Travel & Tourism - Spain

Spain

Spain's Travel & Tourism market is expected to experience substantial growth in the coming years.
By 2024, the projected revenue for this sector is US$26.65bn, with an anticipated annual growth rate (CAGR 2024-2029) of 2.07%.
This growth is expected to result in a market volume of US$29.52bn by 2029.
The largest market is the Package Holidays sector, which is projected to have a market volume of US$14.13bn in 2024.
In terms of user numbers, the Package Holidays market is expected to reach 26.55m users by 2029, with a user penetration rate of 77.5% in 2024 rising to 88.3% by 2029.
The average revenue per user (ARPU) is projected to be US$0.72k.
Online sales are also expected to play a significant role in the growth of the Travel & Tourism market, with 90% of total revenue being generated through online sales by 2029.
It is worth noting that United States is expected to generate the most revenue in the global Travel & Tourism market, with projected revenue of US$214bn in 2024.
Spain's Travel & Tourism market continues to thrive, with a focus on cultural experiences and sustainable tourism initiatives.

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

Spain's Travel & Tourism market is experiencing significant growth and development in recent years.

Customer preferences: Travelers in Spain are increasingly seeking unique and authentic experiences, moving away from traditional tourist hotspots to explore lesser-known destinations within the country. There is a growing demand for sustainable and eco-friendly travel options, with tourists showing a preference for accommodations and activities that promote environmental conservation and support local communities.

Trends in the market: One notable trend in the Spanish Travel & Tourism market is the rise of digital platforms and online booking services, which have made it easier for travelers to plan and customize their trips. The popularity of sharing economy services, such as Airbnb, has also transformed the accommodation sector, offering visitors a wider range of choices beyond traditional hotels. Additionally, Spain's emphasis on gastronomy and wine tourism has attracted food and wine enthusiasts from around the world, contributing to the overall growth of the market.

Local special circumstances: Spain's diverse landscape and rich cultural heritage make it a top destination for travelers seeking a mix of beach vacations, historical sightseeing, and outdoor activities. The country's vibrant festivals, such as La Tomatina and San Fermín, also draw in large crowds of tourists looking to experience the local culture and traditions. Furthermore, Spain's extensive network of high-speed trains and well-connected transportation infrastructure make it convenient for visitors to explore different regions within the country.

Underlying macroeconomic factors: The growth of Spain's Travel & Tourism market can be attributed to a combination of factors, including a stable economy, increasing disposable incomes, and government initiatives to promote the sector. The country's political stability and improved security measures have also played a crucial role in attracting international tourists and boosting domestic travel. Additionally, Spain's focus on digital innovation and investment in tourism infrastructure have helped enhance the overall travel experience for visitors, driving further 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.