11. Seasonal and special occasions

In recent years, the number of festivals, public events, shows, and seasonal celebrations in the Nordic countries has grown significantly, along with the number of participants (Langen & Garcia, 2009). This trend has led to various studies on these large-scale events’ economic, social, cultural, and political impacts. Similarly, outdoor life and leisure activities in nature have also seen a rise, prompting studies into the environmental and economic impacts of seasonal outdoor equipment (Nordic Council of Ministers, 2014). Both large public events and the increasing demand for seasonal outdoor products play a role in shaping a country’s image and its attractiveness as a tourist destination.

Research on festivals and public events has traditionally focused on their economic impact, with less attention given to their social and cultural implications (Collins & Cooper, 2017). Moreover, studies on the environmental impacts of these events are limited, leaving a significant knowledge gap. While some research exists for outdoor and seasonal products, the focus has been mostly on economic and user-driven impacts.

The category of outdoor equipment in the Nordic countries continues to expand, fueled by the growing tourism sector following the lifting of COVID-19 travel restrictions (Nordic Council of Ministers, 2023). Mass tourism, enabled by the public rights of access in the Nordic region, has made nature-based tourism highly popular (Øian et al., 2018). However, with this influx of tourists comes the challenge of preserving natural landscapes while maintaining tourism flow. As a result, sustainability has become a key focus of tourism strategies across the Nordics, with eco-conscious travel gaining traction among tourists (Øian et al., 2018).

PSS solutions for outdoor and events could offer more sustainable alternatives through rental models, reducing the need for ownership and promoting resource efficiency. Within the Nordic region, opportunities for PSS solutions are expanding, benefiting both locals and tourists (Egebæk et al., 2022). For the pilot project within this category, we have explored how rental solutions for outdoor equipment could appeal to both domestic and international tourists while also examining the barriers and benefits experienced by consumers. This research aimed to understand consumer preferences and assess market differences between the Nordic countries and the potential for expanding rental services across these regions.

In addition to outdoor gear, party and event equipment is another significant category within the seasonal product group. Rental services for party and event equipment, ranging from single-use items to large-scale essentials like tents, furniture, and electronics, are widely available for B2C, B2B, and B2G markets. The most common rental model involves short-term agreements with minimal additional services. These solutions cater to everything from small private parties to large public events (Kataria, 2021). In the Nordics, most of the PSS solutions within this product category are oriented towards the B2C and B2B markets, offering a range of solutions for sound, lights, games, activities, etc., suited for events and parties. The most common business model identified was use-oriented PSS models, typically offering rental solutions ranging from hours to weeks of product rental. Most of the PSS solutions for party and event equipment offer a spectrum of products, covering most imaginable equipment needed to throw a large party or event. However, a few are specialised in a few products, illustrated by, e.g. the Danish company A Table Story, which offers a rental solution for decorative table wear (A table story, n.d.).

Amongst the more common PSS solutions within the product category is Party.Rent, which is one of the largest providers of party equipment rentals across Europe, primarily serving the B2B market and catering to various event sizes. The company follows a circular economy approach, divided into three phases: development, use, and refurbishment/recycling. Party.Rent emphasises designing processes for a circular workflow, focusing on reprocessing materials and recycling raw materials to contribute to future product generations. Their pooling model allows resources to be shared among customers, reducing costs, increasing efficiency, and optimising resource use (Rent.Group, n.d.). By promoting a product-pooling approach, Party.Rent meets the growing demand for high-quality, sustainable solutions, particularly in response to the environmental concerns associated with single-use items (Kataria, 2021).

Similarly, Barnas Dag, a Norwegian company, offers a wide range of rental services for children’s and young adults’ parties, including catering equipment, sound systems, furniture, and even children’s entertainers (Barnas Dag, n.d.). Barnas Dag also sells equipment, such as bouncy castles, from their rental stock or as one-time-purchase products designed for specific customer needs (Barnas Dag, n.d.).

Festkungen, a Swedish company, focuses on renting out professional sound, lighting equipment, and stages for events, along with hiring sound and light technicians. Their tailored event packages ensure that private and business customers receive a comprehensive experience (Festkungen, n.d.). Another major player in the event rental industry is Nordíc Rentals, Scandinavia’s largest privately owned event technology supplier. They provide technical equipment for concerts, festivals, trade fairs, and livestreaming (Nordíc rentals, n.d.).

These examples highlight the diversity of PSS models available in the party and event equipment sector, which have been successfully operating for decades. However, this is not always the case. PUUF, a company interviewed early in the PSS in the Nordics project, were a company developing and renting out furniture for events made of reclaimed materials, such as post-consumer plastic waste obtained from companies in Copenhagen. PUUF had developed a very sustainable model, sourcing reclaimed materials, producing locally, reducing material waste, and delivering event furniture mostly through bicycle couriers. Furthermore, they received attention from many Danish universities and had customers such as the Municipality of Copenhagen. Despite their huge environmental potential, the COVID-19 pandemic stunned their rental model, hindering income on anything other than product sales.

While companies like Party.Rent and Festkungen demonstrate that PSS models in this product group can be viable and meet the demands of both private and corporate clients, the assessment of Nordic PSS solutions within this category illustrates how vulnerable these solutions can be to sudden changes in (possible) consumption behaviour, as the products do not offer essential services but rather enjoyment-based services.

The Nordics has a broad range of PSS solutions as well as non-profit sharing solutions for sports, camping, and hiking gear. Most PSS solutions target the B2C market, specifically tourists, students, and families. The PSS solutions come in many shapes, some focusing on singular product groups, e.g. snow sports equipment or hiking equipment, and others having a broader product offering. There is a good potential for market disruption within the seasonal category, as most of the products used for outdoor activities have a relatively low use-rate, adding to a more sustainable way of travelling and participating in outdoor and leisure activities for tourists in the Nordic countries. Use-oriented models are most common among the identified PSS providers in the Nordics. Still, many providers offer either product- or result-oriented PSS solutions in addition to rental or leasing options. Most identified PSS providers offer their product services to the B2C and, to a lesser extent, the B2B market (Egebæk et al., 2022).

Very little academic work has been conducted on PSS solutions of this particular product group, and most of the studies are related to the integration of digital tools to facilitate the rental solution. The pilot projects conducted concerning this product group do, however, point to a relatively low uptake of digital solutions to facilitate the PSS solutions in the Nordic countries. While most have a website showcasing the products, and some have online booking systems, very few of the consulted PSS solutions have integrated a system to keep an overview of product stock, rental agreements, product maintenance requirements, etc.

Through the pilot program, Iceland Camping Equipment Rental, located in Reykjavík, Iceland, participated in two pilot projects. The first pilot project assessed opportunities for reaching domestic consumers in the same manner as Iceland Camping Equipment Rental reaches tourists. A survey was conducted with over 1,000 Icelanders, assessing market approaches, pricing, customer segments, geographical challenges, and relevant products. The second pilot project focused on opportunities to expand Iceland Camping Equipment Rental to the Norwegian and Swedish markets, including assessments of hotspots for implementation and value chain assessments.

The surveys conducted and assessed throughout the pilot projects provided unique insights into the customers’ perspectives on PSS, who are keen to use a PSS, what the customers value when engaging in PSS solutions, and what kind of products within the sports, camping, and hiking gear category they are interested in.

The survey with more than 1,000 Icelandic respondents showed that there is a slight preponderance of men who knew that it is possible to rent equipment (46.6% men and 38.3% women), but conversely, fewer men than women could consider renting equipment in the future (64.1% men and 76.7% women The distribution for the answer 'reducing environmental impact the respective product with a shared economy mindset' is 46.2% women and 26.5% men. The type of products the different age groups were willing to rent differed, as 30–39-year-olds were the most willing to rent kayaks, electric bikes, skiing equipment, top tents for cars, mountain bikes, and baby car seats, while 18–29-year-olds were the most willing to rent camping and hiking equipment. Further, the respondents in the age group 30–39 years old were the ones who were the most aware of the opportunity to rent leisure and camping equipment and the most willing to consider renting these types of products in the future. The respondents over 60 were generally the least willing to rent any product examples provided in the survey.

In Norway, a survey was conducted by Ipsos on behalf of Norsk Friluftsliv (Ipsos, 2021), focusing on the interest in buying, renting, and borrowing used outdoor equipment. The survey shows that the age group of 25–39 years old are the most willing to buy and rent used equipment, with women being more interested in renting than men. In addition, a study shows that people between the ages of 16 and 34 have stayed out overnight in nature during 2021, while the 16–24-year-olds are the ones who have done it most often. The age group of 35–54 also stays out in nature overnight more often in 2021 than in 2007, indicating a rise in the popularity of spending the night in nature. The hammock is a specific piece of equipment that has gained popularity when staying overnight in nature (Håvard Bergesen Dalen & Madeleine Schlyter Oppøyen, 2023).

In Sweden, annual household expenditures on open-air recreation, sports, and camping equipment increased from 2008 to 2021, with the largest increase between 2020 and 2021 (Statista Research Department, 2023). This could be due to the COVID-19 pandemic and the increased interest in participating in outdoor activities. When looking at the expenditures of different age groups, the younger generations seem to spend more on outdoor equipment. In 2022–2023, people between the ages of 16–19 spent around 11,101 SEK (∼ 978 €) on outdoor activities, while people between the ages of 20–29 spent around 11,283 SEK (∼ 994 €). A study conducted in Sweden shows that the expenditure on products for activities such as hiking, camping, and many water-based activities was most prominent during the summer period of May-August in 2022 (Bäck, 2023), which indicates a potential option for accessing the market and offers alternative solutions such as renting.

The first pilot project with Iceland Camping Equipment Rental was centred around assessing the potential for an increased uptake of the rental solution amongst local actors to increase the market reach to exceed tourists. Even with an increased interest in renting equipment, the biggest barrier to rental services is the culture of ownership, especially among locals (be it in Iceland, Sweden or Norway), as they are more likely to own or procure the relevant products themselves when they need them. Even with additional services such as car rentals or tour packages, locals already have access to areas of interest and local knowledge about where to go and when to go there. Therefore, additional services might not be enough to spark interest in the rental service among locals as with tourists.

Following the assessment of the two pilot projects, it was clear that consumer-centric benefits are crucial when seeking to increase the market for a rental solution (Akbar & Hoffmann, 2018). While developing a TCO, assessing the environmental impact of the rental solution and conveying the benefits of maintenance and repair likely would benefit companies like Iceland Camping Equipment Rental; consumers will always differ based on their personal life stories, priorities, etc. (Akbar & Hoffmann, 2018). TCO and environmental impacts assessment appeal to logos and somewhat ethos, based on the presentation form. Studies done on consumers’ willingness to choose a user-oriented PSS model, such as product renting, indicate that consumers are more willing to select a PSS solution if the provider satisfies their need for socialising and their desire for unique products, utilising pathos-based consumer outreach (Akbar & Hoffmann, 2018). This likely why so many of the respondents of the Icelandic survey prioritised good service over, e.g. environmental reduction potential. 

Many of the PSS solutions consulted through the second pilot project experienced challenges with the introduction of a digital administrative system for product and rental tracking. Especially in Sweden, PSS providers are challenged to develop or find a system that complies with GDPR regulations. Rental services in Norway and Sweden have developed their own tracking and return systems, often analogue ones. Other PSS providers have worked with various tracking companies. While Iceland Camping Equipment Rental have not expressed challenges with administrative systems, no one of the consulted PSS providers in Sweden or Norway has identified a tracking system that is good enough to facilitate a PSS solution efficiently.

In addition, repair activities on the products challenge many PSS providers offering camping and leisure equipment rentals. Maintenance and repair are a big part of the added value in this kind of PSS solution, as they ensure that the products are in good shape and fit for another rental period. Depending on the quality of the products, the eco-design/design for repair or refurbishment, and the complexity of the repair of the products, this added-value service can become a great challenge from a day-to-day operations perspective. PSS providers have one of three options when it comes to repair and maintenance: 1) repair and maintenance are done in-house, a model used by Iceland Camping Equipment Rental; 2) repair and maintenance activities are outsourced; or 3) products are sold or discarded when no longer rentable. The challenge with in-house service is that it is very time-consuming and requires specific skill sets. The time that is spent repairing is time taken away from customer service and other administrative tasks. However, maintaining a product is essentially what prolongs its lifetime and keeping it from going to waste, accounting for the majority of the environmental benefits of rental solutions for camping and hiking equipment. Outsourcing repair and maintenance activities are often very expensive, which can become a significant barrier for especially SME PSS providers.

Through the pilot project, it was discovered that multiple PSS solutions for camping and leisure equipment are not economically viable. While Iceland Camping Equipment Rental have been able to break through the market, many PSS providers offering a similar solution have not. These types of PSS models often require that significant resources be spent on customer service, stock administration, product acquisition and repair of the products. Since all the companies consulted throughout the project and pilot projects have a seasonally affected market, most of the PSS providers are not able to keep their staff on all year round, in addition to the administrative costs. For the companies consulted in Norway and Sweden, there is furthermore a significant competition between the for-profit and non-profit PSS solutions. According to some Swedish PSS providers interviewed, for-profit competitors had to close down after a non-profit solution offering free equipment rental was introduced to the area of operation.

In the Icelandic survey, the environmental impact potential of rental solutions was considered one of the main advantages of renting leisure and camping equipment for women and respondents with university degrees. However, few respondents found it to be the decisive factor when renting. This is expected to change in the near future, especially amongst the younger generations (Dragolea et al., 2023). Consumers who are highly environmentally conscious will be more likely to seek out PSS offers against all odds, while consumers who are less environmentally conscious will have a greater focus on the availability of products (Akbar & Hoffmann, 2018).

In principle, rental models of sports, camping, and hiking gear have the potential to avoid new production by increasing product sharing, extending product lifespans, and reducing the generation of waste. While Iceland Camping Equipment Rental achieve these potentials through the procurement of durable quality products, specialised maintenance and repair practices, dismantling (for spare parts) or donations of non-rentable products to charitable purposes, many of the other consulted solutions do not achieve all or any of the aforementioned environmental benefits. The lack of environmentally sound business model practices is related mostly to economic and social barriers. The assessments have shown that the most important aspects for consumers when renting camping equipment are price, good service, and product quality. The focus on product quality amongst consumers can challenge the preservation of a holistically sustainable PSS solution for camping equipment and hiking gear, as there will be a need to replace equipment that has lost its original quality, which results in an increased product consumption or increased maintenance and repair offers, at high economic costs for the providers. However, price and quality might be closely related here since non-profit organisations in Norway and Sweden have successfully obtained used equipment (that is not always of the best quality) that is then rented for free to local tourists. This indicates that quality is valued as less important among consumers when the rental service is free because no money has been spent on the items, reducing the risk of losing money to poor or lower-quality equipment. Performance might also be relevant here since equipment of good quality may be associated with better performance, thereby enhancing the consumer's experience using the equipment.

A survey in Iceland found men were more aware of equipment rentals, but women were more likely to rent camping and leisure equipment, with 30-39-year-olds being the most interested. In Norway, younger people, especially women, showed increasing interest in renting outdoor equipment, and overnight nature stays became more popular in 2021. In Sweden, outdoor equipment spending rose during the pandemic, with younger generations leading the trend, particularly in summer. International tourists are often more inclined to use an equipment rental service because it eliminates the inconvenience of bringing lots of equipment when travelling. However, engaging with locals in an area can still be challenging for a PSS provider.

The pilot project has shown that PSS solutions for camping and leisure equipment are largely trust-based, as digital tracking systems are rarely implemented. Consumer-centric benefits are vital to growing the rental market of this product group. Consumers tend to prioritise good service, maintenance, and unique products over environmental benefits.

A significant challenge is product repair and maintenance, which is essential for ensuring equipment is in good condition for reuse. Providers typically choose between in-house repair (time-consuming and requiring specific skills), outsourcing (costly), or discarding unusable products. In-house or outsourced maintenance is vital for extending product life and contributing to environmental benefits but can divert resources from customer service.

While Iceland Camping Equipment Rental succeeded in entering the market, other PSS providers struggle due to high costs associated with customer service, stock management, product acquisition, and repairs. Additionally, the seasonal nature of the business limits providers' ability to retain staff year-round. Competition between for-profit and non-profit PSS solutions is intense in Norway and Sweden.