Hotels - Armenia | Statista Market Forecast

Armenia is projected to reach a revenue of US$110.70m in the Hotels market by 2024.
The revenue is expected to showcase an annual growth rate (CAGR 2024-2029) of 7.48%.
This growth rate is anticipated to result in a projected market volume of US$158.70m by 2029.
Additionally, it is expected that the number of users in the Hotels market will increase to 641.50k users by 2029.
The user penetration rate is estimated to be 14.7% in 2024 and is expected to increase to 23.2% by 2029.
The expected average revenue per user (ARPU) is US$270.80.
Furthermore, it is projected that 87% of the total revenue in the Hotels market will be generated through online sales by 2029.
When compared globally, the majority of revenue is expected to be generated United States, reaching US$111bn in 2024.
Armenia's hotel market is experiencing growth with the opening of new luxury properties and a focus on promoting cultural tourism.

Definition:

The Hotels market includes hotels and professionally-run guest houses. These accommodations can be booked directly via the providers website, through a tour operator, a travel agency, an online travel agency (OTA), or by telephone.

Additional Information:

The main performance indicators of the Hotels 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. Users represent the aggregated number of guests. Each user is only counted once per year. Well-known providers are Hotels.com, trivago, and Booking.com.

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.

For further information on the data displayed, refer to the info button right next to each box.

Booked directly via the providers website, through a tour operator, an online travel agency (OTA), a travel agency or by telephone

Private accommodation and holiday flats, private room and accommodation rentals (e.g. Airbnb)

Armenia, a country known for its rich history and cultural heritage, is experiencing interesting developments in its Hotels market.

Customer preferences: Travelers in Armenia are increasingly looking for unique and authentic experiences when choosing their accommodations. They are drawn to boutique hotels and guesthouses that offer a more personalized touch and a glimpse into the local culture. This shift in preferences is driven by the desire for memorable stays and a deeper connection to the destination.

Trends in the market: One notable trend in the Hotels market in Armenia is the growing popularity of eco-friendly and sustainable accommodations. Travelers are becoming more environmentally conscious and are seeking hotels that prioritize green practices and reduce their carbon footprint. This trend aligns with global efforts towards sustainability and responsible tourism.

Local special circumstances: Armenia's unique geographical location and historical landmarks play a significant role in shaping the Hotels market. The country's diverse landscapes, from mountainous regions to picturesque valleys, offer a wide range of opportunities for hotel development. Additionally, the rich cultural heritage and warm hospitality of the Armenian people contribute to the overall appeal of the destination.

Underlying macroeconomic factors: The Hotels market in Armenia is also influenced by macroeconomic factors such as foreign investment, government policies, and infrastructure development. The government's initiatives to promote tourism and improve transportation links have positively impacted the hospitality sector. Foreign investments in the hotel industry have led to the construction of new properties and the enhancement of existing ones, catering to the growing number of tourists visiting the country.

Data coverage:

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

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.

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