Travel & Tourism - Czechia

Czechia

The Travel & Tourism market in Czechia is expected to experience steady growth in the coming years.
By 2024, revenue in this market is projected to reach US$4,057.00m.
Furthermore, it is expected to expand at an annual growth rate (CAGR 2024-2028) of 4.80%.
As a result, the projected market volume is expected to reach US$4,893.00m by 2028.
The largest market in this market is the Package Holidays, which is expected to reach a projected market volume of US$2,661.00m in 2024.
By 2028, the number of users in the Package Holidays market is expected to amount to 3,835.00k users.
The user penetration rate is expected to increase from 68.3% in 2024 to 74.7% by 2028.
Furthermore, the average revenue per user (ARPU) is expected to be US$565.10.
It is also noteworthy that 63% of total revenue in the Travel & Tourism market will be generated through online sales by 2028.
When compared globally, United States is expected to generate the most revenue, with US$199bn in 2024.
Czechia's tourism industry is experiencing a rise in popularity due to its rich cultural heritage and picturesque landscapes.

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

The Travel & Tourism market in Czechia is experiencing a significant growth trajectory, driven by various factors that appeal to both domestic and international travelers.

Customer preferences: Travelers in Czechia are increasingly seeking authentic experiences that allow them to immerse themselves in the local culture and heritage. This trend is reflected in the rising demand for unique accommodation options such as boutique hotels and homestays. Additionally, there is a growing interest in sustainable and eco-friendly tourism practices among visitors to Czechia.

Trends in the market: One notable trend in the Czech Travel & Tourism market is the increasing popularity of off-the-beaten-path destinations and activities. Travelers are looking beyond the traditional tourist hotspots and venturing into lesser-known regions to discover hidden gems. This trend is driving growth in niche tourism segments such as rural tourism, adventure travel, and cultural exchanges.

Local special circumstances: Czechia's rich history and architectural heritage make it a unique destination for travelers interested in exploring medieval castles, historic towns, and UNESCO World Heritage sites. The country's diverse landscape, which includes picturesque mountains, forests, and rivers, offers ample opportunities for outdoor activities such as hiking, cycling, and boating. Additionally, Czechia's vibrant arts and culinary scenes attract visitors looking to experience the local creativity and gastronomy.

Underlying macroeconomic factors: The Travel & Tourism market in Czechia is benefiting from a strong economy and stable political environment, which are fostering consumer confidence and disposable income levels. The country's strategic location in Central Europe makes it a convenient hub for travelers exploring the wider region. Furthermore, investments in infrastructure and hospitality services are enhancing the overall travel experience in Czechia, attracting more visitors and driving growth in 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.