Travel & Tourism - Southeast Asia

The Travel & Tourism market in Southeast Asia is expected to experience significant growth in the coming years.
By 2024, the market's revenue is projected to reach US$30.14bn, with a CAGR of 5.80% expected between 2024 and 2029.
This growth is expected to result in a projected market volume of US$39.97bn by 2029.
The Hotels market is the largest in the market and is expected to generate a projected market volume of US$12.39bn in 2024.
By 2029, the number of users is expected to reach 127.60m users, with a projected user penetration of 24.4% compared to 17.5% in 2024.
The average revenue per user (ARPU) is expected to be US$248.40.
Online sales are expected to generate 73% of total revenue in the market by 2029.
When compared to other countries globally, United States is expected to generate the most revenue in the Travel & Tourism market, with a projected revenue of US$214bn in 2024.
Thailand's travel and tourism industry is rebounding with a focus on domestic tourism and wellness retreats.

Definition:

The Travel & Tourism market encompasses a diverse range of accommodation services catering to the needs and preferences of travelers. This dynamic market includes package holidays, hotel accommodations, private vacation rentals, camping experiences, and cruises.

Structure:

The market consists of five further markets.

The Cruises market covers multi-day vacation trips on a cruise ship. The Cruises market encompasses exclusively passenger ticket revenues.
The Vacation Rentals market comprises of private accommodation bookings which includes private holiday homes and houses as well as short-term rental of private rooms or flats.
The Hotels market includes stays in hotels and professionally run guest houses.
The Package Holidays market comprises of travel deals that normally contain travel and accommodation sold for one price, although optional further provisions can be included such as catering and tourist services.
The Camping market includes bookings at camping sites for pitches using tents, campervans, or trailers. These can be associated with big chains or privately managed campsites.

Additional Information:

The main performance indicators of the Travel & Tourism 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 and users for the above-mentioned markets. Users represent the aggregated number of guests. Each user is only counted once per year. Additional definitions for each market can be found within the respective market pages.

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.

Prominent players in this sector include online travel agencies (OTAs) like Expedia and Opodo, as well as tour operators such as TUI. Specialized platforms like Hotels.com, Booking.com, and Airbnb facilitate the online booking of hotels and private accommodations, contributing significantly to the market's vibrancy.

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

Bookings directly via the website of the service provider, travel agencies, online travel agencies (OTAs) or telephone

Business trips
Other forms of trips (e.g. excursions, etc.)

The Travel & Tourism market in Southeast Asia is a dynamic and rapidly growing industry that is influenced by various factors.

Customer preferences: Travelers in Southeast Asia are increasingly seeking unique and authentic experiences, driving the demand for off-the-beaten-path destinations and cultural immersion. The rise of social media has also influenced customer preferences, with travelers looking for Instagrammable spots and personalized travel experiences.

Trends in the market: In Thailand, there has been a noticeable shift towards sustainable tourism practices, with a focus on eco-friendly accommodations and responsible travel experiences. The country's diverse offerings, from bustling cities to pristine beaches, continue to attract a wide range of travelers. In Vietnam, the growing middle class has led to an increase in domestic tourism, with more locals exploring their own country. This trend has also been supported by the government's efforts to promote domestic travel and improve infrastructure.

Local special circumstances: Indonesia, with its vast archipelago and rich cultural heritage, has been investing in developing its tourism sector. The country's focus on promoting lesser-known destinations alongside popular tourist spots has contributed to a more balanced tourism landscape. The Philippines, known for its stunning beaches and warm hospitality, has been experiencing growth in adventure tourism. Activities such as surfing, diving, and island-hopping are becoming increasingly popular among both domestic and international travelers.

Underlying macroeconomic factors: The economic growth in Southeast Asia, coupled with increasing disposable incomes, has led to a rise in domestic and international travel within the region. Governments across Southeast Asia have been investing in infrastructure development and promoting tourism as a key driver of economic growth. Additionally, the region's strategic location and diverse offerings continue to attract a wide range of travelers from around the world.

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of hotels, vacation rentals, cruises, package holidays, and camping.

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.

This report presents a comprehensive analysis and additional information on the Mobility market, in a PDF format.

Business or corporate travel is the tourism segment that focuses on people who travel for work or professional purposes and the related tourism services. This branch also includes the meetings industry, which refers to business events, conferences, congresses, trade fairs, and exhibitions. According to the World Travel and Tourism Council (WTTC), business travel accounted for 20 percent of the global tourism expenditure in 2021. In that year, it was estimated that business travelers spent more than 740 billion U.S. dollars worldwide, with Chinese tourists topping the ranking of the biggest business travel spenders.