifully the luxury lodging, private sightseeing, and extraordinary, custom-tailored activities. To illustrate, an ultimate package in the UAE can include a helicopter sightseeing tour over Dubai's skyscrapers, special mall-hopping at internationally famous shopping centers, and lodgings in the world-famous Burj Al Arab. These packages guarantee tourists see the area in the most high-end manner conceivable, from personal entry to historical sites to gourmet meals and customized experiences.
The beauty of full-service packages is the convenience and hassle-free experience. Luxury travelers, groups of corporate clients, and families especially like these packages because they avoid the trouble of making arrangements and bookings for every aspect of their vacation.
From booking VIP airport transfers to finding tickets for sold-out shows or even private dinners, these packages make sure nothing is left to chance. The popularity of these all-inclusive, bespoke packages keeps increasing, as tourists look for exclusive, once-in-a-lifetime experiences that they would otherwise find difficult to organize themselves.
These packages provide the ideal combination of luxury, convenience, and exclusivity, making them extremely attractive to high-net-worth individuals looking for a seamless vacation experience.
Independent Travelers Lead the Tour Type Segment
By 2025, independent travelers will represent 55% of the GCC travel agency services market, making a major transition towards more customized and flexible travel experiences. It is a response to increasing demand for independence and personalization, as most tourists want to create their own trip itinerary, selecting destinations and activities that suit their own interests. In contrast to packaged tours, independent travel enables the person to travel at their own convenience, making their journey more individualized and realistic.
Tour companies like Intrepid Travel and Abercrombie & Kent are catering to this demand by launching flexible, customizable itineraries that attract independent travelers. These companies provide self-guided travel packages where tourists see places on their own terms.
For example, a tourist might embark on a self-guided trek in Oman's mountain ranges, enjoying peace of solitude in remote landscapes without the hassle of a group tour. Similarly, tailor-made tours around the UAE's cultural highlights, such as in-depth visits to Dubai's off-the-beaten-path history or visits to Sharjah's old-fashioned bazaars, offer a more intimate experience than the standard tourist sites.
Single travelers are likely to travel in pursuit of offbeat and interesting experiences. Rather than visiting the usual touristy places in the UAE, for instance, they might visit the peaceful Al Ain Oasis or walk along Saudi Arabia's ancient archaeological sites. Single travelers also like to immerse themselves in local culture, for instance, by living with Bedouins in the desert or learning traditional crafts from artisans in Bahrain.
This independent travel model combines freedom with structure so that travelers get to make their own itinerary yet enjoy professional input on logistics. This balance offers independent travel most attractively to those who would want exploration, discovery, and authenticity in the travel experience.
Full-service travel arrangements are the most prevalent in the UAE travel agency services market, with a market share of around 75%. This is mainly due to the luxury tourism industry in the region, where upscale travelers demand complete packages that involve private jets, luxury resort accommodations, customized tours, and private tours.
Dubai, being a business and tourist hub of the world, draws high-end tourists who want an easy, hassle-free, all-inclusive travel experience. Operators such as Emirates Holidays and Abercrombie & Kent dominate this segment of the market, providing high-end, custom packages that fulfill the region's increasing demand for luxurious, hassle-free holidays.
Independent travel is the leading segment in Saudi Arabia's travel agency services market, with a share of about 60%. This shift is fueled by the country's increasing tourism infrastructure and increased popularity of tailored and flexible travel plans.
With Saudi Arabia becoming one of the luxury and cultural tourist destinations, solo travelers wish to explore the Kingdom's historic monuments like Al-Ula and Red Sea coast according to their choice. The demand for tailor-made experiences that allow for spontaneity and soaking up local culture drives the growth of this segment, as well as the phenomenon of growing demand for personalized travel options.
The GCC travel agency services sector is competitive in nature with the presence of giant regional players along with niche players. Market leaders such as dnata Travel, Kanoo Travel, and Musafir dominate the market and have a host of travel packages on offer. These firms span the spectrum from luxury holidays to bespoke itineraries, welcoming both local and international travelers.
At the same time, specialty agencies specializing in luxury vacations, cultural trips, and spa breaks are increasingly popular. These specialty agencies offer upscale travelers personalization in services, such as private desert tours, bespoke cultural trips, and wellness-focused stays, driving a movement toward highly personalized travel.
2025 Market Share of GCC Travel Agency Services Players
Major players in the GCC travel agency services market are dnata Travel, Kanoo Travel, and Musafir. Moreover, niche agencies dealing in luxury and eco-tourism are gradually increasing their market share, responding to the growing demand for customized, sustainable, and high-end travel experiences in the region.
The GCC Travel Agency Services Industry is expected to grow at a CAGR of 12.3% from 2025 to 2035.
The market is projected to reach USD 141.8 billion by 2035.
Key drivers include the increasing demand for luxury and customized travel experiences, the rise of eco-tourism, and growing regional tourism initiatives.
Key players include dnata Travel, Kanoo Travel, and Musafir, and a growing number of niche agencies focusing on specific market segments like luxury and eco-tourism.
The industry is segmented into Full-service Travel Arrangements and Partial Travel Services.
The market is analyzed by Phone Booking, Online Booking, and In-Person Booking.
Segmentation includes Domestic and International tourists.
The industry includes Independent Travelers, Package Travelers, and Tour Groups.
The market is analyzed by Men, Women, and Children.
The industry includes the following segments based on age: Less than 15 years, 15 to 25 years, 26 to 35 years, 36 to 45 years, 46 to 55 years, 56 to 65 years, Over 75 years.
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