Nigeria’s Travel and Tourism Industry Expected to Generate $2.95 Billion in Revenue by 2023
THE ARTICLE DISCUSSES THE PROJECTED REVENUE GROWTH OF NIGERIA’S TRAVEL AND TOURISM INDUSTRY, WITH A FOCUS ON MARKET SEGMENTS, USER PENETRATION, AND ONLINE SALES.
According to a global travel industry database released by Statista, Nigeria’s travel and tourism industry is expected to generate a projected revenue of $2.953 billion by the end of 2023, which is estimated to rise to $3.746 billion by 2027. This will result in a Cumulative Annual Growth Rate (CAGR 2023-2027) of 6.13%. The largest market segment is projected to be package holidays, with a market volume of $1.239 billion in 2023. In the hotels segment, the number of users is expected to reach 17,450 K by 2027. The projected user penetration for 2023 is 10.5%, which is expected to rise to 12.1% by 2027, with an average revenue per user of $126.80.
The online sales of travel and tourism are expected to generate 66% of the total revenue by 2027. The global travel management solution market is projected to grow by 10.86% in the next four years, reaching $70.1 billion by 2026, as small companies increase their adoption of managed travel and travel management companies consolidate. Nigeria’s travel management firms have witnessed increased influence, partnering with domestic carriers to provide flexible fares, route management, and flight inventory.
Travel management firms not only reduce travel costs for corporate organizations, but they also provide ancillary services. However, the volatility in average ticket prices, complex pricing strategies, and limited effective price regulations in air travel are factors restraining the growth of the market. The introduction of enhanced corporate booking tools, on-the-go mobile applications, and growing demand have also created opportunities for the market. Nonetheless, transaction security challenges and other privacy concerns are big challenges facing the industry.
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