Global Vacation Rental Market – Industry Trends and Forecast to 2030

Global Vacation Rental Market, By Accommodation (Home, Apartments, Resort/Condominium and Others), Booking Mode (Online and Offline), Location Type (Resort Area, Rural Area, Small Town, Others), End User (Gen Z, Millennials, Gen X, Boomers), Price Point (Economic, Mid-Range, Luxury) – Industry Trends and Forecast to 2030.

Vacation Rental Market Analysis and Size

As per the analysis of Copyrise, around 200,000 million global tourists are millennials and they expend about USD 180 billion on travel every year. Moreover, it has been witnessed that while traveling with family, consumers consider several factors for choosing a vacation rental for amenities and comfort. The “home segment” is expected to be the fastest growing accommodation segment due to the high popularity of homes among travellers because of its safety, space availability and amenities.

Data Bridge Market Research analyses that the vacation rental market was valued at USD 78.86 billion in 2022 and is expected to reach USD 123.81 billion by 2030, registering a CAGR of 5.80% during the forecast period of 2023 to 2030. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and consumer behaviour.

Vacation Rental Market Scope and Segmentation

Market Definition

A vacation rental is temporarily renting out a furnished house, apartment or professionally managed resort-condominium complex to travellers and tourists. Vacation rental is an alternative to a hotel. The term vacation rental is mostly used in the US. Other terms used are holiday homes, self-catering rentals, holiday lets, cottage holidays and gites

Global Vacation Rental Market Dynamics

Drivers

• Increasing inclination towards vacation rental property

Travelers are more inclined towards the vacation rental property in the market over hotels due to the comfort, more privacy, low cost, and pet-friendly nature of the accommodation. Low cost compared to hotel accommodation with comparable amenities drives consumers' inclination towards vacation rental property. For instance, according to the survey of Turnkey Vacation in 2019, 64% of travellers prefer staying in vacation rentals to hotels.

• Increasing trend of transformational travel

The growing trend of transformational travel surrounding wellness trips to restore balance and transform the spirit, mind and body is anticipated to drive the market growth during the forecast period. According to a blog of Hospitality Net, usual holidays such as sand, sun, sea, skiing, sightseeing, and shopping are likely to be high in demand. Furthermore, a higher preference for domestic travel than international travel is expected to increase the demand for domestic vacation rental business all over the globe.

Opportunities

• Increasing awareness regarding services and offerings

The influence of the internet and social media is growing consumer awareness regarding services and offerings. Major market players are providing numerous services, amenities and exotic locations to gain market share. These offering by major market players services are dedicatedly to female travellers. For instance, Golightly was launched in January 2020. This is a vacation rental platform which has managed by women and only available for female visitors and also allows men. The company owns more than 350 properties all over the globe.

• Increasing availability of vacation rentals

Growing supply increases the demand and availability of vacation rentals due to low costs as compared to hotels. Stratos Jet Charters, Inc. report shows approximately 2.9 million hosts on Airbnb globally, and over 14,000 hosts are among the new additions each month in 2021. Furthermore, Airbnb operates in about 220 countries, with approx., 100,000 cities with active Airbnb listing in 2021.Thus, the low cost of vacation rentals compared to hotels will create new and ample opportunities for market growth.

Restraints/ Challenges

• Risks associated with the fraudulent vacation rental houses

The major challenges to the global market growth is the risks associated with fraudulent vacation rental houses, homestays and apartments. Though fake players undertake such dealings, they impact the business operations of major market retailers as well. This leads to a drop in market revenue and hinders the market growth. Moreover, phishing also adversely impacts the growth prospects of the major vendors in the global market

This vacation rental market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the vacation rental market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Covid-19 Impact on Vacation Rental market

The COVID-19 pandemic has adversely impacted the growth of the vacation rental market. For instance, as per the report of the AirDNA, there has been a substantial drop in the weekly bookings between the beginning of January and March 2020. Furthermore, the number of bookings in Shanghai by 71%, Seoul by 46%, Beijing dropped by 96%, and Rome by 41%. However, the scenario changed considerably in 2021 because people were looking for an escape and despite situations being difficult in some parts of the globe. Many found that the convenience of rentals made it possible to take a suitable trip according to their needs. However, in the post-pandemic era, the market is expected to rise high and witness immense growth in the market during the forecast period.

Recent Development

• In July 2022, Planet, a payment services and global technology integrated software, acquired Avantio. Avantio.is a vacation rental management software and services company that extended its market reach in the hospitality sector.
• In December 2021, Booking Holdings Inc acquired Getaroom from Court Square Capital Partners for USD 1.2 billion. With this acquisition, the brand aims to upsurge its pipeline's value.
• In October 2020, Tripadvisor launched two new technology solutions: Reputation Pro and Spotlight for hotels. These solutions have been developed to help partners make decisions based on forecast data.

Global Vacation Rental Market Scope

The vacation rental market is segmented on the basis of accommodation, booking mode, location type, end user and price point. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Accommodation

• Home
• Apartments
• Resort/Condominium
• Others

Booking Mode

• Online
• Offline

Location Type

• Resort Area
• Rural Area
• Small Town
•  Others

End User

• Gen Z
• Millennials
• Gen X
• Boomers

 Price Point

• Economic
• Mid-Range
• Luxury

Vacation Rental Market Regional Analysis/Insights

The vacation rental market is analyzed and market size insights and trends are provided by country, accommodation, booking mode, location type, end user and price point as referenced above.

The countries covered in the vacation rental market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.

Europe dominates the vacation rental market owing to the increase in the popularity of glamping. Moreover, the rise in the expenditure on booking accommodation in condominiums and resorts will further increase the market's growth in this region.

Asia-pacific is anticipated to be the fastest developing region during the forecast period of 2023-2030 due to the rise in the spending of the consumers on accommodation and traveling. Furthermore, the increase in the spending of travellers from other developing nations is further expected to propel the market growth in this region.

The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Vacation Rental Market Share Analysis

The vacation rental market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to vacation rental market.

Some of the major players operating in the vacation rental market are:

• 9flats (India)
• Airbnb, Inc. (U.S.)
• Booking (Netherlands)
• Expedia, Inc. (U.S.)
• MTCH AG (U.K.)
• MAKEMYTRIP PVT. LTD. (India)
• NOVASOL A/S (Denmark)
• OYO Hotels & Homes (India)
• TripAdvisor LLC (U.S.)
• Wyndham Destinations (U.S.)
• Trivago (Germany)
• Agoda Company Pte. Ltd (India)
• Yatra Online Private Limited (India)
• Hotwire, Inc. (U.S.)
• HotelsCombined (Australia)
• KAYAK (U.S.)