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Survival of the fittest: How OTAs are competing in the Middle East

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In an increasingly competitive Middle East online travel landscape, staying ahead demands more than just speed – it requires sharp differentiation, relentless innovation, and smart use of AI. That was the dominant mood as top OTA leaders from Booking.com, Wego, Almosafer, and Travelwings gathered on stage at Phocuswright WiT Middle East.

“If there’s one thing we took away from the earlier presentation,” said moderator Yeoh Siew Hoon, “it’s that the game has gotten super, super competitive.”

In the earlier presentation, Virendra Jain, CEO of VIDEC, had outlined key takeaways from his latest GCC & Egypt Travel Market Study, 2019-2028, which highlighted two distinct characteristics.

In the flight market valued at US$4.2b, at 37% online penetration, the key players were the local and regional brands, in this order, MakeMyTrip, Cleartrip, Book on Wego, Almosafer, Trip.com and Travelwings.

In the hotel market, valued at US$2.9b, with 44% booked online, the key players were Booking.com, Expedia and Agoda.

The panel, comprising Carlo Olejniczak, Vice President and Managing Director EMEA, Booking.com, Ross Veitch, CEO & Co-founder, Wego, Muzzammil Ahussain, CEO Almosafer, and Albert Fernando, CEO & Founder, Travelwings, tackled everything from regional market dynamics to AI’s transformative impact.

 

Air wars: Speed, service, and WhatsApp sales

In air travel, regional players continue to hold sway. Ross noted that while Wego is a hybrid marketplace, it remains focused on “making flight shopping faster and more flexible”, even drawing lessons from the old Google ITA software playbook. “Flight shopping is still an unsolved problem,” he said. “We’ve been talking about personalization for years, but now, with LLMs, it’s finally happening at scale.”

Meanwhile, Muzzammil from Almosafer emphasized localization as their edge. “We are making the air trip smoother before, during, and after booking with local payment methods and WhatsApp booking channels now accounting for 5-10% of some days’ bookings,” he shared. “It’s about creating a truly local experience that the global giants can’t easily replicate.”

Albert added a twist: hybrid fare combinations. “Consumers don’t realize they can mix economy and business class on the same trip and save thousands. We’re educating the market and offering these smart combos.”

 

“The biggest threat is tech giants using AI to create fully integrated, voice-activated travel,” said Ross Veitch, CEO & Co-founder, Wego. “But AI also brings massive opportunity. It’s a new gatekeeper layer, and we have to figure out how to partner with it.”

 

Hotels: Inbound boom, app stickiness, and loyalty 2.0

On the hotel front, Carlo Olejniczak said Booking.com was seeing robust growth in both inbound and outbound, with 50% of bookings now domestic across the Middle East. “European feeder markets like France, UK, Germany, and Italy are showing high double-digit growth into the region,” he added.

Interestingly, loyalty is quietly reshaping hotel bookings too. More than half of Booking.com’s room nights are now booked by their Genius Level 2 and 3 loyalty members. “Our app is a strong driver,” Carlo said. “Over 60% of bookings come through mobile, creating direct stickiness.”

Asked if the next generation of loyalty would be points-based or personalization-led, the panelists were aligned: personalisation is the future but points still matter. As Muzzammil put it, “It’s points, personalisation, and service, all of the above.”

 

“Africa is the next big thing,” said Albert Fernando, CEO & Founder, Travelwings. “It’s young, underpenetrated, and hungry for travel. Yes, disposable income is lower, but that’s changing.”

 

Market outlook: Growth amid uncertainty

Despite global headwinds like US tariffs and oil price volatility, the mood was cautiously optimistic.

“We grew 60% in Q1,” said Ross. “But I’m cautious; if tariffs escalate, a US recession could hit oil prices, and that matters here.”

Still, demand remains strong, especially in Saudi Arabia, where religious tourism and domestic travel are booming. “Even during COVID, Saudis wanted to travel, regionally and internationally,” noted Muzzammil.

Across the board, players are hedging against uncertainty by cross-selling – bundling activities, ancillaries, and experiences to maximize revenue per traveller.

 

“European feeder markets like France, UK, Germany, and Italy are showing high double-digit growth into the region. Our app is a strong driver. Over 60% of bookings come through mobile, creating direct stickiness,” said Carlo Olejniczak Vice President and Managing Director EMEA

 

New frontiers: Africa, business travel, and experiences

When asked where the next growth frontiers lie, the panel’s answers were bullish but realistic.

“Africa is the next big thing,” said Albert. “It’s young, underpenetrated, and hungry for travel. Yes, disposable income is lower, but that’s changing.”

Ross agreed but cautiously. “Africa has huge long-term potential, but fragmented markets and a lack of open skies are major hurdles.”

At Wego, excitement is also growing around business travel, following its acquisition of Travelstop. “We’re rebranding it WegoPro, time to revolutionize corporate travel,” Ross quipped.

Muzzammil spotlighted another growth area: in-destination experiences. “Especially in Saudi Arabia, where we see religious tourism and experiences converging into digital-first products.”

Albert revealed Travelwings’ foray into the religious tourism space, launching Umrah packages in Morocco, Nigeria, and Kenya. “Educating customers that they can book the full Umrah experience online is key,” he said.

 

Asked if the next generation of loyalty would be points-based or personalization-led, Muzzammil Ahussain, CEO Almosafer emphasised, “It’s points, personalisation, and service, all of the above.”

 

The AI wildcard: Threats, opportunities, and the end of UI?

Of course, no future-gazing panel would be complete without an AI discussion.

Presenting predictions generated by ChatGPT – from OTA disintermediation to voice-led travel planning – I asked panellists which they feared the most.

“The biggest threat is tech giants using AI to create fully integrated, voice-activated travel,” said Ross. “But AI also brings massive opportunity. It’s a new gatekeeper layer, and we have to figure out how to partner with it.”

Carlo agreed: “AI lets us better understand intent and deliver true personalization. With conversational AI, customers will just type or say what they want – no more hunting through 300 filters.”

Zero Phase UI – where interfaces disappear entirely – was also floated. Muzzammil mentioned Almosafer’s dedicated WhatsApp product team as an early move toward conversational, interface-light travel booking and he sees a similar channel developing for AI searches.

Yet amid all the uncertainty, optimism ruled. “Competition forces us to innovate,” said Carlo. “And innovation has always been part of travel.”

As Ross wryly concluded, “Google and Meta are already the most profitable travel companies –without even selling travel. We’ll just keep adapting.”

 

Rapid Fire: If Gen Z ran your company…

To close on a lighter note, the panellists were tossed some rapid-fire questions:

If Gen Z ran your company for a week, what’s the first thing they’d cancel? “Us,” said Albert, without hesitation. Laughter rippled through the room.

If Elon Musk were to start a travel company, what would he call it? Rocket Travel said Carlo. Ross jumped in, “Doesn’t he already have SpaceX?”

If ChatGPT planned your holiday, what’s the first thing you’d double-check? “Everything,” joked Musa.

One key advice for a young travel tech founder? “Don’t screw up your cap table,” warned Ross.


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