Travel & Tourism - Nordics

Nordics

The Travel & Tourism market in the Nordics is expected to experience significant growth in the coming years.
By 2024, revenue in this market is projected to reach US$19.78bn.
Moreover, it is expected to show an annual growth rate of 2.71%, resulting in a projected market volume of US$22.61bn by 2029.
The largest market in this market is the Package Holidays, which is projected to have a market volume of US$9.33bn in 2024.
By 2029, the number of users in this market is expected to amount to 18.15m users.
In 2024, user penetration is estimated to be 82.1% and is expected to increase to 92.3% by 2029.
The average revenue per user (ARPU) is expected to be US$0.86k.
Furthermore, it is expected that 86% of the total revenue in the Travel & Tourism market will be generated through online sales by 2029.
It is worth noting that in global comparison, United States is projected to generate the most revenue in this market, with US$214bn in 2024.
Norway's focus on sustainable tourism has led to an increase in demand for eco-friendly accommodations and activities.

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.

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

Market

Region

Region comparison

Currency

Analyst Opinion

The Travel & Tourism market in Nordics is experiencing a significant surge in interest and activity, with travelers from around the world flocking to this region for its stunning landscapes, unique culture, and outdoor adventures.

Customer preferences: Travelers in the Nordics are increasingly seeking authentic and immersive experiences, opting for sustainable and eco-friendly travel options. They are drawn to the region's untouched nature, picturesque fjords, and vibrant cities, making it a top choice for eco-conscious tourists.

Trends in the market: In Sweden, the trend of "allemansrätten," or the freedom to roam, is attracting nature lovers looking to explore the country's vast wilderness. Norway is seeing a rise in adventure tourism, with activities like hiking, skiing, and dog sledding becoming increasingly popular. Denmark is known for its design and culinary scene, drawing in travelers interested in art, architecture, and gastronomy. Finland's unique cultural offerings, such as sauna experiences and northern lights tours, are driving tourism growth in the region.

Local special circumstances: The Nordics boast a high standard of living, excellent infrastructure, and a strong focus on sustainability, making it an attractive destination for travelers seeking quality experiences. The region's efficient public transportation system and well-preserved natural landscapes further enhance its appeal to tourists.

Underlying macroeconomic factors: The stable economies of the Nordic countries, coupled with government initiatives to promote tourism, are fueling the growth of the Travel & Tourism market in the region. Favorable exchange rates and increasing air connectivity are making it easier for international visitors to explore the Nordics, contributing to the upward trajectory of the market.

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.