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