India Vacation Rental Market Size was valued at USD 2.2 Billion in 2022. The India Vacation Rental market industry is projected to grow from USD 2.3 Billion in 2023 to USD 3.1 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.00% during the forecast period (2024 - 2032). The growing number of domestic tourists is one of the main market drivers anticipated to propel the India Vacation Rental Market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
One of the burgeoning vacation rental markets is India, which is anticipated to expand quickly. India may present a market for vacation rentals in the travel industry, propelling the market CAGR. The Indian government is concentrating on growing the tourist sector in order to create jobs, bring in money, and encourage the development of rural areas. The primary driver of the vacation rental market's expansion is the increasing trend of short-term rental homes. People go to different destinations in order to escape their busy lives and experience a different atmosphere. As a result, there is a big market demand for short-term rental units. They are able to satisfy their needs for comfort and convenience while staying within their budget thanks to the holiday rentals.
Furthermore, domestic tourists in India typically stay in home stays or rented apartments because they are reasonably priced and situated in the heart of the town or city. As a result, comfort is provided during holiday rentals without compromising their natural habitat. India is renowned for its lavish weddings and traditional celebrations. Families and organizations are looking for vacation rentals, especially large villas and farmhouses, to host festivities, business retreats, and weddings. The India vacation rental market has a lot of room to develop in this area. Even though fraudulent players engage in these activities, they also have an effect on the operations of large market retailers. This reduces market revenue and impedes market expansion. The COVID-19 pandemic, according to the World Tourism Organization (UNWTO), resulted in a 71% drop in visitor arrivals in 2021 and a 72% fall in 2020 compared to 2019, meaning that 2.1 billion foreign arrivals were lost in both years combined. Bookings for short-term rentals on Booking.com and Airbnb suffered as a result. Thus, driving the India vacation rental market revenue.
The India Vacation Rental market segmentation, based on Accommodation Types, includes Home, Apartments, Resorts / Condominiums, and Others. The home segment dominated the market mostly. This is because Travelers are increasingly choosing vacation rentals because of the key characteristics they offer, which include comfort, convenience, safety, spaciousness, and easy access to amenities. Generally speaking, it's possible to find affordable rental properties, particularly in isolated and rural areas.
The India Vacation Rental market segmentation, based on Booking Channel, includes Online and Offline. The offline generated the most income. The preference for offline booking has increased among family tourists and baby boomers. Additionally, the expansion of this market is greatly aided by the widespread penetration of numerous offline ticket providers and travel agencies.
The India Vacation Rental market segmentation, based on Price Range, includes Economical, Mid-Range, and Luxury. The economy generated the most income. Reasonably priced vacation rentals appeal to a variety of tourists, including families with small children, backpackers, and students. This is a possibility for affordable lodging to reduce their travel expenses. Reasonably priced vacation rentals appeal to a variety of tourists, including families with small children, backpackers, and students.
The India Vacation Rental market segmentation, based on Tourist Type, includes Domestic and International. The domestic generated the most income. Domestic travelers may have particular tastes based on cultural characteristics, regional cuisine, and travel patterns, and they are more accustomed to the local market. Accommodation that provide a convenient and comfortable stay along with a glimpse into the local way of life and culture may be given priority.
The India Vacation Rental market segmentation, based on Age Group, includes 15-25 Years, 26-35 Years, 36-45 Years, 46-55 Years, and 66-75 years. The 26-35 years generated the most income. Younger travelers are passionate about travel and go there often for business and pleasure, exploring and discovering new locations. Additionally, there is an increase in the number of young and middle-aged tourists due to growing tourism trends and the growth of resorts and amusement parks.
Figure 1: India Vacation Rental Market, by Age Group, 2023 & 2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
India has seen a consistent increase in both domestic and foreign travel. Travelers are discovering new regions of the nation as a result of rising disposable incomes, better infrastructure, and government tourist promotion programs. There is an increasing demand for many types of accommodations In India, including holiday rentals, due to this growing tourism activity. Because vacation rental properties are more affordable, offer greater privacy, are more comfortable, and allow pets, travelers are drawn to them rather than hotels. Customers are more likely to choose vacation rental properties due to their lower costs when compared to hotels offering similar amenities. Over the course of the projection period, growing government assistance and measures aimed at encouraging travel and vacation as a means of stimulating the economy are anticipated to promote the expansion of the vacation rental sector.
Leading market players are putting a lot of money into R&D to expand their product lines, which will spur additional expansion in the Indian holiday rental market. Additionally, market players are engaging in a range of calculated actions to increase their presence, with important market developments including releases of new products, contracts, acquisitions and mergers, increased investments, and cooperation with other enterprises. To grow and endure in a market that is becoming more and more competitive, India Vacation Rental industry must provide reasonably priced goods.
Major players in the India Vacation Rental market are making investments in R&D operations in an effort to boost market demand, including Airbnb Inc., 9flats.com Pte Ltd., Wyndham Destinations Inc., Expedia Group Inc., MakeMyTrip Pvt. Ltd., Oravel Stays Pvt. Ltd., Booking Holdings Inc., Hotelplan Holding AG.
India Vacation Rental Industry Developments
January 2023: The Hotelplan Group's completely owned subsidiary, Interhome Group, has partnered with Sol og Strand, a Danish vacation rental broker with over 6,000 holiday houses and apartments, to strategically extend its portfolio to include Denmark.
May 2023: The short-term vacation rental company MakeMyTrip Pvt. Ltd. established a partnership with Microsoft to expand trip planning accessibility with the introduction of voice-assisted booking in Indian languages. By combining Azure Cognitive Services with Microsoft Azure OpenAI Service, a technology stack has been created that allows for user-specific travel recommendations.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 2.2 Billion |
| Market Size 2023 | USD 2.3 Billion |
| Market Size 2032 | USD 3.1 Billion |
| Compound Annual Growth Rate (CAGR) | 4.00% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019-2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Accommodation Types, Booking Channel, Price Range, Tourist Type, Age Group |
| Countries Covered | India |
| Key Companies Profiled | Airbnb Inc., 9flats.com Pte Ltd., Wyndham Destinations Inc., Expedia Group Inc., MakeMyTrip Pvt. Ltd., Oravel Stays Pvt. Ltd., Booking Holdings Inc., Hotelplan Holding AG |
| Key Market Opportunities | The population's increasing demand for short-term rental units Rise in the growing the government's increased investment |
| Key Market Dynamics | Growth in expanding reliance on different economies increasing demand for many types of accommodations |
Frequently Asked Questions (FAQ) :
The size of the India Vacation Rental market was estimated at USD 2.3 billion in 2023.
It is anticipated that the market would expand at a compound annual growth rate (CAGR) of 4.00% from 2024 to 2032.
The key players in the market are Airbnb Inc., 9flats.com Pte Ltd., Wyndham Destinations Inc., Expedia Group Inc., MakeMyTrip Pvt. Ltd., Oravel Stays Pvt. Ltd., Booking Holdings Inc., Hotelplan Holding AG.
The Offline dominated the market in 2023.
The Domestic category had the largest share of the market.
Senior Research Analyst I have a bachelor's degree in mechanical engineering and an mba. i have more than two years of expertise in the retail, food, and beverage, chemical, and material industries, and hence have developed a sound cross-domain expertise. a firm believer in lifelong learning and sharing of knowledge. having a proclivity for hatching ideas and trying to absorb as much information as possible in a short amount of time. introducing corporates to the data and insight, which enables them to move from probability to possibility, has been my key areas of interest.
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