Domestic tourism gains in 2024 on budget stays, cheap flights

Domestic tourism accounted for over 40% of the Kingdom’s total travel activity in 2024, marking an 11% boost in its share of total tourism compared to the previous year, according to Almosafer’s tourism trends report (pdf), which cites low-cost accommodation and air travel options as key drivers of growth.

By the numbers: Domestic booking volumes were up 44% y-o-y in 2024, with family (+72%) and group travel (+76%) making up the bulk of the increase, Almosafer said.

What they said: “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,” said Almosafer CEO Muzzammil Ahussain.

The up-and-coming locales: Abha, Al Jubail, Hail, Tabuk and Jizan are gaining traction among the locals, alongside staples like Makkah, Riyadh, Jeddah, Al Khobar and Madinah, which have emerged as the Kingdom’s top travel destinations last year, according to the report.

Budget stays are picking up steam: Family bookings in budget accommodations (3-star and below) were up 95% with group bookings more than doubling over the same period, as the budget segment accounted for 35% of all booked room nights in 2024, up two percentage points from the previous year.

High-end is still on top: 5-star luxury stays made up 36% of all bookings in 2024 (down one percentage point compared to 2023) while 4-star stays accounted for the remaining 29%, up two percentage points over the same period.

Low fares are the new go-to: Low-cost airlines are also driving growth in domestic tourism with flight segments growing 45% y-o-y while the average ticket value dropped 7% compared to 2023.

Clicks over counters? App bookings accounted for 76% of all trip reservations in 2024, up from 67% in 2023. Meanwhile, retail bookings made up only 7% of total bookings — down 3.3 percentage points — while web bookings fell 5.7 percentage points to account for 17% of total bookings.

Payment trends are also shifting: Buy-Now-Pay-Later (BNPL) transactions jumped 940% y-o-y in 2024, reflecting the rise of flexible payment options and mobile-first booking. Some 44% of all domestic transactions were made through Apple Pay last year.