Cruises - Iceland | Statista Market Forecast

By 2024, the projected revenue in the Cruises market is expected to reach US$4.03m.
Looking ahead, the market volume is projected to increase to US$5.46m by 2029, showing an annual growth rate (CAGR 2024-2029) of 6.25%.
In Iceland, the number of users in the Cruises market is expected to reach 4.01k users by 2029.
The user penetration is projected to increase from 0.77% in 2024 to 1.03% by 2029.
The average revenue per user (ARPU) is expected to amount to US$1.38k.
Moreover, 31% of the total revenue in the Cruises market is expected to be generated through online sales by 2029.
It is noteworthy that United States will account for the most significant share of the global revenue generated in the Cruises market, projected to reach US$25bn by 2024.
Iceland's cruise market is growing as travelers seek to explore the country's breathtaking natural wonders from the comfort of a luxury liner.

Definition:

A cruise is a multi-day vacation trip on a cruise ship which crosses the sea or large inland waters while calling at different tourist destinations along a certain route. With this kind of ship journey, it is not the aspect of transport that is in the spotlight but the stay aboard the ship as well as visiting the tourist destinations. The Cruises market encompasses exclusively passenger ticket revenues. Onboard and other revenues are not included.

Additional Information:

The main performance indicators of the Cruises 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. Users represent the aggregated number of guests. Each user is only counted once per year.

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.

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Multi-day cruises
Ocean cruises and river cruises

Trips by ferry (including trips with overnight stay)
Trips by ferry mainly for transport purposes

The Cruises market in Iceland has been experiencing steady growth over the past few years.

Customer preferences: Customers in Iceland are increasingly looking for unique and off-the-beaten-path experiences when it comes to cruises. They are drawn to cruises that offer opportunities to explore the country's stunning natural landscapes, including glaciers, volcanoes, and hot springs. Additionally, there is a growing demand for cruises that focus on sustainability and eco-friendly practices.

Trends in the market: One notable trend in the Icelandic cruises market is the rise of smaller expedition cruises that cater to adventurous travelers looking to explore remote areas of the country. These cruises often provide a more intimate and immersive experience, allowing passengers to get up close to Iceland's rugged coastline and wildlife. Another trend is the increase in themed cruises that focus on specific interests such as photography, bird watching, or wellness retreats.

Local special circumstances: Iceland's unique geography and geology make it a particularly appealing destination for cruise travelers. The country's dramatic landscapes, including waterfalls, geysers, and black sand beaches, offer a one-of-a-kind backdrop for cruise excursions. Additionally, Iceland's rich cultural heritage, including its Viking history and folklore, adds an extra layer of intrigue for visitors.

Underlying macroeconomic factors: The growth of the Cruises market in Iceland can be attributed to several macroeconomic factors. The country's overall increase in tourism has had a positive impact on the cruise industry, with more visitors looking to explore Iceland by sea. Additionally, Iceland's stable economy and favorable exchange rates have made it an attractive destination for international cruise lines looking to expand their offerings in the region.

Data coverage:

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

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.

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