Short-Term Vacation Rental Market Report 2026

The short-term vacation rental market size has grown strongly in recent years. It will grow from $131.03 billion in 2025 to $142.55 billion in 2026 at a compound annual growth rate (CAGR) of 8.8%. The growth in the historic period can be attributed to growth in global tourism activity, expansion of digital travel platforms, rising consumer preference for home-like lodging, availability of diversified accommodation options, increased urban and leisure travel.

The short-term vacation rental market size is expected to see strong growth in the next few years. It will grow to $199 billion in 2030 at a compound annual growth rate (CAGR) of 8.7%. The growth in the forecast period can be attributed to increasing adoption of dynamic pricing tools, rising demand for contactless guest experiences, expansion of remote work-driven travel, growing focus on regulatory compliance platforms, increasing investments in property management technology. Major trends in the forecast period include increasing adoption of platform-based booking systems, rising demand for unique and experiential stays, growing preference for professionally managed properties, expansion of smart home integration in rentals, enhanced focus on sustainable accommodation practices.

The growing number of travelers is expected to drive the expansion of the short-term vacation rental market in the coming years. Travelers are individuals who move from one location to another for purposes such as leisure, work, education, or personal reasons, either for a brief period or an extended stay. The increase in travelers is fueled by rising disposable income and a stronger demand for unique and diverse experiences. Short-term vacation rentals provide travelers with more personalized and cost-effective accommodation options that offer local experiences and home-like amenities. For example, in May 2024, according to the Office for National Statistics, a UK-based national statistical institute, the UK recorded an increase in overseas visitors, with 38 million trips in 2023 compared with 31.2 million in 2022. Therefore, the rising number of travelers is contributing to the growth of the short-term vacation rental market.

Major companies in the short-term rental market are advancing property management solutions to boost operational efficiency and enhance guest experiences. These solutions involve sophisticated software and systems designed to automate and streamline the management of rental properties, including booking, maintenance, and tenant communications. For example, in January 2024, Guesty, an Israel-based property management software provider, introduced Guesty Lite. This streamlined solution is aimed at hosts managing 1-3 properties and provides Guesty's top features and technology without added complexity. It improves listing visibility on key booking channels, automates daily tasks, and offers a scalable platform to increase revenue and guest satisfaction. Guesty Lite delivers an all-in-one solution that enables hosts to effortlessly provide exceptional guest experiences.

In May 2024, Guesty, an Israel-based property management software provider, acquired Rentals United for an undisclosed amount. This acquisition is intended to create new revenue opportunities by integrating Guesty's advanced technology with Rentals United's extensive distribution network. The combination is expected to boost booking volumes and improve the relevance of bookings, significantly enhancing property managers' business performance. Rentals United is a Spain-based company that specializes in short-term vacation rental management.

Major companies operating in the short-term vacation rental market are Airbnb Inc., Vrbo, Vacasa Inc., Booking Holdings Inc., Expedia Group Inc., HomeToGo GmbH, Holidu GmbH, NOVASOL A S, Evolve Vacation Rental Network Inc., Casiola WorldWide LLC, Sonder Holdings Inc., Blueground, Plum Guide, Guesty, OYO Vacation Homes, Stayz, 9flats com, Homestay Technologies Ltd., TravelStaytion, Casamundo.

North America was the largest region in the short-term vacation rental market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the short-term vacation rental market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the short-term vacation rental market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The short-term vacation rental market includes revenues earned by entities by providing services such as furnished accommodations, self-catering kitchens, flexible check-in or check-out, local recommendations, and personalized amenities. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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