Travel & Tourism - Mexico

Mexico

The Travel & Tourism market in Mexico is expected to experience significant growth in the coming years.
By 2024, revenue in this market is projected to reach US$16.13bn.
Furthermore, it is expected that the market will grow at an annual rate of 4.49% between 2024 and 2028, leading to a projected market volume of US$19.23bn by 2028.
The Hotels market is expected to be the largest market in the market, with a projected market volume of US$9.38bn in 2024.
By 2028, the number of users in this market is expected to increase to 52.08m users.
The user penetration rate is projected to rise from 39.3% in 2024 to 44.2% by 2028.
The average revenue per user (ARPU) is expected to be US$317.00.
In terms of online sales, it is projected that 88% of total revenue in the Travel & Tourism market will be generated through online sales by 2028.
Lastly, United States is expected to generate the most revenue in the global comparison, with US$199bn in 2024.
Mexico's travel and tourism market is experiencing a rise in eco-tourism, with visitors seeking out sustainable and nature-focused 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

Region comparison

Currency

Analyst Opinion

Mexico's Travel & Tourism market is experiencing a significant growth in recent years, attracting a diverse range of travelers from around the world.

Customer preferences: Travelers in Mexico are increasingly seeking authentic cultural experiences, leading to a rise in demand for local tours, traditional cuisine, and indigenous art and crafts. The trend towards sustainable and eco-friendly travel options is also gaining traction, with many tourists opting for environmentally conscious accommodations and activities.

Trends in the market: One notable trend in the Mexican Travel & Tourism market is the growing popularity of adventure tourism, with activities such as hiking, zip-lining, and diving attracting thrill-seeking travelers. Additionally, medical tourism is on the rise, with Mexico becoming a preferred destination for affordable healthcare services combined with a relaxing vacation.

Local special circumstances: Mexico's rich cultural heritage and diverse landscapes make it a unique travel destination, offering everything from ancient archaeological sites to pristine beaches. The country's vibrant festivals and colorful traditions also contribute to its appeal among tourists looking for immersive cultural experiences.

Underlying macroeconomic factors: The Mexican Travel & Tourism market is benefiting from a stable economy and government initiatives aimed at promoting the country as a top tourist destination. Infrastructure developments, such as new airports and improved transportation networks, are also facilitating easier access to popular tourist destinations within Mexico. Additionally, favorable exchange rates and competitive pricing make Mexico an attractive destination for international travelers seeking value for their money.

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.