Travel & Tourism - Hungary

Hungary

Hungary's Travel & Tourism market is expected to experience significant growth in the coming years.
By 2024, revenue is projected to reach US$1,603.00m, with an estimated annual growth rate of 3.21% between 2024 and 2028.
This growth is expected to result in a projected market volume of US$1,819.00m by 2028.
The Hotels market is predicted to be the largest market in Hungary's Travel & Tourism market industry, with a projected market volume of US$734.00m in 2024.
It is anticipated that the number of users in the Hotels will reach 3,053.00k users by 2028.
User penetration, which is currently at 41.0%, is expected to increase to 44.8% by 2028.
The average revenue per user (ARPU) is expected to be US$390.80.
In Hungary's Travel & Tourism market, it is projected that 73% of total revenue will be generated through online sales by 2028.
In comparison to other countries, United States is expected to generate the most revenue, with US$199bn in 2024.
Amidst Hungary's rich cultural heritage and breathtaking scenery, the country's tourism industry is experiencing a rise in demand for eco-tourism and wine-tasting 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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Analyst Opinion

Hungary's Travel & Tourism market is experiencing a steady growth trajectory, driven by various factors shaping consumer behavior and market dynamics.

Customer preferences: Travelers in Hungary are increasingly seeking authentic and unique experiences, moving away from traditional tourist hotspots to explore off-the-beaten-path destinations. This shift in preferences is fueled by a desire for cultural immersion and a more personalized travel experience.

Trends in the market: One notable trend in Hungary's Travel & Tourism market is the rise of sustainable and eco-friendly travel practices. Travelers are becoming more conscious of their environmental impact and are actively seeking eco-friendly accommodation, transportation, and activities. This trend is in line with the global movement towards sustainable tourism practices.

Local special circumstances: Hungary's rich cultural heritage and diverse landscapes make it an attractive destination for travelers looking to explore historical sites, thermal spas, and picturesque countryside. The country's vibrant culinary scene and world-renowned wines also contribute to its appeal among tourists.

Underlying macroeconomic factors: The growth of Hungary's Travel & Tourism market can also be attributed to favorable macroeconomic conditions, including increasing disposable incomes, improved infrastructure, and government initiatives to promote tourism. Additionally, Hungary's strategic location in Central Europe makes it a convenient hub for travelers exploring the region.

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.