Saudi Arabia witnesses domestic tourism boom as bookings surge 44%; budget travel thriving

Saudi Arabia’s rapidly growing and evolving tourism offerings continue to shape domestic travel behaviour with an expanding range of destinations, accommodations and experiences.

Family and group bookings have emerged as a key growth driver of domestic tourism, with more than 70 per cent growth across these traveller segments.

Domestic tourism in Saudi Arabia

Travel groups are increasingly choosing destinations that offer event-based and experience-rich travel opportunities.

While Saudi cities such as Makkah, Riyadh, Jeddah, Al Khobar, and Madinah remain central to travel plans, emerging destinations are becoming increasingly popular.

Abha’s cool climate and mountain views, Al Jubail’s pristine beaches, Jizan’s coastal charm, Tabuk’s dramatic natural landscapes, and Hail’s adventurous desert terrain are rapidly gaining traction.

These rising hotspots reflect the Kingdom’s ongoing investment in tourism infrastructure, opening up exciting opportunities for leisure travellers.

The report further highlights a significant shift in traveller preferences regarding accommodation. Luxury stays dominate, with 36 per cent of room nights booked in five-star accommodations in Saudi Arabia.

Simultaneously, budget-friendly stays in three-star and below properties have significantly increased, representing 35 per cent of all booked room nights.

Notably, this segment has witnessed a remarkable 100 per cent growth in volume for families and groups, reflecting a rising trend of value-conscious group travel.

Alternative accommodations such as vacation rentals and hotel apartments have also gained popularity, offering flexibility and affordability.

Family bookings in these accommodations surged by 90 per cent and group bookings grew by 60 per cent, as alternative accommodations have become more widely available throughout the Kingdom and travellers opt for convenient stays, especially for larger groups.

The report also highlights a continued demand for low-cost airline travel, driven by increased capacity, expanded connectivity, and the growing number of routes and slots offered by low-cost carriers.

This has made low-cost airlines more accessible and appealing to budget-conscious travellers. While flight segments have increased by 45 per cent overall, the average order value (AOV) has decreased by 7 per cent, reflecting the impact of these expanded options for securing cost-effective deals.

In-destination activities have remained a core aspect of travel value, with guided tours, adventure sports, and cultural experiences integral to Saudi trip itineraries.

The range and offering of domestic activities have significantly expanded, catering to diverse interests and preferences and travellers now have more options than ever before.

Regarding the preferred booking methods, in 2024, app bookings surged by 67 per cent, securing a 76 per cent share of total bookings and underscoring the growing reliance on mobile platforms.

Web bookings followed with a 17 per cent share, reflecting a 7 per cent growth in volume.

Meanwhile, while representing a smaller 7 per cent share, retail bookings continue to play a valuable role in serving travellers with more complex bookings and, on average, higher-value bookings, as they prefer in-person assistance and personalised support.

The evolution of the payment ecosystem has also shaped booking trends in 2024. The rise of flexible payment methods, particularly “Buy Now, Pay Later” (BNPL), has allowed travellers to spread costs over time, making travel more accessible and manageable.

Additionally, Apple Pay has solidified its position as a preferred payment option in Saudi Arabia, accounting for 44 per cent of all domestic bookings processed through its platform in 2024.

Muzzammil Ahussain, CEO of Almosafer, said: “These travel trends align seamlessly with the government’s vision to enhance in-destination value and increase domestic tourism as part of Vision 2030.

“The growth of domestic tourism and the rise of family and group trips, with a focus on unique accommodation experiences and rich in-destination activities, showcases the success of the national agenda of building a thriving leisure tourism sector that contributes significantly to the economy.”