Travel & Tourism - South America

South America

South America's Travel & Tourism market is expected to generate a revenue of US$36.82bn by 2024.
The annual growth rate (CAGR 2024-2029) is projected to be 4.99%, leading to a market volume of US$46.96bn by 2029.
The largest market in this market is the Hotels, with a projected market volume of US$16.68bn in 2024.
By 2029, the number of users in the Hotels market is expected to reach 95.94m users.
The user penetration rate is projected to be 30.5% in 2024, which will increase to 37.1% by 2029.
The average revenue per user (ARPU) in this market is expected to be US$292.30.
Moreover, it is expected that 79% of the total revenue in the Travel & Tourism market will be generated through online sales by 2029.
When compared globally, United States is projected to generate the most revenue, with US$214bn in 2024.
Brazil's Travel & Tourism market is currently focused on sustainable ecotourism and cultural tourism, promoting the country's rich biodiversity and diverse cultural heritage.

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

Region comparison

Currency

Analyst Opinion

The Travel & Tourism market in South America is experiencing a significant growth trajectory, driven by various factors that cater to the diverse preferences of travelers in the region.

Customer preferences: Travelers in South America are increasingly seeking authentic and immersive experiences, leading to a rise in demand for ecotourism, adventure travel, and cultural exchanges. Tourists are drawn to the region's rich biodiversity, vibrant indigenous cultures, and diverse landscapes, including the Amazon rainforest, Andes mountains, and pristine beaches. Additionally, there is a growing interest in sustainable travel practices, with tourists prioritizing eco-friendly accommodations and activities.

Trends in the market: In Brazil, the largest economy in South America, there is a notable trend towards luxury travel experiences, with upscale resorts and boutique hotels gaining popularity among affluent travelers. Argentina, known for its world-class wine regions and vibrant urban centers, is seeing a rise in gastronomic tourism, attracting food and wine enthusiasts from around the globe. Peru, home to Machu Picchu and other archaeological wonders, continues to be a top destination for cultural tourism, with a focus on heritage sites and traditional festivals.

Local special circumstances: Political stability and infrastructure development play a crucial role in shaping the Travel & Tourism market in South America. Countries like Chile and Uruguay, known for their safety and efficient transportation networks, are able to attract a larger number of international visitors. On the other hand, destinations facing economic challenges or security concerns may experience a slowdown in tourism growth. It is important for governments and industry stakeholders to address these issues to maintain a positive tourism outlook.

Underlying macroeconomic factors: The economic performance of South American countries, currency exchange rates, and global economic conditions all influence the Travel & Tourism market in the region. A strong economy and favorable exchange rates can make travel more affordable for international tourists, leading to an influx of visitors. Conversely, economic instability or currency devaluation may deter travelers and impact the overall tourism industry. Additionally, external factors such as natural disasters or health crises can also have a significant impact on tourist arrivals and travel patterns in South America.

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.