The global package holidays market size was valued at USD 125.8 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) 7.4% from 2021 to 2028. Growth of the market is significantly driven by the rising popularity of the dynamic holiday packages. Dynamic holiday packages enable consumers to decide their own package of air flights, destinations and accommodations, which has been flourished due to the improvement of the online distribution portals. Ongoing technological developments that makes holiday package more customizable, bookable and searchable are likely to fuel market growth.
The growth of the market is also driven by the rising geriatric population. Unlike younger generation inclination towards unique and independent travel, older generation are still interested in the package holidays due to the convenience, hassle-free and insured travel. The market growth is restrained by the rising popularity of the FIT tourism, i.e. free independent traveler tourism. The consumers are seeking out unique experiences and travel independently or in small group. This type of travel is becoming more popular in European countries as compared to other regions.
Covid-19 pandemic negatively impacted global travel and tourism industry across the world. According to the United Nations’ The World Tourism Organization, international tourist arrivals fell by 60% to 80% as a result of Covid-19 restrictions and lockdowns. The market growth was hampered during this time, which is expected to attain slow growth over the next few years as uncertainty still remains due to the pandemic.
The conventional package segment dominated the package holiday market and accounted for the largest revenue share of 80.4% in 2020. The higher market share is attributed to the escalating preference of the consumers for the conventional pre-defined holiday packages. These holiday packages are more popular with the senior citizens, families with younger children which attributes to the higher market share in the market. Things like hotel accommodation, flights, and car rental are already pre-defined in the package. So, it gets easy for the travelers to select a package as they their budget and convenience.
The dynamic packages segment is expected to witness a CAGR of 8.3% over the forecast period. Rising popularity of the unique and customized packages among the consumers is driving the growth of the segment. This type of package holidays is more popular with young adults seeking out new experiences. New entrants in the market opting for the new dynamic packaging paradigms, contribute to segmental growth. In such holiday packages, accommodation tariff, flight charges, and car-rental are calculated on real-time as per travel selection.
Asia Pacific dominated the market and accounted for the largest revenue share of more than 36.0% in 2020. The region is expected to register a CAGR of 7.9% from 2021 to 2028. The main driver of the regional market growth is the increasing number of travelers from China. Additionally, swelling middle-class population and increasing disposable income are the factors driving the market in the region. Increasing initiatives by governments to promote tourism and development of tourist places across the region is expected to drive the market.
In Europe, the market accounted for revenue share of over 30% in 2020. Higher disposable income, rising consumer spending on tourism and travel are the factors attributed to the higher revenue share. According to the United Nations’ The World Tourism Organization, travelers from Europe dominated worldwide international tourist arrival in 2020. Although, more and more travelers are opting for the free independent travelers (FIT) tourism model, instead of buying pre-defined travel packages. FIT travelers like to plan their own trip and prefer travelling in small groups.
The market share is segregated into large, medium, and small market players. Key players are focused on expansion and developments into holiday package deals to maintain their market share. Key players also keen on strategic partnership to provide improved services and attract more customers. For instance, TUI Group, one of the prominent player, announced on June 1st, 2021, entered into partnership with Nezasa, a travel technology provider. With this partnership TUI Group plans to create a platform for digital production of personalized multi-day tours. Also, for instance, Trip.com Group Limited announced partnership with Wyndham Hotels and Resorts on November 17th, 2021. Some of the prominent players in the package holidays market include:
Report Attribute |
Details |
Market size value in 2021 |
USD 106.9 billion |
Revenue forecast in 2028 |
USD 176.4 billion |
Growth Rate |
CAGR of 7.4% from 2021 to 2028 |
Base year for estimation |
2020 |
Historical data |
2017 - 2019 |
Forecast period |
2021 - 2028 |
Quantitative units |
Revenue in USD million and CAGR from 2021 to 2028 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Type and region |
Regional scope |
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa |
Country scope |
U.S.; Canada; U.K.; Germany; France; China; India; Japan; Brazil; Argentina; Saudi Arabia; South Africa |
Key companies profiled |
TUI Group; Thomas Cook (India) Ltd.; Cox & Kings Ltd.; Booking Holdings Inc.; REWE Group; Trip.com Group Limited; Jet2 plc; Scott Dunn Ltd.; MakeMyTrip Pvt. Ltd. |
Customization scope |
Free report customization (equivalent up to 8 analysts’ working days) with purchase. Addition or alteration to country, regional, and segment scope. |
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Million Insights has segmented the global package holiday market report on the basis of type and region:
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