Hotels - Madagascar | Statista Market Forecast

Madagascar is expected to see a significant growth in the Hotels market, with revenue projected to reach US$89.76m by 2024.
This is expected to increase at a compound annual growth rate (CAGR) of 7.47%, resulting in a market volume of US$128.70m by 2029.
The number of users in the Hotels market is expected to reach 1.41m users by 2029.
The user penetration is projected to increase from 3.2% in 2024 to 4.1% by 2029.
The average revenue per user (ARPU) is expected to be US$90.20.
In terms of revenue generation, 76% of the total revenue is expected to come from online sales by 2029.
It is interesting to note that in the global comparison, United States is projected to generate the most revenue in the Hotels market, with an estimated revenue of US$111bn in 2024.
Madagascar's hotel market is experiencing a rise in eco-tourism, with many establishments emphasizing sustainable practices and showcasing the island's unique biodiversity.

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)

Madagascar's Hotels market is experiencing a significant growth trajectory, driven by a combination of factors that are shaping the industry in the country.

Customer preferences: Tourists visiting Madagascar are increasingly seeking unique and authentic experiences, driving demand for boutique hotels and eco-friendly accommodations. This shift in preferences is pushing hotels to offer more sustainable practices and immersive cultural experiences to attract and retain guests.

Trends in the market: One notable trend in the Hotels market in Madagascar is the rise of luxury eco-resorts in remote locations, offering guests a chance to connect with nature while enjoying high-end amenities. This trend caters to the growing segment of travelers looking for exclusive and sustainable lodging options in exotic destinations like Madagascar.

Local special circumstances: Madagascar's rich biodiversity and natural landscapes present a unique opportunity for hotels to differentiate themselves in the market. Hotels that highlight the country's unique flora and fauna, as well as its vibrant local culture, are gaining popularity among tourists seeking a truly authentic experience.

Underlying macroeconomic factors: The growth of the Hotels market in Madagascar is also influenced by macroeconomic factors such as government initiatives to promote tourism and infrastructure development. Investments in transportation networks and promotion of the country as a tourist destination are driving more visitors to Madagascar, boosting the hospitality sector in the process. Additionally, the stability of the political environment and favorable exchange rates are contributing to the overall growth of the Hotels market in 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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