Vacation Rental Market Scenario 2035

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Rising Travel Demand and Technological Integration to Drive the Global Vacation Rental Market at a CAGR of 5.5% during the Forecast Period 2025 to 2035

Market Research Future (MRFR) has published a cooked research report on the “Global Vacation Rental Market” that contains information from 2025 to 2035. The Vacation Rental market is estimated to register a CAGR of 5.5% during the forecast period of 2025 to 2035.

MRFR recognizes the following companies as the key players in the Global Vacation Rental Market — Airbnb (US), Vrbo (US), Booking.com (NL), Expedia Group (US), Tripadvisor (US), HomeAway (US), FlipKey (US), Tujia (CN), and OYO Rooms (IN).

Vacation Rental Market Highlights

The Global Vacation Rental Market is accounted for to register a CAGR of 5.5% during the forecast period and is estimated to reach USD 150.8 Billion by 2035.

The vacation rental market is growing quickly because people's tastes are changing, more people are working from home, and technology is being used more quickly. More and more travelers want unique, homey places to stay that let them customize their stay and be flexible. This is what sets vacation rentals apart from regular hotels.

The market is growing because more and more people want to travel in a way that is both fun and good for the environment. The move toward eco-friendly hotels and other places to stay goes along with more people being aware of the environment. About half of travelers say they would pay more for a place that is good for the environment. Also, the rise of online travel agencies (OTAs) and direct booking sites has made it easier for people to find and book properties.

New technologies like AI-based recommendation systems, smart home integration, and flexible cancellation options are changing the way the industry works. For example, Booking.com (NL) added an AI-powered recommendation engine to make things more personal in October 2025. Vrbo (US) added flexible cancellation policies to make travelers feel more secure. In the same way, Airbnb (US) worked with local tourism boards in August 2025 to promote eco-friendly travel programs.
Also, the popularity of remote work and hybrid lifestyles has led to the rise of "workcations," which encourage people to stay longer in beautiful or remote places. All of these changes have helped the Global Vacation Rental Market grow quickly.

Segment Analysis

The Global Vacation Rental Market has been segmented based on Property Type, Booking Platform, Customer Type, and Duration of Stay.

The Property Type segment is further bifurcated into House, Apartment, Villa, Cabin, and Condominium.
Among these, Houses hold the largest market share, as they cater to families and groups seeking spacious accommodations with home-like amenities. In contrast, Cabins represent the fastest-growing segment, fueled by increasing demand for nature-centric and remote travel experiences that offer privacy and tranquility.

The Booking Platform segment includes Online Travel Agencies (OTAs), Direct Booking Websites, Property Management Systems, and Mobile Apps. Online Travel Agencies (OTAs) dominate the segment due to their extensive property listings, global reach, and user-friendly interfaces. However, Direct Booking Websites are the fastest-growing segment, as travelers and property owners seek more personalized experiences and reduced service fees.

The Customer Type segment comprises Leisure Travelers, Business Travelers, Family Groups, and Couples. Leisure Travelers lead the segment, driven by the growing interest in local and authentic experiences. Meanwhile, Business Travelers are emerging as the fastest-growing category, owing to the expansion of remote work culture and the blending of work with leisure travel (“bleisure”).

The Duration of Stay segment is divided into Short-term, Mid-term, and Long-term.
Short-term rentals dominate the market, offering flexibility and affordability for quick getaways. However, Long-term stays are the fastest-growing category, driven by changing work patterns and increased adoption of remote and extended-stay travel options.

Region Analysis

By Region, the Vacation Rental Market is segmented into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

The North America Vacation Rental Market holds the largest share, accounting for approximately 45% of the global market. The region’s growth is driven by high travel demand, well-established players, and evolving regulations supporting short-term rentals. The United States leads this market, followed by Canada, with dominant platforms such as Airbnb, Vrbo, and Expedia Group. Increasing competition among these players has led to service innovations and improved consumer experiences.

Key Findings of the Study

The Global Vacation Rental Market is expected to reach USD 150.8 Billion by 2035, growing at a CAGR of 5.5% during the forecast period.

North America accounted for the largest market share in 2024 and is projected to maintain its dominance through 2035.

Asia Pacific is anticipated to be the fastest-growing region, driven by increasing domestic travel and technological innovation.

Based on Property Type, the House segment held the largest market share in 2024, while Cabins emerged as the fastest-growing segment.

Based on Booking Platform, Online Travel Agencies dominated the market in 2024, while Direct Booking Websites are expected to witness rapid growth.

*Airbnb (US), Vrbo (US), Booking.com (NL), Expedia Group (US), Tripadvisor (US), HomeAway (US), FlipKey (US), Tujia (CN), and OYO Rooms (IN) are identified as the key market players.