Global Vacation Rental Market

Global Vacation Rental Market Size, Share, Growth Analysis, By Accommodation Type(Home, Apartments), By Booking Mode(Offline, Online) - Industry Forecast 2023-2030


Report ID: SQMIG25P2014 | Region: Global | Published Date: February, 2024
Pages: 157 | Tables: 63 | Figures: 75

Global Vacation Rental Market Insights

Global Vacation Rental Market size was valued at USD 74.64 billion in 2019 and is poised to grow from USD 82.63 billion in 2023 to USD 119 billion by 2031, growing at a CAGR of 5.3% in the forecast period (2024-2031).

Global vacation rental market is growing rapidly. This is due in part to the increasing popularity of short-term vacation rentals, which are becoming a more viable option for people who want to take a break from their busy lives but don’t have the time or money to travel long distances. Additionally, there is a growing interest in vacation rentals as a way to reduce environmental impact.

A recent study by TripAdvisor, one of the leading players in the global vacation rental market, found that Americans are increasingly looking for eco-friendly vacation rentals. Nearly half of respondents (46%) said that they would prefer to stay in a property that uses less water and energy, and 43% said that they would choose an environmentally friendly rental if it was available.

 This growth is attributable to increased demand for international travel, as well as continuing expansions in emerging markets. In 2021, the global tourism market reached $5.7 trillion. The number of tourists visiting different destinations each year has been on the rise for several years now across the global vacation rental market. The WTTC report found that the number of tourists visiting Europe grew by 7%, while Asia-Pacific accounted for 43% of all tourism growth during this same period. As of 2019, more than 426 million international tourist arrivals were recorded across the globe.

There are a variety of reasons behind this growth in tourism. A strong currency and low airfare prices have helped drive demand in many destinations around the world, particularly in emerging markets such as China and India. Additionally, many people are looking for new and exotic travel experiences that can’t be found at home.

Despite these positive trends in the global vacation rental market, there are also some challenges facing the tourism sector. Many countries are experiencing a shortage of accommodation options, which is impacting both domestic and international travelers. In addition, climate change is causing sea levels to rise, which could impact coastal communities around the world.

US Vacation Rental Market is poised to grow at a sustainable CAGR for the next forcast year.

Market snapshot - 2024-2031

Global Market Size

USD 74.64 billion

Largest Segment

Offline

Fastest Growth

Offline

Growth Rate

5.3% CAGR

Global Vacation Rental Market 2022-2028 ($ Bn)
Country Share for Europe Region- 2021 (%)
Global Vacation Rental Market Size By Booking Mode 2022-2028 ($ Bn)
Global Vacation Rental Market Size By Booking Mode 2022-2028 (%)

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Global Vacation Rental Market Segmental Analysis

Global vacation rental market is segmented by accommodation type and booking mode. For better understanding of the market, we have sub-segmented the accommodation type into Home, Apartments, and Resort/Condominium. By Booking Mode, the Vacation Rental Market is bifurcated into Online and Offline. By region, the Vacation Rental Market is segmented into North America, Europe, Asia Pacific, Latin America, Middle East and Africa.

Vacation Rental Market Analysis by Accommodation Type

By Accommodation type, home accommodation is dominating the global vacation rental market.

There are many reasons why tourists prefer rental homes over other available alternatives. First, rental homes offer more privacy and space than hotels or other types of lodging. Tourists can come and go as they please without having to worry about disturbing other guests or being disturbed themselves. Second, rental homes usually offer better value for the money than hotels.

Tourists can often find a spacious and well-equipped rental home for the same price or even less than a hotel room across global vacation rental market. Third, rental homes are often located in desirable areas that would be too expensive to stay in if tourists were paying hotel prices. For example, you can rent a beachfront home in Maui for the same price as a hotel room in Honolulu. Fourth, rental homes offer more flexibility when it comes to accommodating large groups of people. People can rent multiple units in the same complex or even an entire house if they have a large group of friends or family traveling with you.

Finally, many tourists prefer the home-away-from-home feeling that a rental home provides. When staying in a rental home, people can cook their own meals, do their own laundry, and relax in own private space at the end of the day.

Vacation Rental Market Analysis by Booking Mode

By booking mode, the Offline segment is dominating the global vacation rental market. It's no secret that the travel industry has been hit hard by the COVID-19 pandemic. With international travel all but coming to a halt, many hotels, resorts, and other rental accommodation providers have seen a significant drop in bookings. However, there is one silver lining—more and more people are choosing to vacation closer to home. And while some of them are opting for traditional hotel stays, an increasing number are turning to rental properties like vacation homes and apartments.

There are several reasons why renting accommodation offline is holding higher market share of the vacation rental market;. It's simply easier to find what tourist are looking for when they're not limited to searching online. They can talk to a travel agent or rental company representative who can give personalized recommendations based on specific needs and preferences.

As per our vacation rental market analysis, tourists generally prefer to book their accommodation directly with the property, rather than through an online booking service. There are a number of reasons for this preference.

Firstly, when booking directly with the property, tourists can be sure that they are getting the best possible price for their accommodation. Online booking services often add on commission or other fees, which can increase the cost of the room significantly. By dealing directly with the property, tourists can avoid these additional costs.

Secondly, when booking directly with the property, tourists can be sure that they will get exactly what they want in terms of accommodations. They can speak to someone at the property and get specific information about room availability, amenities, etc. With an online booking service, it can be more difficult to get this type of specific information.

Thirdly, by dealing directly with the property, tourists can build up a relationship with someone at the accommodation. This can be helpful if there are any problems during their stay or if they need any special assistance.

Global Vacation Rental Market By Booking Mode, 2021 (%), 2023 (%)

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Global Vacation Rental Market Regional Insights

Europe has the largest tourism industry in the world and is holding largest share of the global vacation rental market. Every year, millions of people from all over the globe flock to its shores in search of sun, sand and sea. And with so many tourists come an extreme demand for rental accommodation. In recent years, the rise of Airbnb has made it easier than ever for travelers to find a place to stay in Europe. However, this has also led to a sharp increase in rent prices, as landlords can now charge whatever they want for their properties. This is especially true in popular tourist destinations such as Barcelona, Paris and Amsterdam, where rents have soared to astronomical levels. In some cases, a one-bedroom apartment can cost upwards of €1,000 per month!

Of course, not everyone can afford to pay these kinds of prices in the vacation rental market. This is why more and more people are choosing to stay in hostels or camping sites instead. Although these options may be less comfortable than an apartment, they are far more affordable.

The tourism industry in Europe is booming and rental accommodation is in high demand. There are a number of reasons for this, including the fact that Europe is home to some of the world's most popular tourist destinations. Many people flock to Europe each year to experience its rich history, culture and natural beauty. With such high demand for rental accommodation, there is no shortage of options available. Whether consumers are looking for a cozy apartment in Paris or a spacious villa in Italy, they will be able to find something to suit their needs and budget.

The European vacation rental market offers something for everyone, whether tourists are interested in exploring ancient ruins or enjoying the bustling nightlife of major cities. With so much to see and do, it's no wonder that Europe continues to be one of the most popular travel destinations years after year.

Global Vacation Rental Market By Geography, 2022-2028, 2024-2031
  • Largest
  • Fastest

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Global Vacation Rental Market Dynamics

Vacation Rental Market Driver

  • Increasing popularity of travel and tourism: The global travel and tourism industry is booming, and people are increasingly choosing to take vacations instead of staying at home. This has led to an increase in the number of tourists who want to stay in vacation rentals instead of hotel rooms.
  • Increased affordability: Renting a vacation home is much cheaper than staying in a hotel room. This is due to the fact that you can usually find rental properties that are well-maintained and offer a lot of amenities, such as pools and tennis courts. As a result, vacation rental market is witnessing a strong growth in the market revenue.
  • Increased accessibility: Vacation rentals are becoming increasingly popular because they are now easier to find than ever before. There are now websites and apps that allow you to find rental properties quickly and easily. This means that you can book your vacation accommodation without having to spend hours searching through listings.

Vacation Rental Market Restraint

There are a number of different restraints that can impact the vacation rental market.

  • One of the most significant is the availability of properties. If there are few properties available for rent, then prices will be driven up and it may be difficult to find a place to stay.
  • Another restraint is the cost of renting a property. If prices are too high, then people may be less likely or willing to take a vacation. Additionally, if there are many restrictions placed on rentals (e.g., no smoking, no pets, etc.), this can also limit the number of people who are willing to rent a particular property.

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Global Vacation Rental Market Competitive Landscape

In a time when the vacation rental market is tight and landlords are eager to find new tenants, some companies are looking to take advantage of the situation by offering vacation rentals. The rental market has tightened up considerably as a result of the covid pandemic, but it’s also become much more competitive. There are many more rental properties available now than there were five or six years ago. Today, companies are taking every possible step to improve their market share and market revenue. For instance, McCarthy Properties offers its guests 11 different types of vacation rentals from condos to houses that can accommodate up to 16 people.

Other companies are taking a different approach by renting out their entire property instead of splitting it up into various units.

“SkyQuest Technology have seen an uptick in demand for vacation rentals over the past few years because people want to take advantage of cheaper rates and the convenience of being able to pick up and leave at any time.

Vacation Rental Market Top Player's Company Profiles

  • Airbnb Inc.
  • Booking.com
  • Vrbo
  • TripAdvisor
  • HomeAway
  • Expedia Group Inc.
  • Agoda
  • FlipKey
  • Wimdu
  • OneFineStay
  • HouseTrip
  • Luxury Retreats
  • Interhome
  • RedAwning
  • TurnKey Vacation Rentals
  • Vacasa
  • Wyndham Vacation Rentals
  • Natural Retreats
  • GuestHouser
  • Stayz

Vacation Rental Market Recent Developments

  • In June 2022, Meredith Lodging planned to expand into the Mount Hood region by acquiring Mt Hood Vacation Rentals
  • In June 2022, Booking.com, a leader in vacation rental market, reported higher revenue than its direct counterparts Airbnb and Expedia
  • In June 2022, Hotels in Latin America united to started their own online booking platform and tools

Global Vacation Rental Key Market Trends

  • Growth in private rental demand from international travelers
  • Continued growth in the luxury vacation rental market
  • Growing interest in Airbnb and other online rental platforms
  • Tightening government regulations on the industry

Global Vacation Rental Market SkyQuest Analysis

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected utilizing Primary Exploratory Research backed by the robust Secondary Desk research.

There are a number of different ways to look at the vacation rental market when it comes to what analysts at SkyQuest Technology think. The first thing to consider is that the industry has changed significantly over the past few years. In the past, most vacation rental properties were owned by individuals or small businesses. However, today there are a number of large corporations that own multiple vacation rental properties. This change has led to a more professional approach to managing vacation rentals and a greater focus on customer service.

The second thing to consider is that the vast majority of our studies suggests that the vacation rental industry will continue to grow in popularity. This is due in part to the fact that more and more people are choosing to take vacations each year. Additionally, many families are now opting for vacation rentals rather than traditional hotels. This trend is expected to continue as vacation rentals offer more space and privacy than hotel rooms.

Finally, it is important to note that there are some concerns about the future of the vacation rental market. One of the biggest concerns is regulation. Currently, there are very few regulations governing vacation rentals. As a result, some worry that this lack of regulation could lead to problems in the future such as safety issues or decreased property values.

Report Metric Details
Market size value in 2023 USD 74.64 billion
Market size value in 2031 USD 119 billion
Growth Rate 5.3%
Forecast period 2024-2031
Forecast Unit (Value) USD Billion
Segments covered
  • Accommodation Type
    • Home, Apartments, Resort/Condominium, Others
  • Booking Mode
    • Offline, Online
Regions covered North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
Companies covered
  • Airbnb Inc.
  • Booking.com
  • Vrbo
  • TripAdvisor
  • HomeAway
  • Expedia Group Inc.
  • Agoda
  • FlipKey
  • Wimdu
  • OneFineStay
  • HouseTrip
  • Luxury Retreats
  • Interhome
  • RedAwning
  • TurnKey Vacation Rentals
  • Vacasa
  • Wyndham Vacation Rentals
  • Natural Retreats
  • GuestHouser
  • Stayz
Customization scope

Free report customization with purchase. Customization includes:-

  • Segments by type, application, etc
  • Company profile
  • Market dynamics & outlook
  • Region

Historical Year 2019

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Table Of Content

Executive Summary

Market overview

  • Exhibit: Executive Summary – Chart on Market Overview
  • Exhibit: Executive Summary – Data Table on Market Overview
  • Exhibit: Executive Summary – Chart on Global Vacation Rental Market Characteristics
  • Exhibit: Executive Summary – Chart on Market by Geography
  • Exhibit: Executive Summary – Chart on Market Segmentation
  • Exhibit: Executive Summary – Chart on Incremental Growth
  • Exhibit: Executive Summary – Data Table on Incremental Growth
  • Exhibit: Executive Summary – Chart on Vendor Market Positioning

Parent Market Analysis

Market overview

Market size

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • SWOT Analysis

KEY MARKET INSIGHTS

  • Technology Analysis
    • (Exhibit: Data Table: Name of technology and details)
  • Pricing Analysis
    • (Exhibit: Data Table: Name of technology and pricing details)
  • Supply Chain Analysis
    • (Exhibit: Detailed Supply Chain Presentation)
  • Value Chain Analysis
    • (Exhibit: Detailed Value Chain Presentation)
  • Ecosystem Of the Market
    • Exhibit: Parent Market Ecosystem Market Analysis
    • Exhibit: Market Characteristics of Parent Market
  • IP Analysis
    • (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
  • Trade Analysis
    • (Exhibit: Data Table: Import and Export data details)
  • Startup Analysis
    • (Exhibit: Data Table: Emerging startups details)
  • Raw Material Analysis
    • (Exhibit: Data Table: Mapping of key raw materials)
  • Innovation Matrix
    • (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
  • Pipeline product Analysis
    • (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
  • Macroeconomic Indicators

COVID IMPACT

  • Introduction
  • Impact On Economy—scenario Assessment
    • Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
  • Revised Market Size
    • Exhibit: Data Table on Global Vacation Rental Market size and forecast 2021-2027 ($ million)
  • Impact Of COVID On Key Segments
    • Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
  • COVID Strategies By Company
    • Exhibit: Analysis on key strategies adopted by companies

MARKET DYNAMICS & OUTLOOK

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • Regulatory Landscape
    • Exhibit: Data Table on regulation from different region
  • SWOT Analysis
  • Porters Analysis
    • Competitive rivalry
      • Exhibit: Competitive rivalry Impact of key factors, 2021
    • Threat of substitute products
      • Exhibit: Threat of Substitute Products Impact of key factors, 2021
    • Bargaining power of buyers
      • Exhibit: buyers bargaining power Impact of key factors, 2021
    • Threat of new entrants
      • Exhibit: Threat of new entrants Impact of key factors, 2021
    • Bargaining power of suppliers
      • Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
  • Skyquest special insights on future disruptions
    • Political Impact
    • Economic impact
    • Social Impact
    • Technical Impact
    • Environmental Impact
    • Legal Impact

Market Size by Region

  • Chart on Market share by geography 2021-2027 (%)
  • Data Table on Market share by geography 2021-2027(%)
  • North America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • USA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Canada
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Europe
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Germany
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Spain
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • France
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • UK
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Europe
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Asia Pacific
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • China
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • India
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Japan
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Korea
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Asia Pacific
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Latin America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Brazil
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of South America
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Middle East & Africa (MEA)
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • GCC Countries
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Africa
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of MEA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)

KEY COMPANY PROFILES

  • Competitive Landscape
    • Total number of companies covered
      • Exhibit: companies covered in the report, 2021
    • Top companies market positioning
      • Exhibit: company positioning matrix, 2021
    • Top companies market Share
      • Exhibit: Pie chart analysis on company market share, 2021(%)

Methodology

For the Global Vacation Rental Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:

1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.

2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Global Vacation Rental Market.

3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.

4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.

Analyst Support

Customization Options

With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Global Vacation Rental Market:

Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.

Regional Analysis: Further analysis of the Global Vacation Rental Market for additional countries.

Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.

Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.

Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.

Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.

Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.

Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.

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FAQs

Global Vacation Rental Market size was valued at USD 74.64 billion in 2019 and is poised to grow from USD 82.63 billion in 2023 to USD 119 billion by 2031, growing at a CAGR of 5.3% in the forecast period (2024-2031).

In a time when the vacation rental market is tight and landlords are eager to find new tenants, some companies are looking to take advantage of the situation by offering vacation rentals. The rental market has tightened up considerably as a result of the covid pandemic, but it’s also become much more competitive. There are many more rental properties available now than there were five or six years ago. Today, companies are taking every possible step to improve their market share and market revenue. For instance, McCarthy Properties offers its guests 11 different types of vacation rentals from condos to houses that can accommodate up to 16 people. 'Airbnb Inc.', 'Booking.com', 'Vrbo', 'TripAdvisor', 'HomeAway', 'Expedia Group Inc.', 'Agoda', 'FlipKey', 'Wimdu', 'OneFineStay', 'HouseTrip', 'Luxury Retreats', 'Interhome', 'RedAwning', 'TurnKey Vacation Rentals', 'Vacasa', 'Wyndham Vacation Rentals', 'Natural Retreats', 'GuestHouser', 'Stayz'

Increasing popularity of travel and tourism: The global travel and tourism industry is booming, and people are increasingly choosing to take vacations instead of staying at home. This has led to an increase in the number of tourists who want to stay in vacation rentals instead of hotel rooms.

Growth in private rental demand from international travelers

Europe has the largest tourism industry in the world and is holding largest share of the global vacation rental market. Every year, millions of people from all over the globe flock to its shores in search of sun, sand and sea. And with so many tourists come an extreme demand for rental accommodation. In recent years, the rise of Airbnb has made it easier than ever for travelers to find a place to stay in Europe. However, this has also led to a sharp increase in rent prices, as landlords can now charge whatever they want for their properties. This is especially true in popular tourist destinations such as Barcelona, Paris and Amsterdam, where rents have soared to astronomical levels. In some cases, a one-bedroom apartment can cost upwards of €1,000 per month!

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Global Vacation Rental Market

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