Travel & Tourism - Central America

Central America

In Central America, the revenue of the Travel & Tourism market is expected to reach US$1,383.00m by 2024.
Furthermore, the market is projected to experience a Compound Annual Growth Rate (CAGR 2024-2029) of 5.38%, resulting in a projected market volume of US$1,797.00m by 2029.
The largest market in this market is expected to be Hotels, with a projected market volume of US$527.00m by 2024.
By 2029, the number of users in the Hotels market is expected to reach 7.12m users.
In 2024, the user penetration is expected to be 15.5% and it is expected to increase to 19.0% by 2029.
The average revenue per user (ARPU) is projected to be US$168.80.
By 2029, online sales are expected to generate 75% of the total revenue in the Travel & Tourism market.
It is worth noting that in terms of revenue, United States is expected to generate the most revenue in the Travel & Tourism market, with a projected revenue of US$214bn in 2024.
Costa Rica's emphasis on eco-tourism has made it a popular destination for travelers seeking sustainable and responsible travel experiences in Central America.

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.

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

Market

Region

Region comparison

Currency

Analyst Opinion

The Travel & Tourism market in Central America is experiencing significant growth and development.

Customer preferences: Travelers in Central America are increasingly seeking authentic cultural experiences, eco-friendly accommodations, and adventure tourism activities. They are drawn to the region's rich biodiversity, stunning landscapes, and vibrant local cultures. Additionally, there is a growing demand for personalized and unique travel experiences that allow visitors to immerse themselves in the local way of life.

Trends in the market: In Costa Rica, ecotourism has been a major driver of the tourism industry, with a focus on sustainability and environmental conservation. The country's extensive national parks and nature reserves attract nature lovers and adventure seekers alike. Furthermore, Panama has emerged as a popular destination for luxury tourism, with upscale resorts and high-end amenities catering to discerning travelers. The country's cosmopolitan capital, Panama City, offers a mix of modernity and history, making it a dynamic tourist hub.

Local special circumstances: Central America's geographical location between North and South America positions it as a convenient and accessible travel destination for visitors from both continents. The region's diverse offerings, including ancient ruins, pristine beaches, and lush rainforests, make it a compelling choice for travelers seeking a variety of experiences in a relatively compact area. Additionally, the warm hospitality of the local population and the rich cultural heritage add to the overall appeal of Central America as a tourist destination.

Underlying macroeconomic factors: The improving infrastructure and connectivity in Central America, including the expansion of airports and transportation networks, have made it easier for tourists to travel within and between countries in the region. Economic stability and government initiatives to promote tourism have also played a role in driving the growth of the Travel & Tourism market in Central America. As the region continues to invest in its tourism sector and promote sustainable practices, it is likely to attract a growing number of visitors in the coming years.

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.