The online travel and tourism sector will be worth more than $5.3 billion annually for the region by 2020, according to Payfort, a leading online payment gateway and payment solutions provider.

Airlines will emerge as a major source of ecommerce revenue as the Arab World becomes more and more of a travel hub, Payfort said in its 2015 edition of “State of Payments in the Arab World”, the first half of which will be released at the Arabian Travel Market, opening in Dubai tomorrow (May 4).

Payfort’s ecommerce data is based upon transactions via internet booking engines from established and low-cost airlines in the region. The report added that the airlines industry has a sterling acceptance ratio of 82 per cent. According to the Payfort report, gross revenue will grow from $11 billion in 2014 by more than $5.2 billion to at least $16.2 billion by 2020.

Payfort has made 2015 edition of “State of Payments in the Arab World” even more informative than the 2014 edition by including predictions on the state of ecommerce in 2020.

“With data from both consumers and merchants, this report provides actionable insights that will help you create a more successful, profitable and consumer-friendly business,” said Omar Soudodi, managing director of Payfort.

In addition to email marketing and social media, Payfort found that SEO (Search Engine Optimization) is a crucial part to online ticket sales. According to Payfort’s data, SEO’s growth as an organic marketing channel contributed the largest boost to online ticket sales in 2014.

Additionally, Payfort found that the importance of booking airline tickets via mobile devices has become paramount. Four out of eleven airlines surveyed reported that 90 per cent of their sales come via mobile channels.

Payfort’s “State of Payments in the Arab World” also covers the events and service industries and important metrics of the ecommerce sector.

The second section of the report, covering other industries and containing vital data on acceptance rates, chargeback ratios, the volume and size of current transactions in the region will be released on May 12 at the Ecommerce Show Middle East in Dubai. – TradeArabia News Service