PUBLISHER: The Business Research Company | PRODUCT CODE: 1582598
PUBLISHER: The Business Research Company | PRODUCT CODE: 1582598
Short-term vacation rental involves the temporary leasing of a furnished property, such as a house or apartment, for a brief period, usually from a few days to a few weeks. This rental option offers travelers an alternative to hotels, providing additional space, amenities, and a more home-like experience.
The primary types of accommodation in short-term vacation rentals include homes, apartments, resorts or condominiums, and other types of lodgings. A home is a private residence rented out to guests for temporary stays, offering a comfortable and familiar living environment for vacationers. Booking methods encompass both online or platform-based options and offline choices, and are managed by either the property owners or professional management companies.
The short-term vacation rental market research report is one of a series of new reports from The Business Research Company that provides short-term vacation rental market statistics, including short-term vacation rental industry global market size, regional shares, competitors with a short-term vacation rental market share, detailed short-term vacation rental market segments, market trends and opportunities, and any further data you may need to thrive in the short-term vacation rental industry. This short-term vacation rental market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The short-term vacation rental market size has grown strongly in recent years. It will grow from $111.08 billion in 2023 to $120.77 billion in 2024 at a compound annual growth rate (CAGR) of 8.7%. The growth during the historic period can be attributed to higher travel demand, a rise in remote work, increased disposable incomes, and a desire for escapes from city life to more rural or scenic locations.
The short-term vacation rental market size is expected to see strong growth in the next few years. It will grow to $169.75 billion in 2028 at a compound annual growth rate (CAGR) of 8.9%. The growth anticipated during the forecast period can be attributed to ongoing expansion in remote work, rising demand for eco-friendly and sustainable vacation rental options, enhanced personalized recommendations and targeted marketing, a growing preference for unique and immersive travel experiences, and the broadening of global travel networks. Key trends expected in this period include smart home integration, the use of AI and data analytics for tailored recommendations and customized travel experiences, the rise of remote work and digital nomadism, the incorporation of virtual and augmented reality, and the growth of specialized rentals catering to specific interests.
The anticipated growth in the short-term vacation rental market is expected to be driven by the rising number of travelers. This increase in travelers is fueled by higher disposable incomes and a growing desire for unique and diverse experiences. Travelers turn to short-term vacation rentals for more personalized and cost-effective accommodations that offer local experiences and home-like amenities. For example, in May 2024, the Office for National Statistics, a UK-based national statistical institute, reported a rise in overseas visitors to the UK, with 38.0 million trips in 2023 compared to 31.2 million in 2022. These visitors spent £31.1 billion, an increase of $5.91 billion (£4.6 billion) from the previous year. Meanwhile, UK residents took 86.2 million trips abroad, up from 71.0 million in 2022, and spent $93.07 billion (£72.4 billion), an increase of $17.87 billion (£13.9 billion) from the previous year. Thus, the growing number of travelers is expected to drive the expansion of the short-term vacation rental market.
Major companies in the short-term rental market are advancing property management solutions to boost operational efficiency and enhance guest experiences. These solutions involve sophisticated software and systems designed to automate and streamline the management of rental properties, including booking, maintenance, and tenant communications. For example, in January 2024, Guesty, an Israel-based property management software provider, introduced Guesty Lite. This streamlined solution is aimed at hosts managing 1-3 properties and provides Guesty's top features and technology without added complexity. It improves listing visibility on key booking channels, automates daily tasks, and offers a scalable platform to increase revenue and guest satisfaction. Guesty Lite delivers an all-in-one solution that enables hosts to effortlessly provide exceptional guest experiences.
In May 2024, Guesty, an Israel-based property management software provider, acquired Rentals United for an undisclosed amount. This acquisition is intended to create new revenue opportunities by integrating Guesty's advanced technology with Rentals United's extensive distribution network. The combination is expected to boost booking volumes and improve the relevance of bookings, significantly enhancing property managers' business performance. Rentals United is a Spain-based company that specializes in short-term vacation rental management.
Major companies operating in the short-term vacation rental market are Booking Holdings Inc., Expedia Group Inc., Airbnb Inc., Wyndham Destinations Inc., Agoda Company Pte. Ltd., Tripadvisor Inc., Vacasa Inc., Oravel Stays Private Limited, NOVASOL A/S, MakeMyTrip Pvt. Ltd., Hotelplan Management AG, Evolve Vacation Rental Network Inc., Hopper Inc., Holidu GmbH, Vacation Rental Pros Property Management LLC, HomeToGo GmbH, Atraveo GmbH, 9flats.com PTE Ltd., Housewise Services Pvt. Ltd., Homestay Technologies Ltd., Casiola WorldWide LLC, Homely Stays Pte. Ltd., StayBeyond Ltd
North America was the largest region in the short-term vacation rental market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the short-term vacation rental market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the short-term vacation rental market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The short-term vacation rental market includes revenues earned by entities by providing services such as furnished accommodations, self-catering kitchens, flexible check-in or check-out, local recommendations, and personalized amenities. 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.
Short-Term 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 short-term 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 short-term 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 short-term 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.