Travel agents say airfares are unlikely to drop immediately despite improving regional stability, even as enquiries increase and hesitant travellers start confirming their summer travel plans.
UAE residents may not see immediate relief in summer travel costs despite the US-Iran peace deal improving regional stability. However, travel agents say confidence is gradually returning, with more holidaymakers beginning to finalise their plans after weeks of uncertainty.
Industry players told that while high airfares continue to discourage some travellers, the improved outlook has encouraged families who had delayed bookings to resume planning their summer holidays.
Travel agencies say they are already witnessing early signs of renewed confidence among UAE residents.
“Yes, we have noticed a positive change in travel enquiries,” said Firoz Maliyakkal, Founder and CEO of Thahira Tours & Travels.
He added that many travellers who had been waiting for greater clarity are now actively planning their holidays again. According to him, there is rising interest in summer destinations, particularly among families looking to finalise their travel plans.
“As far as outbound travel from the UAE is concerned, we are entering the summer peak holiday season now,” said Sudheesh TP, General Manager of Deira Travel. “Although the reopening of the Strait of Hormuz will ease concerns about prolonged aviation fuel supply disruptions, it will not immediately bring down airfares, and passengers travelling this summer may not benefit from lower prices.”
He noted that many airlines have already sold a significant portion of their summer inventory.
“Airlines typically keep fares high when demand is strong, supply is limited, and seats are selling well,” he said. “Due to uncertain conditions and operational constraints, most carriers have reduced frequencies and seat capacity to and from the Gulf. It will take a few more months for schedules and capacity to stabilise.”
Maliyakkal echoed similar views, saying travellers should not expect immediate fare reductions.
“For now, airfares are expected to remain largely stable,” he said. “It is peak summer travel season, so demand remains strong. Factors such as airline capacity, fuel prices, and overall travel demand will continue to influence ticket prices.”
According to TP, more competitive fares could emerge from August if regional stability continues and airlines restore capacity.
“We expect reduced rates or pre-crisis deals from the month of August onwards,” he added.
Other travel agents said recent uncertainty has already shifted consumer behaviour, with many residents postponing or cancelling travel plans due to rising costs.
“As per last year, it’s a huge difference we faced this year — you can say 40 to 45 per cent,” said Divya Jagga, Founder and CEO of Travel Finder. “Some are scared to travel and some are not comfortable with the package because of pricing issues.”
She added that although the agency receives around 90 to 100 enquiries daily, only a small share converts into confirmed bookings.
“Out of those enquiries, after discussion, we are left with hardly 10 to 15 per cent open,” she said. “Some clients even ask us not to proceed once we explain the budget and pricing.”
According to Jagga, destinations such as Jordan, Egypt, and several CIS countries including Georgia, Armenia, Azerbaijan, Kazakhstan and Kyrgyzstan have seen softer demand as travellers reassess holiday plans.
At the same time, travel to home countries has remained relatively resilient, with stronger interest in destinations such as India, Pakistan, Morocco and parts of Europe.
Maliyakkal said travellers adjusted their destination choices during periods of uncertainty.
“During the uncertainty, some travellers preferred destinations seen as more stable and easier to access,” he said. “We observed stronger demand for places such as Georgia, Azerbaijan, Thailand, and parts of Europe.”
Travel agents emphasised that demand has not disappeared, but was merely delayed.
“The demand for air travel never disappeared from our market; it was only deferred due to uncertainty and airspace restrictions,” TP said. “Even now, passengers remain cautious and are closely monitoring the situation, as the peace agreement still needs to be formally signed and implemented.”
He added that sentiment among travellers is improving and that industry players are hopeful of recovering lost business in the coming months.
TP expects corporate travel and inbound tourism to recover first, supported by competitive hotel and tourism offers.
“Corporate travel is likely to rebound first, and inbound travel will also pick up quickly as hotels and other stakeholders introduce attractive deals to boost occupancy and volumes,” he said.
He noted that Europe is expected to remain a top summer destination for UAE travellers, particularly among higher-income groups.
“Europe will likely be the biggest beneficiary, as it remains the most preferred summer destination for many UAE residents and citizens,” he said.
“For Asian destinations such as Thailand, Malaysia, Singapore, and Indonesia, demand should also remain strong due to their affordability and attractive package offerings.”
While many families have already finalised travel plans, agents believe improving stability could still bring hesitant travellers back into the market.
“By July, we should see further improvement,” Jagga said, adding that she expects a stronger rebound later in the year.
“In my view, demand from September onwards will be stronger compared to now, and we are also expecting good numbers during the National Day holidays.”
However, agents cautioned that significant fare drops are unlikely in the short term.
“If regional stability continues, travellers can expect better fares and more attractive packages in the coming months, especially after the peak summer season,” Maliyakkal said. “While a sharp drop in airfares is unlikely due to strong demand, improved confidence and stable conditions should lead to more competitive offers from airlines and travel companies.”
