UAE-based business travel startup Tumodo is set to foray into Saudi Arabia, aiming to disrupt the kingdom’s travel market through its AI-based innovative platform helping businesses to achieve huge savings on their travel costs, besides enhancing their overall business travel experience, its co-founder told Arabian Business.
The startup set a target of cornering up to 5 percent of the market share in Saudi Arabia, amid the country emerging as the fastest-growing travel market in the region.
Mega projects such as The Red Sea and NEOM, along with the government policy mandating overseas companies to set up their regional headquarters to bid for businesses, are expected to attract millions of tourists and thousands of corporate executives to Saudi Arabia in the coming years.
“Tumodo will be bringing a new solution to Saudi Arabia that will transform how people travel for business,” Vladimir Kokorin, co-founder of the startup, told Arabian Business.
“We are fully dedicated to elevating one of the region’s fastest developing markets and driving it towards the most technologically advanced, in line with Saudi Vision 2030,” he said.
Kokorin said with more than 100 partnerships around the MENA region, 400 airlines, and 2 million housing options, Tumodo is currently leading the way in the business travel industry, reaching the best ways to organise trips while striving to hit a 100 percent adoption rate.
AI-driven Tumodo: Slashing business travel costs
Kokorin said Tumodo’s AI-powered features help save businesses an average of 35 percent on their travel costs, besides simplifying the trip processes.
“Our platform combines data science, modern design, and world-class service to make booking business trips a breeze, and businesses can find the best deals on flights, hotels, and other travel essentials with just a few clicks,” he said.
“Tumodo’s transparency regarding fees allows businesses to manage their expenses and increase operation efficiency,” Kokorin said.
Incidentally, the startup’s move to enter the Saudi market in a big way follows it raising $35 million in a pre-seed round, co-led by MENA-focused angel investors.
Business travel market to surpass pre-pandemic levels
Significantly, Tumado’s ambitious expansion plans in the region also comes in the wake of a surge in business travel activities post-pandemic, both in the Middle East and also globally.
The overall Middle East travel sector is expected to grow by 40 percent between now and 2026, while the global business travel market is anticipated to grow from over $900 billion in 2022 to over $2,500 billion by 2032, according to The Brainy Insights.
This growth is projected to be fuelled by the increasing globalization of businesses and the growing demand for seamless and cost-efficient travel solutions.
Kokorin said looking ahead, global business travel expenditure is expected to surpass the pre-pandemic estimations of $1.4 trillion in 2024 and reach nearly $1.8 trillion by 2027.
“Tumodo is well-positioned to capture a significant share of this growth, driven by its innovative platform, commitment to cost savings, and focus on enhancing the overall business travel experience,” he said.
Saudi Arabia’s travel market is estimated to have posted a 107 percent increase in gross bookings in 2022 gross bookings and is forecasted to grow by 65 percent by 2026.
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