Travel & Tourism - Australia & Oceania

Australia & Oceania is projected to generate a revenue of US$17.40bn in the Travel & Tourism market by 2024.
The market is expected to experience an annual growth rate (CAGR 2024-2029) of 4.16%, which is estimated to result in a market volume of US$21.33bn by 2029.
The largest market of the industry is the Hotels market, which is expected to reach a market volume of US$7.98bn in 2024.
By 2029, the number of users in Hotels is anticipated to reach 19.17m users.
The user penetration rate is expected to increase from 55.2% in 2024 to 64.9% by 2029.
The average revenue per user (ARPU) is expected to be US$725.30.
It is projected that by 2029, 75% of the total revenue in the Travel & Tourism market will come from online sales.
In comparison to other countries, United States is expected to generate the highest revenue of US$214bn in 2024.
Australia's travel and tourism industry is heavily impacted by the COVID-19 pandemic, resulting in a significant decrease in international visitors.

Definition:

The Travel & Tourism market encompasses a diverse range of accommodation services catering to the needs and preferences of travelers. This dynamic market includes package holidays, hotel accommodations, private vacation rentals, camping experiences, and cruises.

Structure:

The market consists of five further markets.

The Cruises market covers multi-day vacation trips on a cruise ship. The Cruises market encompasses exclusively passenger ticket revenues.
The Vacation Rentals market comprises of private accommodation bookings which includes private holiday homes and houses as well as short-term rental of private rooms or flats.
The Hotels market includes stays in hotels and professionally run guest houses.
The Package Holidays market comprises of travel deals that normally contain travel and accommodation sold for one price, although optional further provisions can be included such as catering and tourist services.
The Camping market includes bookings at camping sites for pitches using tents, campervans, or trailers. These can be associated with big chains or privately managed campsites.

Additional Information:

The main performance indicators of the Travel & Tourism market are revenues, average revenue per user (ARPU), users and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues and users for the above-mentioned markets. Users represent the aggregated number of guests. Each user is only counted once per year. Additional definitions for each market can be found within the respective market pages.

The booking volume includes all booked travels made by users from the selected region, independent of the departure and arrival. The scope includes domestic and outbound travel.

Prominent players in this sector include online travel agencies (OTAs) like Expedia and Opodo, as well as tour operators such as TUI. Specialized platforms like Hotels.com, Booking.com, and Airbnb facilitate the online booking of hotels and private accommodations, contributing significantly to the market's vibrancy.

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Bookings directly via the website of the service provider, travel agencies, online travel agencies (OTAs) or telephone

Business trips
Other forms of trips (e.g. excursions, etc.)

Australia & Oceania has seen a significant growth in the Travel & Tourism market in recent years.

Customer preferences: Travelers in Australia & Oceania are increasingly seeking unique and authentic experiences, driving the demand for sustainable and eco-friendly tourism options. They are also placing a high value on convenience and personalized services, leading to the rise of digital platforms and mobile applications in the travel industry.

Trends in the market: In Australia, domestic tourism has been a key driver of growth, with more Australians choosing to explore their own country. This trend has been further accelerated by external factors such as the global pandemic, which restricted international travel. Additionally, adventure tourism and nature-based experiences have gained popularity among both domestic and international travelers in countries like New Zealand and Fiji.

Local special circumstances: Australia & Oceania's unique geography and diverse ecosystems offer a wide range of attractions for tourists, including the Great Barrier Reef, the Outback, and Maori cultural experiences. The region's proximity to Asia also makes it a desirable destination for Asian travelers, particularly from countries like China and Japan.

Underlying macroeconomic factors: The strong economic performance of countries like Australia and New Zealand has contributed to the growth of the Travel & Tourism market in the region. Increasing disposable incomes and a growing middle class have made travel more accessible to a larger segment of the population. Additionally, government initiatives to promote tourism and invest in infrastructure have further supported the industry's expansion.

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of hotels, vacation rentals, cruises, package holidays, and camping.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, the Global Consumer Survey, third-party studies and reports, data from industry associations (e.g., UNWTO), and price data of major players in respective markets. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as country-related GDP, demographic data (e.g., population), tourism spending, consumer spending, internet penetration, and device penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, and exponential trend smoothing methods are applied. A k-means cluster analysis allows for the estimation of similar countries. The main drivers are tourism GDP per capita and respective price indices.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.

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Business or corporate travel is the tourism segment that focuses on people who travel for work or professional purposes and the related tourism services. This branch also includes the meetings industry, which refers to business events, conferences, congresses, trade fairs, and exhibitions. According to the World Travel and Tourism Council (WTTC), business travel accounted for 20 percent of the global tourism expenditure in 2021. In that year, it was estimated that business travelers spent more than 740 billion U.S. dollars worldwide, with Chinese tourists topping the ranking of the biggest business travel spenders.