A surge in flight rates in December has made it too expensive for many UAE residents to travel to their home countries to see loved ones for Christmas and New Year. Instead, they are rethinking their travel plans and opting for either staycations or destinations closer home, on low-cost airlines.
Several travel agents told The National that a clear trend was emerging, with UAE residents changing their plans after being priced out of trips home this winter. Mamoun Hmidan, chief business officer at the travel firm Wego, said they have seen a significant increase in short-distance flight bookings from the UAE. "Bookings are still happening, [online] searches are still happening, aircraft are being filled but we are noticing a lot more shorter trips being booked," he said, adding that the trend is emerging because long-haul flights are becoming too expensive.
"We are seeing a shift in the behaviour of customers who are becoming more price-conscious and booking lower-cost travel. This means shorter flights to closer destinations.
One Dubai resident who has scrapped plans to travel home this winter is pharmaceutical consultant Imran Bin Abdullah, 45, from India. "Usually we would fly home every Christmas but not this year. Previously I would have expected to pay around Dh5,000 to travel home with my wife and daughter," he said. "This year, though, it was working out a lot more expensive and it just didn't offer value for money. It was working out at least 30 per cent more."
Partha Dutta, who also lives in Dubai, usually makes a point of spending winter with his family in India, however rising flight costs forced him to change his plans this year. "This winter we had to compromise due to the rising costs of flights and accommodation," said Mr Dutta, 46, who works in the tech industry.
He made several adjustments to his winter travel plans, and scouted around for "budget-friendly options" instead of "popular or expensive places". After looking at "domestic spots or less-travelled international destinations that offer budget hotels or vacation rentals to help save on travel expenses," he decided on Baku.
Also staying in the Emirates this Christmas is Irishwoman Chloe Curran, who felt she could not justify the cost of flights. "I was going to go home for Christmas but tried to book the flights in August and they were already around Dh3,500 to Dh4,000 so now I’m staying here," said Ms Curran, 25, who works in marketing.
Rising costs
Post-Covid, there has been a marked increase in pricing as the aviation industry has tried to make up for the losses it incurred due to flights being grounded for long periods during the 2020 lockdown. Wego's winter travel report showed that trips to the top 10 most popular destinations this time of year were on the rise by an average of more than 10 per cent compared to the same time in 2023.
A number of factors have also played a part in the continued rise in costs of flights, according to Mr Hmidan. "It's not just about supply and demand or oil prices. You have to take into account geopolitics too, and a lot of airlines did not receive a number of airplanes on schedule, and this put a lot of pressure on availability," he said. "It is all of this together."
According to Emirates Airline, aviation is a "dynamic environment", meaning prices should be expected to go up occasionally. “Like any company operating in a dynamic environment, Emirates offers a variety of fares that fluctuate throughout the year depending on the market forces, fuel prices, competitor price positions, and a range of other factors," said an Emirates representative. "We offer competitive fares across all classes for our customers.”
Alternative routes
Other travellers are finding ways to get around the increasing costs of flights, with many changing their usual habits, according to another travel industry expert. "With the end-of-year winter holidays approaching, we've noticed that customers are increasingly looking for value options and ways to reduce overall holiday costs," said Emily Jenkins, head of product development with DW Travel.
"Many are shortening their trips from the usual two weeks to around four to eight nights to save on accommodation expenses. Additionally, more customers are choosing indirect flights with layovers to find cheaper airfares." She added flight prices have risen by 8-12 per cent on average compared to the same period last year.
Another expert said prices of travel and accommodation had risen by up to 30 per cent year-on-year, due to "increased demand and constraints on capacity".
"Many travellers are looking to cut expenses by choosing locations where daily living costs are lower than in their home city and avoiding long-haul flights," said Rikant Pittie, co-founder of online travel firm EaseMyTrip. "In essence, while travel expenses have undoubtedly risen, the appetite for travel remains strong, and consumers are adjusting their spending priorities to ensure they enjoy high-quality experiences."
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December 11: 'My husband died, so what happens to the Dh240,000 he owes in the UAE?'
JL, a housewife from India, wrote to us about her husband, who died earlier this month. He left behind an outstanding loan of Dh240,000 and she was hoping to pay it off with an insurance policy he had taken out. She also wanted to recover some of her husband’s end-of-service liabilities to help support her and her son.
“I have no words to thank you for helping me out,” she wrote to The Debt Panel after receiving the panellists' comments. “The advice has given me an idea of the present status of the loan and how to take it up further. I will draft a letter and send it to the email ID on the bank’s website along with the death certificate. I hope and pray to find a way out of this.”
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SL, a financial services employee from India, left the UAE in June after quitting his job because his employer had not paid him since November 2018. He owes Dh103,800 on four debts and was told by the panellists he may be able to use the insolvency law to solve his issue.
SL thanked the panellists for their efforts. "Indeed, I have some clarity on the consequence of the case and the next steps to take regarding my situation," he says. "Hopefully, I will be able to provide a positive testimony soon."
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MS, an energy sector employee from South Africa, left the UAE in August after losing his Dh12,000 job. He was struggling to meet the repayments while securing a new position in the UAE and feared he would be detained if he returned. He has now secured a new job and will return to the Emirates this month.
“The insolvency law is indeed a relief to hear,” he says. "I will not apply for insolvency at this stage. I have been able to pay something towards my loan and credit card. As it stands, I only have a one-month deficit, which I will be able to recover by the end of December."
Stuck in a job without a pay rise? Here's what to do
Chris Greaves, the managing director of Hays Gulf Region, says those without a pay rise for an extended period must start asking questions – both of themselves and their employer.
“First, are they happy with that or do they want more?” he says. “Job-seeking is a time-consuming, frustrating and long-winded affair so are they prepared to put themselves through that rigmarole? Before they consider that, they must ask their employer what is happening.”
Most employees bring up pay rise queries at their annual performance appraisal and find out what the company has in store for them from a career perspective.
Those with no formal appraisal system, Mr Greaves says, should ask HR or their line manager for an assessment.
“You want to find out how they value your contribution and where your job could go,” he says. “You’ve got to be brave enough to ask some questions and if you don’t like the answers then you have to develop a strategy or change jobs if you are prepared to go through the job-seeking process.”
For those that do reach the salary negotiation with their current employer, Mr Greaves says there is no point in asking for less than 5 per cent.
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