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Package holiday market seen at $632bn by 2023 despite challenges

Package holiday market seen at $632bn by 2023 despite challenges

Mubasher: The global package holiday market has been experiencing several uncertainties since the collapse of the UK’s travel operator, Thomas Cook.

Nevertheless, the value of the global package holiday market hiked to $510 billion in 2019, with expectations to stand at $632 billion by 2023, according to a recent report by GlobalData.

The dynamic package is expected to register a compound annual growth rate (CAGR) of 8.7% for 2019-2023, while the static package, a combination of services put together by a travel agent, is forecast to record a CAGR of 5% for the same period.

Recorded growth of the dynamic package holiday reflects changing traveler trends as tourists become more independent within the booking process. Opting to construct their own ideal vacation, travelers now hold more power than ever before,” Johanna Bonhill-Smith, travel and tourism analyst at GlobalData, explained.

However, several source markets, including the UK, Germany, and China still rely on a static operator, encouraged by affordability, security, and convenience of booking, Bonhill-Smith noted.

Despite the growing industry, travel operators face several challenges, especially in the UK and Europe amid Brexit uncertainties, along with waste management and strong competition issues.

Bonhill-Smith stressed on the importance of adapting to the market demand, noting that “operators that keep to the traditional model of the typical ‘all-inclusive’ package operator are likely to be at greater risk.”