Vacation Rental Industry Overview
The global vacation rental market size was valued at USD 74.64 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 5.3% from 2022 to 2030. Rising expenditure on travel, vacations, and accommodation among the millennials generation is driving the market. According to Copyrise, 200,000 million global tourists are millennials and they spend around USD 180 billion on travel every year.
However, the COVID-19 pandemic has negatively impacted the growth of the market. For instance, according to AirDNA, there has been a significant drop in weekly bookings between the beginning of January and March 2020. Moreover, the number of bookings in Beijing dropped by 96%, Shanghai by 71%, Seoul by 46%, and Rome by 41%.
Gather more insights about the market drivers, restraints, and growth of the Global Vacation Rental market
Travelers in the market are more inclined towards vacation rental property over hotels owing to the comfort, low cost, more privacy, and kids and pet-friendly nature of the accommodation. Low cost as compared to hotel accommodation with similar amenities drives the consumer’s inclination towards vacation rental property. For instance, according to the TurnKey Vacation Rentals 2019 survey, 64% of travelers prefer staying in vacation rentals to hotels.
Moreover, it has been observed that while traveling with family, consumers consider various factors while choosing a vacation rental for amenities and comfort. For instance, according to the report of iPropertyManagement in 2021, 71% of families traveling with children prefer to prepare their own meals, which was a likely factor in their decision to stay in a vacation rental.
Additionally, rising supply is increasing the demand and availability of vacation rentals owing to low costs compared to hotels. As per Stratos Jet Charters, Inc. statistics, there are 2.9 million hosts on Airbnb worldwide, and over 14,000 hosts are among the new additions each month in 2021. Moreover, Airbnb operates in around 220 countries, with around 100,000 cities with active Airbnb listing in 2021.
The influence of social media and the internet is increasing awareness among consumers regarding services and offerings. Key players are offering various services, exotic locations, and amenities to gain market share, and are offering services dedicatedly to female travelers. For instance, in January 2020, Golightly was launched, which is a vacation rental platform managed by women and only available for female guests, also allowing men. The company owns more than 350 properties across the globe.
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Short-term Vacation Rental Market - The global short-term vacation rental market size was valued at USD 99.38 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 11.1% from 2022 to 2030.
Online Travel Booking Service Market - The global online travel booking service market size was valued at USD 519.1 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 9.0% from 2022 to 2030.
Vacation Rental Market Segmentation
Grand View Research has segmented the global vacation rental market on the basis of accommodation type, booking mode, and region:
Vacation Rental Accommodation Type Outlook (Revenue, USD Million, 2017 - 2030)
- Home
- Apartments
- Resort/Condominium
- Others
Vacation Rental Booking Mode Outlook (Revenue, USD Million, 2017 - 2030)
- Online
- Offline
Vacation Rental Regional Outlook (Revenue, USD Million, 2017 - 2030)
- North America
- Europe
- Asia Pacific
- Central & South America
- Middle East & Africa
Market Share Insights
December 2021: Booking Holdings Inc. acquired Getaroom from Court Square Capital Partners for USD 1.2 billion. Through this acquisition, the brand aims to increase the value of its pipeline.
October 2020: Tripadvisor launched two new technology solutions Spotlight and Reputation Pro for hotels. Both aim to improve their hospitality business and build traveler confidence, attract new customers, and make data-driven decisions to increase profitability.
Key Companies profiled:
Some prominent players in the global vacation rental market include -
- 9flats 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.
Order a free sample PDF of the Vacation Rental Market Intelligence Study, published by Grand View Research.
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