Travel & Tourism - Brazil

Brazil

The Travel & Tourism market in Brazil is expected to witness a substantial growth in revenue, reaching a projected value of US$18.38bn by 2024.
The market is anticipated to grow at an annual rate of 2.33%, resulting in a projected market volume of US$20.15bn by 2028.
Among the various markets, Hotels are expected to dominate the market with a projected market volume of US$10.31bn by 2024, and the number of users is expected to reach 47.24m users by 2028.
The user penetration rate is projected to be 29.1% in 2024, and it is expected to increase to 30.1% by 2028.
The average revenue per user (ARPU) is expected to be US$289.80.
Furthermore, in the Travel & Tourism market in Brazil, online sales are expected to contribute to 80% of the total revenue by 2028.
It is interesting to note that United States is expected to generate the most revenue in the global comparison, with a projected revenue of US$199bn in 2024.
Brazil's Travel & Tourism industry is seeing a rise in ecotourism, with visitors flocking to the Amazon rainforest and Atlantic coast for sustainable travel 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

In Brazil, the Travel & Tourism market is experiencing significant growth and development.

Customer preferences: Travelers in Brazil are increasingly seeking unique and authentic experiences, driving the demand for ecotourism and cultural tourism. They are looking to explore the diverse landscapes, rich biodiversity, and vibrant culture that Brazil has to offer. Additionally, there is a growing interest in sustainable travel practices, with tourists opting for eco-friendly accommodations and activities.

Trends in the market: One notable trend in the Brazilian Travel & Tourism market is the rise of domestic tourism. With the depreciation of the Brazilian real, many locals are choosing to explore their own country rather than travel abroad, leading to a boost in domestic travel. This trend is further supported by the government's efforts to promote tourism within the country. Another trend is the increasing popularity of adventure tourism, with activities such as hiking, surfing, and wildlife watching gaining traction among both domestic and international travelers.

Local special circumstances: Brazil's vast size and diverse offerings present both opportunities and challenges for the Travel & Tourism market. The country boasts stunning natural attractions like the Amazon rainforest, Iguazu Falls, and pristine beaches, which attract millions of tourists each year. However, infrastructural limitations and safety concerns in certain regions can pose obstacles to further growth. Additionally, Brazil's complex visa requirements and bureaucratic processes can deter potential visitors, impacting the overall competitiveness of the tourism industry.

Underlying macroeconomic factors: The Brazilian Travel & Tourism market is influenced by various macroeconomic factors, including exchange rates, political stability, and economic growth. Fluctuations in the exchange rate can affect the affordability of travel for both domestic and international tourists. Political stability is crucial for maintaining a positive business environment and attracting foreign investment in the tourism sector. Economic growth plays a significant role in driving consumer spending on travel and leisure activities, impacting the overall performance 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.