Hotels - Azerbaijan | Statista Market Forecast

It is anticipated that the Hotels market in Azerbaijan will attain a revenue of US$529.80m by 2024.
The revenue is predicted to exhibit an annual growth rate (CAGR 2024-2029) of 3.84%, resulting in a market volume of US$639.60m by 2029.
By 2029, the number of users in the Hotels market is expected to be 2.12m users.
The user penetration in 2024 is 18.2%, and it is expected to increase to 19.9% by 2029.
The average revenue per user (ARPU) is expected to be US$278.10.
By 2029, 75% of the total revenue in the Hotels market is projected to be generated through online sales.
It is worth noting that in global comparison, United States is expected to generate the most revenue, with US$111bn in 2024.
Azerbaijan's hotel industry is experiencing growth due to the country's increasing popularity as a tourist destination.

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)

The Hotels market in Azerbaijan is experiencing notable growth and development.

Customer preferences: Travelers in Azerbaijan are increasingly looking for unique and authentic experiences when choosing accommodations. They are drawn to hotels that offer local cultural elements, personalized services, and immersive activities. This shift in preferences is in line with the global trend of experiential travel, where tourists seek meaningful interactions and connections during their stay.

Trends in the market: One prominent trend in the Azerbaijani Hotels market is the rise of boutique and luxury hotels. These establishments cater to the growing demand for high-end accommodations among both domestic and international travelers. Additionally, there is a noticeable increase in the number of eco-friendly and sustainable hotels in Azerbaijan, reflecting a growing awareness of environmental issues among consumers.

Local special circumstances: Azerbaijan's strategic location as a gateway between Europe and Asia has positioned it as a popular destination for both business and leisure travelers. The country's rich cultural heritage, diverse landscapes, and vibrant cities contribute to its appeal as a tourist destination. The government's efforts to promote tourism through initiatives such as visa liberalization have also played a significant role in driving the growth of the Hotels market.

Underlying macroeconomic factors: The Hotels market in Azerbaijan is benefiting from a stable economic environment and increasing disposable incomes among the population. As the country continues to diversify its economy and invest in infrastructure development, the tourism sector is poised to expand further. The growing number of international events and conferences hosted in Azerbaijan also contribute to the rising demand for hotel accommodations.

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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