Vacation Rentals - Iceland

Iceland

Highlights

Iceland is expected to witness a rise in the revenue of the Vacation Rentals market, which is projected to reach US$16.74m in 2024.
This revenue is further anticipated to display an annual growth rate of 4.12% (CAGR 2024-2029), ultimately leading to a projected market volume of US$20.49m by 2029.
Additionally, the number of users in the Vacation Rentals market is projected to climb to 68.61k users by 2029.
The user penetration was 15.8% in 2024 and is projected to reach 17.7% by 2029.
The average revenue per user (ARPU) is expected to amount to US$281.20.
Furthermore, it is estimated that 85% of the total revenue in the Vacation Rentals 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 Vacation Rentals market, with a projected revenue of US$20bn in 2024.
However, it is important to keep in mind that the market conditions and trends of each country may vary and therefore, the projected revenue and growth rates may differ.
Iceland's Vacation Rentals market is experiencing a rise in popularity due to its unique landscape and cultural offerings.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Vacation Rentals market in Iceland has been experiencing significant growth in recent years, attracting a large number of tourists looking for unique and authentic travel experiences.

Customer preferences: Travelers in Iceland are increasingly seeking accommodations that offer a more immersive experience in the local culture and environment. This has led to a rise in demand for vacation rentals such as cozy cabins, traditional Icelandic houses, and unique properties with stunning natural views.

Trends in the market: One notable trend in the Vacation Rentals market in Iceland is the growing popularity of eco-friendly and sustainable accommodations. Travelers are showing a preference for properties that prioritize environmental conservation and offer amenities such as recycling facilities, energy-efficient systems, and organic toiletries.

Local special circumstances: Iceland's unique natural landscapes, including geothermal hot springs, volcanic craters, and glaciers, have positioned the country as a top destination for travelers seeking adventure and tranquility. This has contributed to the increasing demand for vacation rentals located in remote and picturesque settings, providing visitors with a truly unforgettable experience.

Underlying macroeconomic factors: The overall growth of Iceland's tourism industry, driven by an increase in international visitors, has had a positive impact on the Vacation Rentals market. Additionally, government initiatives to promote sustainable tourism practices and support local businesses have further boosted the popularity of vacation rentals among travelers looking to explore Iceland's natural beauty responsibly.

Data coverage:

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

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.