Package Holidays - Israel

Israel

Highlights

It is projected that the Package Holidays market in Israel will generate a revenue of US$919.30m by 2024.
Moreover, this revenue is expected to grow annually at a rate of 8.60% between 2024 and 2029, resulting in a projected market volume of US$1.39bn by 2029.
By that time, the number of users in this market is expected to reach 3.15m users.
The user penetration, which is currently at 21.1%, is expected to increase to 31.5% by 2029.
The average revenue per user (ARPU) is expected to be US$467.20.
Additionally, by 2029, online sales are expected to contribute 85% of the total revenue generated in the Package Holidays market in Israel.
When compared globally, China will generate the most revenue in this market with a projected revenue of US$49bn in 2024.
Israel's package holiday market is expected to grow as the country's unique blend of history, culture, and natural beauty attracts more tourists.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

Over the past decade, the Package Holidays market in Israel has experienced significant growth and transformation.

Customer preferences: Israeli travelers are increasingly seeking convenience and value for money when it comes to their holiday arrangements. Package holidays offer a hassle-free experience with all-inclusive deals that cover accommodation, flights, and sometimes even meals and activities. This trend is in line with the global shift towards experiential travel and the desire for seamless vacation planning.

Trends in the market: One notable trend in the Israeli Package Holidays market is the rise of personalized and tailored packages. Travelers are looking for unique experiences that cater to their specific interests and preferences, leading to a diversification of package options beyond the traditional beach resort packages. This trend mirrors the demand seen in other global markets for more customized travel experiences.

Local special circumstances: Israel's geographical location and cultural significance make it a compelling destination for travelers from around the world. The country's rich history, religious sites, and diverse landscapes appeal to a wide range of tourists, contributing to the growth of the Package Holidays market. Additionally, the strong relationships between Israel and key source markets, such as Europe and the United States, have facilitated the development of package deals that cater to different customer segments.

Underlying macroeconomic factors: The stability of the Israeli economy and the growth of the tourism sector have played a significant role in the expansion of the Package Holidays market. As disposable incomes rise and consumer confidence remains high, more Israelis are opting for packaged holidays as a convenient way to travel. Furthermore, government initiatives to promote tourism and improve infrastructure have boosted the overall attractiveness of Israel as a holiday destination, driving further growth in the 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.