Travel & Tourism - NAFTA | Statista Market Forecast

NAFTA is projected to witness a significant growth in the Travel & Tourism market in the coming years.
By 2024, the revenue in this market is expected to reach US$246.80bn.
It is projected that the market will grow at an annual growth rate of 4.25% (CAGR 2024-2029), which will lead to a market volume of US$303.90bn by 2029.
Among the different markets, the Hotels is expected to be the largest one, with a projected market volume of US$125.80bn in 2024.
It is expected that the number of users in this market will amount to 256.80m users by 2029, with a user penetration of 62.0% in 2024, which is projected to increase to 71.7% by 2029.
The average revenue per user (ARPU) is estimated to be US$780.30.
In the Travel & Tourism market, it is expected that 71% of the total revenue will be generated through online sales by 2029.
It is noteworthy that United States is expected to generate the most revenue in the global comparison, with US$214bn in 2024.
This indicates the significance of the NAFTA region in the Travel & Tourism market.
The NAFTA region boasts a wide range of natural attractions, from the stunning landscapes of the Canadian Rockies to the beautiful beaches of Mexico.

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 NAFTA continues to show resilience and growth, driven by various factors influencing consumer behavior and market dynamics.

Customer preferences: Travelers in the NAFTA region are increasingly seeking unique and personalized experiences, shifting away from traditional mass tourism. They prioritize authenticity, sustainability, and cultural immersion in their travel choices. This trend has led to the rise of experiential travel, adventure tourism, and eco-friendly accommodations.

Trends in the market: In the United States, the travel industry is witnessing a surge in domestic tourism, with more Americans exploring their own country. This trend can be attributed to factors such as a strong U. S. dollar, economic growth, and the desire for convenience. Mexico, on the other hand, is experiencing a boom in international arrivals, driven by its rich cultural heritage, diverse landscapes, and affordable prices. Canada is focusing on promoting indigenous tourism and leveraging its natural beauty to attract eco-conscious travelers.

Local special circumstances: Each country in NAFTA has its unique selling points in the travel market. The United States boasts a wide range of attractions, from vibrant cities to stunning national parks. Mexico offers a mix of ancient ruins, colonial towns, and pristine beaches, catering to history buffs and sun-seekers alike. Canada stands out for its wilderness adventures, including wildlife spotting, hiking, and winter sports, appealing to nature enthusiasts and adventure seekers.

Underlying macroeconomic factors: The economic stability and growth in the NAFTA countries play a significant role in shaping the travel and tourism market. Factors such as employment rates, disposable income, exchange rates, and government policies impact consumer spending on travel. Additionally, infrastructure development, air connectivity, visa regulations, and safety perceptions influence the flow of international tourists within the region.

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.