The vacation rental market has experienced significant growth recently, with its size increasing from $84.06 billion in 2023 to $89.45 billion in 2024, reflecting a compound annual growth rate (CAGR) of 6.4%. This growth is driven by the rising tourism sector, increasing travel habits, regulatory changes and local policies, high demand during peak travel seasons, and urbanization. The market is expected to continue growing strongly, reaching $115.90 billion by 2028 at a CAGR of 6.7%. This anticipated growth is attributed to the rising adoption of effective promotional tactics, the growth of remote work, increasing disposable incomes, and a focus on celebrity endorsements. Major trends in the forecast period include integration with online platforms, the adoption of technology such as smart locks, a shift toward longer-term rentals, customization of guest experiences through personalized amenities and contactless check-ins, and enhanced safety measures.
Global Vacation Rental Market Key Driver
The growth in the travel and tourism sectors is expected to propel the growth of the vacation rental market going forward. The travel and tourism sectors are comprehensive and multifaceted, encompassing everything from the transportation methods that carry travelers to their destinations to the wide array of services and experiences that make travel enjoyable and memorable. The growth in the travel and tourism sectors is due to improved transportation infrastructure, globalization, trade liberalization, a rising preference for experiential travel, and a rising interest in health and wellness tourism. Vacation rentals benefit the travel and tourism sectors by providing diverse accommodation options, boosting local economies, supporting longer stays, and enhancing traveler experiences with more personalized and flexible lodging alternatives. For instance, in April 2024, according to the World Travel and Tourism Council, a UK-based forum for the travel and tourism industry, in 2023, travel and tourism accounted for around 9.1% of the global gross domestic product (GDP), totaling over $9.9 trillion. It forecasts continued growth in the sector, with expectations of its GDP contribution reaching $11.1 trillion by 2024. Therefore, the rapid growth in the travel and tourism sectors is driving the growth of the vacation rental market.
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Global Vacation Rental Market 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
By Geography:The regions covered in the vacation rental market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
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.
Major Vacation Rental Industry Players
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
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Vacation Rental Market Overview
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 2023 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.
