Global Vacation Rentals Market Report and Forecast 2024-2032

Global Vacation Rentals Market Outlook

The global vacation rentals market size reached approximately USD 90.20 billion in 2023. The market is projected to grow at a CAGR of 4.1% between 2024 and 2032, reaching a value of around USD 129.49 billion by 2032.

Key Trends in the Market

Vacation rentals refer to private accommodations that are rented out on a short-term basis to tourists and travellers. They usually include condominiums, cottages, apartments, and houses, among others. These rentals are equipped with various amenities such as kitchens and dining spaces, that are usually unavailable in traditional hotels. Vacation rentals are gaining popularity as they offer enhanced comfort, personalised service, and privacy as compared to hotels.

• The relatively economical nature of vacation rentals in comparison to hotel accommodations that offer similar amenities and services have bolstered their popularity among frequent travellers. Vacation rentals are not only affordable but also offer privacy and comfort along with a pet and kid-friendly environment.

• Rising popularity of wellness trips to transform one’s mind, body, and spirit and restore peace due to increasing lifestyle complexities is one of the significant vacation rentals market trends. Vacation rentals offer seclusion and privacy allowing individuals to embark on personal retreats.

• Increasing awareness about vacation rentals and the various facilities and services offered by them is another major factor augmenting the growth of the market. Rising emphasis on establishment of policies that ensure the safety of the tourists is further supporting the market expansion.

Vacation Rentals Market Segmentation

Based on accommodation type, the market is classified into home, apartments, and resort/ condominium, among others. On the basis of price range, the market is divided into economic, mid-range, and luxury. Based on booking mode, the market is bifurcated into online and offline. On the basis of region, the market segmentation includes North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the market, covering their competitive landscape and latest developments like mergers, acquisitions, investments, and expansion plans.

• Airbnb Inc.

• Awaze A/S

• Expedia, Inc. 

• Oravel Stays Limited 

• 9flats PTE. Limited 

• Wyndham Hotel Group, LLC 

• Hotelplan Group (MTCH AG)

• Booking Holdings Inc. (HotelsCombined) 

• HomeToGo GmbH

• Tripadvisor LLC 

• Others

Vacation Rentals Market Analysis

Market Share by Accommodation Type

The home segment accounts for a significant vacation rentals market share owing to the cost-effectiveness of such space compared to hotels/hotel rooms and provision of basic amenities. Travellers are always on the lookout for spaces which are pocket friendly and safe. The economical nature of home accommodations available at various travel destinations and rural spots is bolstering their popularity among frequent travellers and tourists.

Resorts/ condominiums are expected to witness significant growth over the forecast period owing to the rising preference for lavish amenities such as barbeque pits, club house, and swimming pools for travel clubs.

Market Share by Booking Mode

Offline modes of booking account for a significant share of the market owing to the boomers and gen X constituting a major consumer base. The high disposable incomes of these generations and less knowledge of technology has them booking for stays through offline modes, boosting the segment expansion and vacation rentals market growth.

However, with the advancement of technology and increasing penetration of internet, booking through online modes is witnessing exponential growth. The growing popularity of these channels can also be attributed to the availability of discounts and lucrative deals across online booking platforms.

Competitive Landscape

Airbnb Inc., founded in 2008, is a vacation rental company that allows individuals to rent their properties to those looking for accommodations for a short period of time. The company is headquartered in California, United States, and is known for acting as a broker and charging a commission from each booking.

Expedia Inc., founded in 1996, is a travel technology company, headquartered in Washington, United States. The company is widely known for providing support related to planning and booking. They offer a wide selection of vacation packages that include hotel stays, activities, flights, cruises, and additional services.

Oravel Stays Limited, commonly known as OYO hotels and homes, is a multinational hospitality chain of franchised and leased living spaces, hotels, and homes. It was founded in 2013 and has its headquarters in Haryana, India. The company provides a platform for easy booking of affordable and reliable accommodation.

Other major players in the vacation rentals market include Awaze A/S, 9flats PTE. Limited, Wyndham Hotel Group, LLC, Hotelplan Group (MTCH AG), Booking Holdings Inc. (HotelsCombined), HomeToGo GmbH, and Tripadvisor LLC, among others.

Key Highlights of the Report