Market Insights Mobility Travel & Tourism

Package Holidays - Kuwait

Kuwait

By 2024, the projected revenue in Kuwait's Package Holidays market is expected to reach US$406.70m.
Moreover, the revenue is anticipated to exhibit an annual growth rate of 5.75% (CAGR 2024-2028), resulting in a projected market volume of US$508.60m by 2028.
The number of users in this market is also expected to rise and reach 0.59m users by 2028.
The user penetration in Kuwait's Package Holidays market is estimated to be 12.7% in 2024, which is projected to increase to 13.2% by 2028.
Additionally, the average revenue per user (ARPU) is expected to be US$0.74k.
The online sales are expected to contribute significantly to the revenue, with 86% of the total revenue being generated through online sales by 2028.
It is worth noting that China is expected to generate the most revenue in the global comparison, with revenue reaching US$59,860m in 2024.
Kuwaiti tourists are increasingly seeking unique and culturally immersive experiences on their package holidays.

Key regions: United Kingdom, India, Indonesia, Germany, Malaysia

Market

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Analyst Opinion

The Package Holidays market in Kuwait is experiencing a significant growth trajectory, driven by shifting consumer preferences, emerging trends, and unique local circumstances.

Customer preferences: Kuwaiti consumers are increasingly seeking convenience and hassle-free travel experiences, which has led to a rising demand for package holidays. The all-inclusive nature of package holidays appeals to customers looking for a seamless vacation experience without the stress of planning each component individually. Additionally, the desire for curated travel experiences tailored to specific interests or demographics is driving the popularity of package holidays among Kuwaiti travelers.

Trends in the market: In Kuwait, there is a noticeable trend towards experiential travel within the package holidays market. Travelers are looking for immersive experiences that allow them to engage with the local culture, cuisine, and traditions of their destination. As a result, tour operators and travel agencies are designing packages that offer authentic and unique experiences to cater to this demand. Furthermore, there is a growing interest in eco-friendly and sustainable travel options among Kuwaiti consumers, leading to the development of environmentally conscious package holidays in the market.

Local special circumstances: The geopolitical stability and strategic location of Kuwait in the Middle East region play a significant role in the development of the package holidays market. Kuwait's proximity to popular tourist destinations, coupled with its well-established infrastructure and transportation links, make it a favorable starting point for travelers exploring the region. Additionally, the high disposable income levels in Kuwait contribute to the growing demand for premium package holidays that offer luxury accommodations, exclusive experiences, and personalized services.

Underlying macroeconomic factors: The robust economic growth and increasing consumer confidence in Kuwait are supporting the expansion of the package holidays market. As the country diversifies its economy and invests in tourism infrastructure, there are more opportunities for tour operators and travel agencies to collaborate with local partners and international brands to offer diverse and innovative package holiday options. Moreover, government initiatives to promote tourism and attract foreign investment are creating a favorable business environment for the growth of the travel industry, including the package holidays segment.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of package holidays.

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.