Travel & Tourism - EU-27 | Statista Market Forecast

The EU-27 Travel & Tourism market is estimated to generate a revenue of US$213.50bn in 2024.
The market is expected to exhibit an annual growth rate (CAGR 2024-2029) of 2.73%, reaching a projected market volume of US$244.40bn by 2029.
The largest market in the market is the Package Holidays market, with a projected market volume of US$104.70bn in 2024.
By 2029, the number of users in the Package Holidays market is expected to increase to 213.10m users.
The user penetration rate is projected to rise from 67.8% in 2024 to 76.1% by 2029.
The average revenue per user (ARPU) is expected to be US$703.30.
In 2029, online sales are predicted to account for 80% of the total revenue in the Travel & Tourism market.
The United States is expected to generate the highest revenue in comparison to other countries, with a projected revenue of US$214bn in 2024.
Spain's travel and tourism market is heavily impacted by COVID-19, with a focus on domestic travel and efforts to attract tourists through vaccine passports.

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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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.)

Amidst the diverse landscapes and rich cultural heritage of the European Union, the Travel & Tourism market in EU-27 is experiencing dynamic shifts and developments.

Customer preferences: Travelers in the EU-27 region are increasingly seeking unique and authentic experiences, moving away from traditional tourist hotspots towards off-the-beaten-path destinations. There is a growing demand for sustainable and eco-friendly tourism options, with travelers showing a preference for businesses that prioritize environmental conservation and responsible practices.

Trends in the market: In countries like France and Spain, cultural tourism is thriving, with visitors flocking to historical sites, museums, and art galleries. On the other hand, countries like Croatia and Greece are witnessing a surge in coastal and island tourism, attracting sun-seekers and water sports enthusiasts. The rise of digital platforms and online booking services has made travel more accessible, allowing tourists to customize their trips and explore lesser-known destinations.

Local special circumstances: Countries like Italy and Portugal are leveraging their gastronomic offerings to attract tourists, with food and wine tourism becoming increasingly popular. In regions known for their vineyards and culinary traditions, visitors can partake in wine tastings, cooking classes, and farm-to-table dining experiences. Additionally, countries like Germany and Austria are capitalizing on their scenic landscapes to promote outdoor activities such as hiking, skiing, and cycling.

Underlying macroeconomic factors: The overall economic stability and growth in the EU-27 region have contributed to the expansion of the Travel & Tourism market. Increasing disposable incomes and a rise in consumer confidence have led to higher spending on leisure and travel activities. Furthermore, government initiatives to promote tourism, improve infrastructure, and enhance connectivity have bolstered the industry, making it easier for both domestic and international travelers to explore the diverse offerings of the region.

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.