How Is The Global Vacation Rental Market Defined?
A vacation rental is a type of lodging where homeowners or property managers rent out fully furnished properties or individual rooms within properties to travelers and tourists on a short-term basis. They offer an alternative to traditional hotel accommodations, often providing more space, privacy, and amenities tailored to the needs of travelers. Vacation rentals offer a versatile and often cost-effective lodging option for travelers seeking more space, privacy, and home-like comforts.
Vacation Rental Global Market Report 2024 provides data on the global vacation rental market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The vacation rental market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.
How Are The Global Vacation Rental Market Size And Growth Rates Projected To Evolve?
The vacation rental market has seen strong growth in recent years. It is expected to grow from $84.06 billion in 2023 to $89.45 billion in 2024, at a compound annual growth rate (CAGR) of 6.4%. The growth has been driven by the rising tourism sector, increasing travel habits, regulatory changes, high demand during peak travel seasons, and urbanization. The market is expected to experience further strong growth, reaching $115.90 billion by 2028, at a CAGR of 6.7%. Factors contributing to this growth include the adoption of efficient promotional tactics, the rise of remote work, higher disposable incomes, and increased celebrity endorsements. Key trends for the forecast period include integration with online platforms, the use of technology like smart locks, a shift toward longer-term rentals, customization of guest experiences through personalized amenities, contactless check-ins, and a focus on safety measures."
What Are The Essential Drivers Behind The Growth Of The Vacation Rental Market?
The expansion of the travel and tourism sectors is predicted to accelerate the growth of the vacation rental market. These sectors encompass various services and experiences that make travel enjoyable and memorable, including transportation, accommodations, and activities. The growth in these industries is attributed to improved transportation infrastructure, globalization, rising interest in health and wellness tourism, and the growing preference for experiential travel. Vacation rentals contribute by offering diverse accommodation options, supporting longer stays, and providing more personalized lodging experiences. For instance, in April 2024, the World Travel and Tourism Council reported that in 2023, the travel and tourism sector contributed 9.1% of the global GDP, totaling over $9.9 trillion, with a projection of $11.1 trillion by 2024. Therefore, the rapid growth of the travel and tourism sectors is driving the vacation rental market.
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How Is The Global Vacation Rental Market Divided Into Key Segments?
The vacation rental market covered in this report is segmented –
1) By Accommodation Type: Home, Resort Or Condominium, Apartments, Hometown, Villas
2) By Price Point: Economic, Mid Range, Luxury
3) By Booking Mode: Online, Offline, Other Booking Modes
4) By End User Generation: Generation Zoomer, Millennials, Generation X, Boomers
What Trends Are Reshaping The Future Of The Vacation Rental Market?
In the vacation rental market, companies are innovating by offering premium vacation rental homes to attract high-end travelers and enhance guest experiences. These properties offer luxury accommodations with top-tier amenities and personalized services. For instance, in June 2024, OYO Rooms launched the Belvilla premium vacation rental brand in the UK in collaboration with Sojo Stays. This new line of curated vacation homes in prime locations offers both short- and long-term rentals, catering to travelers seeking upscale accommodations and exceptional service during their stay.
What Is The Fastest Growing Region In The Vacation Rental Market?
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.
