Almosafer, the leading travel brand in Saudi Arabia, is owned by the Seera Group – the largest and only publicly listed travel company in the Kingdom of Saudi Arabia (KSA), boasting over 40 years of experience in the travel services industry. Initially starting as a traditional corporate and government travel agency catering to Saudi students flying internationally, Seera Group has a rich history of evolution and growth. We asked CEO Muzzammil Ahussain to tell us more.
12 years ago, Seera Group went public, marking a significant milestone in its journey. Recognising the changing demographics and mindsets, the group launched a comprehensive transformation programme and invested in Almosafer, which at the time was a very small travel booking application primarily used on Twitter by Saudis. This strategic investment paid off, leading to Almosafer’s success as a leading consumer travel brand. From zero sales in 2015 to achieving $1 billion in sales by 2019, Almosafer demonstrated massive growth.
Leading up to the Covid-19 pandemic, Seera Group made a pivotal decision to consolidate all its travel businesses under the Almosafer brand, positioning it as the central entity for the group’s travel operations.
After consolidating all of Seera’s travel businesses under Almosafer, we now operate in five key segments. The first is our consumer business, which is the core of our operations. This segment focuses on Saudis travelling both domestically and internationally. We have also become the largest travel service provider in Kuwait and maintain a significant presence throughout the GCC. This segment is driven by technology and offers omnichannel, full end-to-end services to our customers.
The second segment is corporate and government travel, known as Almosafer Business. This segment provides technology-enabled, digital travel services for employees of corporate entities and government organisations.
The third segment, Discover Saudi, was launched in November 2019, just before the Covid pandemic, coinciding with the introduction of the Saudi e-visa programme. Discover Saudi functions as a full end-to-end tour operator and Destination Management Company (DMC) for Saudi Arabia. We work on a B2B basis with international agents and are part of Serandipians, collaborating closely with the Saudi Tourism Authority to promote and provide services to visitors. This segment also includes a tour operating arm that caters to domestic clients and a MICE (Meetings, Incentives, Conferences, and Exhibitions) arm that supports major events in the Kingdom.
Mawasim, our fourth segment, is similar to Discover Saudi but focuses on inbound religious tourism, specifically operating within the Hajj and Umrah segment.
Lastly, Almosafer Activities is a joint venture with Klook. This segment aims to provide small and medium enterprises (SMEs) and tour operators in Saudi Arabia with a platform to distribute their services and content both domestically and internationally. This initiative allows local providers to reach a broader audience, facilitating growth and exposure in the travel market.
There are plans for taking Almosafer public. How does that fit in with your overall strategy?
Previously, we signed a term sheet with PIF for a 30% stake in September 2022. After discussions, we mutually agreed not to pursue that deal, although we still work closely with PIF and its various entities. We plan to take Almosafer public within the next 2 to 3 years. This does not change our strategy. Our goal is to be central to the ecosystem of travel and tourism in the Kingdom. Recently, at ATM, we signed partnerships with Aseer Investment Authority and Red Sea Global. We are also working with Riyadh Air and Saudia. We believe in the power of collaboration within the platform and all parties need to work together.
I saw an announcement about your presence in China, Germany, UK, and Italy. Is that for outbound or inbound travel?
That representation is for promoting inbound tourism, working closely with the Saudi Tourism Authority. We have representation offices in those countries, and for our religious tourism arm, we have offices in Egypt, Pakistan, and Indonesia. From an outbound perspective, our largest markets are Dubai, Cairo, London, Thailand, and Turkey. We have partners and teams in those markets primarily for hotel contracting.
How important are culture and heritage for foreign tourists coming to KSA? Is this the biggest drawcard, do you think?
Saudi Arabia has a lot of history and many untouched and unknown sites. Culture and heritage are very important, especially places like AlUla, Jeddah – with Al Balad, and Diriyah in Riyadh. These are unique aspects of Saudi culture and cannot be replicated elsewhere. The country’s rich history and hospitality are significant draws for tourists. There are also amazing projects like the Red Sea development, offering beautiful landscapes and nature, but cultural heritage remains a unique selling point. For example, at the Red Sea, all butlers at the Saint Regis are Saudi, providing a unique cultural experience for visitors.
Do you think enough is being done globally to help high-end or ultra-high-net-worth travellers understand what’s on offer in the Kingdom?
Currently, given the supply available, it is a good start. STA have done a great job with overall brand awareness. There is interest from high-end travel groups like Serandipians and Virtuoso. More can always be done, but the promotion is balanced to avoid over-promotion, due to limited capacity. As supply increases, more promotion will follow. For instance, Italians are very fond of AlUla due to events like the opera with Bocelli, creating niche markets. The general awareness of Visit Saudi is strong globally, and as specific segments grow, promotion will also increase.
It’s interesting that very few high-end travel advisors are actively selling Saudi…
There is interest, but conversion takes time. The dynamic in Saudi Arabia is more last-minute compared to other markets. European and American tour operators are planning next summer’s bookings now, while Saudi Arabia focuses on the next quarter. Interest is growing, but the ecosystem needs to mature. We are getting requests for early Q2 next year, but prices are not yet available. The ecosystem in Saudi is still developing, with major progress made, but it needs to mature as the industry grows.
In AlUla, it seems the problem is that supply is still very limited compared to demand…
Yes, they’re building now. They’ve made a great master plan. New hotels are opening, but it still has specific capacity. That’s intentional. They want to keep that exclusivity, cater to a specific clientele, and maintain harmony with nature.
At ATM, you mentioned an agreement with Red Sea Global to become a preferred DMC partner. Can you talk a bit more about the prospects for the Red Sea Project and Amaala, which is going to open soon? Currently, only three resorts are open. What are your thoughts on the Red Sea Project?
Every client we’ve sent there so far has been amazed by the service, nature, beauty, and serenity of the waters. This positive feedback is a very good start, driven largely by word of mouth from both domestic and international clients. As the number of properties increases and the airport becomes fully operational, we’re going to see significant demand. Currently, the three properties have a high price point, catering to a very select market. As more properties open, we expect to see a broader range within the high-end segment. We’re already seeing a lot of interest from Europe for the Red Sea. Improved connectivity will help as well. The Red Sea Project will position Saudi Arabia for larger-scale tourism. AlUla is niche, Neom is a bit further out, but the Red Sea is happening now. Qiddiya will open next year, including its first waterparks by the end of next year. There’s also a lot happening in Jeddah.
Once Shura Island opens, we’re going to see huge interest. We’ve got interest in MICE events and corporate events at the Red Sea, but currently, there’s not enough space to host large events. Once Shura Island is open, with the recent opening of the Ritz-Carlton Reserve, I’m very excited about the entire project.
Remember, Saudi Arabia has a unique advantage compared to other parts of the region with a large domestic tourism segment. In 2023, there were 77 million domestic tourists, which is a huge opportunity. Many people from the GCC already visit Saudi for religious tourism, and adding leisure trips will be great as connectivity improves. We are working on enabling seamless experiences for those visiting the Red Sea and other locations.
And you were talking about Mawasim, bringing people to Jeddah for religious tourism. Can they also visit the Red Sea and AlUla?
Yes, we call it Umrah plus. We have people coming to Saudi for both leisure and religious tourism. A leisure tourist doing Umrah or religious tourists doing leisure. We work closely between our teams to facilitate this. For example, last year with Cruise Saudi, MSC ships arriving at Jeddah port offered day trips to Mecca for Muslim visitors.
Regarding mega events like Formula One, Formula E, and Dakar, how are you packaging these for travel advisors?
We are working closely with various authorities to provide access to tickets and experiences around these events, like F1 or Riyadh Season events. Using our joint venture with Klook, we get access to entertainment, activities, tours, and concerts. Basically, the challenge with travel advisors is they don’t know where to get all these. They don’t know what’s happening. And if they find out what’s happening, they don’t know where to book it. We aim to provide a seamless way for them to access all of this. It doesn’t have to be a fixed package but should be easily tailored to the customer’s needs. We’re focusing on creating packages that serve as inspiration, allowing for flexible and accessible bookings.
I saw you have an agent portal for direct bookings.
Yes, it’s still early days, but we offer an agent portal where they can find static packages, hotel inventory, and transfers. We have over 2,000 hotels contracted in Saudi Arabia for DMC and international rates. Our goal is to make booking as simple as possible for international agents and tour operators. We work closely with the Saudi Tourism Authority, organising familiarisation trips for media, agents, and advisors to educate them about the destination.
Overall, how is business progressing?
To summarise, domestic tourism in Saudi Arabia remains strong, with a 29% increase in the first four months of this year. Inbound tourism is growing, driven by events and new projects. There’s still work to be done on infrastructure and human capability development, but everything is moving in the right direction. There’s tremendous opportunity for tourism in Saudi Arabia, and we’re excited to be part of it.
