Travel & Tourism

Revenue in the Travel & Tourism market is projected to reach US$54.79bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.91%, resulting in a projected market volume of US$69.61bn by 2029.
The largest Travel & Tourism market is the Hotels market with a projected market volume of US$25.74bn in 2024.
In the Hotels market, the number of users is expected to amount to 156.70m users by 2029.
User penetration is 29.9% in 2024 and is expected to hit 36.3% by 2029.
The average revenue per user (ARPU) is expected to amount to US$288.50.
In the Travel & Tourism market, 80% of total revenue will be generated through online sales by 2029.
In global comparison, most revenue will be generated United States (US$214bn in 2024).

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.

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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 LATAM is experiencing significant growth and evolution, driven by various factors that are shaping the industry in the region.

Customer preferences: Travelers in LATAM are increasingly seeking unique and authentic experiences, moving away from traditional tourist attractions to explore off-the-beaten-path destinations. There is a growing demand for sustainable and eco-friendly travel options, as well as a preference for personalized and customized travel experiences tailored to individual preferences.

Trends in the market: In Brazil, the largest country in South America, there has been a notable rise in adventure tourism, with travelers exploring the Amazon rainforest and engaging in activities like hiking, wildlife watching, and river cruises. Argentina, known for its vibrant culture and natural beauty, is seeing a surge in gastronomic tourism, with travelers eager to savor the country's world-renowned cuisine and fine wines.

Local special circumstances: Colombia, once plagued by security concerns, has emerged as a top travel destination in LATAM, attracting visitors with its rich history, diverse landscapes, and warm hospitality. The country's peace process has boosted tourism, with more travelers discovering the beauty of destinations like Cartagena, Medellin, and the Coffee Triangle.

Underlying macroeconomic factors: The economic stability and growth in countries like Chile and Uruguay have led to an increase in disposable income, allowing more people to travel both domestically and internationally. The depreciation of local currencies in some countries has made travel more affordable for foreign tourists, leading to a rise in international arrivals across the region. Additionally, government initiatives to promote tourism, improve infrastructure, and enhance safety measures have contributed to the overall growth of the Travel & Tourism market in LATAM.

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.