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Al-Tayyar Travel posts SR2.1bn in revenue for 2017

Al-Tayyar Travel Group, a leading regional travel and tourism management company, has announced a 2017 year-end net revenue of SR2.11 billion ($562 million), in line with SR2.14 billion in 2016. This was aided by a tripling of revenue from the hospitality division and a 48 percent jump in car rental revenue which helped offset weaker revenue from some government contracts.
Al-Tayyar’s gross profit was SR1.6 billion in 2017, down four percent as compared to 2016. Operating profit was SR680 million, 25 percent lower than 2016. Net profit attributable to the parent company was SR497 million, down 39 percent from the prior year. Net profit, excluding one-off impairments, would be SR593 million, down 34 percent, instead of 39 percent, from 2016.
“We have made solid progress in implementing our strategic business transformation which has led to a more diversified revenue base, whereby high-potential growth businesses are compensating for maturing legacy businesses. A case in point is that despite the significant revenue decline from our government business, we achieved very strong growth in online travel, which experienced a gross booking value of SR1.4 billion, up 180 percent from 2016,” said Abdullah Aldawood, chief executive officer of the company.
“Furthermore, our hospitality division tripled its revenue and income from international operations shot up 38 percent year-on-year, owing to our UK operations. We are tapping new growth opportunities by sector and geography, which is balancing our portfolio nicely and reducing risk in the process. Gross and operating profit fell mainly because of thinner margins and the consolidation of Portman Group.”
The company embarked on a strategic transformation program in 2016 to diversify its revenue mix by focusing its expansion into other business areas that have a more sustainable growth trajectory.
In 2017, the two online travel brands, Almosafer and Tajawal, witnessed a 243 percent and 145 percent year-on-year growth in gross booking value, respectively. This is a strong indication of the high demand and strong growth of the online travel platform.
Aldawood said: “I am very pleased with the exceptional growth our online travel platform has amassed in a very short time. This is a testament of our ability to execute on very complex operations. We will continue to focus heavily on this business unit with the aim of reaching gross booking value of SR3.75 billion by 2020.”

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