How Has the Vacation Rental Market Size Evolved in Recent Years?
The vacation rental market has seen considerable growth due to a variety of factors.
• The vacation rental market has experienced strong growth in recent years. It will rise from $89.45 billion in 2024 to $95.67 billion in 2025, at a CAGR of 7.0%.
The growth is driven by an expanding tourism sector, increased travel habits, regulatory changes, high demand during peak seasons, and urbanization.
What Is The Forecast For The Vacation Rental Market Size?
The vacation rental market is expected to maintain its strong growth trajectory in upcoming years.
• The vacation rental market is expected to see substantial growth, reaching $123.4 billion by 2029 with a CAGR of 6.6%.
This growth is driven by effective promotional tactics, the rise of remote work, increasing disposable incomes, and celebrity endorsements. Trends include integration with online platforms, adoption of smart locks, a shift toward longer-term rentals, customization of guest experiences, and enhanced safety measures.
What Are The Essential Drivers Behind The Growth Of The Vacation Rental Market?
The expansion of the tourism and travel industries is anticipated to fuel the vacation rental market's progression. These sectors are all-encompassing and multifaceted, comprising elements such as the transport techniques that ferry vacationers to their locations, as well as a wide range of services and experiences that contribute to making travel fulfilling and unforgettable. The surge in these sectors can be attributed to factors such as enhanced transportation infrastructure, globalization, trade liberalization, an increasing trend towards experiential travel, and burgeoning interest in health and wellness tourism. Vacation rentals contribute to the thriving of the tourism and travel sectors by offering a variety of lodging options, stimulating local economies, encouraging longer stays, and improving tourist experiences with more personalized and adaptable accommodation alternatives. For example, the World Travel and Tourism Council, a UK-based forum for the travel and tourism industry, reported in April 2024 that the travel and tourism industry contributed about 9.1% to the global GDP in 2023, amounting to over $9.9 trillion. The council also projects continuous growth in the industry, predicting its contribution to the GDP to reach $11.1 trillion by 2024. Consequently, the swift expansion in the tourism and travel industries is propelling the growth of the vacation rental market.
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
Subsegments:
1) By Home: Single-Family Homes, Luxury Homes, Beach Houses, Country Homes, Eco-Friendly Homes
2) By Resort Or Condominium: Resort Villas, Condo Units in Resorts, Timeshare Properties, All-Inclusive Resort Rentals
3) By Apartments: Studio Apartments, 1-Bedroom Apartments, 2-Bedroom Apartments, Luxury Apartments, Penthouse Apartments
4) By Hometown: Local Guesthouses, Traditional Hometown Inns, Bed And Breakfasts (B And Bs), Historic Homes, Boutique Hotels
5) By Villas: Luxury Villas, Poolside Villas, Beachfront Villas, Private Villas With Staff, Eco-Friendly Villas
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What New Trends Are Influencing The Vacation Rental Market?
Key players in the vacation rental sector are concentrating on growing their businesses by offering innovative products like high-end vacation rental homes. This is aimed at drawing luxury travelers, improving guest experiences, and distinguishing themselves in this highly competitive industry. Deluxe vacation rental properties provide extraordinary facilities, outstanding comfort, and distinctive experiences, aiming to meet the needs of tourists who desire luxury and tailor-made services while on vacation. An example of this is when OYO Rooms, a hospitality firm from India, initiated the high-end vacation rental brand Belvilla in June 2024, collaborating with Sojo Stays, an apartment rental company in the UK. They introduced an exclusive selection of vacation homes by Belvilla by Oyo in some of the UK's major cities. These Belvilla properties can be reserved for both short and extended periods through the Belvilla platforms and other reservation sites. The introduction of Belvilla by Oyo in the UK demonstrates the company's intention to extend its geographical reach and take advantage of the increasing interest in high-end vacation rentals.
Who Are the Key Players In The Vacation Rental Market?
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
What Are The Regional Insights Into 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.
