Return of travel demand fuels growth for Seera Group
- Easing of COVID travel restrictions unleashes pent-up demand
- The Group reported SAR 493 million in revenue for Q1 2022, an increase of 165% from Q1 2021
Riyadh, KSA; May 9, 2022: Seera Group, the leading provider of diverse travel services, has today reported substantial growth across all travel verticals for the first quarter 2022 compared to the previous year. The Group’s gross booking value (GBV) increased by 87% for Q1 2022 to SAR 1.6 billion compared to SAR 873 million in Q1 2021, illustrating a dramatic rebound in travel demand following the easing of COVID restrictions.
Seera Group has achieved higher revenues, growing from SAR 186 million in Q1 2021 to SAR 493 million in revenue for Q1 2022, an increase of 165%. The success of the Group has been attributed to its investment in state-of-the-art technology platforms and focus on streamlining business operations to improve efficiency, leading to gross profit increasing by 169% to SAR 158 million in Q1 2022, up from SAR 59 million in Q1 2021.
Almosafer, Seera’s travel business, has achieved 52% growth in GBV, from SAR 647 million in Q1 2021 to SAR 984 million in Q1 2022. The growth has predominantly been driven by consumer demand which has already returned to Q1 2019 levels. Almosafer’s consumer travel segment reported an increase in GBV of 122%, from SAR 261 million in Q1 2021 to SAR 580 million in Q1 2022, as both domestic and international travel demand is strong, with 720,000 flight segments and 325,000 room nights sold in Q1 2022, an increase of 106% and 192% respectively in comparison to Q1 2021.
The removal of many travel restrictions across the world has unleashed pent-up demand from travellers while interest in domestic tourism remains high, with Saudi Arabia’s many entertainment events drawing travellers across the Kingdom.
Revenue for Almosafer grew by 370% from 12 million SAR in Q1 2021 to 57 million SAR in Q1 2022. The increase in revenue has been driven by the strength of the consumer brand and increased pricing power. Almosafer’s revolutionary omni-channel approach, 24/7 travel advisory across platforms and pioneering digital capabilities providing seamless booking services to consumers resulted in 32 million sessions on the platform in Q1 2022, an increase of 404% from Q1 2021.
Lumi, Seera’s car rental and leasing brand, has continued its strong trajectory of growth as revenue has increased by 44% from SAR 112 million in Q1 2021 to SAR 161 million in Q1 2022. Backed by large-scale leasing agreements with major government and corporate entities, Lumi continues to distinguish itself from competitors with its large fleet of well-maintained cars at competitive prices. In the past year, Lumi has expanded its fleet by 40% with currently over 17,000 vehicles.
Lumi’s growth has also been propelled by the Kingdom’s vast leisure tourism and growing entertainment sector with events providing incentives for people to travel. The company’s focus on digital innovation is also a strong contributing factor to its success. Its mobile application, which cuts down pick-up time from 15 minutes to less than five minutes, and user-friendly online portal enhances customer experiences by reducing the time for booking and managing cars and improving convenience. In Q1 2022, revenue generated through Lumi’s online platforms grew 44% month on month.
Discover Saudi, Seera’s integrated destination management company (DMC), has increased its GBV by 135% to SAR 44 million in Q1 2022, up from SAR 19 million in Q1 2021. Discover Saudi, which aims to become the primary DMC for inbound tourism and support the goals of Saudi Vision 2030 to bring 100 million visitors annually by 2030, has hosted 2500 inbound travellers to the Kingdom in Q1 2022. Building on its trusted reputation as the Kingdom’s leading DMC, Discover Saudi was entrusted to deliver travel transport and accommodation services for some of the Kingdom’s largest events including Saudi Cup, Dakar Rally and Extreme E.
Majed Alnefaie, CEO at Seera Group, said: “2022 has kicked off with an incredibly positive start to the year. As the Kingdom’s national champion for the travel and tourism sector, we will continue to drive forward Vision 2030’s tourism agenda as an investor and enabler in innovative and aspirational businesses. Travel is back and 2022 is going to be a very positive year for Seera Group and the travel industry as a whole.”