Package Holidays - Cuba

Cuba

Highlights

The Package Holidays market in Cuba is expected to witness a significant rise in revenue, with projections indicating that it will reach US$128.10m by 2024.
Moreover, the market is anticipated to display a Compound Annual Growth Rate (CAGR) of 1.23% from 2024 to 2029, which will result in a projected market volume of US$136.20m by 2029.
In terms of user base, the Package Holidays market is expected to witness an increase, with the number of users projected to reach 654.30k users by 2029.
The user penetration rate, which stands at 5.6% in 2024, is anticipated to decrease slightly to 5.9% by 2029.
The average revenue per user (ARPU) is estimated to be US$204.20.
It is also predicted that online sales will account for 77% of the total revenue generated by the Package Holidays market in Cuba by 2029.
In global comparison, China is expected to generate the highest revenue, amounting to US$49bn in 2024.
Cuba's package holiday market is flourishing, with its unique cultural experiences and beautiful beaches attracting a growing number of international tourists.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

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

Customer preferences: Customers in Cuba are increasingly seeking all-inclusive package holidays that offer convenience and value for money. With a rise in disposable income and a growing middle class, more people are opting for package holidays that include accommodation, meals, and activities in one upfront price.

Trends in the market: One notable trend in the Cuban package holidays market is the increasing popularity of eco-tourism packages. Travelers are showing a preference for sustainable and environmentally friendly holidays that allow them to explore Cuba's natural beauty while minimizing their impact on the environment. This trend aligns with global preferences for responsible travel practices.

Local special circumstances: Cuba's unique cultural heritage and pristine natural landscapes make it an attractive destination for travelers seeking authentic experiences. The country's rich history, vibrant music and art scene, and warm hospitality contribute to the appeal of package holidays in Cuba. Additionally, the recent easing of travel restrictions has made it easier for international visitors to explore the island, further boosting the package holidays market.

Underlying macroeconomic factors: The growth of the package holidays market in Cuba can also be attributed to the government's efforts to promote tourism as a key driver of economic development. Investments in infrastructure, such as hotels and transportation, have enhanced the tourism sector's capacity to accommodate a growing number of visitors. Moreover, the country's strategic location in the Caribbean region and its unique offerings have positioned it as a competitive player in the global tourism market.

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.