KARACHI/ISLAMABAD: A Saudi-based consortium of travel and hospitality companies has launched a $50 million fund to reduce the cost of Hajj and Umrah pilgrimages for Pakistani travelers by as early as September, the group’s chief executive said on Monday.
The consortium includes online Umrah booking platform Funadiq.com, Emaar Al Diyafa Group of hotels, Skyline Travel Company and other firms operating in Makkah. Its stated goal is to modernize the infrastructure and operations of Pakistani travel agencies to help them meet Saudi regulatory standards and better serve pilgrims.
The consortium’s CEO Mohammad Salman Arain told Arab News the main objective behind setting up the fund is to upgrade travel agencies’ infrastructure and operations in every major Pakistani city.
He said the fund is expected to lower Hajj costs by 20 percent and Umrah costs by 25 percent for Pakistani pilgrims.
“On average, [Umrah for one person] is Rs300,000 ($1,054) and we expect that by September, a small travel agent would be able to offer it to his customers at Rs240,000 ($844) to Rs250,000 ($879),” Arain said in an interview on Monday.
Arain attributed the current high costs to inefficiencies in the way many Pakistani travel agents operate:
“Once we help them operate better then Umrah will become cheaper for our pilgrims.”
His company, Umrah Companions, also launched what it calls the world’s first AI-powered Umrah agent this month, designed to help digitally savvy pilgrims customize their travel packages based on cost and convenience.
Asked how many more Pakistanis he expected to help perform pilgrimage, Arain said: “I expect it should create and generate additional easy 10-15 percent more travelers to Saudi Arabia, God willing, in this Umrah season.”
The consortium will also help Pakistani Hajj organizers adapt to Saudi Arabia’s evolving regulations.
“This should make Hajj better organized and cheaper as well,” Arain said.
In a separate statement, Funadiq.com said over 2 million Pakistanis travel to Saudi Arabia each year for pilgrimage and spend more than $5 billion annually, making Pakistan one of the world’s largest pilgrimage markets.
“Yet despite these numbers, the sector continues to suffer from poor management,” the company said. “More than 67,000 pilgrims missed Hajj this year alone.”
That figure refers to a large portion of Pakistan’s private Hajj quota that went unutilized this year due to reported delays by travel companies in completing payment and registration requirements, according to Funadiq.com.
Private operators have blamed the shortfall on technical glitches, payment delays, and poor coordination between service providers. Pakistan’s government fulfilled its full allocation of over 88,000 pilgrims.
The Saudi consortium’s investment will be used for technology upgrades, staff training, and process improvements in small- and medium-sized travel agencies. These improvements could make the booking process 50 percent faster, Funadiq.com said.
“We are stepping in to help change that, working closely with the government, airlines, and private sector partners,” the company added.
