PUBLISHER: The Business Research Company | PRODUCT CODE: 1572638
PUBLISHER: The Business Research Company | PRODUCT CODE: 1572638
A vacation rental is a form of lodging where homeowners or property managers lease out fully furnished homes or individual rooms to travelers and tourists for short stays. These rentals provide an alternative to traditional hotels, often offering more space, privacy, and amenities that cater to the needs of travelers. They can be a versatile and often more affordable option for those seeking extra room, privacy, and the comforts of home.
Vacation rentals come in several types, including houses, resorts or condominiums, apartments, townhomes, and villas. A 'home' in this context refers to privately owned, fully furnished houses, cottages, or cabins available for short-term rental. These rentals can vary in price from economical to luxury and can be booked through various methods, including online and offline channels. The typical user base includes Generation Z, Millennials, Generation X, and Baby Boomers.
The vacation rentals market research report is one of a series of new reports from The Business Research Company that provides vacation rentals market statistics, including vacation rentals industry global market size, regional shares, competitors with a vacation rentals market share, detailed vacation rentals market segments, market trends and opportunities, and any further data you may need to thrive in the vacation rentals industry. This vacation rental market research report delivers a complete perspective on everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The vacation rental market size has grown strongly in recent years. It will grow from $84.06 billion in 2023 to $89.45 billion in 2024 at a compound annual growth rate (CAGR) of 6.4%. The expansion observed in the past can be linked to the burgeoning tourism industry, evolving travel habits, changes in regulations and local policies, high demand during peak seasons, and urbanization.
The vacation rental market size is expected to see exponential growth in the next few years. It will grow to $115.90 billion in 2028 at a compound annual growth rate (CAGR) of 6.7%. The anticipated growth is driven by the increasing use of effective promotional strategies, the rise in remote work, growing disposable incomes, and a heightened focus on celebrity endorsements. Key trends expected in the forecast period include integration with online platforms, the adoption of technologies such as smart locks, a shift towards longer-term rentals, personalization of guest experiences through tailored amenities and contactless check-ins, and enhanced safety measures.
The expansion of the travel and tourism sectors is anticipated to drive the growth of the vacation rental market. These sectors are broad and intricate, covering everything from transportation that takes travelers to their destinations to the variety of services and experiences that make travel enjoyable. The growth in travel and tourism is attributed to improved transportation infrastructure, globalization, trade liberalization, a rising preference for experiential travel, and increased interest in health and wellness tourism. Vacation rentals support these sectors by offering diverse accommodation options, boosting local economies, encouraging longer stays, and enhancing traveler experiences with more personalized and flexible lodging choices. For instance, in April 2024, the World Travel and Tourism Council reported that in 2023, travel and tourism contributed about 9.1% to the global gross domestic product (GDP), totaling over $9.9 trillion. It forecasts continued growth, with the sector's GDP contribution expected to reach $11.1 trillion by 2024. Thus, the rapid expansion in travel and tourism is fueling the growth of the vacation rental market.
Leading companies in the vacation rental market are focusing on business expansion through innovative solutions such as premium vacation rental homes to attract high-end travelers, enhance guest experiences, and stand out in a competitive market. Premium vacation rental homes are luxury properties offering exceptional amenities, superior comfort, and unique experiences for travelers seeking upscale accommodations and personalized services. For example, in June 2024, OYO Rooms, an India-based hospitality company, launched the premium vacation rental brand Belvilla in collaboration with Sojo Stays, a UK-based apartment rental chain. This partnership aims to offer a curated collection of Belvilla by Oyo vacation homes in prime locations across several major UK cities. Guests can book these properties for short-term and longer stays through Belvilla platforms and other booking sites. The launch of Belvilla by Oyo in the UK reflects the company's efforts to diversify its geographic footprint and capitalize on the growing demand for premium vacation rental experiences.
In May 2023, Guesty, Inc., an Israel-based property management software company, acquired StaySense, LLC. for an undisclosed amount. Through this acquisition, Guesty aims to enhance its direct booking and marketing capabilities for vacation rental managers, strengthen its position in the U.S. vacation rental market, and further its strategy of consolidating the fragmented hospitality industry under its platform. StaySense LLC is a US-based technology company specializing in marketing and distribution solutions for the vacation rental industry.
Major companies operating in the vacation rental market are Airbnb Inc., Wyndham Destinations Inc., Agoda Company Pte. Ltd., TripAdvisor LLC, Vacasa LLC, Trivago GmbH, Priceline LLC, VRBO Inc., NOVASOL A/S, Hotels.com L.P., MakeMyTrip Pvt. Ltd., Pacaso Inc., KAYAK Software Corporation, AvantStay Inc., Hotelplan Management AG, HotelsCombined Pty Ltd, Whitetail Properties Real Estate LLC, Stellar MLS, Elliott Realty Group, 9flats GmbH, Panhandle Getaways Inc., StayMarquis LLC, Coastal Living Group LLC
Europe was the largest region in the vacation rental market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the vacation rental market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the vacation rental market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The vacation rental market includes revenues earned by entities by providing services such as kitchen facilities, entertainment, internet access, maintenance, and safety features. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Vacation Rental Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on vacation rental market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for vacation rental ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The vacation rental market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of COVID-19 on supply chains and consumption patterns.