Cruises - South America

South America

Highlights

The projection for the revenue in the Cruises market in South America is estimated to reach US$791.50m by 2024.
It is expected to display an annual growth rate (CAGR 2024-2029) of 4.43%, leading to a market volume projection of US$983.20m by 2029.
By 2029, the estimated number of users in the Cruises market in South America is approximately 1.65m users.
The user penetration in this market is projected to be 0.29% in 2024 and is predicted to increase to 0.39% by 2029.
The anticipated average revenue per user (ARPU) is expected to be US$661.50 in South AmeriBy 2029, the online sales in the Cruises market sector in South America are expected to account for 25% of the total revenue.
Furthermore, in the global comparison, United States is expected to generate most of the revenue of approximately US$25bn in 2024 in the Cruises market.
Cruises in Brazil are gaining popularity among domestic travelers, with an emphasis on luxury and nature-focused itineraries.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

Cruises in South America have been steadily gaining popularity among travelers in recent years, with an increasing number of cruise lines offering diverse itineraries to explore the stunning coastlines and vibrant cultures of the region.

Customer preferences: Travelers in South America are increasingly drawn to cruises that offer unique experiences, such as expeditions to remote destinations like the Galapagos Islands or Antarctica, as well as cultural immersion opportunities in ports of call along the continent's diverse coastline. Additionally, the convenience of unpacking only once while visiting multiple destinations appeals to many South American travelers.

Trends in the market: One prominent trend in the South American cruise market is the growing demand for river cruises along the Amazon River and other major waterways in the region. These cruises provide a unique way to explore the lush rainforests and indigenous communities of South America, appealing to eco-conscious travelers seeking sustainable tourism experiences. Furthermore, luxury cruises to Antarctica have also seen an uptick in interest, as more travelers are seeking exclusive and adventurous travel options.

Local special circumstances: South America's geographic diversity and rich cultural heritage make it a prime destination for cruise tourism. Countries like Brazil, Argentina, and Chile offer a wide range of attractions, from tropical beaches to cosmopolitan cities to breathtaking natural wonders. The region's growing infrastructure for cruise tourism, including modern port facilities and improved transportation networks, has also contributed to the market's development.

Underlying macroeconomic factors: The economic stability and growth in South America have played a significant role in the expansion of the cruise market in the region. As disposable incomes rise and middle-class populations grow, more South Americans are able to afford cruise vacations, driving demand for both domestic and international cruise offerings. Additionally, government initiatives to promote tourism and investment in the cruise sector have further stimulated market growth in South America.

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of cruises.

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.