Travel & Tourism - Estonia

Estonia

Estonia's Travel & Tourism market is expected to experience substantial growth in the coming years.
Projections show that by 2024, the market's revenue will reach US$410.20m.
Furthermore, the market is expected to display a Compound Annual Growth Rate (CAGR 2024-2029) of 3.63%, resulting in a projected market volume of US$490.20m by 2029.
It is noteworthy that the Package Holidays market is expected to make up the majority of the market, with a projected market volume of US$191.20m in 2024.
In this market, the number of users is expected to amount to 578.30k users by 2029, with a user penetration of 65.5% in 2024 and an expected increase to 74.3% by 2029.
The average revenue per user (ARPU) is projected to be US$475.20.
Additionally, it is expected that by 2029, 80% of the total revenue in the Travel & Tourism market will be generated through online sales.
It is interesting to note that in a global comparison, United States is projected to generate the most revenue in the Travel & Tourism market, with US$214bn in 2024.
Estonia's travel and tourism industry has been growing rapidly, thanks to its rich cultural heritage, stunning natural beauty, and innovative digital solutions for travelers.

Key regions: Malaysia, Europe, Singapore, Vietnam, United States

Definition:

The Travel & Tourism market encompasses a diverse range of accommodation services catering to the needs and preferences of travelers. This dynamic market includes package holidays, hotel accommodations, private vacation rentals, camping experiences, and cruises.

Structure:

The market consists of five further markets.

The Cruises market covers multi-day vacation trips on a cruise ship. The Cruises market encompasses exclusively passenger ticket revenues.
The Vacation Rentals market comprises of private accommodation bookings which includes private holiday homes and houses as well as short-term rental of private rooms or flats.
The Hotels market includes stays in hotels and professionally run guest houses.
The Package Holidays market comprises of travel deals that normally contain travel and accommodation sold for one price, although optional further provisions can be included such as catering and tourist services.
The Camping market includes bookings at camping sites for pitches using tents, campervans, or trailers. These can be associated with big chains or privately managed campsites.

Additional Information:

The main performance indicators of the Travel & Tourism 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 and users for the above-mentioned markets. Users represent the aggregated number of guests. Each user is only counted once per year. Additional definitions for each market can be found within the respective market pages.

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.

Prominent players in this sector include online travel agencies (OTAs) like Expedia and Opodo, as well as tour operators such as TUI. Specialized platforms like Hotels.com, Booking.com, and Airbnb facilitate the online booking of hotels and private accommodations, contributing significantly to the market's vibrancy.

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Market

Region

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Currency

Analyst Opinion

Estonia, known for its picturesque landscapes and rich cultural heritage, has seen a notable growth in its Travel & Tourism market in recent years.

Customer preferences: Travelers in Estonia are increasingly seeking unique and authentic experiences, moving away from traditional tourist hotspots to explore off-the-beaten-path destinations. This shift in preferences has led to a rise in demand for sustainable and eco-friendly tourism options, as visitors look to minimize their environmental impact while immersing themselves in the local culture.

Trends in the market: One prominent trend in the Estonian Travel & Tourism market is the growing popularity of digital nomadism. With the rise of remote work opportunities, more individuals are choosing Estonia as a temporary base to explore the country while continuing their professional endeavors. This trend has fueled the demand for co-working spaces, digital infrastructure, and experiential travel packages tailored for remote workers.

Local special circumstances: Estonia's unique position as a tech-savvy nation with a strong focus on innovation has positioned it as a hub for digital nomads and tech enthusiasts. The country's advanced digital infrastructure, including widespread access to high-speed internet and e-governance solutions, has made it an attractive destination for individuals looking to combine work and travel seamlessly. Additionally, Estonia's vibrant startup scene and entrepreneurial spirit have created a dynamic environment for networking and collaboration among like-minded professionals.

Underlying macroeconomic factors: The growing presence of international tech companies and startups in Estonia has contributed to the country's economic growth and increased its visibility on the global stage. This influx of foreign investment has not only created job opportunities but has also fueled the development of the tourism sector, with new accommodations, dining options, and leisure activities catering to a diverse range of travelers. Furthermore, Estonia's membership in the European Union has facilitated ease of travel and trade, making it a convenient destination for visitors from neighboring countries and beyond.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of hotels, vacation rentals, cruises, package holidays, and camping.

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.