RIYADH: Saudi Arabia recorded a 45 percent annual growth in domestic flight bookings in 2024, fueled by the Kingdom’s expanding tourism offerings and increased connectivity through low-cost carriers. 

According to Almosafer’s latest travel trend report, domestic room night bookings also saw 39 percent yearly growth. Additionally, combined domestic flight and hotel reservations contributed over 40 percent to the overall travel market, an 11 percent yearly increase. 

The growth in domestic travel is largely driven by a broader range of destinations, accommodation options, and experiences that continue to attract leisure visitors to explore their home country. Family and group travel have been key contributors to this upward trend, with bookings in these segments surging by over 70 percent.

Commenting on the trends, 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.”

Cities such as Makkah, Riyadh, and Jeddah, as well as Al Khobar and Madinah, remain key attractions. 

However, emerging destinations like Abha, Al Jubail, and Jazan, as well as Tabuk and Hail, are gaining momentum due to their distinct offerings, including mountain views, beaches, landscapes, and desert experiences. 

“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, showcase the success of the national agenda of building a thriving leisure tourism sector that contributes significantly to the economy,” Ahussain added.

Almosafer’s report highlights a notable shift in traveler preferences for accommodations. While luxury remains prominent, with 36 percent of room nights booked in five-star properties, budget-friendly stays in three-star or lower hotels now represent 35 percent of total bookings — a segment that has grown 100 percent for families and groups. 

Alternative accommodations such as vacation rentals and hotel apartments have also gained traction, with family bookings rising 90 percent and group reservations increasing 60 percent, reflecting growing demand for flexible and affordable lodging options. 

Low-cost airlines have also played a crucial role in the domestic travel boom. Increased capacity, expanded connectivity, and additional routes have made budget carriers more accessible to cost-conscious travelers. 

While flight bookings grew by 45 percent, the average order value decreased by 7 percent, demonstrating how expanded options are enabling travelers to secure more cost-effective deals. 

In-destination activities have become a cornerstone of travel value, with visitors increasingly opting for guided tours, adventure sports, and cultural experiences. 

Booking behavior also evolved in 2024, with mobile platforms dominating the market. App bookings grew by 67 percent and accounted for 76 percent of total bookings, while web reservations contributed 17 percent, reflecting 7 percent growth. 

Retail bookings, though representing a smaller 7 percent share, remain relevant for complex and higher-value itineraries as travelers seek in-person assistance for personalized planning. 

Flexible payment options have further transformed the travel market. Buy now, pay later plans have gained popularity, while Apple Pay accounted for 44 percent of all domestic bookings processed in 2024, reflecting the growing adoption of digital payment methods. 

RIYADH: Up to 50 percent of deep tech startups built in Saudi Arabia are working on artificial intelligence and the Internet of Things, a new report revealed.

Released by the Ministry of Communications and Information Technology, in partnership with King Abdullah University of Science and Technology and in collaboration with Hello Tomorrow consultancy firm, the document indicated that there are over 43 high-growth startups driving innovation in the Kingdom, collectively securing more than $987 million in funding.

This aligns with the National Strategy for Data and AI goals to position Saudi Arabia among the top 10 countries in the open data index and among the top 20 countries in peer-reviewed Data and AI publications by 2030.

It also meets with the strategy’s objective of securing SR30 billion ($7.9 billion) cumulative foreign direct investment and SR45 billion local investment in data and AI in the Kingdom by 2030.

“The deep tech startups that have originated in Saudi Arabia are currently in their early stages of development, but the ecosystem is already attracting mature international companies,” the report said.

On the $987 million secured funding in 2022, the report said this was primarily fueled by a rapidly expanding funding ecosystem, which was ranked in the Middle East and North Africa’s top three for funding and deals.

The report further disclosed that 104 active startup investors registered in the Kingdom in 2023, a 41 percent increase from 2018.

“This expansion is highly dependent on public funds, as the government is committed to nurturing tech startups and scaleups,” the reports said.

It added that the number of researchers in Saudi Arabia has risen by 75 percent since 2015, thereby cementing the nation’s commitment to advancing research and development.

“The country is expanding its research infrastructure to accommodate 140,000 researchers by 2030, marking a sevenfold increase from the current 20,000 researchers in the country,” the report said.

The report tackles the current state and future opportunities of the deep tech ecosystem in the Kingdom as well as key initiatives supporting the goals and objectives of Saudi Vision 2030.

It also seeks to shed light on the prospects and potential in this vital sector which is recognized as a cornerstone for advancing the digital economy and sustainable development as a whole.