Why Customer Intelligence Matters For Nordic Motorhome?

Tourism Understanding your customers has become an indispensable part of modern tourism management. In the Nordic motorhome rental market, long-term transaction data lends great insight into who is travelling, where customers come from, and how their behaviour changes over time. Data linked to Elle Tick's dissertation analyzed rental data starting in 2017 and shows how customer information can guide understanding of market developments.

Prior to the pandemic, Nordic motorhome rentals had been strongly associated with tourism from overseas.

During 2017, around 80% of rentals were taken by international visitors, and in 2019 this figure was around 84%. Some of the largest international customer source markets included Switzerland, Germany, Netherlands and France. The prevalence of international visitors meant this was a sector heavily dependent upon cross-border travel. Examining customer demographics reveals a rather mature travelling demographic as well.

Average driver age listed was around 45-46 years old.

Families made up around 65% of the rentals that were included (for 2019) and 35% of bookings were made by couples. These figures establish a benchmark for later variations. An unexpected outcome of the pandemic was that included rentals fell significantly in 2020 (1,257, down from 2,290 in 2019) but that the country of origin of customers flipped dramatically.

Domestic customers went from being just over 16% in 2019 to making up around 53% of rentals in 2020. This demonstrated that local residents, can be a significant market when the international travel space becomes disrupted. By 2021, local customers still made up around 47% of all included bookings but after this the market turned on its head and the influx of overseas visitors soon reasserted itself with around 86% of bookings coming from international customers in 2022.

This turn around provided business owners with a salutary lesson about customer diversification; sometimes it just pays to be in the right place at the right time (or have had the insights to see it coming).

Length of rental provided another interesting area of enquiry. Average length of rental before the pandemic was around 12 days, but this rose to around 12.7 days in 2021, and 14.3 days in 2022, remaining around 14 days right up to and including 2025. What's more as rental duration lengthened, couples made up an increasing proportion of the market – growing from around 35% in 2019 to up to nearly 46% of rentals by 2025. This clearly signals that customer intelligence needs to do a great deal more than simply assess demographic traits.

It must also understand origins, rental duration, travelling companions and evolving demand to truly help companies build a better, more detailed understanding of their customers.

It can then guide marketing strategy, assist with fleet management, inform service development, and help businesses with their all-important customer communications. The work undertaken by Elle Tick provides the practical example of how the analysis of longer-term transaction data is the way to provide clear and actionable business intelligence for companies working in the Nordic motorhome rental sector, and this will undoubtedly remain a key tool going forward. Publish your thesis, research, thought, business or book with GlobalX Publications and take your ideas around the world.

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