Research Support Specialist, USA
The global package holidays market size is estimated to reach USD 176.4 billion by 2028 according to a new report by Million Insights. The market is expected to expand at a CAGR of 7.4% from 2021 to 2028. The growth of the market is substantially driven by the developments and advancements in the travel and tourism industry. Government initiation to boost the tourism industry across various countries has led to significant increase in the international tourist arrivals over the years and likely to be the scenario over the forecast period. Globalization and digitization across various sectors also affected tourism industry. With the online websites and portals, holiday package booking has become easy and quick, driving the overall market growth.
Moreover, rising preference from senior citizens and families with young kids for package holidays is propelling market growth. Developing economies such as Thailand, India, and China are also enjoining an increase in tourist traction. The outbreak of Covid-19 pandemic had negatively impacted the market, especially the travel and tourism sector. Due to the covid-19 restrictions, aviation industry, transportation, and hotel industry experienced massive setback. Customers preferred to stay home and cancelled registered packages, declining the market revenue. According to the United Nation’s The World Tourism Organization, in 2020, 60%-80% international tourist arrival declined as compared to 2019.
The dynamic segment is anticipated to witness strong growth, registering a CAGR of 8.3% over the forecast period. Dynamic packages offer more convenient, customized, and unique tour packages as per the customers’ requirements. These characteristics of dynamic packages are contributing the rising popularity and in-turn the growth of the segment. Moreover, companies increasing adoption of new dynamic packaging services by companies is likely to support and drive the segment. For instance, TUI Group, one of the leading companies in the market endeavored into dynamic packaging and is expanding further. After the prototype for dynamic packaging digital platform in Spain, the company is entering in the dynamic packaging market in Poland as reported on December 20th, 2020.
In Asia Pacific, the market is anticipated to witness strong growth in the market, registering a CAGR of 7.9% over the forecast period. Increasing disposable income, increasing consumer spending on travel, and rising population are attributed to the strong growth in the region. Rapid economic growth in China has reflected in the increasing number of outbound tourist, contributing to market growth. Development and improvement of the tourist places to boost tourism industry and government initiations likely to help fuel inbound tourism as well and drive the market.
The report “Package Holidays Market Size, Share & Trends Analysis Report By Type (Conventional Package, Dynamic Package), By Region (North America, Europe, APAC, CSA, Middle East & Africa), And Segment Forecasts, 2021 - 2028” is available now to Million Insights.
Million Insights has segmented the global package holiday market on the basis of type, and region: