Travel & Tourism - Dominican Republic

The Dominican Republic Travel & Tourism market is expected to experience significant growth in the coming years.
By 2024, the market's revenue is projected to reach US$591.60m, with an annual growth rate of 6.50% from 2024 to 2029.
This growth is expected to result in a market volume of US$810.50m by 2029.
The largest market is the Package Holidays market, which is projected to have a market volume of US$260.30m by 2024.
The number of users in this market is expected to reach 2.47m users by 2029, with a user penetration rate of 25.1% in 2024 and an expected increase to 31.7% by 2029.
The average revenue per user (ARPU) is forecasted to be US$206.20 in this market.
Moreover, it is expected that 80% of the total revenue in the Travel & Tourism market will be generated through online sales by 2029.
The United States is projected to generate the most revenue in global comparison, with US$214bn in 2024.
The Dominican Republic's tourism industry is rebounding, with a focus on sustainable ecotourism and all-inclusive resorts.

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 Dominican Republic is experiencing significant growth and development.

Customer preferences: Travelers in Dominican Republic are increasingly seeking unique and authentic experiences that allow them to immerse themselves in the local culture. They are drawn to eco-tourism activities, adventure travel, and opportunities to engage with the rich history and vibrant traditions of the country.

Trends in the market: One notable trend in the Dominican Republic's Travel & Tourism market is the rise of sustainable tourism practices. As travelers become more environmentally conscious, there is a growing demand for eco-friendly accommodations, responsible tour operators, and conservation initiatives. Additionally, the country's diverse landscape, which includes stunning beaches, lush rainforests, and majestic mountains, continues to attract a wide range of visitors seeking different experiences.

Local special circumstances: The Dominican Republic's strategic location in the Caribbean, coupled with its well-developed infrastructure and range of accommodation options, has positioned it as a popular destination for both leisure and business travelers. The country's warm climate, friendly locals, and vibrant music and dance scene also contribute to its appeal among tourists.

Underlying macroeconomic factors: The Dominican Republic's stable economic growth, government investments in tourism infrastructure, and marketing efforts to promote the country as a premier travel destination have all played a role in driving the expansion of the Travel & Tourism market. Additionally, the government's commitment to enhancing safety and security for visitors has helped to build trust and confidence among travelers, further supporting the industry's growth.

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.