Market Insights Mobility Travel & Tourism

Package Holidays - Central Asia

Central Asia

It is anticipated that by 2024, revenue in the Package Holidays market in Central Asia will reach US$0.55bn.
This sector is projected to display a Compound Annual Growth Rate (CAGR 2024-2029) of 7.51%, thereby resulting in an estimated market volume of US$0.79bn by 2029.
Moreover, it is expected that the number of users in this market will amount to 2.81m users by 2029.
In 2024, the user penetration rate is 2.7%, which is expected to increase to 3.3% by 2029.
Additionally, the Average Revenue Per User (ARPU) is expected to reach US$255.00.
Furthermore, it is anticipated that 77% of the total revenue in the Package Holidays market will be generated through online sales by 2029.
In comparison with other countries across the globe, it is expected that the highest revenue will be generated China, which will be US$49,250m in 2024.
Central Asian package holiday market is growing as more tourists seek cultural and adventure experiences in the region.

Key regions: Singapore, India, Indonesia, Germany, Saudi Arabia

Market

Region

Region comparison

Currency

Analyst Opinion

The Package Holidays market in Central Asia is experiencing a steady growth trajectory, driven by various factors shaping the travel industry in the region.

Customer preferences: Travelers in Central Asia are increasingly seeking convenience and hassle-free experiences when planning their holidays. The all-inclusive nature of package holidays, which typically include accommodation, transportation, meals, and activities, aligns well with these preferences. Additionally, the desire for unique and culturally immersive experiences is fueling the demand for package holidays that offer curated itineraries to explore the diverse landscapes and rich heritage of Central Asian countries.

Trends in the market: In Kazakhstan, there is a growing trend of travelers opting for package holidays to destinations within the country, such as the picturesque Charyn Canyon or the vibrant city of Almaty. This shift is partly influenced by a desire to support domestic tourism and explore hidden gems within Kazakhstan. On the other hand, in Uzbekistan, the market is witnessing an increase in luxury package holidays that cater to travelers looking for high-end accommodations and exclusive experiences along the historic Silk Road.

Local special circumstances: Central Asia's unique geographical position as a crossroads of civilizations and its rich cultural tapestry make it an intriguing destination for travelers. Countries like Kyrgyzstan are known for their stunning mountain landscapes and nomadic traditions, attracting adventure seekers interested in trekking and yurt stays. Turkmenistan, with its architectural wonders like the Darvaza Gas Crater, presents a niche market for travelers fascinated by off-the-beaten-path experiences.

Underlying macroeconomic factors: The improving infrastructure and connectivity in Central Asia, supported by investments in transportation and hospitality sectors, are enhancing the accessibility of the region for international tourists. Additionally, government initiatives to promote tourism and simplify visa procedures are contributing to the growth of the package holidays market. The rising disposable incomes and expanding middle class in some Central Asian countries are also driving domestic tourism and creating opportunities for the development of diverse package holiday offerings.

Methodology

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.