Fairmont

Riyadh Hotel
Agenda
Market Overview
Staycation
KSA Facilities
PESTEL Analysis
S.W.O.T Analysis
Competitor Analysis
Customer journey map
Potential Customer
Segmentation
Targeting
Positioning Message
 Market Overview
• Revenue in the Hotels segment is projected to reach US$2.16bn in 2022.

• Revenue is expected to show an annual growth rate (CAGR 2022-2026) of 8.51%,

resulting in a projected market volume of US$3.00bn by 2026.

• In the Hotels segment, the number of users is expected to amount to 9.1m users by
2026.
 Market Overview
• User penetration is 18.7% in 2022 and is expected to hit 24.1% by 2026.

• The average revenue per user (ARPU) is expected to amount to US$0.32k.

• In the Hotels segment, 79% of total revenue will be generated through online
sales by 2026.

• In global comparison, most revenue will be generated in the United States

(US$78,220.00m in 2022).
• A period in which an
individual or family stays
Staycation • The first concept
home and participates in started in 2010 and
leisure activities within it became more
day-trip distance of their popular during and
home and does not
require overnight after the COVID
accommodation. crisis.

• Save money and time

• Reason to go to your
favorite spots
• Check out new places
• Less stress
• Eco friendly
 KSA Facilities
• the hospitality industry in Saudi Arabia is recording dynamic key performance
indicators for the past five years.

• The kingdom is focusing on improving investment opportunities through the

introduction of several projects.

• The increasing religious and leisure travel to the Kingdom has opened investment
opportunities in the hospitality industry and resulted in an increasing number of
new hotels opening in the key cities.
 Political Factors
Government System:
• Saudi Arabia follows the unitary Islamic monarchy.
• Capital city: Riyadh.
• Ruling regime: Monarchy and hereditary.
• Ruling party: The Wahhabi conservative religious movement within the Sunni
sect.
• Muhammed-Bin-Salman (MBS) is the current King and the crown prince of Saudi
Arabia.
• The king must follow Islamic sharia law.
 Political Factors
Political Stability
• Saudi Arabia has a stable political environment in the country under the leadership
of the monarch.
• The Saudi constitution doesn’t allow the formation of any type of political party.
• The royal family controls the political environment of Saudi Arabia.
 Political Factors

Alliances
• Saudi Arabia has membership in the world’s leading organizations like OPEC, Arab
League, Organization of Islamic Cooperation, UN, Gulf Cooperation Council, and
others.
 Economic Factors
GDP
• According to an estimate, the annual nominal GDP of Saudi Arabia in 2020
was 680 billion dollars, and it’s the 19th highest in the world.
• The per capita income of the country was 19,587 dollars, and it’s 39th world’s
highest.
 Economic Factors
Oil & Gas
• The production of oil and gas is the main industry and source of income of Saudi
Arabia.
• It contributes 80% to the country’s total GDP.
• The worldwide lockdown and shutdown of businesses suddenly dropped the
demand for oil and gas.
• The retail price also dropped significantly, and it dropped the annual GDP by -
6.8%.
 Economic factors
Imports and Exports
• Saudi Arabia’s top imports are Precious metals, Gems, Medical apparatus, steel,
iron, mineral fuel, pharmaceutical products, boats, ships, electrical machinery,
vehicles, and computers.
• Saudi’s main exports are steel, iron, precious metals, electrical equipment, dairy
products, fertilizers, aluminum, inorganic chemicals, organic chemical, plastic,
and oil.
 Economic Factors
Unemployment rate & taxes
• According to an estimate, the unemployment rate in Saudi Arabia falls
between 8%-12% in 2021.
• the country’s corporate tax rate falls within 15% to 20% depending upon the
income level.
• There is no personal income tax.
 Social Factors
Demography
• Saudi Arabia has the world’s highest young population comprising 34.2 million
people.
• Approximately more than 50% of the country’s total population is less than 25
years.
• the average life of men and women is 73.5 and 76.5 years old.
 Social Factors
Demography
• over 90% of the country’s total population is Arab and the remaining 10% is
African-Asian.
• A vast majority of the population lives in regions like Hejaz and Najd.
• Arabic is the official and national language of the country.
• Islam is the official religion.
 Social Factors
Trends
• Saudi Arabia is a highly religious society.
• Women must wear the Hijab covering everything under the neck
except hands and feet.
• If the non-Muslim women don’t follow the dressing, then the police
would arrest them.
 Social Factors
Trends
• The conservative Wahhabi movement doesn’t appreciate the growth of art.
• Music and dance have been an important part of the Arabic lifestyle; tar and tabl
are the main musical instrument.
• Football, Camel Racing, and Falconry are some of the main popular sports.
 Technological Factors
• Saudi Arabia has realized the significance of technology, and the country has been
investing a plethora of resources in innovation, developing entrepreneurship, and
research and development.

• The country plans to shift its economic dependence from oil and gas to the tech
industry by the end of 2030.

• The Badir Program for Technology Incubators is Saudi’s main entrepreneurial hub
that provides support to young startups.
 Environmental Factors
Environmental challenges Tourism
• desertification.
• A vast majority of tourists visit
• deforestation. Saudi Arabia because of religious
• air and water pollution pilgrimage reasons.
• The government now plans to
increase tourism to 93 million
people by the end of 2023.
 Legal Factors

Regulations
• Saudi Arabia is an Islamic country and it follows the Islamic Sharia Law both for
civil and criminal cases.
• The king holds the final power over the rule of law whether to pardon someone or
not.
 Legal Factors
Regulations
• The country has 3 types of courts; Courts of First Instance, Courts of Cassation,
and Supreme Judicial Council.
• Significantly low crime rates compared to some developed nations.
• Strict Saudization requirements.
 S W
STRENGTHS WEAKNESSES

O T
OPPORTUNITIES THREATS
 S.W.O.T Analysis
Weaknesses Threats
- 8.22% unemployment -Adaptability to the
rate. culture and strict laws
Strengths - Strict Saudization
Opportunities -Unstable region
- Strong economy. -Low competition
requirements.
-Easy to start a business. -Governmental
- Economy is still driven
-Low tax rate. approaches to shift the
by the oil sector.
-Laws protecting investor economic dependence on
- Dependence on foreign
interests. oil and gas money to tech
workers.
-The Foreign Investment industry.
- Persistent tensions with
Law. Iran.
 Competitor Analysis
 Ritz-Carlton Hotel
• Rating:8.6/10 (booking)
• In-room amenities: (Safety box for valuables for your personal use- Well-lit
working desk in room- Complimentary tea and coffee facilities- Flat-screen TV
with satellite service and premium movie channels available- Complimentary
high-speed internet access available)
• Services: (twice-daily housekeeping- spa- fitness center- indoor swimming pool-
free internet access- business services including secretarial service- parking)
• Pets aren’t allowed
• Events: Weddings and Business meetings
 Ritz-Carlton Hotel
• Facebook page: 88051 likes – 88334 followers
• Instagram page: 13k followers
• The night costs 5980 L.E
• ATM and Currency change
• King Khaled airport: 33.2 km
• 3 Restaurants
• 11 spoken languages
 Ritz-Carlton Hotel
Reviews
• “I liked everything, especially the elegant treatment of the hotel staff, and I would like to thank
Noura Al-Rashed for her treatment, services, and hospitality. Indeed, a classy hotel with superior
staff.”

• “the place is amazing and unique. the staff are excellent. they are very fast and they answer the
phone quickly. the room service are also fast. the food is amazing”

• “The AC was not working the whole stay and we kept calling them to send a technician to fix it. He
tried to fix and then again it stops working or suddenly it becomes warm again by it self. Also
another problem happened the fire alarm at 10 am while we’re sleeping no one told us that the
alarm with be at that specific day or time and it scared us it was so loud and noisy for 30 mins!!!
We woke up shocked I wont stay in this hotel ever again”
 The Four Seasons Hotel
• Rating:8.6/10 (booking)
• In-room amenities: (Espresso/coffee machine and tea maker - Lutron Smart
Lighting - In-room safe - Refrigerated private bar - Hypoallergenic pillows on
request - Hair dryer and scale - Bathtub and shower in all rooms - TV in vanity
mirror - Deluxe toiletries - Lighted make-up mirror - SMART TV with ULTRA
HD Display and Chromecast functionality - Complimentary standard Wi-Fi -
Bluetooth Loudspeaker)
• Services: (24-hour In-Room Dining - Humidifier and air ionizer on request -
Iron and ironing board on request - 24-hour laundry/dry-cleaning/pressing -
Complimentary overnight shoeshine - Complimentary newspaper - Valet parking
service – Swimming pool – Spa – Fitness center)
 The Four Seasons Hotel
• Events: weddings- business meetings
• Pets are allowed
• Facebook page: 881,108 likes – 915,005 followers
• Instagram page: 1.2M followers
• YouTube page: 48.6k subscribers 55,708,691 views
• The night costs 9426 L.E
• ATM and Currency change
• King Khaled airport: 27.5 km
 The Four Seasons Hotel
Reviews
• “Everything was great…
The location was busy due to some events in the hotel. Getting in and out of the hotel
was not good experience due to the traffic”

• “I liked how luxurious the place was and how well-trained the staff were”

• “the service was really slow and the policy of the hotel for example to park your car in the
valet is chargeable and plus someone stole my sunglasses and cash from my car which
makes me feel unsafe and I would never go back to that hotel again”
 Customer Journey Map

Searching Make Check in

reservation
Arrival
for hotels

Use guest
room
After sale Check out Use facilities
 Customer Journey Pain Points

Searching for hotels:

• Poor website (hard to navigate- not enough information)
• Different information using different apps e.g. different information in
booking.com than the information provided by the hotel’s website
 Customer Journey Pain Points

Make reservation:
• Too many steps to make reservations
• Different processes using different websites
• Different reservation fees using different websites
 Customer Journey Pain Points

Arrival:
•Hotel is far from the airport
•Poor transportation from the airport to the hotel
• Poor valet service
 Customer Journey Pain Points

Check in:
•Check in takes a long time
•Receptionists bad behavior
•Long waiting time to prepare the room
 Customer Journey Pain Points
Use guest room:
•Room is not like the website photos
•Poor room service
•Loud area
•Uncomfortable beds
•Bad view
•No free Wi-Fi
 Customer Journey Pain Points

Use facilities:
•Low quality food
•Additional fees for spas and gyms
•No smoking areas
•No business area
 Customer Journey Pain Points
Check out:
•Not giving enough time to evacuate
•There’s poor or no help with your bags
•Receptionists’ bad behavior
•Poor transportation to the airport
 Potential Customer
• Riyadh population: 8216284 (Saudi:4658322) (non-saudi:3557962)
• Age: 24.7% between 0 to 14/ 71.81% between 15 to 64 years/ 3.5%
older than 64
• In 2021 Saudis tourists spent around SR60 billion during their summer
holidays abroad
 Potential Customer

Solo Travelers & Young Couples

Business Travelers

Big Family
 Solo Travelers & Young Couples
Segmentation:

Demographic Geographic

• Sex: Male/ Female.

• Main class: Middle and • Saudi Arabia
• Age: mid-20s to mid- Upper class.
• Riyadh province
30s
• Interest: Vacation –
outing – travel • Riyadh city
• Marital states:
Married – Single.
• Income: ≥10,000
SAR/Month.
• Education: Medium to
high level.
• Nationality: Any
Social class
 Solo Travelers & Young Couples
Targeting:

We can target solo travelers and young couples with our different services
(gentlemen’s tonic- spa- outdoor activities, etc.) with the comfort and elegance
they deserve at low prices.
 Solo Travelers & Young Couples
Positioning Message:

Fairmont Riyadh hotel provides luxury and comfort through our different
enjoyable activities for solo travelers and young couples. We offer you the best
quality indoor and outdoor activities at affordable prices.
 Business Travelers
Segmentation:

Demographic Geographic

• Sex: Male/ Female.

• Main class: Middle and • Saudi Arabia
• Age: mid-30s to 50 Upper class.
• Riyadh province
• Marital states: • Interest: business –
meeting – travel • Riyadh city
Married – Single.
• Income: ≥20,000
SAR/Month.
• Work position:
manager and above
• Nationality: Any

Social class
 Business Travelers
Targeting:

We can target this segment by emphasizing our business privileges (comforting

rooms- work desks in rooms- fast internet connections- nearest to the airport-
noise-free) and they can enjoy their stay with other amenities.
They can also perform meetings in our big comfortable meeting rooms.
 Business Travelers
Positioning Message:

Fairmont Riyadh hotel provides privacy and solitude with its convenient spaced
rooms containing the highest internet connection speed for business travelers
who are looking for efficiency and elegance. Being the nearest to King Khaled
airport and no more than 15 minutes away from major business hubs, the
Fairmont Riyadh hotel is the best choice for business travelers.
 Big Family
Segmentation:

Demographic Geographic

• Sex: Male/ Female.

• Main class: Upper class. • Saudi Arabia
• Age: ≥ 50
• Interest: Vacation – • Riyadh province
• Marital states: outing – travel - reunion
• Riyadh city
Married – Single.
• Income: ≥25,000
SAR/Month.
• Nationality: Any

Social class
 Big Family
Targeting:

We can target this segment with our various services for the whole family
(comforting big rooms – gentlemen’s tonic – spa – in-door swimming pools,
etc.) and ease of transportation.
 Big Family
Positioning Message:

Fairmont Riyadh hotel provides all family services and activities for
customers looking for family gathering vacations with elegance and
class. With suites carrying up to 6 people, you and your family can
enjoy the best indoor services like spa and swimming pools. You can
also enjoy the outdoor terrace and garden and a golf course..