Selling Dubai: What Travel Agents need to know

Selling Dubai travel? Learn what agents need to consider—from commission structures and FX to tourism fees and UAE tax exposure. A practical guide from Antravia.

ANTRAVIA DESTINATION GUIDE

6/9/20257 min read

Selling Dubai: What Travel Agents need to know to Maximize Profits

Dubai is a global tourism powerhouse, welcoming 9.88 million international visitors in the first half of 2025. This is a 6% surge from 2024’s record-breaking 18.72 million, which itself grew from 17.15 million in 2023. With over 821 hotels offering 157,000+ rooms and 5,000 more planned by year-end 2025, the emirate’s hospitality sector is thriving.

For travel agents, Dubai’s allure, such as luxury hotels, desert adventures, and a packed event calendar, promises strong commissions, often 10–20% on accommodations and tours. But hidden fees, currency complexities, and local supplier practices can erode margins if you’re not strategic.

At Antravia, we’ve guided countless agents to navigate Dubai’s complexities profitably. This guide, tailored for travel agents, equips you with actionable strategies to sell Dubai effectively, whether you’re targeting budget-conscious American families or affluent British couples. From managing add-ons to avoiding tax surprises, here’s how to ensure every booking maximizes your revenue.

1. Add-ons in Dubai Can wipe out your Commission - Lock them in early

Dubai’s experiential add-ons, such as desert safaris with dune bashing (AED 500–800), helicopter tours over the Burj Khalifa (AED 600–1,200), yacht charters (AED 2,000+/hour), or lavish brunches at venues like Atlantis The Palm, can boost trip value by 30–50%.

Yet, clients often book these directly via hotel concierges or apps like GetYourGuide, bypassing your 10–15% tour commissions and weakening loyalty. American clients, used to all-inclusive packages, may expect add-ons bundled, while British travelers often seek last-minute deals, increasing the risk of direct bookings.

Pro Tips for Agents:

  • Pre-package upsells: Create bundles like a “Dubai Adventure Pack” (safari, BBQ dinner, sandboarding) for USD 135–220 / GBP 105–170, ensuring commissions are secured upfront.

  • Transparent pricing in USD/GBP: Convert AED prices (e.g., AED 600 ≈ USD 163 / GBP 125) and list options clearly to appeal to American transparency expectations and British value-seeking habits.

  • Supplier agreements: Partner with DMCs like Arabian Adventures (although others are available) to protect commissions on guest-referred bookings. Include clauses for retroactive credits if clients book extras post-arrival.

  • Client education: For US clients, emphasize curated experiences to avoid “nickel-and-diming” perceptions; for UK clients, highlight savings versus direct bookings (e.g., 10% cheaper via your package).

  • Tech solutions: Use client-facing apps to manage in-trip upsells, ensuring commissions flow back to you.

This approach can boost transaction values by 20–30%, especially for high-spend UK clients seeking luxury or US families wanting comprehensive packages.

2. Understand the True Cost of Tourism Fees - Avoid Client Sticker Shock

The Tourism Dirham fee, mandated under Dubai Executive Council Resolution No. 2 of 2014 and updated by Administrative Resolution No. 2 of 2020, charges AED 7–20 per room per night based on hotel classification (see chart below). Payable at check-out, it’s often excluded from OTA and wholesaler quotes, risking client complaints about “hidden” costs.

For US clients accustomed to transparent pricing, this can feel deceptive; UK clients may compare it unfavorably to European resort fees.

Dubai Tourism Dirham Fees by Hotel Star Rating

Best Practices for US/UK Agents:

  • Convert and clarify: List fees in USD (e.g., AED 20 ≈ USD 5.45) or GBP (≈ GBP 4.20) to align with client expectations.

  • Avoid bundling without confirmation: Only include fees if hotels confirm in writing.

  • Proactive disclosure: Highlight the fee as a local tax in proposals (e.g., “A 5-night stay at a 5-star hotel incurs a USD 27.25 / GBP 21 tax, payable on-site”).

  • Budget integration: Factor fees into total cost estimates to maintain trust, especially for American clients expecting all-in pricing.

Recent regulations emphasize separate billing, so verify with suppliers.

3. Be Cautious of FX Exposure in AED - Protect your Margins

The UAE Dirham (AED) is pegged to the USD at 3.6725, simplifying conversions for US agents but complicating matters for UK agents dealing in GBP. Suppliers often quote and settle in AED, exposing UK agents to bank conversion fees (2–3%) and GBP volatility.

US agents face fewer FX risks but may incur card processing charges and these can erode 2–5% of profits per booking.

Tips for US/UK Agents:

  • USD/GBP settlements: Seek suppliers offering USD (for US agents) or GBP (for UK agents) invoicing, like Expedia’s TAAP or Hotelbeds.

  • Hedging tools: Use platforms like Wise or Revolut to lock in rates, especially for UK agents facing GBP–AED fluctuations.

  • Clear contracts: Confirm commissions are based on gross totals, not net of VAT or fees.

  • Client billing: Quote in AED equivalents but bill in USD/GBP, padding margins slightly to cover fees (e.g., add 2% for US, 3% for UK).

4. VAT in Dubai: What US and UK Agents must understand

Since January 1, 2018, a 5% VAT (Federal Decree-Law No. 8 of 2017) applies to accommodations, tours, transportation, and dining. US and UK agents cannot reclaim VAT without a UAE Tax Registration Number (TRN), making it a non-recoverable cost.

Commissions may be calculated post-VAT, shrinking margins, and invoicing DMCs can trigger compliance issues.

Key Actions for US/UK Agents:

  • Verify VAT inclusion: Ensure quotes specify VAT status.

  • Commission basis: Negotiate pre-VAT commission calculations for higher payouts.

  • Avoid invoicing traps: Confirm with DMCs if you need to issue UAE-compliant invoices.

  • Client education: Inform clients that VAT refunds apply only to retail purchases (AED 250+), not services.

Also see our blog - VAT Reclaim for Travel Agents and Hotels | How to recover what you’re owed

5. Supplier Loyalty is Thin - Stick to Trusted Partners

With 821+ hotels and countless listings on Booking.com and Agoda, Dubai’s mid- and budget-tier suppliers often prioritize volume over loyalty, undercutting agents or disputing commissions.

US agents, used to reliable wholesaler partnerships, and UK agents, expecting European-style contracts, may be caught off guard.

Strategies for Reliability:

  • Luxury focus: Partner with branded chains like Jumeirah or Atlantis for consistent commissions and perks.

  • Contract protections: Secure written rate and commission guarantees.

  • Trusted DMCs: Work with established players like Arabian Adventures, which cater to US/UK client preferences for reliability.

6. Understand Which Dubai You’re Selling - Tailor to Your Clients

Dubai comprises three distinct markets, each requiring tailored approaches for US and UK clients:

A. Mass-Market Dubai

  • Clients: Budget-conscious US families or UK groups seeking deals.

  • Challenges: Low 5–10% commissions; competition from OTAs.

  • Strategy: Bundle basics (e.g., airport transfers, USD 30 / GBP 23) for slim margins; emphasize value for UK deal-seekers.

B. Mid-Market / Multi-Country Dubai

  • Clients: US couples or UK families combining Dubai with Abu Dhabi or Oman.

  • Opportunities: Add-ons (e.g., city tours, USD 80 / GBP 62) boost 15% margins.

  • Strategy: Customize itineraries; highlight convenience for US clients, cost-effectiveness for UK clients.

C. Ultra-Luxury Dubai

  • Clients: Affluent US executives or UK high-net-worth individuals seeking villas or yacht charters (USD 13,600+ / GBP 10,400+ per trip).

  • Perks: High transaction values, 8–12% commissions.

  • Strategy: Offer concierge services; US clients value exclusivity, UK clients prioritize bespoke experiences.

Misaligned quotes waste opportunities so tailor to client priorities.

7. Future-Proofing your Dubai Sales

Dubai’s tourism sector, projected to hit 23–25 million visitors by 2025’s end, is evolving rapidly.

US clients increasingly value sustainability, with 60% of travelers preferring eco-friendly options, while UK clients seek tech-driven convenience. Dubai’s Sustainable Tourism initiative and new AI booking platforms are reshaping offerings.

Upsell green-certified hotels (e.g., JA Resorts) to US clients and leverage app-based itineraries for UK clients to stay competitive.

Final Word

Dubai offers immense potential for US and UK agents, but success hinges on mastering fees, FX risks, and market nuances. With 23–25 million visitors expected in 2025, now is the time to optimize your approach.

At Antravia, we specialize in helping US and UK agents structure profitable Dubai packages through tailored consultancy, vetted DMC partnerships, and commission protection strategies. Our expertise ensures you avoid costly pitfalls and maximize every booking.

👉 Contact Antravia

📩 Want to talk through your Dubai setup?
Ready to elevate your Dubai sales? Email us to book a call. We’ll analyze your setup, identify margin leaks, and provide tools to succeed in this dynamic market.

Other Antravia Destination blogs
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Selling Africa in 2025: A Financial Guide for Travel Agents

References

Antravia Advisory

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