Travel & Tourism - Croatia

Croatia

In Croatia, the Travel & Tourism market is expected to experience significant growth in the coming years.
By 2024, the projected revenue for this market is estimated to reach US$1,100.00m, with an annual growth rate of 4.43% between 2024 and 2029, resulting in a projected market volume of US$1,366.00m by 2029.
It is noteworthy that the market's largest market is the Package Holidays market, which is expected to generate a market volume of US$535.60m in 2024.
Moreover, the number of users in the Package Holidays market is projected to amount to 2,286.00k users by 2029, with user penetration expected to increase from 60.9% in 2024 to 70.8% by 2029.
As for the average revenue per user (ARPU), it is expected to be US$452.90.
Furthermore, online sales are expected to account for 66% of total revenue in the Travel & Tourism market by 2029.
It is also worth noting that in global comparison, United States is projected to generate the most revenue in the Travel & Tourism market, with an estimated revenue of US$214bn in 2024.
However, in Croatia, the Travel & Tourism market is expected to witness significant growth and contribute to the country's economy in the years to come.
Croatia's Travel & Tourism industry is experiencing a rise in popularity due to its stunning coastline, rich history, and growing reputation as a culinary destination.

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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Market

Region

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Analyst Opinion

Croatia, known for its stunning coastline along the Adriatic Sea and rich cultural heritage, has been experiencing a significant growth in its Travel & Tourism market.

Customer preferences: Travelers visiting Croatia are increasingly seeking authentic experiences that allow them to immerse themselves in the local culture and natural beauty of the country. This trend is driving demand for unique accommodations such as boutique hotels, agritourism farms, and eco-friendly lodgings. Tourists are also showing a preference for personalized travel itineraries that include off-the-beaten-path destinations and activities.

Trends in the market: One notable trend in the Croatian Travel & Tourism market is the rise of digital platforms and online booking services, which have made it easier for travelers to research and plan their trips. This shift towards digitalization has also led to an increase in online reviews and recommendations influencing travelers' decisions. Additionally, Croatia has been attracting a growing number of luxury travelers, leading to the development of high-end resorts, yacht charters, and exclusive experiences.

Local special circumstances: Croatia's unique geographical position as a bridge between Central Europe and the Mediterranean, coupled with its diverse landscapes and cultural heritage, sets it apart as a desirable travel destination. The country's well-preserved historic sites, crystal-clear waters, and vibrant culinary scene contribute to its appeal among international tourists. Furthermore, Croatia's membership in the European Union has facilitated travel logistics and improved infrastructure, making it more accessible to visitors.

Underlying macroeconomic factors: The growth of the Travel & Tourism market in Croatia can also be attributed to favorable macroeconomic conditions, such as stable economic growth, increasing disposable incomes, and a rise in international arrivals. The government's efforts to promote tourism through marketing campaigns, infrastructure development, and sustainable practices have further boosted the industry. Additionally, Croatia's participation in regional initiatives and events has raised its profile as a top travel destination in Europe.

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.