Package Holidays - LATAM | Statista Market Forecast

Revenue in the Package Holidays market is projected to reach US$18.73bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.13%, resulting in a projected market volume of US$22.93bn by 2029.
In the Package Holidays market, the number of users is expected to amount to 75.04m users by 2029.
User penetration is projected to be 9.8% in 2024 and 11.4% by 2029.
The average revenue per user (ARPU) is expected to amount to US$300.70.
In the Package Holidays market, 79% of total revenue will be generated through online sales by 2029.
In global comparison, most revenue will be generated China (US$49bn in 2024).

Definition:

The Package Holidays market comprises of travel deals booked via online and offline travel agencies (e.g. Opodo, Expedia), directly from a tour operator (e.g. TUI) in a travel agency or by telephone. Package holidays normally contain travel and accommodation sold for one price, although optional further provisions can be included such as catering and tourist services.

Additional Information:

The main performance indicators of the Package Holidays market are revenues, average revenue per user (ARPU), users and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues. Users represent the aggregated number of travelers. Each user is only counted once per year.

The booking volume includes all booked travels made by users from the selected region, independent of the departure and arrival. The scope includes domestic and outbound travel.

For further information on the data displayed, refer to the info button right next to each box.

Contains travel and accommodation, further provisions can be included such as catering and tourist services

Non-packaged travel bookings

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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