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 2031.
Vacation Rental Market Analysis and Size
In the tourism and travel sector, vacation rentals serve as a vital accommodation option, offering travelers a diverse range of lodging experiences beyond traditional hotels. These rentals cater to various preferences, budgets, and group sizes, providing a more personalized and immersive stay for tourists and travelers. With amenities such as kitchens and living spaces, vacation rentals appeal to those seeking a home-away-from-home experience during their vacations or business trips. They contribute significantly to the tourism industry by accommodating visitors in popular destinations and enhancing the overall travel experience with unique, local stays.
Global vacation rental market size was valued at USD 83.43 billion in 2023 and is projected to reach USD 130.99 billion by 2031, with a CAGR of 5.80% during the forecast period of 2024 to 2031. 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.
Report Scope and Market Segmentation
|
Report Metric
|
Details
|
|
Forecast Period
|
2024-2031
|
|
Base Year
|
2023
|
|
Historic Years
|
2022 (Customizable to 2016-2021)
|
|
Quantitative Units
|
Revenue in USD Billion, Volumes in Units, Pricing in USD
|
|
Segments Covered
|
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)
|
|
Countries Covered
|
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
|
|
Market Players Covered
|
9flats (Singapore), Airbnb, Inc. (U.S.), Booking (Netherlands), Expedia, Inc. (U.S.), MAKEMYTRIP PVT. LTD. (India), NOVASOL A/S (Denmark), OYO & ALL AFFILIATES (India), TripAdvisor LLC (U.S.), Wyndham Destinations (U.S.), trivago (Germany), Agoda Company Pte. Ltd (India), Yatra Online Limited (India), HotelsCombined (Australia), KAYAK (U.S.), The Destination Club (U.S.)
|
|
Market Opportunities
|
|
Market Definition
A vacation rental refers to the practice of renting out a furnished property, such as a house, apartment, or condominium, to travelers on a temporary basis, typically for short-term stays. These rentals provide an alternative accommodation option to hotels and offer amenities and flexibility that appeal to travelers seeking a more personalized and immersive experience during their vacation or trip.
Vacation Rental Market Dynamics
Drivers
- Rising Demand for Unique Travel Experiences Increases the Adoption of Vacation Rentals
Modern travelers are increasingly seeking immersive and authentic experiences that allow them to connect with local culture and surroundings. Vacation rentals offer a diverse array of accommodation options, including apartments, cottages, and unique properties such as treehouses or houseboats, catering to this demand for novelty and individuality. These properties often provide more space, privacy, and amenities compared to traditional hotels, enhancing the overall travel experience. As travelers prioritize memorable and personalized stays, the popularity of vacation rentals continues to soar, driving growth in the market as a whole.
- Rise of Online Booking Platforms Promotes Seamless Rental Process
Vacation rental provides a convenient and accessible way for travelers to discover, compare, and book rental properties worldwide. These platforms, such as Airbnb, Vrbo, and Booking.com, offer extensive listings with detailed descriptions, photos, and reviews, empowering travelers to make informed decisions based on their preferences and budget. The seamless booking process, secure payment systems, and customer support services provided by online platforms have instilled trust and confidence among travelers, facilitating a surge in bookings. Hosts benefit from increased exposure and occupancy rates, while travelers enjoy a diverse array of accommodation options and the convenience of booking anytime, anywhere, contributing to the overall expansion and sustainability of the vacation rental market.
Opportunities
- Growing Awareness of Sustainable Tourism Expands Vacation Rentals
Travelers are increasingly conscious of their environmental impact and seek accommodation options that align with sustainable practices. Vacation rentals, particularly those managed by local hosts, often promote sustainability by supporting local communities, minimizing carbon footprints, and preserving cultural heritage. As sustainability becomes a key consideration for travelers, vacation rentals positioned as eco-friendly and socially responsible accommodations stand to attract a growing segment of environmentally conscious travelers, driving demand and growth in the market.
- Rise in Disposable Incomes Results in Expansion of Vacation Rentals in Various Regions
As people's incomes increase, they have more discretionary spending power, allowing them to allocate a larger portion of their budget towards travel and leisure activities. This heightened spending capacity fuels demand for diverse and experiential accommodation options, such as vacation rentals, which offer flexibility, comfort, and unique experiences. Moreover, rising incomes in emerging markets contribute to the globalization of the vacation rental industry, as both domestic and international travelers seek affordable and authentic lodging options in an increasingly interconnected world. The expansion of vacation rentals in various regions is closely intertwined with the increasing affluence of consumers, underscoring the strong correlation between economic prosperity and travel behavior.
Restraints/Challenges
- High Regulatory Challenges Limits the Vacation Rental Businesses
Local governments often impose stringent regulations and restrictions on vacation rentals, ranging from zoning laws and occupancy limits to taxation policies and licensing requirements. These regulatory complexities vary widely across different jurisdictions, leading to compliance burdens and operational uncertainties for vacation rental businesses. Navigating regulatory challenges remains a persistent obstacle for stakeholders in the vacation rental market, impacting their ability to operate and innovate effectively.
- Standardization Concerns Complicates Operational Efficiency for Rental Owners
Unsuch as hotels, vacation rentals often lack uniform quality standards across properties, as they are typically individually owned and managed. This variability in quality can lead to inconsistencies in cleanliness, maintenance, and guest experience, resulting in dissatisfaction and negative reviews. Without standardized regulations or certification processes, it is challenging for consumers to assess the quality and reliability of vacation rental properties accurately. Moreover, the absence of standardized practices complicates operational efficiency for rental owners and platforms, leading to difficulties in maintaining consistent service levels and brand reputation.
This 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 market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.
Recent Developemnts
- In April 2023, Evolve presents its seasonal analysis of significant trends in the vacation rental industry during the winter of 2022-23, providing valuable insights and metrics to help short-term rental owners optimize their property's performance in a constantly evolving market
- In March 2023, Zumper launches Vacations by Zumper, a dedicated vacation rental listing site, as part of its intensified focus on the short-term rental market, showcasing the company's commitment to expanding its presence in this sector
- In September 2022, Arrived Homes expands its investment platform to include short-term vacation rental properties, allowing investors to purchase shares of single-family homes for rental purposes, signaling their foray into the short-term rental market
- In August 2022, Evolve and Hopper announce a collaboration, integrating over 24,000 Evolve vacation homes across 750 markets into the Hopper travel app, facilitating easy access to vacation rentals for Hopper's global user base
Vacation Rental Market Scope
The 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 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 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 market due to the growing trend of glamping, which combines glamour with camping experiences. This trend has attracted a significant number of travelers seeking unique and immersive outdoor stays. Additionally, the rise in consumer spending on booking accommodations, particularly in condominiums and resorts, is expected to fuel further growth in the Europe vacation rental market. As travelers increasingly prioritize experiential stays and diverse accommodation options, Europe is expected to maintain its dominance in this sector.
Asia-Pacific is expected to experience rapid growth in the market due to the escalating consumer spending on travel and lodging, coupled with increased expenditure from travelers in other developing nations. Such trends are expected to drive market expansion, positioning the Asia-Pacific region as a key contributor to the global travel and hospitality industry's growth trajectory.
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 such as 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 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 market.
Some of the major players operating in the market are:
- 9flats (Singapore)
- Airbnb, Inc. (U.S.)
- Booking (Netherlands)
- Expedia, Inc. (U.S.)
- MAKEMYTRIP PVT. LTD. (India)
- NOVASOL A/S (Denmark)
- OYO & ALL AFFILIATES (India)
- TripAdvisor LLC (U.S.)
- Wyndham Destinations (U.S.)
- trivago (Germany)
- Agoda Company Pte. Ltd (India)
- Yatra Online Limited (India)
- HotelsCombined (Australia)
- KAYAK (U.S.)
- The Destination Club (U.S.)
SKU-