Travel & Tourism - EMEA

EMEA

Revenue in the Travel & Tourism market is projected to reach US$338.80bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 3.45%, resulting in a projected market volume of US$401.50bn by 2029.
The largest Travel & Tourism market is the Package Holidays market with a projected market volume of US$146.90bn in 2024.
In the Hotels market, the number of users is expected to amount to 551.60m users by 2029.
User penetration is 28.3% in 2024 and is expected to hit 33.7% by 2029.
The average revenue per user (ARPU) is expected to amount to US$0.49k.
In the Travel & Tourism market, 79% of total revenue will be generated through online sales by 2029.
In global comparison, most revenue will be generated in the United States (US$214bn in 2024).

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

Over the past few years, the Travel & Tourism market in EMEA has been experiencing significant growth and development, driven by various factors influencing consumer behavior and market dynamics.

Customer preferences: Travelers in EMEA are increasingly seeking unique and authentic experiences, moving away from traditional tourist hotspots to explore off-the-beaten-path destinations. This shift in preferences has led to the rise of adventure tourism, cultural exchanges, and eco-friendly travel options in the region.

Trends in the market: In France, there has been a noticeable increase in wellness tourism, with travelers prioritizing health and relaxation during their trips. This trend has led to the growth of spa resorts, yoga retreats, and wellness-focused accommodations across the country.

Local special circumstances: Italy, known for its rich history and cultural heritage, has seen a surge in cultural tourism, with visitors flocking to explore ancient ruins, art galleries, and historical landmarks. The country's unique blend of art, architecture, and gastronomy continues to attract tourists from around the world.

Underlying macroeconomic factors: The economic stability and growth in countries like Germany have contributed to the flourishing luxury travel market, with high-end hotels, gourmet dining experiences, and personalized services becoming increasingly popular among affluent travelers. The strong purchasing power of consumers in the region has fueled the demand for premium travel offerings.

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.