Travel & Tourism - Azerbaijan | Statista Market Forecast

The Travel & Tourism market in Azerbaijan is predicted to experience a substantial increase in revenue.
Specifically, revenue is projected to reach US$1.00bn in 2024, with an expected Compound Annual Growth Rate (CAGR) of 3.81% from 2024-2029.
This growth will result in a market volume of US$1.21bn by 2029.
The most significant sector of the Azerbaijani Travel & Tourism market is the Hotels market, which are projected to generate a market volume of US$529.80m in 2024.
The number of users in this market is anticipated to reach 2.27m users by 2029, with a user penetration of 31.1% in 2024 and an expected rise to 33.7% by 2029.
The average revenue per user (ARPU) is expected to be US$309.00.
Looking at the sales channels, it is predicted that 74% of the total revenue in the Azerbaijani Travel & Tourism market will come from online sales by 2029.
Finally, in terms of global comparison, United States is expected to generate the highest revenue in the Travel & Tourism market, with US$214bn projected in 2024.
Azerbaijan's Travel & Tourism sector is rapidly expanding due to its rich cultural heritage and natural attractions.

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.

For further information on the data displayed, refer to the info button right next to each box.

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.)

The Travel & Tourism market in Azerbaijan is experiencing a notable growth trajectory, driven by various factors that cater to the evolving preferences of travelers and the unique local circumstances.

Customer preferences: Travelers in Azerbaijan are increasingly seeking authentic cultural experiences, leading to a rise in demand for heritage sites, traditional cuisine, and local festivals. Additionally, there is a growing interest in adventure tourism, with visitors exploring the country's diverse landscapes, including mountains, forests, and the Caspian Sea coast.

Trends in the market: One prominent trend in the Azerbaijani travel market is the development of luxury tourism offerings, such as high-end resorts, boutique hotels, and personalized experiences. This caters to affluent travelers looking for exclusive and upscale accommodations. Moreover, the country is witnessing a surge in MICE (Meetings, Incentives, Conferences, and Exhibitions) tourism, with modern conference facilities and event spaces becoming increasingly popular.

Local special circumstances: Azerbaijan's strategic location at the crossroads of Europe and Asia, along with its rich history and cultural heritage, positions it as a unique travel destination. The country's blend of modern infrastructure and ancient landmarks, such as the UNESCO-listed Old City in Baku, appeals to a wide range of tourists. Furthermore, the government's efforts to promote tourism through initiatives like visa facilitation and infrastructure development contribute to the sector's growth.

Underlying macroeconomic factors: The growth of the Travel & Tourism market in Azerbaijan is also influenced by macroeconomic factors such as GDP growth, foreign investment, and government policies. As the economy continues to diversify beyond oil and gas, tourism plays a crucial role in driving job creation and revenue generation. Additionally, the country's focus on improving transportation networks and promoting sustainable tourism practices enhances its attractiveness to both domestic and international travelers.

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.

This report presents a comprehensive analysis and additional information on the Mobility market, in a PDF format.

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.