Every month, we send out news and updates about the Nordic travel industry including travel trade update, upcoming events, travel trends and current tendencies.

Below are the news from February.

If you want to receive our newsletter, don’t hesitate to sign up by scrolling down in lower left corner.

Travel trade update
During 24-26th of February, the 25th edition of the Danish Travel Show (“Ferie For Alle”) – the biggest of its kind in the Nordics – took place in Denmark. More than 56 000 visitors walked through the tellers, which is a 36% increase from last year.

Previously, the number of visitors were approximately 60 000 (in 2020), so there is a sound optimism that the travel market is on the way back on track. Close to 1 000 exhibitors were present , and according to the major players in outbound travel, sales boomed during the three days.

Preliminary list of activities, fairs, and events taking place in the coming months:

• Swansons US travel show/customer day is held in Osby/Southern Sweden – March 4
• USA Travel Show (B2B) – Denmark – March 7
• ITB 2023 (B2B) – Berlin – March 7-9
• Senior Fair (consumer fair) – Sweden – March 14-16
• Discover America: US Travel Show in Copenhagen/Denmark – March 23-24
• FDM’s US travel show/costumer day is held in Copenhagen/Denmark – March 26 

Historically, for travelers with Singapore Airlines, Australia and Bali have long been popular destinations, followed by Thailand. However, they now see a shift, as Vietnam is becoming an increasingly attractive destination for Nordic travelers. According to Singapore Airlines, Nordic travelers are hungry for new destinations, such as Vietnam and the Philippines, and this will also affect the airline in the future, as they plan to increase the number of planes to accommodate the increasing demand to Southeast Asia.
 
Recently, Norwegian announced its preliminary full-year results for 2022, and it is evident that despite a difficult operating environment, it is possible to generate a net profit. Now, they are well positioned to further solidify their position in the market. However, increased fuel costs may become problematic in 2023 for Norwegian, and with inflation and geopolitical concerns that might affect travelers, Norwegian seems uncertain about 2023. But for now, the number of bookings is encouraging, and Norwegian can – as many other airlines – look ahead into 2023 with travelers still eager to experience new destinations.
 
Sustainability and environmental concerns have been an increasing influence on Nordic travelers’ behavior, and now Lufthansa plans to expand a new sustainability initiative across Europe. It is called green fares and is to some extent meant to be a sustainable alternative to traditional fares. This includes full compensation for the CO2 emission, with 20% spent on sustainable fuel and 80% spent on climate protection initiatives. It has been a success in Denmark, Sweden, and Norway, and showed that the demand for sustainable travel is on the rise. 

Latest news and travel trends 
Recent data from Expedia suggests that travelers are planning further ahead in the future, as the +180-day search window had the strongest growth with an increase of no less than 20%. This is in contrast with what we have seen recently, with the 0–21-day search window being the most used. For international travel, both the 61-90- and +180-day search window saw increases, making it clear that travelers now are planning their international trips further ahead. This should be noted by destinations aiming at international travelers.

TikTok is becoming increasingly influential in travel discovery, according to Skift, and supported by our own data showing an increase in the number of Nordic travelers finding inspiration for their choice of destination on the platform. Especially younger generations are finding their next travel destination through the short-form video service.  

Responsible tourismis a subset of sustainable tourism, and in general, has a great emphasis on the local communities that are affected by tourism. According to The Data Appeal Company, this will be something that shapes tourism in the years to come. Responsible tourism, by their definition, is about putting people first, and it will affect the entire supply chain in tourism, from workers in the industry to travelers and residents.

Generation Z is becoming an increasingly important demographic to target. They prioritize experiences over possessions, and they differ from older generations in their preference for experiences over material possessions and the importance of social media in planning their travel. The travel and tourism industry should focus on creating a strong social media presence to appeal to this group. Generation Z travelers also value flexibility, spontaneity, and adventure and are more likely to travel alone and seek out destinations off the beaten path without relying on guides.

Consolidation of the Danish travel agency market
From time to time, there are changes in ownership among Danish travel agencies, and with new travel agencies coming into the market, the future appears to look bright. Recently, a new OTA, Letsdo.dk, saw the light of day, and other more niche travel agencies are opening. The Association of Danish Travel Agents see the consolidation trend reflects confidence in the future of package travel, while others suggest that consolidation may stifle creativity and innovation within travel agencies.

Aller Leisure’s travel agencies saw a rise in turnover
Aller Leisure’s travel agencies saw a rise in turnover of DKK 608m ($91m) in the past year, but they also recorded a loss of DKK 16m ($2.4m) after tax, according to Aller A/S’s annual accounts. While revenue for Aller Leisure’s travel agencies was above DKK 1bn ($149m) in the year prior to the pandemic, it was DKK 768m in the past fiscal year. The company’s revenue fell to just DKK 160m ($24m) in 2020/2021 due to the pandemic. To sum up, Aller Leisure’s travel agencies are thriving after the Covid-19 pandemic.

TUI with a new sustainable agenda
TUI has announced its sustainability agenda, which includes becoming net-zero by 2050 and reducing its emissions by 24% for its airline, 46.2% for its hotels, and 27.5% for its cruises by 2030. The agenda is built around three pillars, “People, Planet, Progress,” and includes 15 focus areas that will be implemented throughout the TUI Group. TUI aims to lead the way in sustainable tourism and expects its partners to join the journey toward becoming climate neutral. In the years to come, it will be interesting to see how this agenda is put into effect.