SAUDIS are one of the savviest travelers today, according to Daniel Naoumovitch, CEO of Sabre Travel Network Middle East (STNME), the largest global distribution system in providing technology solutions in travel. According to a recent report, 75% of youth book flights on a smartphone today, a significant indicator of how technology has transformed the way travel is being done. Up to date, mobile penetration in Saudi Arabia has reportedly exceedingly reached over 170%. "It will be surprising if you don't see more than one device in their hands. They are looking for the latest technology," Naoumovitch said in an interview with Saudi Gazette. "They are highly visual, more connected than ever, and want a customized shopping experience. They want anytime-anywhere access to all the information." However, youth are not the only ones clinging to technology. The average traveler's usage of online travel is forecasted to jump from 25% in 2014 to 36% by 2017. Whereas in the past, travel agencies were crowded offices, today they have been forced to adapt with the wave of technology. When asked whether they are losing business, Naoumovitch said on the contrary, they have digitized instead. He said, "We as Sabre support the travel agencies with all the tools so that they can cater to the technology needs of the traveler. Today, a travel agency has an online portal. Travelers will still refer to that travel agency because of its customer loyalty. Rather than walk into the office, they will simply use the portal. This helps them fulfill the online need and will save time and energy. Travelers, in turn, will tell others about their experience with that particular agency." In the past, vacationers and business travelers receive a quote on a trip from a travel agency but are unaware if there's another agency next door that is more familiar with a particular destination and could be providing a different rate. With online technology, everything is in the user's fingertips. Headquartered in Bahrain, STNME operates 27 offices in 13 countries in the Middle East in addition to 15 training centers across the region, including offices in Jeddah, Madinah, Riyadh and Al Qassim, Jubail, Al Khobar, and Hufoof. "This makes decision-making quicker," says Naoumovitch, adding that training is provided for Saudi men and women. The tourism industry contributes 2.5% to local GDP and offers over 600,000 jobs for both men and women in a nation with a majority of youth under the age of 30. Technology is predicted to play a major role in supporting its growth. Sabre has already led as the first GDS to provide a female trainer in the Kingdom. Total gross bookings in Saudi Arabia make up $11 billion, which is 15% of the region, and comes second after UAE. Online travel in 2014 in KSA is expected to reach $5 billion in 2017. Travelers today, he further says, rely on the latest technology and social networks to make their decisions based on reviews and comparing choices in booking, travel packages, and destinations. "Their expectations are changing on a daily basis. It's something we need to focus on. They ask friends and read reviews before their trip. That information today will fly over a network of that particular traveler. We need to be very careful and savvy on how to provide that ultimate experience for our travelers." Wearable technology is also becoming a prominent means of customer and traveler communication, where 4 in 10 millennials say they can't live without their smartwatch. When asked how an economic recession will impact travel, Naoumovitch said it's "causing a shift in the way business is being done." With reductions in government subsidies, decreased business travel, reduced travel corporations, vendors seek to provide good opportunities and tools to maintain the business. He adds, "Direct contribution of travel and tourism is key to the GDP in Saudi Arabia. However, it's expanding even though times are challenging."
