Travel & Tourism - Eastern Asia

Eastern Asia

The Travel & Tourism market in Eastern Asia is predicted to generate a revenue of US$214.40bn in 2024.
The market is expected to grow at a compound annual growth rate (CAGR 2024-2029) of 3.36%, which will lead to an estimated market volume of US$252.90bn in 2029.
The largest market in this market is the Hotels, which is projected to reach a market volume of US$116.60bn in 2024.
By 2029, the number of users in the Hotels market is expected to be 594.40m users, with a user penetration rate of 46.4%, up from 32.8% in 2024.
The average revenue per user (ARPU) is expected to be US$399.80.
By 2029, online sales are predicted to account for 76% of total revenue in the Travel & Tourism market.
In comparison with other countries, United States is expected to generate the highest revenue (US$214bn in 2024) in the Travel & Tourism market globally.
Japan's travel and tourism sector is experiencing a rise in domestic tourism due to the pandemic, with locals exploring hidden gems in their own country.

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

Region comparison

Currency

Analyst Opinion

The Travel & Tourism market in Eastern Asia is a dynamic and rapidly evolving industry that is influenced by various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Travelers in Eastern Asia are increasingly seeking unique and authentic experiences, driving the demand for personalized and culturally immersive travel packages. They are also showing a growing interest in sustainable and eco-friendly tourism practices, leading to the rise of responsible travel initiatives in the region.

Trends in the market: In Japan, there has been a surge in international tourist arrivals in recent years, fueled by the country's rich cultural heritage, technological innovation, and unique culinary offerings. The government's efforts to promote tourism through relaxed visa regulations and improved infrastructure have further boosted the industry. South Korea has emerged as a popular destination for both leisure and business travelers, with a strong focus on K-pop, K-beauty, and traditional Korean culture. The country's efficient transportation system and high-quality accommodation options have contributed to its growing popularity among international tourists. China, with its vast and diverse landscapes, is witnessing a rise in adventure tourism and luxury travel experiences. The increasing affluence of the middle class has led to a surge in outbound tourism, with Chinese travelers exploring destinations beyond the traditional tourist hotspots.

Local special circumstances: In Taiwan, the government's "New Southbound Policy" aims to strengthen ties with neighboring countries in Southeast Asia and South Asia, leading to increased travel exchanges and collaborations. The island nation's unique blend of traditional Chinese culture and modern urban attractions makes it a compelling destination for international visitors. Hong Kong, as a major financial and business hub in the region, attracts a large number of business travelers throughout the year. The city's vibrant shopping scene, culinary delights, and cultural landmarks also make it a popular choice for leisure travelers looking for a cosmopolitan experience.

Underlying macroeconomic factors: The economic growth and stability in Eastern Asia have played a significant role in driving the expansion of the Travel & Tourism market in the region. Rising disposable incomes, improved standard of living, and government support for the industry have created a conducive environment for the sector to thrive and innovate.

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.