Hotels - Dominican Republic | Statista Market Forecast

The Hotels market in the Dominican Republic is anticipated to achieve a revenue of US$201.90m by 2024, with a projected market volume of US$273.90m by 2029, exhibiting an annual growth rate of 6.29%.
The number of users in this market is expected to reach 1.87m users by 2029, while the user penetration is expected to increase from 11.8% in 2024 to 15.7% in 2029.
The average revenue per user (ARPU) is projected to be US$149.30.
Furthermore, 85% of the total revenue in this market is expected to be generated through online sales by 2029.
It is noteworthy that in terms of generating revenue, United States leads the global comparison with US$111bn in 2024.
The Dominican Republic's hotel market is seeing a shift towards sustainable tourism practices to attract eco-conscious travelers.

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 Dominican Republic is experiencing a significant growth trend in recent years.

Customer preferences: Travelers visiting the Dominican Republic are increasingly seeking unique and personalized experiences during their stay. They are looking for hotels that offer not only comfortable accommodation but also immersive cultural experiences, eco-friendly practices, and authentic local cuisine.

Trends in the market: One notable trend in the Dominican Republic's Hotels market is the rise of boutique hotels and eco-friendly resorts. These smaller, more intimate accommodations cater to the growing demand for sustainable and experiential travel. Additionally, all-inclusive resorts continue to be popular among tourists looking for convenience and value for their money.

Local special circumstances: The Dominican Republic's diverse geography, including stunning beaches, lush rainforests, and vibrant cities, provides a wide range of opportunities for hotel development. This variety allows hoteliers to cater to different types of travelers, from beach lovers to adventure seekers and cultural enthusiasts. Moreover, the country's rich history and vibrant local culture serve as a unique selling point for hotels looking to offer authentic experiences to their guests.

Underlying macroeconomic factors: The growth of the Hotels market in the Dominican Republic is also influenced by macroeconomic factors such as increasing tourism arrivals, government support for the tourism industry, and infrastructure development. The country's stable political environment and investment-friendly policies have attracted both local and international hotel chains to expand their presence in the market. Additionally, the rise of digital platforms and online booking services has made it easier for travelers to research and book accommodations, contributing to the overall growth of the market.

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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