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2022 Travel Trends in Iceland identified with PriceLabs Market Dashboard

Last Updated on 3 months by Vinay Sahu
Iceland Travel Trends
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Iceland is a Nordic island country that is situated in the North Atlantic Ocean and is known for being very sparsely populated. More than 65% of its population resides in its capital city of Reykjavik. The country is one of the most popular European destinations to travel to because of its raw, scenic beauty and the fact that it lies in the middle of Europe and North America. There are various unique travel trends in Iceland and PriceLabs’ data found a prominent length of stay trend in the country that is seldom talked about. 

Unlike many destinations where the peak season has a longer length of stay, the length of stay trends in parts of Iceland is consistent (or sometimes inverted!) between the high and low demand seasons. Iceland is frequented by travelers predominantly during the summer months, i.e., from June to September, with one-night stays being the most common in some parts even during high season – in this article, we dive into some data that shows the travel trends in Iceland and try to understand why this might be happening. 

However, July and August are the peak seasons, with most travelers choosing to travel to the country as these are the summer months. Iceland has 24 hours of daylight during the summers that allow travelers to safely enjoy the wilderness of the country. It is convenient for family travelers to do adventure activities without having their kids covered in four layers of clothing. 

Types of Travelers Visiting Iceland

1. Solo travelers

The Nordic country is the perfect destination for solo travelers. The country provides a blend of exotic and unique locations while being one of the safest countries in the world. The crime rates in the island nation are meager. Also, hitch-hiking is a common practice among travelers and locals. 

2. Nature Lovers

The nordic country is not an island covered in ice but a scenic nation that has everything including majestic glaciers, cracked lava fields, gushing geysers, green fjords, and geothermal lagoons.  Its location between two tectonic plates present in the mid-Atlantic range results in it being the country with the highest number of active volcanoes.

Nature lovers choose to visit Iceland to see all the pristine landscapes in one single country.

3. Wildlife Enthusiasts 

Iceland is a wildlife enthusiast’s dream. The country is home to a huge array of exotic seabirds that come to nest on coastal cliffs across the country in huge colonies during the breeding season. The country waters also house approximately 24 species of whales. In fact, whale watching is one of the most common adventure sports in Reykjavic.

4. Adventure Seekers

Iceland is a country defined by its outdoors, and its portfolio of adventure/adrenaline activities is enough to rival New Zealand for the title of the world’s adventure capital. 

Iceland offers scenic beauty to hikers. Travelers can hike on grassy meadows bursting with wildflowers, lava fields, black-sand deserts, and icefields. Almost every Icelandic town boasts an outdoor geothermal pool or lagoon. There are also opportunities for white water rafting, ice-climbing, horse-riding, scuba-diving, visiting man-made ice caves, quad biking, snowmobiling, skiing, and so on. 

5. Fantasy Nerds

‘Iceland is a country of striking and sometimes supernatural beauty, which is matched by its rich and extensive folklore.’ Icelandic population believes in the existence of elves, trolls, Vikings, ghosts, and supernatural beings. They even believe that people can see them till now in the sites rich with thousands of years of history. Fantasy nerds prefer traveling to the country to know more about its mythical history and folklore.

Why Do Travelers Prefer Vacation Rentals?

There is a shortage of accommodation during peak seasons, so travelers switch to vacation rentals when looking for a place to stay. Many travelers prioritize staying at a vacation rental over a hotel. Wondering why? Here are a few reasons:

1. Added Amenities 

Vacation rentals offer guests extra amenities like a kitchen, washer and dryer, and entertainment systems like DVDs, books, games, etc. Staying at a vacation rental provides most of the amenities a traveler can find at home. The liberty to cook their food and do their laundry works well with most people these days. 

2. Size of the rental

When booking a hotel room, travelers will only get one room with an attached bathroom (until you book a full-fledged suite). Then, for a much more reasonable price, they can get a much bigger space with a bedroom, kitchen, bathroom, living room, balcony, and sometimes a garden or a backyard. Some travelers, specifically those traveling in a big group or with family, prefer this arrangement over a hotel.

3. Privacy at a backpackers budget

Most backpackers are looking for a cheap accommodation option. They usually choose hostels, but these days vacation rentals provide private rooms and sometimes entire studio apartments at the budget of a hostel. Travelers prefer the privacy of having your room rather than sharing it with six other strangers for the same or a little extra cost. 

4. Limited contact with others

The pandemic has put people on edge regarding coming in contact with other people. Living in vacation rentals, especially those that offer the service of self-check-ins, have limited peer-to-peer contact and give more control to the travelers over their exposure to the virus. 

5. Fraternizing with the Locals 

When someone travels to another country, they usually want to immerse themselves in that nation’s culture. They want to learn how locals live and live like them, even for a day or a week. Staying at a vacation rental and sharing a house with a local gives them this opportunity. 

They can hear stories about the region directly from the locals. They can also get restaurant, sightseeing and activities suggestions from them and see the country from the eyes of someone who lives there. 

6. Camping is not allowed everywhere.

Most people on a road trip prefer to camp for the night. Although camping is allowed at proper camping parks in various regions of the country, one can’t set up a camp just about anywhere. 

It might not always be feasible for the traveler to travel to a camping ground to set a camp for the night, and they choose to live in a vacation rental instead. 

Dynamic pricing in Airbnb refers to the practice of adjusting rental rates in real time based on various factors such as demand, seasonality, local events, and market conditions. This approach allows hosts to optimize their earnings by automatically increasing or decreasing prices to match supply and demand fluctuations. By utilizing data and algorithms, dynamic pricing aims to find the optimal balance between attracting guests and maximizing revenue, ensuring that prices reflect the current market dynamics.
To implement dynamic pricing for vacation rentals, collect relevant data, identify key factors, set pricing rules, use dynamic pricing software, monitor performance, and adjust as needed to optimize revenue.
The aim of dynamic pricing is to optimize revenue and occupancy rates. It is done by adjusting prices in real time based on factors such as demand, market conditions, competition, and other variables. Dynamic pricing softwares seeks to find the optimal balance between attracting guests and maximizing profitability by dynamically setting prices that reflect current market dynamics. The goal is to capture the highest possible value for each booking while ensuring competitiveness in the market.
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