Smartphone apps could lead to ’70 percent’ of Saudi travel agencies shutting down, according to the owner of a tourism company.
Experts say mobile devices threaten their future, as 75 percent of travellers book online, according to an Arab News report.
This affects 30 percent of the Saudi travel industry’s revenues and income from tourism, according to the report, which said up to 15 percent of tourism offices could move online.
“It might lead to the closure of about 70 percent of them over the next five years,” said travel agency owner Sultan Al Najjar.
Online agencies can offer cheaper deals as they are free of office rents, employee salaries and other expenses, according to Al Najjar.
He said apps and websites can be quicker and provide more choice, while also facilitating payment by credit card, contributing to the shift.
Offices are forced to concentrate on providing special services, such as airport arrival and departure services, to the VIP sector, which represents 15 percent of total passengers outside Saudi Arabia.
“[T]his is what websites are missing,” he said.
Abdulaziz Al Ghamdi, another owner, said 15 percent of tourist offices in the Kingdom have begun integrating websites, offering online packages to attract customers.
Omar Al Waqfi, Turkish Airlines’ CEO of marketing and sales, said airlines preferred to deal with agencies and tourism offices.
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