Vacation Rental Market Size, Share, Growth Analysis, By Accommodation Type (Home, Apartments), By Booking Mode (Offline, Online), By Region - Industry Forecast 2025-2032

Global Vacation Rental Market size was valued at USD 87.5 billion in 2023 and is poised to grow from USD 95.11 billion in 2024 to USD 185.38 billion by 2032, growing at a CAGR of 8.7% during the forecast period (2025-2032).

The global vacation rental market is experiencing remarkable growth, largely driven by the rising appeal of short-term rentals as affordable escape options for time-strapped travelers. A recent TripAdvisor study highlights a significant shift towards eco-conscious lodging, with 46% of Americans preferring rentals that minimize water and energy usage. The overall tourism sector, valued at $5.7 trillion in 2021, continues to thrive, propelled by international travel demand and emerging market expansions. Notably, Europe saw a 7% increase in tourist arrivals, while the Asia-Pacific region accounted for 43% of tourism growth. However, challenges such as accommodation shortages and climate change pose risks. Despite these hurdles, the U.S. vacation rental market is set for sustainable growth in the coming years.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Vacation Rental market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Vacation Rental Market Segments Analysis

Global Vacation Rental Market is segmented by Accommodation Type, Booking Mode, Price Range, Tourist Type and region. Based on Accommodation Type, the market is segmented into Home, Apartments, Resort/Condominium and Others. Based on Booking Mode, the market is segmented into Offline and Online. Based on Price Range, the market is segmented into Economical, Mid-Range and Luxury. Based on Tourist Type, the market is segmented into Domestic and International. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.

Driver of the Global Vacation Rental Market

The surge in travel and tourism popularity is a significant driver of the global vacation rental market. As more individuals prioritize vacations over staying home, the demand for alternative accommodations has escalated. Tourists are increasingly opting for vacation rentals, seeking unique experiences and home-like amenities instead of traditional hotel stays. This shift reflects a broader trend towards personalized travel experiences, encouraging property owners to cater to diverse preferences and enhancing the overall appeal of vacation rentals. Consequently, the booming travel industry fosters a robust market for vacation rentals, meeting the growing need for flexible and comfortable lodging options.

Restraints in the Global Vacation Rental Market

A major constraint in the Global Vacation Rental market is the limited availability of rental properties. When the supply of properties is low, demand increases, which in turn drives rental prices higher. This scarcity can make it challenging for travelers to secure accommodations that fit their preferences and budgets. As a result, potential vacationers may face obstacles in finding suitable places to stay during their trips, ultimately impacting their overall travel experience. The imbalance between supply and demand not only affects pricing but also the accessibility of rental options for consumers in different markets worldwide.

Market Trends of the Global Vacation Rental Market

The global vacation rental market is experiencing a notable surge, driven by increasing demand from international travelers seeking unique and personalized travel experiences. As remote working becomes more mainstream, individuals are opting for longer stays in desirable locations, fueling interest in private rentals. These travelers prioritize flexibility, space, and local immersion, often preferring accommodations that offer authentic experiences over traditional hotels. This trend is supported by the growth of digital platforms facilitating access to a diverse range of properties, enabling property owners to tap into the burgeoning market. Consequently, the industry is poised for continued expansion, potentially reshaping travel preferences globally.