Domestic flight prices down 7% in 2024: Almosafer CEO

Muzzammil Ahussain, CEO of Almosafer Co.

Domestic flight prices decreased by 7% year-on-year (YoY) in 2024 as increased competition and improved air connectivity make domestic travel more accessible and economical, Muzzammil Ahussain, CEO of Almosafer Co., told Argaam.

Local tourism in Saudi Arabia witnessed significant growth, with local travel rates rising by more than 40% between 2023 and 2024, Ahussain said, on the sidelines of the Saudi Tourism Forum.

Domestic bookings currently account for approximately 40% of Almosafer total bookings, fueled by improved air connectivity, the expansion of airports, and the growth of low-cost carriers such as Flynas and Flyadeal.

Further, there is a notable rise in demand for the "Buy Now, Pay Later" service, which now represents about 18% of domestic travel bookings on Almosafer platforms.

Additionally, alternative accommodations, such as hotel apartments and family stays, grew by 100%, especially among families and groups, Ahussain noted.

Makkah, Riyadh, and Jeddah remain the most in-demand cities, while emerging destinations like Abha, Jubail, Tabuk, and Hail recorded growth exceeding 150%. This shift reflects evolving travel behaviors and the exploration of more regions within the Kingdom.

As regards the sector's performance in Q4 2024, Ahussain cited the continued strong demand with annual growth exceeding 20%. New options such as Aroya Cruise trips on the Red Sea and events like Riyadh Season and AlUla Moments boosted spending on tourism activities and events.

Ahussain forecast sustained growth in Q1 2025 at rates ranging from the mid to high 20%.

On another note, the CEO confirmed the company is committed to its IPO plan within the next two to three years as part of its strategy.

Almosafer dominates over 60% of the online flight booking market in the Kingdom, and seeks to maintain and grow this market share. The competition in the industry enhances consumer awareness of travel options, he added.

According to data available on Argaam, Almosafer is a wholly owned subsidiary of Seera Group Holding.