Travel & Tourism - Norway

Norway

In Norway, the Travel & Tourism market is expected to generate a revenue of €4,051.00m in 2024, with a projected annual growth rate (CAGR 2024-2028) of 1.80%.
This will result in an estimated market volume of €4,351.00m by 2028.
The largest market is the Package Holidays market, which is expected to reach a market volume of €2,096.00m in 2024.
By 2028, the number of users in the Package Holidays market is expected to increase to 3,051.00k users.
The user penetration rate is predicted to grow to 77.6% by 2028, up from 77.4% in 2024.
The average revenue per user (ARPU) is expected to be around €0.95k.
Additionally, online sales are expected to account for 90% of total revenue in the Travel & Tourism market by 2028.
Compared to other countries globally, United States is expected to generate the highest revenue of €182bn in 2024.
Norway's focus on sustainable tourism, including hiking, skiing, and whale watching, has attracted environmentally conscious travelers.

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.

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Región

Comparación de regiones

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Analyst Opinion

Norway, known for its stunning fjords and natural beauty, has seen a steady growth in its Travel & Tourism market in recent years.

Customer preferences: Travelers in Norway are increasingly seeking unique and authentic experiences, moving away from traditional tourist hotspots to explore off-the-beaten-path destinations. There is a growing demand for sustainable and eco-friendly travel options, reflecting a global trend towards responsible tourism practices.

Trends in the market: One notable trend in the Norwegian Travel & Tourism market is the rise of adventure tourism. Travelers are increasingly drawn to activities such as hiking, skiing, and glacier exploration, seeking adrenaline-pumping experiences in the country's picturesque landscapes. Additionally, there has been a surge in cultural tourism, with travelers showing a keen interest in Norway's rich history and heritage.

Local special circumstances: Norway's unique geographical features, including its majestic mountains and Northern Lights, set it apart as a prime destination for nature lovers and adventure seekers. The country's efficient infrastructure and high safety standards also contribute to its appeal among international travelers. Moreover, the Norwegian government's focus on promoting sustainable tourism practices aligns with the preferences of modern-day travelers.

Underlying macroeconomic factors: The stable economy and high standard of living in Norway have bolstered the Travel & Tourism market, allowing for investments in infrastructure and tourism development. Additionally, the country's strong emphasis on environmental conservation and preservation of natural resources has resonated with environmentally conscious travelers, further driving growth in 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.