Package Holidays - Nigeria

Nigeria

Highlights

It is projected that the Package Holidays market in Nigeria will reach a revenue of US$1.33bn by 2024.
The revenue is also expected to show a steady annual growth rate (CAGR 2024-2029) of 9.86%.
This would result in a projected market volume of US$2.12bn by 2029.
In terms of user base, the Package Holidays market is expected to amount to 8.04m users by 2029.
It is noteworthy that the user penetration rate is expected to increase from 2.7% in 2024 to 3.1% by 2029.
The average revenue per user (ARPU) is estimated to be US$214.90.
Additionally, 62% of the total revenue generated in the Package Holidays market is expected to come from online sales by 2029.
It is interesting to note that in a global comparison, China is projected to generate the most revenue in this market with a revenue of US$49bn in 2024.
Nigerian travelers are increasingly seeking all-inclusive package holidays that offer convenience and peace of mind.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

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

Customer preferences: Customers in Nigeria are increasingly drawn to the convenience and affordability of package holidays, which often include flights, accommodations, meals, and activities all bundled into one price. This all-inclusive approach appeals to many Nigerian travelers who seek hassle-free and budget-friendly vacation options.

Trends in the market: One noticeable trend in the Nigerian Package Holidays market is the rise of domestic tourism. With an increasing number of Nigerians exploring their own country, local tour operators and travel agencies are offering more diverse and tailored package holiday options to cater to this growing demand. Additionally, there is a noticeable shift towards experiential travel, with travelers seeking unique and authentic experiences that allow them to immerse themselves in the local culture and traditions.

Local special circumstances: The unique cultural and geographical diversity of Nigeria plays a significant role in shaping the Package Holidays market in the country. From the bustling city life in Lagos to the tranquil beaches in Calabar and the rich history in Benin City, Nigeria offers a wide range of experiences for travelers to explore. This diversity has led to the development of specialized package holidays that cater to different interests and preferences, further driving the growth of the market.

Underlying macroeconomic factors: The improving economic conditions in Nigeria have also contributed to the growth of the Package Holidays market. With a rising middle class and increasing disposable income, more Nigerians are able to afford travel and leisure experiences, including package holidays. Additionally, government initiatives to promote tourism and infrastructure development have made travel within the country more accessible and appealing to both domestic and international tourists.

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.