by The vacation rental market includes short-term rentals of fully furnished homes, apartments, condominiums, villas, beach houses, cabins, unique accommodations such as yurts, houseboats, and castles. Vacation rentals offer travelers an alternative lodging experience to hotels. Travelers prefer vacation rentals as they enjoy benefits like feeling more at home, having extra space and facilities like kitchens, living areas, and dedicated parking. The growing popularity of home stays among travelers is driving the demand for vacation rentals.
The global vacation rental market is estimated to be valued at US$ 72588.74 Mn in 2023 and is expected to exhibit a CAGR of 5.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The Vacation Rental Market is Expected to be Flourished by the Growing Popularity of Home Stays (as mentioned in heading). One of the key drivers for the growing popularity of home stays is the rising preference of travelers towards personalized experiences over generic hotel stays. Vacation rentals allow travelers to experience local culture, cuisine and lifestyle in a home away from home setting. Additionally, the ease of availability and bookings through online vacation rental platforms is boosting the demand for vacation rentals. Listing properties on vacation rental platforms provides property owners an opportunity to generate additional income from short-term rental of spaces. This acts as another key driver as it incentivizes more property owners to list their spaces, thereby increasing vacation rental offerings.
Segment Analysis:
The vacation rental market is primarily segmented into private homes, apartments and vacation homes. Private homes dominate the market and account for nearly 60% share due to the availability of more listing options and personalized service. Vacationers prefer private homes for extended family stays or large groups due to availability of more rooms and amenities as compared to other properties.
PEST Analysis:
- Political: The vacation rental market is governed by various tourism laws and regulations related to homestays, property rights and taxation. Favorable tourist visa policies and regional collaborations promote cross-border travels.
- Economic: A strong GDP growth, rising disposable incomes and globalization have increased tourism and travel activities. geenration are more inclined towards experiential travel.
- Social: Changing lifestyle preferences, social media influences and desire for unique experiences are increasing demand for varied accommodation options. Vacation rentals allow travelers to immerse themselves into local culture.
- Technological: Platforms like Airbnb have made listing and booking of vacation rentals highly convenient. Advanced search filters and reviews help travelers easily find their ideal properties. Increased internet and smartphone usage further boosts the online selection of vacation homes.
Key Takeaways:
The Global Vacation Rental Market Demand is expected to witness high growth over the forecast period supported by rising tourism and evolving consumer preferences. North America accounts for the largest share currently due to a high number of listings and frequent travelers in the region. The US and Canada are among the top travel destinations globally.
Key players operating in the vacation rental market are 9flats.com Pte Ltd., Expedia Group Inc., NOVASOL A/S, Booking Holdings Inc., MakeMyTrip Pvt. Ltd., Wyndham Destinations Inc., Tripadvisor Inc., Airbnb, Hotelplan Management AG, and Oravel Stays Pvt. Ltd. Airbnb dominates the market owing to its extensive global property listings and convenient online platform for homeowners and travelers. It has revolutionized the accommodation industry with its diverse selection of unique homes and experiences.
The Asia Pacific region is anticipated to emerge as the fastest growing regional market owing to rapid infrastructure development, growing tourism promotion campaigns and increasing standard of living. Countries like Thailand, Indonesia and India are witnessing a rise in their travel and hospitality sectors. This will further augment the demand for quality vacation rental options in the region.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
