Travel & Tourism - Iceland | Statista Market Forecast

In Iceland, the Travel & Tourism market is anticipated to achieve a revenue of US$128.30m by 2024.
This revenue is expected to display an annual growth rate (CAGR 2024-2029) of 4.54%, leading to a market volume projection of US$160.30m by 2029.
The Package Holidays market is the largest market in Iceland, with a projected market volume of US$59.84m in 2024.
It is expected that the number of users will reach 131.20k users by 2029.
The user penetration rate is 54.2% in 2024 and is expected to drop to 66.2% by 2029.
The average revenue per user (ARPU) is expected to be US$626.70.
It is projected that 81% of the total revenue will be generated through online sales by 2029.
Compared to other countries worldwide, United States will generate the most revenue, with an expected revenue of US$214bn in 2024.
Iceland's Travel & Tourism market is booming due to its unique natural landscapes, geothermal hot springs, and opportunities for adventure tourism.

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 Iceland has been experiencing significant growth and development in recent years.

Customer preferences: Travelers visiting Iceland are increasingly seeking unique and immersive experiences, such as exploring the country's stunning natural landscapes, including glaciers, geysers, and waterfalls. There is a growing demand for adventure tourism activities like glacier hiking, ice cave explorations, and whale watching. Additionally, tourists are showing interest in experiencing the local culture through traditional Icelandic cuisine, music, and folklore.

Trends in the market: One of the notable trends in the Icelandic travel market is the rise of sustainable and eco-friendly tourism practices. Travelers are becoming more conscious of their environmental impact and are choosing accommodations, tours, and activities that prioritize sustainability. The country's focus on eco-friendly initiatives, such as geothermal energy and responsible tourism practices, aligns with this trend and attracts environmentally conscious travelers.

Local special circumstances: Iceland's unique geographical features, including geothermal hot springs, volcanic landscapes, and the Northern Lights, set it apart as a distinctive travel destination. The country's small population and remote location contribute to its untouched natural beauty, making it a desirable location for travelers seeking a peaceful and unspoiled environment. The Icelandic government's efforts to promote tourism while preserving the country's natural resources have also played a significant role in shaping the market.

Underlying macroeconomic factors: The growth of the Travel & Tourism market in Iceland can be attributed to various macroeconomic factors, including a stable economy, favorable exchange rates, and improved air connectivity. The country's strategic marketing campaigns, highlighting its unique attractions and outdoor activities, have helped attract a diverse range of international visitors. Additionally, Iceland's safety record, high standard of living, and well-developed tourism infrastructure contribute to its appeal as a travel destination.

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.