Travel & Tourism - Southern Asia

Southern Asia

The Southern Asian Travel & Tourism market is poised to generate significant revenue in the coming years.
Specifically, by 2024, the market is projected to reach a revenue of US$28.99bn.
Furthermore, the market is expected to exhibit a Compound Annual Growth Rate (CAGR) of 8.91% between 2024 and 2029, leading to a projected market volume of US$44.43bn by 2029.
The largest market in the Southern Asian Travel & Tourism market is the Package Holidays market, with a projected market volume of US$12.44bn by 2024.
Additionally, the number of users in the Package Holidays market is expected to reach 159.00m users by 2029, with a user penetration of 8.1% in 2024, which is anticipated to increase to 12.5% by 2029.
The average revenue per user (ARPU) is expected to be US$187.00.
Moreover, it is projected that 61% of the total revenue in the Southern Asian Travel & Tourism market will be generated through online sales by 2029.
It is interesting to note that United States is expected to generate the most revenue (US$214bn in 2024) in comparison to other countries globally.
Tourism in Sri Lanka has rebounded after the 2019 attacks, with a renewed focus on sustainable and eco-friendly travel experiences.

Key regions: Malaysia, Europe, Singapore, Vietnam, United States

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.

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Market

Region

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Currency

Analyst Opinion

The Travel & Tourism market in Southern Asia is experiencing a notable growth trajectory, driven by various factors influencing customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Travelers in Southern Asia are increasingly seeking unique and culturally immersive experiences, opting for off-the-beaten-path destinations and authentic local interactions. There is a growing demand for sustainable and eco-friendly tourism practices, with travelers showing a preference for responsible travel options. Additionally, the rise of technology has led to a surge in online bookings and personalized travel experiences tailored to individual preferences.

Trends in the market: In countries like India, the rise of domestic tourism is a significant trend, with more locals exploring different regions within the country. This trend is fueled by increasing disposable incomes, improved infrastructure, and government initiatives promoting domestic travel. In Sri Lanka, there is a growing interest in wellness tourism, with travelers seeking holistic experiences that focus on health and well-being. The Maldives is seeing a rise in luxury tourism, attracting high-end travelers looking for exclusive experiences in private resorts.

Local special circumstances: Countries like Nepal and Bhutan have unique selling points that attract tourists - Nepal is known for its trekking and adventure tourism, while Bhutan offers a high-end, exclusive travel experience with a focus on sustainability and cultural preservation. In the Maldives, the geography of scattered islands has led to a concentration of luxury resorts accessible mainly by seaplanes or boats, creating a niche market for high-end travelers.

Underlying macroeconomic factors: The economic growth in countries like India and Bangladesh has resulted in a burgeoning middle class with higher disposable incomes, leading to increased spending on travel and tourism. Government initiatives to promote tourism, improve infrastructure, and ease visa regulations have also played a significant role in driving the growth of the travel industry in Southern Asia. Additionally, the region's strategic location, rich cultural heritage, and diverse landscapes make it an attractive destination for a wide range of travelers.

Methodology

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.