According to GlobalData, a data and analytics company, the launch of Wizz Air’s Abu Dhabi arm will stimulate leisure demand to the UAE during and post-COVID-19.
Travel and tourism analyst, GlobalData, Gus Gardner explained: “Wizz Air’s launch will certainly disrupt the market, offering competitive fares and opening up underserved destinations that could bear fruit for the airline. Abu Dhabi has long been a market dominated by full-service carriers, with Etihad Airways being the largest player. Low-cost competition has been limited to inbound airlines, often only serving one city pair, and the market has been in desperate need of low-cost disruption.”
GlobalData latest COVID-19 Recovery Survey, which was based on the answers of 5,766 global respondents, revealed that 87 per cent of respondents were ‘extremely’, ‘quite’ or ‘slightly’ concerned about their personal financial position. The carrier’s ability to target price-conscious travellers will allow the city to better capture those who may put off travel due to financial concerns.
Gardner further noted: “Wizz Air will support Abu Dhabi’s tourism recovery post-COVID-19. The airline’s ability to offer some of the lowest fares will help address the largest deterrent to travel – affordability. The airline’s affordable connectivity, and ability to undercut its competitors’ fares, is likely to increase the attractiveness of Abu Dhabi as a tourist destination and could be pivotal to supporting the emirate’s recovery efforts. This situation will be a win-win for both the emirate and the airline, and could allow for quicker recovery timelines in the process. Abu Dhabi could now be better equipped to compete with its nearest competitor – Dubai.”
Gardner explained that the airline’s ultra-low fares will stimulate demand in new markets and provide much-needed competition on high fare routes.
“Wizz Air is well-positioned to become a low-cost leader, and entering a market with little low-cost competition could provide big rewards,” he concluded.