Hotels - Iceland | Statista Market Forecast

Hotels - Iceland

Iceland

Highlights

It is projected that Iceland's Hotels market will generate a revenue of US$41.40m in 2024.
The revenue is expected to steadily grow at an annual growth rate (CAGR 2024-2029) of 4.30%, eventually reaching a market volume of US$51.11m by 2029.
Furthermore, the number of users in the Hotels market is expected to increase to 106.00k users by 2029.
The user penetration rate is projected to increase from 22.9% in 2024 to 27.3% by 2029.
The average revenue per user (ARPU) is expected to be US$477.90.
It is also forecasted that 85% of the total revenue in the Hotels market will be generated through online sales by 2029.
It is noteworthy that in global comparison, United States is expected to generate the highest revenue in the Hotels market, with a projected revenue of US$111bn in 2024.
Iceland's hotel market is thriving due to the country's unique natural attractions, with many hotels offering stunning views of the Northern Lights.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

Iceland, known for its stunning natural landscapes and geothermal hot springs, has seen a significant growth in its Hotels market in recent years.

Customer preferences: Travelers visiting Iceland are increasingly looking for unique and authentic experiences, driving the demand for boutique hotels and eco-friendly accommodations. The trend towards sustainable tourism has also influenced customer preferences, with many visitors seeking hotels that prioritize environmental conservation and local community engagement.

Trends in the market: One notable trend in the Icelandic Hotels market is the rise of luxury accommodations catering to high-end travelers seeking exclusive amenities and personalized services. Additionally, the growing popularity of adventure tourism in Iceland has led to an increase in demand for hotels located in close proximity to outdoor activities such as hiking, glacier tours, and northern lights viewing.

Local special circumstances: Iceland's geographical location and small population size have contributed to the unique dynamics of its Hotels market. The country's tourism industry has experienced rapid growth in recent years, driven by an influx of international visitors attracted to Iceland's natural beauty and cultural attractions. This surge in tourism has led to an expansion of the Hotels market to accommodate the growing number of travelers seeking accommodation options across the country.

Underlying macroeconomic factors: The Icelandic Hotels market is also influenced by macroeconomic factors such as exchange rates, government policies, and global economic conditions. Fluctuations in currency values can impact tourism flows and hotel pricing, while government initiatives to promote tourism development and infrastructure improvements play a role in shaping the overall growth of the Hotels market. Additionally, external factors such as economic stability in key tourist markets and geopolitical events can influence travel patterns and visitor numbers to Iceland.

Data coverage:

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

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.