The global short-term vacation rental market size is expected to reach USD 256.31 billion by 2030. The market is expected to grow at a CAGR of 11.2% from 2023 to 2030. A rise in the number of time people spent at home during the COVID-19 pandemic led to increased staycations or short-term vacations after the lifting of lockdown restrictions. This created more need for staycation places and is contributing to the growth of the market. Rising expenditure on travel and tourism, demand for eco-friendly stays, and rising per capita expenditure further bolstered market growth.
The distinction between work and fun is becoming hazier in the post-pandemic era, and the rise of the work-from-home trend has made work more flexible. This resulted in travel growth across the globe with travelers experiencing new places putting work-life balance into the form of equilibrium. Offering an attractive proposition, short-term vacation rentals can provide a great return on investment to the landlords helping them achieve larger profits as compared to traditional long-term rentals, by utilizing hosting platforms such as Booking. com and Airbnb creating better industry prospects.
In terms of accommodation type, the home segment dominated the market and is expected to account for the largest market share over the forecast period. In general families or groups of friends traveling together aren't catered to well by the majority of hotels. Visitors can easily spend the majority of their budget before they even begin due to the cost of dining out and the necessity of reserving multiple rooms to fit everyone. Fortunately, it's simple to locate vacation houses that can accommodate any size gathering. Visitors can save a lot of cash by consuming at least a few of their meals at home, in addition to the necessities (plenty of bedrooms, toilets, and televisions).
North America held the largest market share in 2022 owing to the rise in the inclination of people in North America towards hotels & restaurants due to tourism. The North American continent, which is surrounded by oceans on all sides, is home to many breathtaking locales and landscapes, making it one of the most sought-after tourist destinations in the world. Government initiatives are expected to play a major role in the global market by making large investments in infrastructure and connectivity development, particularly in developing countries while opening a plethora of opportunities for market players to expand their portfolios and contribute to the growth.
Asia Pacific is one of the world's fastest-developing regions; the expansion of the hospitality sector has the potential to significantly boost economic growth, inter-regional collaboration, and intellectual progress. The rapid rise of SMEs, the expansion of corporate industries, and the globalization of businesses have all led to a significant increase in the aforementioned activities. Along with the increase in business travel, business travelers’ changing travel habits toward leisure travel, increased urbanization, and rising disposable incomes are important drivers that support the market's expansion.
The distinction between work and fun is becoming hazier in the post-pandemic era, and the rise of the work-from-home trend has made work more flexible. This resulted in travel growth across the globe with travelers experiencing new places putting work-life balance into the form of equilibrium. Offering an attractive proposition, short-term vacation rentals can provide a great return on investment to the landlords helping them achieve larger profits as compared to traditional long-term rentals, by utilizing hosting platforms such as Booking. com and Airbnb creating better industry prospects.
In terms of accommodation type, the home segment dominated the market and is expected to account for the largest market share over the forecast period. In general families or groups of friends traveling together aren't catered to well by the majority of hotels. Visitors can easily spend the majority of their budget before they even begin due to the cost of dining out and the necessity of reserving multiple rooms to fit everyone. Fortunately, it's simple to locate vacation houses that can accommodate any size gathering. Visitors can save a lot of cash by consuming at least a few of their meals at home, in addition to the necessities (plenty of bedrooms, toilets, and televisions).
North America held the largest market share in 2022 owing to the rise in the inclination of people in North America towards hotels & restaurants due to tourism. The North American continent, which is surrounded by oceans on all sides, is home to many breathtaking locales and landscapes, making it one of the most sought-after tourist destinations in the world. Government initiatives are expected to play a major role in the global market by making large investments in infrastructure and connectivity development, particularly in developing countries while opening a plethora of opportunities for market players to expand their portfolios and contribute to the growth.
Asia Pacific is one of the world's fastest-developing regions; the expansion of the hospitality sector has the potential to significantly boost economic growth, inter-regional collaboration, and intellectual progress. The rapid rise of SMEs, the expansion of corporate industries, and the globalization of businesses have all led to a significant increase in the aforementioned activities. Along with the increase in business travel, business travelers’ changing travel habits toward leisure travel, increased urbanization, and rising disposable incomes are important drivers that support the market's expansion.
Short-term Vacation Rental Market Report Highlights
- The home short-term vacation rentals segment dominated the global market in 2022 and is expected to showcase exponential growth in the coming years. Vacation home rentals offer the finest of both worlds, allowing guests to unwind in the comfort and solitude of their own house while still taking advantage of the luxuries offered by a hotel; this preference favors the growth of the market
- The online/platform-based segment is expected to witness substantial growth over the forecast period. With the increasing penetration of the Internet and smartphone devices across nations, vacation rental service providers are augmenting the growth of online bookings through the rising number of monthly visitors
- North America captured the largest market share in 2022. The region's growth is mostly attributed to the region’s attraction points such as its pristine lakes, modern cityscapes, historical sites, white sand beaches, and varied climatic conditions of this region
- In June 2023, MakeMyTrip Pvt. Ltd., a leading vacation rental company opened a new franchise location in Srinagar, India. Expanding its franchise network is a part of MakeMyTrip's larger plan to service consumers in the top 100+ Indian cities
Table of Contents
Chapter 1 Methodology and Scope
Chapter 2 Executive Summary
Chapter 3 Short-term Vacation Rental Market Variables, Trends & Scope
Chapter 4 Consumer Behavior Analysis
Chapter 5 Short-term Vacation Rental Market: Accommodation Type Estimates & Trend Analysis
Chapter 6 Short-term Vacation Rental Market: Booking Mode Estimates & Trend Analysis
Chapter 7 Short-term Vacation Rental Market: Regional Estimates & Trend Analysis
Chapter 8 Competitive Analysis
List of Tables
List of Figures
Companies Mentioned
- 9flats.com PTE Ltd.
- Airbnb, Inc.
- Booking Holdings Inc.
- Expedia Group, Inc.
- Hotelplan Management AG
- MakeMyTrip Pvt. Ltd.
- NOVASOL A/S
- Oravel Stays Private Limited
- Tripadvisor, Inc.
- Wyndham Destinations, Inc.
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 120 |
| Published | August 2023 |
| Forecast Period | 2022 - 2030 |
| Estimated Market Value ( USD | $ 109.76 Billion |
| Forecasted Market Value ( USD | $ 256.31 Billion |
| Compound Annual Growth Rate | 11.2% |
| Regions Covered | Global |
| No. of Companies Mentioned | 10 |
