Package Holidays - Azerbaijan

Azerbaijan

Highlights

Azerbaijan is expected to be a part of the growth in the Package Holidays market as revenue is projected to reach US$314.50m in 2024.
The country's revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.04%, resulting in a projected market volume of US$383.30m by 2029.
As for the number of users, in Azerbaijan is expected to have 818.60k users users by 2029.
The user penetration rate is projected to increase from 7.4% in 2024 to 7.7% by 2029.
The average revenue per user (ARPU) is expected to be US$405.80.
In terms of sales channels, online sales will generate 72% of total revenue in the Package Holidays market in Azerbaijan by 2029.
It is worth noting that in global comparison, China is expected to generate the most revenue in the Package Holidays market with US$49bn in 2024.
Azerbaijan's package holiday market is on the rise with its diverse culture, historical sites, and stunning landscapes attracting more tourists every year.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Package Holidays market in Azerbaijan has been experiencing significant growth and development in recent years.

Customer preferences: Travelers in Azerbaijan are increasingly seeking convenience and hassle-free experiences when planning their holidays. The all-inclusive nature of package holidays, which typically include flights, accommodation, meals, and activities, aligns well with the preferences of Azerbaijani tourists. This trend is in line with global preferences, where travelers are opting for bundled deals to save time and effort in organizing their trips.

Trends in the market: One notable trend in the Package Holidays market in Azerbaijan is the diversification of destinations offered in packages. Azerbaijani travelers are showing interest in exploring new and exotic locations beyond traditional tourist hotspots. This trend is driving tour operators and travel agencies to expand their offerings to cater to the evolving preferences of the market. Additionally, there is a growing demand for personalized and tailored package holidays to suit individual preferences and interests.

Local special circumstances: Azerbaijan's strategic location between Europe and Asia makes it an attractive market for both inbound and outbound tourism. The country's rich cultural heritage, diverse landscapes, and historical sites offer a unique appeal to tourists. As a result, the Package Holidays market in Azerbaijan is benefiting from both domestic and international tourism. Moreover, the government's efforts to promote the tourism sector and improve infrastructure are contributing to the growth of the market.

Underlying macroeconomic factors: The economic stability and increasing disposable income in Azerbaijan are also driving the growth of the Package Holidays market. As more Azerbaijanis have the financial means to travel, there is a rising demand for holiday packages that offer value for money and quality services. Furthermore, the strengthening of trade relations and air connectivity with various countries are opening up new opportunities for the tourism industry in Azerbaijan.

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of package holidays.

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.