Travel & Tourism - Italy

Italy

Italy is anticipated to witness a considerable growth in the Travel & Tourism market with revenue projected to reach US$23.67bn by 2024, with an annual growth rate of 2.80% resulting in the market volume of US$27.18bn by 2029.
The Hotels market is expected to hold the largest share of the market with a projected market volume of US$9.18bn in 2024.
By 2029, the number of users in Hotels is expected to rise to 28.87m users.
The user penetration rate is expected to increase from 70.9% in 2024 to 76.5% by 2029.
The average revenue per user (ARPU) is expected to be US$0.57k.
By 2029, 70% of total revenue in the Travel & Tourism market is expected to be generated through online sales.
In comparison to other countries, United States is expected to generate the most revenue with US$214bn in 2024.
Italy's tourism industry is rebounding post-COVID with a focus on sustainable travel and exploring lesser-known regions.

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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Analyst Opinion

Italy's Travel & Tourism market is experiencing significant growth and development, driven by various factors influencing consumer behavior and market dynamics.

Customer preferences: Travelers in Italy are increasingly seeking unique and authentic experiences, moving away from traditional tourist hotspots to explore lesser-known destinations within the country. This shift in preferences is fueled by a desire for cultural immersion, culinary experiences, and sustainable tourism practices. Additionally, there is a growing demand for personalized travel itineraries and off-the-beaten-path activities, reflecting a trend towards experiential travel over conventional sightseeing.

Trends in the market: One notable trend in the Italian Travel & Tourism market is the rise of agritourism, where visitors engage in farm-based activities and stay at rural accommodations to experience local culture and traditions. This trend aligns with the broader global movement towards eco-friendly and sustainable travel options. Furthermore, the increasing popularity of food and wine tourism in Italy has led to the emergence of culinary tours, cooking classes, and wine tastings as key attractions for travelers.

Local special circumstances: Italy's rich cultural heritage, diverse landscapes, and world-renowned cuisine position the country as a top destination for international tourists. The presence of iconic landmarks such as the Colosseum, the canals of Venice, and the Amalfi Coast further contributes to Italy's appeal as a premier travel destination. Moreover, the country's Mediterranean climate, vibrant festivals, and historical sites offer a unique blend of experiences for visitors.

Underlying macroeconomic factors: The growth of Italy's Travel & Tourism market is also influenced by macroeconomic factors such as government initiatives to promote tourism, infrastructure development, and international partnerships. The country's strategic location in Europe, well-connected transportation networks, and investment in hospitality services contribute to its attractiveness for both leisure and business travelers. Additionally, the increasing use of technology and online platforms for travel planning and booking has facilitated access to a wider range of accommodations and activities, driving growth in the market.

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.