Travel & Tourism - BRICS

BRICS

The BRICS country's Travel & Tourism market is poised to achieve a noteworthy revenue of US$213.70bn by 2024.
The market is expected to experience a compound annual growth rate (CAGR 2024-2029) of 4.01%, which would result in a projected market volume of US$260.10bn by 2029.
Hotels constitute the biggest market in the Travel & Tourism market, with a projected market volume of US$107.30bn by 2024.
It is expected that the number of users in hotels will reach 714.50m users by 2029.
The user penetration is anticipated to hit 27.6% by 2029, up from 19.1% in 2024.
The average revenue per user (ARPU) is expected to be US$338.90.
Moreover, it is predicted that 72% of total revenue in the Travel & Tourism market will be generated through online sales by 2029.
Finally, it is noteworthy that United States is expected to generate the highest revenue, with US$214bn in 2024, compared to other countries across the globe.
Brazil's tourism industry has been hit hard by the COVID-19 pandemic, but the country's government is working to promote domestic tourism and attract foreign visitors once travel restrictions are lifted.

Key regions: Malaysia, Europe, Singapore, Vietnam, United States

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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Region

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Currency

Analyst Opinion

The Travel & Tourism market in BRICS countries is experiencing significant growth and development.

Customer preferences: Customers in BRICS countries are increasingly seeking unique and authentic travel experiences. They are looking for opportunities to explore diverse cultures, historical landmarks, and natural attractions. Additionally, there is a growing demand for sustainable and eco-friendly travel options among tourists in these countries.

Trends in the market: In Brazil, there is a rising trend of ecotourism and adventure travel, driven by the country's rich biodiversity and natural landscapes. Russia is seeing a surge in cultural tourism, with travelers interested in exploring its historical sites and vibrant arts scene. India is experiencing a growth in medical tourism, as more international visitors seek high-quality healthcare services at affordable prices. In China, there is a trend towards luxury travel, with affluent tourists looking for exclusive experiences and high-end accommodations. South Africa is witnessing an increase in safari tourism, as travelers flock to its renowned national parks to see exotic wildlife up close.

Local special circumstances: Each BRICS country has its own unique attractions and offerings that cater to different types of tourists. Brazil's Carnival festival and stunning beaches draw in millions of visitors annually. Russia's rich history and architectural wonders, such as the Kremlin and Hermitage Museum, are major draws for cultural enthusiasts. India's diverse cultural heritage, including UNESCO World Heritage sites like the Taj Mahal, continue to attract tourists from around the globe. China's modern infrastructure and ancient landmarks, such as the Great Wall, appeal to a wide range of travelers. South Africa's breathtaking landscapes, including Table Mountain and Kruger National Park, make it a popular destination for nature lovers and adventure seekers.

Underlying macroeconomic factors: The growth of the Travel & Tourism market in BRICS countries can be attributed to several macroeconomic factors, including rising disposable incomes, expanding middle-class populations, improved transportation infrastructure, and government initiatives to promote tourism. Additionally, advancements in technology have made it easier for travelers to research and book trips, contributing to the overall growth of the market in these countries.

Methodology

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.