Travel & Tourism - Finland | Statista Market Forecast

In Finland, the Travel & Tourism market is expected to see a significant rise in revenue, with projections showing that it will reach US$3.39bn by 2024.
This revenue is expected to increase at a Compound Annual Growth Rate (CAGR) of 3.39% between 2024-2029, resulting in a projected market volume of US$4.01bn by 2029.
The largest market is the Hotels market, which is expected to generate a projected market volume of US$1.53bn by 2024.
By 2029, the number of users in the Hotels market is expected to reach 3.45m users.
The user penetration rate in this market is expected to increase from 61.1% in 2024 to 67.9% by 2029.
The average revenue per user (ARPU) is expected to be US$999.80.
It is projected that 91% of the total revenue in the Travel & Tourism market will be generated through online sales by 2029.
It is interesting to note that in global comparison, United States is expected to generate the most revenue in the Travel & Tourism market, with a projected revenue of US$214bn in 2024.
Finland's unique natural attractions, such as the Northern Lights and the Midnight Sun, continue to drive growth in the country's tourism industry.

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.

For further information on the data displayed, refer to the info button right next to each box.

Bookings directly via the website of the service provider, travel agencies, online travel agencies (OTAs) or telephone

Business trips
Other forms of trips (e.g. excursions, etc.)

The Travel & Tourism market in Finland is experiencing significant growth and development, driven by various factors influencing consumer behavior and market dynamics.

Customer preferences: Travelers in Finland are increasingly seeking unique and authentic experiences, prioritizing sustainable and eco-friendly options. There is a growing interest in nature-based activities, cultural immersion, and wellness tourism. Additionally, personalized and experiential travel services are gaining popularity among Finnish tourists.

Trends in the market: One prominent trend in the Finnish travel market is the rise of digitalization and technology integration in travel services. Online booking platforms, mobile applications, and virtual reality experiences are enhancing the overall travel experience for customers. Moreover, there is a noticeable shift towards off-the-beaten-path destinations within Finland, promoting domestic tourism and exploration of lesser-known regions.

Local special circumstances: Finland's unique geographical features, such as its pristine forests, thousands of lakes, and the enchanting Northern Lights, make it an attractive destination for nature lovers and adventure seekers. The country's commitment to sustainability and responsible tourism practices further distinguishes it as a desirable travel destination. Additionally, Finland's rich cultural heritage, including traditional saunas, indigenous Sami culture, and design excellence, adds to its appeal for tourists.

Underlying macroeconomic factors: The stable economic environment in Finland, coupled with increasing disposable incomes and a strong focus on promoting tourism by the government, has contributed to the growth of the travel and tourism sector. Infrastructure development, investments in transportation networks, and collaborations with international travel partners have also played a crucial role in positioning Finland as a competitive tourism destination. The country's emphasis on safety, cleanliness, and high-quality services align well with the preferences of discerning travelers, further driving the positive trajectory of the market.

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.

This report presents a comprehensive analysis and additional information on the Mobility market, in a PDF format.

Business or corporate travel is the tourism segment that focuses on people who travel for work or professional purposes and the related tourism services. This branch also includes the meetings industry, which refers to business events, conferences, congresses, trade fairs, and exhibitions. According to the World Travel and Tourism Council (WTTC), business travel accounted for 20 percent of the global tourism expenditure in 2021. In that year, it was estimated that business travelers spent more than 740 billion U.S. dollars worldwide, with Chinese tourists topping the ranking of the biggest business travel spenders.