Travel & Tourism - Bulgaria

Bulgaria

The Travel & Tourism market in Bulgaria is predicted to experience a rise in revenue, with projections indicating a rise to US$1,266.00m in 2024.
The market is expected to maintain a steady growth rate, with an annual CAGR of 5.22% from 2024 to 2028, resulting in a market volume of US$1,552.00m by 2028.
The largest market in the market is the Package Holidays market, which is projected to reach a market volume of US$629.50m by 2024.
The number of users in the Package Holidays market is expected to increase to 2,463.00k users by 2028.
The user penetration rate is expected to rise from 54.5% in 2024 to 62.7% by 2028.
The average revenue per user (ARPU) is expected to be US$351.00.
By 2028, online sales are projected to account for 80% of the total revenue in the Travel & Tourism market.
In terms of global comparison, United States is expected to generate the most revenue, with projections indicating revenue of US$199bn in 2024.
Bulgaria's Travel & Tourism market is experiencing a rise in popularity fueled by its stunning Black Sea coastline and affordable prices.

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

The Travel & Tourism market in Bulgaria has been experiencing steady growth in recent years, attracting a diverse range of tourists from around the world.

Customer preferences: Tourists visiting Bulgaria are increasingly seeking authentic cultural experiences, including exploring historical sites, trying local cuisine, and interacting with the friendly locals. Additionally, there is a growing demand for sustainable and eco-friendly tourism options, such as hiking in the picturesque mountains or staying in eco-friendly accommodations.

Trends in the market: One notable trend in the Bulgarian travel market is the rise of digital platforms and online booking services, making it easier for tourists to plan their trips and discover hidden gems in the country. Moreover, the government's efforts to promote Bulgaria as a year-round destination have led to an increase in off-peak season travel, particularly during the winter months for skiing and snowboarding.

Local special circumstances: Bulgaria's unique geographical location, nestled between Europe and Asia, offers a diverse range of attractions for tourists, from relaxing beach resorts along the Black Sea coast to charming medieval towns in the countryside. The country's rich history, with influences from Roman, Ottoman, and Soviet eras, provides a captivating backdrop for travelers interested in exploring different cultures.

Underlying macroeconomic factors: The overall economic stability and growth in Bulgaria have contributed to the development of the travel and tourism sector, with increased investment in infrastructure, accommodation, and transportation facilities. Additionally, the country's favorable exchange rate and relatively lower prices compared to other European destinations make it an attractive option for budget-conscious travelers looking for 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.