Travel & Tourism - Albania

Albania

Albania is expected to see a significant increase in revenue within the Travel & Tourism market.
By the year 2024, revenue is projected to reach US$75.49m, with an anticipated annual growth rate of 4.56% from 2024 to 2028.
This growth will result in a projected market volume of US$90.23m by 2028.
The largest market within the market is the Hotels market, with a projected market volume of US$32.78m in 2024.
Furthermore, it is expected that the number of users in Hotels will reach 527.00k users by 2028, with a user penetration rate of 19.7% in 2024, expected to increase to 23.5% by 2028.
The average revenue per user (ARPU) is projected to amount to US$135.40.
Additionally, it is anticipated that 80% of the total revenue in the Travel & Tourism market in Albania will be generated through online sales by 2028.
It is worth noting that, in global comparison, United States is expected to generate the most revenue within the Travel & Tourism market, with a projected revenue of US$199bn in 2024.
Albania's travel and tourism market is experiencing a rise in popularity due to its stunning coastline and historic landmarks.

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

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Analyst Opinion

Albania, a country known for its stunning landscapes and rich history, has been experiencing significant growth in its Travel & Tourism market.

Customer preferences: Travelers in Albania are increasingly seeking authentic and immersive experiences, driving the demand for cultural and adventure tourism. Tourists are drawn to the country's UNESCO World Heritage sites, pristine beaches, and vibrant local culture. Additionally, there is a growing interest in eco-friendly and sustainable travel options among visitors.

Trends in the market: One notable trend in the Albanian Travel & Tourism market is the rise of digital platforms and online booking services, making it easier for travelers to plan their trips and discover hidden gems in the country. The emergence of boutique hotels, homestays, and unique accommodations is also reshaping the hospitality sector in Albania, catering to the diverse preferences of modern tourists.

Local special circumstances: Albania's strategic location in the Balkans, with easy access to both the Adriatic and Ionian Seas, has positioned the country as a desirable destination for both leisure and business travelers. The government's efforts to improve infrastructure, promote sustainable tourism practices, and enhance safety and security measures have further boosted the country's appeal among international visitors.

Underlying macroeconomic factors: The steady economic growth in Albania, coupled with increasing disposable incomes among the local population, has fueled domestic tourism and encouraged investments in the Travel & Tourism sector. The country's visa liberalization policies and efforts to promote air connectivity have also contributed to the growth of international arrivals, supporting the overall expansion of 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.