Sweden Hospitality Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Market Size (2024) | USD 5.83 Billion |
| Market Size (2029) | USD 7.17 Billion |
| CAGR (2024 - 2029) | 4.26 % |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Sweden Hospitality Market Analysis
The Hospitality Industry In Sweden Market size is estimated at USD 5.83 billion in 2024, and is expected to reach USD 7.17 billion by 2029, growing at a CAGR of 4.26% during the forecast period (2024-2029).
Sweden's hotel market, largely dominated by domestic chain brands, is characterized by maturity. The demand for hotels is on the rise, fueled by a steadily increasing number of both domestic and international travelers. Growing interest in travel across all age groups, expanding affordable travel opportunities, and rising disposable incomes are significant drivers stimulating tourism.
Key players in the hospitality sector are employing diverse strategies to attract dynamic customers, incorporating mobile solutions for streamlined processes, from room booking to varied payment methods, seamless self-check-in and check-out facilities, and personalized stay experiences. The lodging industry, accounting for over 51% of total chain hotel rooms, is primarily dominated by the upper and upper-midscale segments. Recent market drivers and opportunities include the ongoing digital transformation, innovative guest experiences, sustainability initiatives, and the adaptation of advanced technologies, all contributing to the dynamic evolution of the hospitality industry in Sweden.
Sweden Hospitality Market Trends
Increasing Number of Foreign Visitors Are Driving the Market
- The hospitality industry in Sweden has indeed experienced an increasing number of foreign visitors in recent years, which has had a positive impact on the market. Sweden, with its stunning natural landscapes, rich history, and vibrant cities, has become an attractive destination for tourists from around the world.
- The Swedish government and tourism organizations have actively promoted the country's attractions and unique experiences to international travelers. This marketing effort has helped raise awareness and interest in visiting Sweden.
- Improved transportation infrastructure, including direct flights and efficient public transportation, has made it easier for tourists to reach various destinations within Sweden. This accessibility has played a significant role in attracting foreign visitors.
- Sweden offers a diverse range of attractions, from picturesque landscapes like the Northern Lights, the Swedish archipelago, and national parks to historic sites and cultural events. These natural and cultural assets appeal to tourists seeking memorable experiences.
- The increasing number of foreign visitors has had a positive impact on the hospitality industry in Sweden. Hotels, resorts, restaurants, and other tourism-related businesses have witnessed growth due to the higher demand for accommodation, dining, and leisure activities. This increased demand has led to the development of new hotels and the expansion of existing hospitality establishments.
- To cater to the diverse needs of foreign visitors, many hotels and tourist facilities in Sweden offer multilingual staff, cultural amenities, and services tailored to international travelers. This focus on providing a high-quality experience contributes to the overall growth of the hospitality market.
Dynamic Occupancy Rate is Challenging the Overall Revenue Growth of the Market
- The hospitality industry in Sweden, like many other countries, is influenced by various factors that can impact its overall revenue growth. One such factor is the dynamic occupancy rate, which poses challenges to the industry's revenue growth. Dynamic occupancy rate refers to the fluctuating levels of occupancy in hotels and other accommodations throughout different times of the year. In Sweden, this fluctuation can be attributed to several factors, including seasonal variations in tourism, business travel patterns, and economic conditions.
- Sweden experiences significant seasonal variations in tourism. During peak seasons, such as the summer months, when tourists flock to popular destinations like Stockholm and Gothenburg, hotels often achieve high occupancy rates and generate substantial revenue. However, during off-peak seasons, occupancy rates may decline, leading to reduced revenue and profitability.
- Business travel also plays a crucial role in the hospitality industry. Occupancy rates are influenced by corporate events, conferences, and trade shows. Fluctuations in business travel can lead to variations in occupancy levels, impacting revenue growth.
- Hotels and accommodations can diversify their target markets to attract different types of guests throughout the year. This could include targeting business travelers during weekdays and leisure travelers on weekends or offering specialized packages for different seasons. Implementing revenue management practices can help optimize pricing strategies based on demand fluctuations.
- By employing dynamic pricing models and forecasting techniques, hotels can adjust rates according to occupancy levels, maximizing revenue during peak periods and minimizing losses during low-demand periods. Collaborating with local businesses, attractions, and event organizers can help stimulate demand and attract visitors throughout the year. By working together, stakeholders can create integrated tourism experiences and drive increased occupancy rates.
Sweden Hospitality Industry Overview
Sweden recorded 21% Chain hotel penetration and 51% chain room penetration in the previous year. Leases are the most popular model, with almost all Scandic Hotels properties being leased. The domestic brands' Best Western, Nordic Choice, and Scandic Hotels are the top 3 chain hotel brands in the country and account for more than 60% of total rooms. Best Western and Nordic Hotels have the largest number of hotels, whereas Scandic Hotels is the largest provider of chain hotel rooms, with more than 17,000 among 85 hotels.
Sweden Hospitality Market Leaders
-
Elite Hotels
-
First Hotels
-
Nordic Choice Hotels
-
Scandic Hotels
-
Best Western Hotels & Resorts
*Disclaimer: Major Players sorted in no particular order
Sweden Hospitality Market News
- April 2023: Choice Hotels EMEA added Scandinavia's "Fortress Hotels" to its Ascend Hotels Collection portfolio.
- April 2023: Scandic announced it would open its first hotel under its new Scandic Go brand, a smart, sustainable hotel concept under the economy segment, at the beginning of September in Stockholm, Sweden.
Sweden Hospitality Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Growth In Tourism
4.2.2 Strong Economy
4.3 Market Restraints
4.3.1 Seasonality
4.3.2 Skilled Labor Shortages
4.4 Value Chain Analysis
4.5 Industry Attractiveness - Porters' Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitutes
4.5.5 Intensity of Competitive Rivalry
4.6 Insights of Technology Innovations in the Market
4.7 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Chain Hotels
5.1.2 Independent Hotels
5.2 By Segment
5.2.1 Service Apartments
5.2.2 Budget and Economy Hotels
5.2.3 Mid and Upper mid scale Hotels
5.2.4 Luxury Hotels
6. COMPETITVE INTELLIGENCE
6.1 Market Concentration
6.2 Company profiles
6.2.1 Best Western Hotels & Resorts
6.2.2 Scandic Hotels
6.2.3 Nordic Choice Hotels
6.2.4 First Hotels
6.2.5 Elite Hotels
6.2.6 Radisson Hotel Group
6.2.7 Ligula Hospitality Group
6.2.8 Marriott International
6.2.9 Accor Hotels
6.2.10 Hilton Hotels & Resorts
6.2.11 Comwell Hotels*
- *List Not Exhaustive
6.3 Loyalty programs offered by Major Hotel Brands
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
Sweden Hospitality Industry Segmentation
The hospitality industry encompasses a diverse range of businesses that cater to the needs of guests and customers, providing accommodation, dining, travel, and entertainment services. It includes hotels, restaurants, airlines, cruise lines, and various other establishments focused on delivering exceptional experiences and comfort to their patrons.
The hospitality industry in Sweden is segmented by type and segment. By type, the market is sub-segmented into chain hotels and independent hotels. By segment, the market is sub-segmented into service apartments, budget, and economy hotels, mid and upper-mid-scale hotels, and luxury hotels. The market size and forecasts are provided in terms of value (USD) for all the above segments.
| By Type | |
| Chain Hotels | |
| Independent Hotels |
| By Segment | |
| Service Apartments | |
| Budget and Economy Hotels | |
| Mid and Upper mid scale Hotels | |
| Luxury Hotels |
Sweden Hospitality Market Research FAQs
How big is the Sweden Hospitality Market?
The Sweden Hospitality Market size is expected to reach USD 5.83 billion in 2024 and grow at a CAGR of 4.26% to reach USD 7.17 billion by 2029.
What is the current Sweden Hospitality Market size?
In 2024, the Sweden Hospitality Market size is expected to reach USD 5.83 billion.
Who are the key players in Sweden Hospitality Market?
Elite Hotels, First Hotels, Nordic Choice Hotels, Scandic Hotels and Best Western Hotels & Resorts are the major companies operating in the Sweden Hospitality Market.
What years does this Sweden Hospitality Market cover, and what was the market size in 2023?
In 2023, the Sweden Hospitality Market size was estimated at USD 5.58 billion. The report covers the Sweden Hospitality Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Sweden Hospitality Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Sweden Hospitality Industry Report
Statistics for the 2024 Sweden Hospitality market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Sweden Hospitality analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Sweden Hospitality Market Report Snapshots
