Key regions: Singapore, India, Indonesia, Germany, Saudi Arabia
The Package Holidays market in LATAM has been experiencing significant growth in recent years, driven by changing customer preferences, evolving trends in the travel industry, and unique local special circumstances.
Customer preferences: Customers in LATAM 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 travelers looking for a seamless vacation experience without the need to plan and book each component separately.
Trends in the market: In countries like Brazil and Mexico, the Package Holidays market is witnessing a surge in popularity due to the rise of middle-class consumers with disposable income looking for affordable yet luxurious travel options. Additionally, the increasing connectivity and accessibility of different destinations within LATAM have made package holidays more attractive to a wider audience.
Local special circumstances: LATAM countries offer a diverse range of attractions, from pristine beaches to vibrant cities and cultural landmarks. This variety allows tour operators to curate unique package holiday experiences that cater to different interests and preferences of travelers. Additionally, the region's favorable climate throughout the year makes it an appealing destination for package holidays.
Underlying macroeconomic factors: The economic stability and growth in LATAM countries have contributed to the expansion of the Package Holidays market. As disposable incomes rise and the middle class expands, more people have the financial means to afford package holidays, driving the growth of the market. Moreover, government initiatives to promote tourism and improve infrastructure have further boosted the development of the Package Holidays market in LATAM.
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.
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