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Why are Umrah hotels so expensive?

Getting a good deal for your Umrah packages USA with flights and accommodation is a challenging task. With thousands of different options to choose from according to your budget and specific needs, one might become confused. Especially if you are on a budget then Umrah travel and accommodation are among the major concerns for you because they significantly impact the overall cost.

We see that there are hotel options available in Makkah and Madinah that range from 3-star economy to 7-star luxury. Yet the pricing for the accommodations, regardless of the type of hotel, is quite expensive. Here are some of the reasons for it.

1. High Demand during Peak Season:

During the peak travel season for Umrah i.e. Ramadan, winter months and vacation period, we see a surge in demand for hotel accommodations in Makkah and Madinah as a lot of people are arriving in the region. Most of the people book the Umrah Packages from New York and arrive in mecca, in the off-peak times.

The increased number of pilgrims and lesser availability of accommodation services ultimately lead to price hikes to accommodate the huge crowds of pilgrims – the basic economic principle of supply and demand.

2. Limited Accommodation Near Holy Sites:

Accommodations near Haramain in Makkah and Madinah offer ease of access and convenience for the pilgrims. They not only cut down the extra travel costs that you might incur for your ride between the hotel and Haram but also you can enter Haram from your room within a few minutes of walking.

As a result, the demand for such hotels is always high regardless of the peak or off-peak travel period. This results in higher prices for accommodation within these hotels.

3. Quality of Service and Amenities:

Hotels that are present near the Harams or rated 5-star to 7-star for their services bring a premium price tag for living. This is because of the luxury services and amenities they offer for the pilgrims. Therefore, it is understood that when getting hotel accommodation near Haram, you will be paying a high price for it.

In addition, the cost of maintenance of these hotels is also high as they are equipped with high-tech equipment and modern facilities, contributing to the overall expense of living there.

4. Seasonal Price Fluctuations:

Prices of hotel rooms also vary depending upon the time of year you are travelling for Umrah. While expensive pricing is offered during the peak travel periods, prices may be relatively lower when you are travelling during the off-peak times. In fact, there have been cases where pilgrims availed of luxury stay experiences in the budget of the economy.

5. Infrastructure and Operating Costs:

The infrastructure and maintenance costs of high-end hotels present in Makkah and Madinah are also high. When you factor in the operating costs, staff salaries and utility bills; the expensive hotel pricing seems to be justified in most of the cases.

6. Government Regulations and Fees:

The Saudi Arabian government itself imposes different types of fees on the hospitality industry operating there to accommodate Umrah pilgrims. Prominently including;

  • Licensing fees.
  • Operating charges.
  • Compliance costs.
  • Rents, etc.

All of which is ultimately reflected in the pricing of these hotel rooms.

7. Investments in Luxurious Facilities:

The majority of hotels in Makkah and Madinah, whether 3-star or 5-star, invest in offering specific services for their guests. For instance;

  • On-site restaurants
  • Swimming pools.
  • Play arenas, etc.

While luxury hotels might offer these facilities free of cost, budget hotels charge an additional fee for availing of these services. Therefore, contributing to higher room rates.

8. Limited Competition Near Holy Sites:

Considering the spiritual significance of Makkah and Madinah, a lot of restrictions are put in place on the construction of new hotels especially near Haramain. Therefore the limited competition coupled with high demand, ultimately results in higher accommodation prices.

9. Economic Factors:

Economic conditions also cause hotel prices to fluctuate. Such as;

  • Fluctuations in currency values.
  • Inflation rates.
  • Geopolitical events.

All in all, influences the expensive cost of accommodations.

10. Infrastructure Development Costs:

There are a lot of infrastructure development and extension projects going on near Haramain in Makkah and Madinah. Therefore, the costs for the investments required for it are also one of the major factors affecting the overall pricing of services, including hotel accommodations.

These are some of the reasons which make Umrah hotels so expensive even with Cheap December Umrah Packages.

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