The short-term vacation rental market size has seen robust growth in recent years, increasing from $111.08 billion in 2023 to $120.77 billion in 2024, with a compound annual growth rate (CAGR) of 8.7%. This growth in the historical period is driven by increased travel demand, a rise in remote work, and higher disposable incomes, alongside a desire to escape from urban areas to more rural or scenic locations. Forecasts suggest that the short-term vacation rental market size will expand to $169.75 billion in 2028, at a CAGR of 8.9%. This anticipated growth is attributed to the continuing trend of remote work, the increasing demand for eco-friendly and sustainable vacation rental options, improvements in personalized recommendations and targeted marketing, a growing preference for unique and immersive travel experiences, and the expansion of global travel networks. Key trends expected in the forecast period include smart home integration, the use of AI and data analytics to provide tailored recommendations and customized travel experiences, the rise of remote work and digital nomadism, the integration of virtual and augmented reality, and the expansion of specialized rentals catering to specific interests.
Major Driver In The Short Term Vacation Rental Market
The increasing number of travelers is expected to accelerate the growth of the short-term vacation rental market moving forward. This rise in travelers is fueled by increased disposable income and a growing desire for unique and diverse experiences. Short-term vacation rentals provide travelers with personalized and cost-effective accommodations that offer local experiences and home-like amenities. For example, in May 2024, the Office for National Statistics noted a rise in overseas visitors to the UK, with 38.0 million trips recorded 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. Conversely, UK residents took 86.2 million trips abroad, up from 71.0 million in 2022, and spent $93.07 billion (£72.4 billion), which is $17.87 billion (£13.9 billion) more than the previous year. Therefore, the increasing number of travelers will significantly boost the short-term vacation rental market.
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Short Term Vacation Rental Market Competitive Landscape
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
Key Short Term Vacation Rental Market Trend
Major companies in the short-term rental market are developing property management solutions to boost operational efficiency and enhance guest experiences. Property management solutions refer to sophisticated software and systems that automate and streamline rental property management, including booking, maintenance, and tenant communications. For instance, in January 2024, Guesty, an Israel-based property management software provider, launched Guesty Lite. This streamlined property management solution caters to hosts managing 1-3 properties, offering Guesty's top features and technology without complexity. It enhances listing visibility on key booking channels, automates daily tasks, and provides a scalable platform to increase revenue and guest satisfaction. The all-in-one solution ensures hosts can effortlessly deliver exceptional guest experiences.
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Global Short Term Vacation Rental Market Segmentation
The short-term vacation rental market covered in this report is segmented –
1) By Accommodation Type: Home, Apartments, Resorts Or Condominium, Other Accommodation Types
2) By Booking Mode: Online Or Platform-Based, Offline
3) By Management: Managed By Owners, Professionally Managed
By Geography:The regions 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.
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 Short Term Vacation Rental Global Market Report 2024 furnishes information about the global short term vacation rental market, encompassing details like market size, projections for growth, segmentation across various sectors and regions, and an overview of competitors, including their revenues, profiles, and market shares. Furthermore, the report pinpoints potential opportunities and strategic directions derived from market trends and the strategies adopted by key competitors. The report also offers an assessment of how the COVID-19 pandemic, the Russia-Ukraine conflict, and increasing inflation have affected both global and regional markets, furnishing valuable strategic insights for businesses.
