Package Holidays - NAFTA

NAFTA

Highlights

According to the latest market research, the Package Holidays market sector is expected to experience significant growth in NAFTA, with projected revenue of US$44.83bn by 2024.
The sector is predicted to grow at a Compound Annual Growth Rate (CAGR) of 3.85% between 2024 and 2029, reaching a market volume of US$54.15bn by the end of 2029.
It is expected that the number of users in this sector will grow to 63.29m users by 2029.
In 2024, user penetration is expected to be 10.8%, which is expected to decrease to 12.1% by 2029.
The average revenue per user (ARPU) is expected to be US$809.70.
Online sales are projected to generate 76% of the total revenue in the Package Holidays market by 2029.
It is also noteworthy that compared to other countries, China is expected to generate the highest revenue in the Package Holidays market, with a projected revenue of US$49bn in 2024.
Mexico's package holiday market is seeing a shift towards all-inclusive resorts as tourists seek convenience and value.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

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

Customer preferences: Customers in the NAFTA region are increasingly seeking convenience and hassle-free travel experiences, which has led to a rise in demand for package holidays. The all-inclusive nature of package holidays, which often include accommodation, transportation, and activities, appeals to customers looking for a seamless vacation experience without the need to plan every detail themselves.

Trends in the market: In the United States, the Package Holidays market has been growing steadily due to the busy lifestyles of consumers who prefer ready-made vacation packages. Mexico has also seen an increase in the popularity of package holidays, especially among domestic tourists looking for affordable and convenient travel options. Canada, with its diverse landscape and attractions, has been attracting international tourists through tailored package holiday offerings that cater to different interests and preferences.

Local special circumstances: In the United States, the dominance of online travel agencies and tour operators has contributed to the growth of the Package Holidays market, with competitive pricing and diverse package options. Mexico's tourism industry has been focusing on promoting package holidays to boost domestic travel and stimulate the economy. In Canada, the seasonal nature of tourism has led to the development of specialized package holidays for different times of the year, such as winter sports packages in the Rockies and summer outdoor adventure packages in the Maritimes.

Underlying macroeconomic factors: The strong economic performance in the NAFTA region has increased consumer confidence and disposable income, allowing more people to spend on leisure travel, including package holidays. Additionally, the ease of cross-border travel within NAFTA has facilitated the flow of tourists between the member countries, supporting the growth of the Package Holidays market across 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.