Vacation Rental Market Size was valued at USD 75.2 billion in 2022. The vacation rental market industry is projected to grow from USD 79.3 billion in 2023 to USD 121.8 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.50% during the forecast period (2023 - 2032).The main market driver of the Vacation Rental Market is the tourism sector. Travellers' growing awareness of the availability of vacation rental services and millennials' increased travel habits are driving the vacation rental market.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The market CAGR is expanding primarily due to the expanding tourism sector and the rising demand for short-term rental homes. The market is growing rapidly as a result of the expansion of the global tourism industry. The GDP of a nation is strongly impacted by the growth of the tourism sector. Many countries have put measures into place that are beneficial to the expansion of the tourist sector globally. Vacation rental homes are in high demand due to the rise in vacationers around the world. The travel and tourism sector has grown tremendously thanks in large part to the baby boom generation. As a result, the demand for vacation rental houses has been positively impacted by the expansion of the tourist sector as well as an increase in both domestic and foreign travelers.
Another trend driving the expansion of the vacation rental sector is the adoption of efficient promotional tactics. Market leaders are concentrating on celebrity endorsements and efficient advertising campaigns. Such actions help to increase the number of vendors and clients. Vendors run promotions, seasonal sales, and giveaways to draw in clients. Major market suppliers now have more potential than they did before the Internet was invented. The majority of the vendors are well-represented online, which is regarded as a crucial channel for marketing for sellers. The majority of the suppliers spend money on marketing and social media activities. Social media marketing make it easier to follow customer opinions and feedback. This media serves as a crucial instrument for developing new products, comprehending current interests and trends, examining consumer experiences, monitoring brand ratings, and monitoring service reviews. The top players in the worldwide market frequently use social media platforms like YouTube, Instagram, and Pinterest. Increased spending on social media campaigns and marketing tactics is partly due to the popularity of social networking. Thus, driving the vacation rental market revenue.
The Vacation Rental Market segmentation, based on accommodation type includes Home, Apartments, Resort/Condominium and Others. The home segment dominated the market. This is explained by the high appeal of residences among tourists due to their accessibility to services, availability of space, and sense of security. In addition, the cheap cost of lodging in rural and tourist regions is a key factor in the segment's growth.
The Vacation Rental Market segmentation, based on booking mode, includes Online and Offline. The online category generated the most income. The preference of consumers for precise access to lodging, amenities, and other benefits is associated with the increase. The demand for authentic travel experiences, convenience, and value for money are three main drivers of the expansion of internet booking.
Figure 1: Vacation Rental Market, by Booking Mode, 2022 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American vacation rental market area will dominate this market because of the expanded tourist infrastructure, a supportive political climate, and rising consumer awareness. Over 50-year-olds make up more than 1.6 billion of the world's population, according to Airbnb. In addition, a sizable portion of Baby Boomers in North America list travel as one of their top priorities.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: VACATION RENTAL MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Vacation rental Market is expected to grow at the fastest CAGR from 2023 to 2032. This is attributable to large travel agencies and online travel agencies catching up with the burgeoning glamping trend and rising costs for lodging at hotels and condos. Further, the German vacation rental market held the largest market share, and the UK vacation rental market was the fastest growing market in the European region
Asia Pacific vacation rental market accounts for the second-largest market share. The increase is primarily related to consumers' growing travel and lodging expenses. It is also predicted that increased traveller spending from other developing nations, such Australia, the Philippines, Vietnam, and India, will help market expansion in the area. Moreover, China’s vacation rental market held the largest market share, and the Indian vacation rental market was the fastest growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the vacation rental market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, vacation rental industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global vacation rental industry to benefit clients and increase the market sector. In recent years, the vacation rental industry has offered some of the most significant advantages to medicine. Major players in the vacation rental market are attempting to increase market demand by investing in research and development operations are 9flats.com Pte Ltd.; Airbnb Inc.; Booking Holdings Inc.; Expedia Group Inc.; Hotelplan Holding AG; MakeMyTrip Pvt. Ltd.; NOVASOL AS; Oravel Stays Pvt. Ltd.; TripAdvisor Inc.; Wyndham Destinations Inc.
The company Booking Holdings Inc. (Booking Holdings) offers online travel arrangements and related services. The business provides a number of services, such as hotel reservations, price comparison, rental car reservations, restaurant reservations, airline ticket bookings, vacation packages, cruise bookings, and travel reservations. It conducts business using the names Booking.com, Agoda, Priceline, KAYAK, Rentalcars.com, and OpenTable, among others. Customers and regional partners can use Booking Holdings' services. In December 2021, Getaroom was purchased by Booking Holdings Inc. for USD 1.2 billion from Court Square Capital Partners. With this transaction, the corporation hopes to boost the value of its pipeline.
American business Tripadvisor, Inc. runs user-generated content mobile apps, comparison shopping websites, and online travel agents. With nearly 1 billion evaluations and comments on roughly 8 million businesses, its eponymous website, Tripadvisor.com, is available in 40 different countries and 20 different languages. In October 2020, Spotlight and Reputation Pro, two cutting-edge technological solutions for hotels, were just launched, according to TripAdvisor.
Vacation Rental Industry Developments
July 2022 Avantio was purchased by Planet, a provider of integrated financial services and global technology. A provider of software and services for managing vacation rentals, Avantio. has increased its market share in the hotel industry.
December 2020 To boost tourism and the economy of Tampa Bay, Airbnb partnered with Visit Tampa and launched a collaborative campaign. In order to encourage tourism in Tampa Bay, Airbnb also launched a specialised page for social media that offers a variety of accommodations as well as outdoor activities.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 75.2 billion |
| Market Size 2023 | USD 79.3 billion |
| Market Size 2032 | USD 121.8 billion |
| Compound Annual Growth Rate (CAGR) | 5.50% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Accommodation Type, Booking Mode and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | 9flats.com Pte Ltd.; Airbnb Inc.; Booking Holdings Inc.; Expedia Group Inc.; Hotelplan Holding AG; MakeMyTrip Pvt. Ltd.; NOVASOL AS; Oravel Stays Pvt. Ltd.; TripAdvisor Inc.; Wyndham Destinations Inc |
| Key Market Opportunities | Raising awareness of offers and services |
| Key Market Dynamics | Tourism and travel industry is expanding quickly |
Frequently Asked Questions (FAQ) :
The Vacation Rental Market size was valued at USD 75.2 Billion in 2022.
The global market is projected to grow at a CAGR of 5.50% during the forecast period, 2023-2032.
North America had the largest share in the global market
The key players in the market are 9flats.com Pte Ltd.; Airbnb Inc.; Booking Holdings Inc.; Expedia Group Inc.; Hotelplan Holding AG; MakeMyTrip Pvt. Ltd.; NOVASOL AS; Oravel Stays Pvt. Ltd.; TripAdvisor Inc.; Wyndham Destinations Inc.
The home category dominated the market in 2022.
The online category had the largest share in the global 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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