Vacation Rental Market, Trends and Analysis by Region and Country Forecasts to 2030

The ‘Vacation Rental Market’ report provides in-depth analysis and market insights that will you:

• Make informed decisions about investments, partnerships, and product development in the vacation rental market.
• Assess the competitive dynamics by identifying the major market players.
• Evaluate the potential growth opportunities and trends in market segments to expand the product portfolio.
• Foresee possible changes in the market dynamics and align business strategies to capitalize on them.
• Identify potential areas of disruption.

How is our ‘Vacation Rental Market’ report different from other reports in the market?

• The report analyzes historical and forecast market data of more than 15 countries which include the US, Canada, Mexico, UK, Germany, France, Netherlands, Italy, Spain, China, India, Japan, South Korea, Australia, Brazil, Argentina, Saudi Arabia, South Africa, and the UAE.
• It provides in-depth data and forecasts by region – North America, Europe, Asia Pacific, South and Central America, and Middle East and Africa.
• The study identifies the key technology initiatives and digital transformation strategies to be undertaken to gain a competitive advantage.
• The report offers technology and regulatory trends, and challenges impacting the vacation rental market.
• The report also gives an insight into the key players and the competitive landscape of the vacation rental market.

We recommend this valuable source of information to:

• Travel Agencies
• Vacation Rental Providers
• Venture Capitalists
• Investment Advisors
• Consultancy firms Independent Research
• Venture Funding

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Vacation Rental Market Report Overview

The vacation rental market is estimated to be valued at $51.5 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 11.7% over the forecast period. The ongoing work-from-home model and travel trends especially post the COVID-19 pandemic play an important role in the development of the vacation rental market.

As working from home becomes more common, more individuals and families are looking for vacation homes for extended stays. Instead of the traditional one- or two-week vacation, people are booking vacation rentals for weeks or even months and turning these accommodations into temporary home offices.

 The work-from-home trend also gives travelers more flexibility to decide their travel destination. This flexibility leads individuals to consider vacation rentals as a viable option for both work and leisure.

Additionally, some vacation accommodations are offering special amenities for remote working, such as high-speed internet, dedicated workspaces, and ergonomic office furniture. These features are aimed at attracting remote workers and digital nomads.

Vacation Rental Market Overview, 2020-2030 ($ Billion)

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Furthermore, travel trends play an important role in the development of the vacation rental market by influencing traveler preferences and shaping the way they choose accommodations.

The preference for larger, private accommodations aligns with the desire for more space and privacy. Vacation rentals often offer multiple bedrooms, living areas, and outdoor spaces, which appeal to families and larger groups.

 Likewise, pet owners wish to take their animals on vacation with them. Pet-friendly vacation rentals serve this market segment by offering appropriate accommodations.

These travel trends influence the preferences and expectations of travelers, and vacation rental providers have adapted to meet these demands by offering a wide range of options, from traditional homes to unique and specialized accommodations. Vacation rental hosts and property managers need to stay attuned to these trends to remain competitive in the market.

The market for vacation rentals is also driven by online booking platforms. These websites have played a major role in the expansion and accessibility of holiday rentals for tourists. Vacation rental properties are now easily noticeable and reach a larger audience thanks to online booking platforms. Property owners can post their rentals on these platforms, instantly making them available to international visitors. The market for holiday rentals has grown because of this improved accessibility.

Travelers can easily search for vacation rentals on these platforms, filter results based on their preferences, check availability and make reservations—all from the convenience of their computers or mobile devices. This convenience has attracted a larger segment of the traveling population to consider vacation rentals as an alternative to traditional hotels. Online booking platforms provide user-generated reviews and ratings for vacation rental properties. Travelers rely on these reviews to make informed decisions, which helps build trust and confidence in the vacation rental market.

However, regulatory issues are posing a major concern for the vacation rental market, and they differ significantly from place to place. These issues are often the result of local government regulations, zoning laws, and tax laws. Many cities and towns have zoning laws and land use laws that determine how properties can be utilized. In many areas, these laws prohibit short-term rentals from operating in residential neighborhoods or have specific limitations. Violations can result in fines and lawsuits.

Also, some areas have limits on the number of days or nights for a property that can be given as a short-term vacation rental. This is frequently done to stop houses from being used only for short-term rentals, which may have an impact on the supply of housing for locals. To prevent any legal and financial repercussions, property owners, hosts, property management firms, and internet booking platforms must keep up with local laws and take steps to ensure compliance.

Vacation Rental Market Segmentation by Region

Within the larger hospitality and travel sector, the North American vacation rental business is a noteworthy industry. It includes a wide variety of short-term rental homes, including seaside homes, mountain chalets, and metropolitan apartments as well as country getaways. Major online platforms such as Airbnb, Vrbo (Vacation Rentals by Owner), Booking.com, and others play a crucial role in connecting hosts with guests and facilitating bookings and transactions.

Similarly, the vacation rental market in Europe is extremely varied, providing a broad selection of lodging options such as villas, flats, cottages, and chalets, in addition to distinctive properties such as farmhouses, historical residences, and even houseboats. Numerous lodging options are available to suit a range of budgets and tastes. Holiday rentals in major cities such as Paris, London, Barcelona, Rome, and other well-known tourist locations in Spain, Italy, France, Greece, and Croatia have boosted the market for this region.

The rise of Asia Pacific vacation rental market is an emerging market primarily propelled by the population’s growing desire for travel and unique experiences, as well as increased internet penetration and disposable income.

Vacation Rental Market Analysis by Region, 2023 (%)

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South and Central America’s natural beauty, cultural diversity, and growing interest in travel experiences, exclusive to this part of the world, have contributed to the expansion of the vacation rental business in these regions. Though the region is comparatively less developed, the South and Central American vacation rental sector is showing promising growth from both inbound and foreign tourists.

Furthermore, the vacation rental market in the Middle East and Africa is in its early stages. It is gradually gaining traction as an alternative accommodation option for travelers.

Vacation Rental Market Segmentation by Country

The US has progressed through the customary phases of exploration, involvement, and development that are commonly linked with emerging tourist destinations. The consolidation stage of a destination is characterized by sustained tourist traffic, albeit with a slower rate of growth. The US has leveraged destination marketing organizations (DMOs) such as Visit California and Visit Florida to promote tourism through social media and other marketing initiatives. These DMOs are responsible for creating and implementing marketing programs to enhance tourism in their respective states by highlighting popular destinations and activities.

Over the past ten years, the US vacation rental sector has grown significantly. A rising number of tourists are choosing vacation rentals over conventional hotels, which has led to a significant development in the vacation rental business. As people continue to desire more room, privacy, and unique experiences, this tendency is likely to remain.

France is also a popular country for visitors from further afield including the US and Canada. France attracted 74.5 million international visitors in 2022, following COVID-19 interruption. Leisure is by far the most popular reason for travel in France, making up 81% of all tourists’ purposes for travel in 2022, followed by 11% of business travel. France as a country has a variety of cities, beaches, towns, and picturesque villages to attract visitors.

In 2022, Spain followed closely behind France and became the second most-visited country in Western Europe. Spain welcomed 71 million visitors, which is expected to increase by 21% YoY (year-on-year) to 85.7 million in 2023. The UK and France are the biggest source markets for Spain, with many tourists attracted by Spain’s beautiful beaches. Given Spain’s geographic location, it is very accessible for tourists from the UK and France. Additionally, the summer months of July and August are the most popular time of year to visit Spain, which coincides with European school holidays.

North America Vacation Rental Market Analysis by Country, 2023 (%)

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China’s ongoing economic growth has become one of the most influential factors for international and local tourism. From the standpoint of inbound tourism, it has established a robust business travel sector. In addition, the expansion of major cities and airport infrastructure has contributed to the globalization of several destinations, making them well-connected to many locations worldwide. As the country’s globalization and foreign investments expanded, more attractions, resorts, and facilities have garnered worldwide appeal, making China one of the most competitive inbound destinations in the world today.

Likewise, India offers a diverse range of vacation rental opportunities across various regions. Cities such as Jaipur, Udaipur, Jodhpur, and other historical places have heritage homes or palaces converted into guest accommodations. These offer an opportunity to experience Indian culture, history, and hospitality. Coastal areas such as Goa, Kerala, and parts of Maharashtra offer beachfront properties, including houses and villas, providing stunning views and easy access to the beaches.

The UAE has the second-largest population in the GCC and is the most popular destination for international tourist arrival. Dubai has become a destination city and one of the most famous in the world. According to the Mastercard Global Destination Cities Index 2019, Dubai was the fourth most-visited city in terms of overnight visitors. Cities such as Dubai and Abu Dhabi offer a wide range of luxurious apartments, penthouses, and villas available for short-term rentals. These properties often come with stunning views, high-end amenities, and convenient access to city attractions.

Vacation Rental Market – Competitive Landscape

The vacation rental market is highly competitive, with a range of companies providing different offerings. The competitive landscape of the vacation rental market is diverse and includes various vendors and platforms competing for market share and customer attention.

The major firms are pursuing a merger and acquisitions (M&A) strategy to expand their presence worldwide.

Key companies in the vacation rental market include:

• Airbnb Inc.
• Booking Holdings Inc.
• Expedia Group Inc.
• Hotelplan Holding AG
• MakeMyTrip Pvt. Ltd.
• Oravel Stays Pvt. Ltd. (OYO Rooms)
• TripAdvisor Inc.
• Wyndham Destinations Inc.
• Vacasa, LLC
• Awaze

Vacation Rental Market Segments

GlobalData Plc has segmented the vacation rental market report by region and country:

Vacation Rental Market Regional Outlook (Value $Billion, 2022-2030)

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Netherlands
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South & Central America
  • Brazil
  • Argentina
  • Rest of South & Central America
• Middle East & Africa
  • Saudi Arabia
  • South Africa
  • UAE
  • Rest of the Middle East & Africa

Scope

This report provides an overview and service addressable market for vacation rental market.

It identifies the key trends impacting the growth of the market over the next 12 to 24 months.

It includes global market forecasts for the vacation rental market and a detailed competitor analysis.

Key Highlights

The vacation rental market will be valued at $51.5 Billion in 2023 and is expected to grow at a CAGR of 11.7% over the forecast period (2023-2030). The vacation rental market report provides an executive-level overview of the major region, with detailed forecasts of key countries up to 2030.

Reasons to Buy

This market intelligence report offers a thorough, forward-looking analysis of the global vacation rental market by region and key opportunities in a concise format to help executives build proactive and profitable growth strategies.

Accompanying GlobalData’s Forecast products, the report examines the assumptions, drivers, deals, strategic initiatives, and trend analysis in vacation rental market.

Detailed segmentation by Region – North America, Europe, Asia Pacific, South and Central America, and Middle East and Africa.

Detailed segmentation by country – US, Canada, Mexico, UK, Germany, France, Netherlands, Italy, Spain, China, India, Japan, South Korea, Australia, Brazil, Argentina, Saudi Arabia, South Africa, and United Arab Emirates.

The report includes 30+ charts providing in-depth analysis of the market size, forecast, and supporting factors which are tailor-made for an executive-level audience, with enhanced presentation quality.

The report provides an easily digestible market assessment for decision-makers built around in-depth information gathered from local market players, which enables executives to quickly get up to speed with the current and emerging trends in the vacation rental market.

The competitive section of the report helps in identifying the flagbearers, experimenters, contenders, and specialists based on their growth and innovation performance in the vacation rental market which will help stakeholders analyze competition penetration.