Al Tayyar boosts e-commerce presence as part of Vision 2030, says CEO

Saudi Arabia’s Al-Tayyar Travel Group is rapidly expanding its e-commerce presence and hospitality offerings as the kingdom looks to strengthen its tourism sector as part of the Vision 2030 plan, CEO Abdullah Bin Nasser Aldawood told Argaam.

“We believe the growth in online space will provide the right solutions that are required by retail customers and we are building a state-of-the-art technology platform that will provide a unique experience for consumers in the region,” Aldawood said.

Al Tayyar plans to make strong, multi-hundred-million-dollar investments into the online space, the group said in a statement.

Earlier this year, Al Tayyar launched Tajawal, an online flight and hotel booking website and app, after it had acquired a 60 percent stake in online travel agency Almosafer Co. 

Tajawal founder and CEO Muhammed Chbib said the Saud-listed travel company is investing “heavily” in e-commerce to keep up with the growth in online segment in the region.

“It is a strategic vision that unless you go heavily on this field, you will lose out on your market share,” he added.

While the Tajawal app is relatively new, it accounts for nearly 25 percent of sales. The online platform is also expanding into the hotels segments, and will next week launch a new hotel room product on both the website and app, Chbib said.

Al Tayyar is also positioning itself for growth as the Saudi government plans to roll out new programs aimed at the tourism sector. The push comes as the kingdom moves to transition its economy into a post-oil era.

“I think His Royal Highness Prince Mohammed bin Salman announced yesterday in terms of (increasing) visas from the current level of 5 million to 20 million in 2020 and 30 million in 2030. That will provide a huge demand influx into the economy,” Aldawood said.

As part of its push to meet growing demand for affordable hotels in the region, Al Tayyar signed an agreement with Choice Hotels International, which is looking to add 25 properties and 8,000 rooms across Saudi Arabia and the United Arab Emirates (UAE).

The Riyadh-based travel group is also building a heritage hotel in Diriyah, a historically important city near the Saudi capital.

 “We have partnered up with the Tourism Commission and the Public Investment Fund to establish a company that specializes in heritage hospitality,” Aldawood told Argaam.

Al Tayyar currently holds more than 20 percent stake in car booking service Careem. The Tadawul-listed firm also acquired Movenpick City Star Hotel in Jeddah earlier this year.

Write to Nadeshda Zareen at nadeshda.zareen@argaamplus.com