Travel & Tourism - Laos | Statista Market Forecast

The Travel & Tourism market in Laos is expected to see a significant growth in revenue in the coming years.
By 2024, revenue is projected to reach US$98.73m, with an annual growth rate (CAGR 2024-2029) of 8.04%.
This growth is expected to result in a projected market volume of US$145.40m by 2029.
in Laos' largest market in this industry is the Hotels market, which is expected to have a market volume of US$49.59m by 2024.
The number of users is projected to reach 671.10k users by 2029, with a user penetration rate of 9.2% in 2024 and an expected increase to 12.0% by 2029.
The average revenue per user (ARPU) is expected to be US$139.50.
In terms of online sales, 68% of total revenue in the Travel & Tourism market in Laos is expected to be generated through online channels by 2029.
It is worth noting that United States is expected to generate the most revenue in this market globally, with a projected revenue of US$214bn in 2024.
Laos is becoming an increasingly popular destination for eco-tourism, with its stunning natural landscapes and sustainable travel options.

Definition:

The Travel & Tourism market encompasses a diverse range of accommodation services catering to the needs and preferences of travelers. This dynamic market includes package holidays, hotel accommodations, private vacation rentals, camping experiences, and cruises.

Structure:

The market consists of five further markets.

The Cruises market covers multi-day vacation trips on a cruise ship. The Cruises market encompasses exclusively passenger ticket revenues.
The Vacation Rentals market comprises of private accommodation bookings which includes private holiday homes and houses as well as short-term rental of private rooms or flats.
The Hotels market includes stays in hotels and professionally run guest houses.
The Package Holidays market comprises of travel deals that normally contain travel and accommodation sold for one price, although optional further provisions can be included such as catering and tourist services.
The Camping market includes bookings at camping sites for pitches using tents, campervans, or trailers. These can be associated with big chains or privately managed campsites.

Additional Information:

The main performance indicators of the Travel & Tourism 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 and users for the above-mentioned markets. Users represent the aggregated number of guests. Each user is only counted once per year. Additional definitions for each market can be found within the respective market pages.

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.

Prominent players in this sector include online travel agencies (OTAs) like Expedia and Opodo, as well as tour operators such as TUI. Specialized platforms like Hotels.com, Booking.com, and Airbnb facilitate the online booking of hotels and private accommodations, contributing significantly to the market's vibrancy.

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

Bookings directly via the website of the service provider, travel agencies, online travel agencies (OTAs) or telephone

Business trips
Other forms of trips (e.g. excursions, etc.)

The Travel & Tourism market in Laos has been experiencing steady growth in recent years, attracting a diverse range of travelers to explore its unique cultural and natural attractions.

Customer preferences: Travelers in Laos are increasingly seeking authentic and immersive experiences, opting for eco-friendly and sustainable tourism activities. There is a growing interest in exploring off-the-beaten-path destinations, interacting with local communities, and participating in cultural exchanges. Additionally, wellness tourism is gaining popularity, with travelers looking for opportunities to rejuvenate in tranquil settings.

Trends in the market: One notable trend in the Travel & Tourism market in Laos is the rise of experiential travel. Tourists are moving away from traditional sightseeing tours and are instead engaging in activities that allow them to connect with the local culture and environment on a deeper level. This shift has led to the emergence of community-based tourism initiatives and homestay experiences, providing visitors with a more authentic perspective of Laos.

Local special circumstances: Laos's rich cultural heritage and stunning natural landscapes are key drivers of its tourism industry. The country's temples, such as the iconic Wat Phu in Champasak, and its picturesque waterfalls, like Kuang Si Falls near Luang Prabang, attract visitors from around the world. Additionally, the laid-back atmosphere and warm hospitality of the Laotian people contribute to the overall appeal of the destination.

Underlying macroeconomic factors: The government of Laos has been actively promoting the development of its tourism sector as a means to drive economic growth and reduce poverty. Infrastructure improvements, such as the expansion of airports and roads, have made it easier for travelers to access different parts of the country. Furthermore, partnerships with neighboring countries and regional initiatives have helped to increase international arrivals to Laos, supporting the overall growth of the Travel & Tourism market.

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of hotels, vacation rentals, cruises, package holidays, and camping.

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.

This report presents a comprehensive analysis and additional information on the Mobility market, in a PDF format.

Business or corporate travel is the tourism segment that focuses on people who travel for work or professional purposes and the related tourism services. This branch also includes the meetings industry, which refers to business events, conferences, congresses, trade fairs, and exhibitions. According to the World Travel and Tourism Council (WTTC), business travel accounted for 20 percent of the global tourism expenditure in 2021. In that year, it was estimated that business travelers spent more than 740 billion U.S. dollars worldwide, with Chinese tourists topping the ranking of the biggest business travel spenders.