Hotels - South America | Statista Market Forecast

South America is expected to witness significant growth in the Hotels market, with revenue projected to reach US$16.68bn in 2024.
The market is expected to grow at a compound annual growth rate (CAGR 2024-2029) of 3.85%, reaching a market volume of US$20.15bn by 2029.
By 2029, the number of users in the Hotels market is expected to reach 95.94m users.
The user penetration rate is expected to increase from 17.9% in 2024 to 22.6% by 2029.
The average revenue per user (ARPU) is expected to be US$226.00.
Online sales are expected to generate 83% of the total revenue in this market by 2029.
It is worth noting that United States is expected to generate the most revenue in the Hotels market globally, with a projected revenue of US$111bn in 2024.
The hotel market in Brazil is experiencing a shift towards sustainable and eco-friendly practices to attract environmentally 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 South America is experiencing a significant growth trajectory driven by various factors influencing customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Travelers in South America are increasingly seeking unique and authentic experiences, leading to a rise in demand for boutique hotels and eco-friendly accommodations. Customers are also placing a strong emphasis on convenience and personalized services, prompting hotels to invest in technology to enhance the guest experience.

Trends in the market: In Brazil, the largest country in South America, there is a growing trend towards luxury resorts and all-inclusive hotels, catering to both domestic and international tourists seeking upscale amenities and leisure activities. Argentina, known for its vibrant culture and natural beauty, is witnessing a surge in boutique hotels and heritage properties that reflect the country's rich heritage.

Local special circumstances: Countries like Peru and Chile are capitalizing on their diverse landscapes and historical attractions to attract tourists, leading to a rise in demand for hotels in remote locations such as the Andes Mountains and the Atacama Desert. In Colombia, the government's efforts to promote tourism have resulted in an influx of international visitors, fueling the development of new hotels in cities like Cartagena and Bogota.

Underlying macroeconomic factors: The overall economic stability and increasing disposable income in South America are contributing to the growth of the Hotels market, as more people are able to afford travel and accommodation. Additionally, government initiatives to boost tourism, such as visa relaxation policies and infrastructure development, are creating a favorable environment for hotel investments and expansion across the region.

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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