Travel & Tourism - Portugal

Portugal

In Portugal, the Travel & Tourism market is expected to generate a revenue of US$2,523.00m by 2024, with an annual growth rate of 3.70%, reaching a market volume of US$2,918.00m by 2028.
The Hotels market is projected to be the largest, with a market volume of US$1,067.00m in 2024 and an estimated number of users amounting to 4,083.00k users by 2028.
The user penetration rate is expected to grow from 53.4% in 2024 to 59.0% by 2028.
The projected average revenue per user (ARPU) is US$0.46k.
It is projected that 68% of the total revenue will be generated through online sales in the Travel & Tourism market in Portugal by 2028.
In comparison to other countries, United States is expected to generate the highest revenue of US$199bn in 2024.
Portugal's tourism industry is recovering from the pandemic, with an emphasis on sustainable and authentic experiences, attracting visitors seeking cultural and natural diversity.

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

Portugal, known for its rich history, stunning beaches, and vibrant culture, has seen a significant growth in its Travel & Tourism market in recent years.

Customer preferences: Tourists visiting Portugal are increasingly seeking authentic experiences, such as exploring historic sites, indulging in local cuisine, and immersing themselves in the country's unique traditions. Additionally, there is a growing interest in sustainable travel practices, with visitors opting for eco-friendly accommodations and activities that support the local community.

Trends in the market: One notable trend in the Portuguese 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. Moreover, the government's efforts to promote Portugal as a year-round destination have led to an increase in off-peak season travel, boosting tourism revenue throughout the year.

Local special circumstances: Portugal's strategic location on the Iberian Peninsula, combined with its diverse landscapes ranging from lush vineyards to rugged coastlines, offers a wide range of attractions for tourists. The country's warm climate, affordable prices, and welcoming atmosphere make it a popular choice for travelers looking for a relaxing getaway or an adventure-filled vacation.

Underlying macroeconomic factors: The stability of Portugal's economy, coupled with investments in infrastructure and transportation, has contributed to the growth of the Travel & Tourism market. Additionally, government initiatives to streamline visa processes and improve tourist safety have enhanced Portugal's reputation as a top destination in Europe.

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.