Package Holidays - Colombia

Colombia

Highlights

Colombia is expected to witness a significant growth in its Package Holidays market.
By 2024, revenue in this market is projected to reach US$1.60bn.
Furthermore, an annual growth rate of 3.82% (CAGR 2024-2029) is expected to result in a projected market volume of US$1.93bn by 2029.
The number of users in this market is also expected to increase and reach 5.56m users by 2029.
Although user penetration is expected to decline slightly from 8.9% in 2024 to 10.3% by 2029, the average revenue per user (ARPU) is projected to reach US$342.50.
Additionally, online sales are expected to contribute significantly to the revenue of this market, with a projected share of 63% of total revenue by 2029.
It is interesting to note that China is expected to generate the most revenue in the Package Holidays market globally, with a projected revenue of US$49bn in 2024.
However, in Colombia is poised to witness substantial growth in this sector, which presents a promising opportunity for further development in the country's tourism industry.
Despite being a less popular destination for package holidays, Colombia's unique culture and stunning natural landscapes are attracting a growing number of adventurous travelers.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Package Holidays market in Colombia is experiencing significant growth and evolution in recent years.

Customer preferences: Colombian travelers are increasingly seeking convenience and hassle-free travel experiences, leading to a growing demand for package holidays. The all-inclusive nature of package holidays appeals to customers looking for a seamless vacation experience without the need to plan every detail individually. Additionally, the peace of mind that comes with having accommodation, transportation, and activities included in one package is highly valued by Colombian tourists.

Trends in the market: One notable trend in the Colombian Package Holidays market is the diversification of offerings to cater to different customer segments. Tour operators are introducing specialized packages targeting various interests such as adventure travel, cultural experiences, and eco-tourism. This trend reflects the evolving preferences of Colombian travelers who are increasingly looking for unique and personalized holiday experiences.

Local special circumstances: Colombia's rich cultural heritage, diverse landscapes, and vibrant cities make it a compelling destination for both domestic and international tourists. The country's improving safety situation and infrastructure development have also contributed to the growth of the tourism industry, including the package holidays segment. As more travelers discover the beauty and charm of Colombia, the demand for package holidays is expected to continue rising.

Underlying macroeconomic factors: The Colombian economy has been relatively stable in recent years, with steady GDP growth and increasing disposable income levels among the population. This economic stability has boosted consumer confidence and spending, leading more Colombians to invest in travel and leisure activities. As the middle class expands and more people have the financial means to travel, the demand for package holidays is likely to see further growth in the coming years.

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.