Package Holidays - Europe

Europe

Highlights

By 2024, the revenue in the Package Holidays market in Europe is projected to reach US$132.80bn.
It is expected to show a yearly growth rate of 2.72% (CAGR 2024-2029), which will result in a projected market volume of US$151.90bn by 2029.
The number of users in the Package Holidays market is also expected to increase, and reach 154.40m users by 2029.
It is noteworthy that user penetration in this market will increase from 16.6% in 2024 to 18.3% by 2029.
The average revenue per user (ARPU) in the Package Holidays market is projected to be US$951.10.
In terms of sales channels, it is expected that 81% of the total revenue will be generated through online sales by 2029.
In comparison to other countries, China is expected to generate the majority of the revenue in the Package Holidays market, with a revenue of US$49bn in 2024.
In Spain, package holidays are still a popular choice for tourists due to the country's diverse and attractive destinations.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Package Holidays market in Europe has been experiencing significant growth in recent years, driven by various factors such as changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Customers in Europe are increasingly seeking convenience and hassle-free travel experiences, which has led to a rise in the demand for package holidays. These all-inclusive trips offer a one-stop solution for accommodation, transportation, and activities, catering to the needs of busy travelers looking to maximize their vacation time.

Trends in the market: In Spain, one of the popular destinations for package holidays in Europe, there has been a noticeable shift towards more personalized and experiential travel packages. Travelers are now looking for unique experiences that go beyond the traditional beach holiday, such as cultural tours, culinary adventures, and eco-friendly stays. This trend has prompted tour operators to diversify their offerings and collaborate with local businesses to provide authentic and immersive experiences for their customers.

Local special circumstances: In Greece, another key player in the European package holidays market, the local special circumstances have influenced the development of niche travel packages. The country's rich history, stunning landscapes, and warm hospitality have attracted a growing number of tourists seeking luxury and wellness experiences. As a result, there has been a rise in wellness retreats, yoga holidays, and boutique accommodations tailored to the needs of upscale travelers looking for relaxation and rejuvenation.

Underlying macroeconomic factors: The economic stability and growth in countries like Germany have contributed to the expansion of the package holidays market in Europe. With a strong economy and high disposable income levels, German travelers are more willing to spend on premium travel packages that offer exclusive amenities and services. This has created opportunities for tour operators to introduce luxury and high-end holiday packages to cater to the demand from affluent customers in the region.

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.