Hotels - Saudi Arabia | Statista Market Forecast

Saudi Arabia's Hotels market is expected to see a significant increase in revenue in the coming years.
By 2024, revenue is projected to reach US$2.56bn, and with an annual growth rate (CAGR 2024-2029) of 3.44%, the market volume is expected to reach US$3.04bn by 2029.
The number of users in this market is also predicted to increase to 11.88m users by 2029.
In 2024, user penetration is estimated at 22.0% and is expected to reach 29.7% by 2029.
The average revenue per user (ARPU) is expected to be US$310.40.
Moreover, 82% of the total revenue is predicted to be generated through online sales by 2029.
It is worth noting that United States is projected to generate the largest share of revenue in the Hotels market globally, with US$111bn in 2024.
Saudi Arabia's hotel market is experiencing growth due to increased tourism and investment in infrastructure.

Definition:

The Hotels market includes hotels and professionally-run guest houses. These accommodations can be booked directly via the providers website, through a tour operator, a travel agency, an online travel agency (OTA), or by telephone.

Additional Information:

The main performance indicators of the Hotels market are revenues, average revenue per user (ARPU), users and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues. Users represent the aggregated number of guests. Each user is only counted once per year. Well-known providers are Hotels.com, trivago, and Booking.com.

The booking volume includes all booked travels made by users from the selected region, independent of the departure and arrival. The scope includes domestic and outbound travel.

For further information on the data displayed, refer to the info button right next to each box.

Booked directly via the providers website, through a tour operator, an online travel agency (OTA), a travel agency or by telephone

Private accommodation and holiday flats, private room and accommodation rentals (e.g. Airbnb)

The Hotels market in Saudi Arabia is experiencing significant growth and development.

Customer preferences: Travelers in Saudi Arabia are increasingly seeking unique and luxurious hotel experiences, leading to a rise in demand for high-end accommodations with top-notch amenities and services. Additionally, there is a growing interest in eco-friendly and sustainable hotel options among environmentally conscious consumers.

Trends in the market: One notable trend in the Saudi Arabian Hotels market is the increasing focus on technology integration to enhance the guest experience. From mobile check-ins to smart room features, hotels in the region are leveraging technology to streamline operations and provide personalized services. Moreover, the rise of online booking platforms has made it easier for travelers to compare prices and book accommodations, driving competition among hotels.

Local special circumstances: Saudi Arabia's Vision 2030 initiative, aimed at diversifying the economy and boosting tourism, has had a significant impact on the Hotels market. The government's efforts to promote tourism and improve infrastructure, along with the relaxation of visa regulations, have led to a surge in both domestic and international visitors. This influx of tourists has created opportunities for hoteliers to expand their offerings and cater to a more diverse customer base.

Underlying macroeconomic factors: The overall economic growth in Saudi Arabia, supported by initiatives to reduce dependence on oil revenue, has contributed to the expansion of the Hotels market. As disposable incomes rise and consumer spending increases, more individuals are inclined to travel and explore different destinations within the country. Additionally, government investments in tourism-related projects and events have bolstered the hospitality sector, attracting both leisure and business travelers to the region.

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of hotels.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, the Global Consumer Survey, third-party studies and reports, data from industry associations (e.g., UNWTO), and price data of major players in respective markets. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as country-related GDP, demographic data (e.g., population), tourism spending, consumer spending, internet penetration, and device penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, and exponential trend smoothing methods are applied. A k-means cluster analysis allows for the estimation of similar countries. The main drivers are tourism GDP per capita and respective price indices.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.

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