Travel in Finland

Finnish travel market develops positively in most respects in 2017

Finland’s travel market performed positively in most relevant measures in 2017. Inbound arrivals continued to increase, with the appreciation of the rouble halting the steep decline in the number of visitors from Russia and market players welcoming strong growth in the number of high-spending Chinese visitors. At the same time, Finns proved increasingly willing to travel abroad. Improvements in flight connections and growing digitalisation also had a positive impact on the development of travel in Finland.

Digital bookings increasingly the norm in many travel categories

While Finns are often early movers in terms of digitalisation, there is still room for improvement in this area as it relates to travel. By the end of the review period digital bookings were already the standard rather than the exception in several travel categories. However, many Finns, mostly older people, still prefer to book and purchase travel products and services offline, and there is a risk that these consumers could be alienated by the drive towards greater digitalisation across the travel market.

Price competition among domestic travel operators intensifies

The number of direct international flights to airports in northern Finland increased towards the end of the review period, thanks in no small part to the growing popularity of Lapland as a destination among inbound tourists. At the same time, price competition between travel players in Finland intensified, with bus companies and train operator VR being particularly aggressive in this regard. This resulted in low cost coach operator OnniBus having to make staff redundant in early 2017, as increasing price competition made its business model less profitable.

Services combining different modes of land transport are launched

2017 saw a number of players offer so-called “travel chains” on a trial basis in Finland. Such services, which are expected to become more widely available over the forecast period, allow travellers to purchase a single ticket for trips that combine different modes of land transport. The most visible travel chain service launched in 2017 was Tuup, which was headed by the former CEO of low cost coach company OnniBus. While its influence remained marginal overall, crowdfunding also played a more visible role in the Finnish travel market in 2017, most notably in the plans for the opening of a new hostel that will employ people with intellectual disabilities.

Outlook for travel in Finland remains broadly favourable

Travel in Finland is expected to continue developing positively over the forecast period. After something of a lost decade, the Finnish economy has recently shown significant improvements, driving consumer confidence to record high levels. It is expected that the Finnish travel market will continue to witness a strong trend towards self-service, which many consumers see not as an inconvenience but as a way to tailor travel products and services to their individual needs. Despite this, many people will continue to favour travelling in groups, particularly with friends and family members.

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