Growing Indian tourism industry, increasing trend of transformational travel, and increasing availability of vacation rentals of the India Vacation Rentals market at a CAGR of 19.18% during the forecast period 2023 to 2032

Market Research Future (MRFR) has published on the “Global India Vacation Rental Market”.

The Vacation Rentals market is estimated to register a CAGR of 19.18% during the forecast period of 2023 to 2032.

MRFR recognizes the following companies as the key players in the India Vacation Rentals market including Airbnb Inc., MakeMyTrip Limited, Booking Holdings, Oravel Stays Limited, Yatra Online, Inc., Expedia Group, Inc., Tripadvisor LLC, StayVista, Homestay.Com, and SaffronStays.

India Vacation Rental Market Highlights

The India Vacation Rentals market is accounted for to register a CAGR of 19.18% during the forecast period and is estimated to reach USD 11,774.99 million by 2032.

India stands as a premier global travel destination, activating the ascent of its tourism and hospitality sector into a pivotal force propelling growth within the nation's services sector. This industry is mainly inclusive of travel and hospitality services such as hotels and restaurants and has great potential to roll with the global trend where tourism remains one of the main earners of foreign exchange. It is assumed by the India Brand Equity Foundation that investors such as the ones within the years 2016-22019 had long-term foreign exchange earnings within the tourist sector in India at wealth-increasing rates, or CAGR of 7. However, the year 2020 was an anomaly in that it was reported that resources fell due to the adverse impact of the COV in 19. Employment creation, foreign exchange earnings, and an increase in the GDP make the tourism and hospitality industries to be regarded as development incentives since they encompass great regional and international development potential. As far as the Indian scenario is concerned, this sector is a mirror to the colorful folds of the nation’s history, culture, and diversity, as well as enhancing further economic growth. The great thing about India is that, even if there are famous places for tourists to come to, there are great activities that make the country a good place for every kind of traveler.

The Indian tourism landscape is the proactive role played by both the central and state governments in fostering its growth. Recognizing the sector's potential as a driver of economic development, policymakers have implemented initiatives and frameworks aimed at promoting tourism. These measures include infrastructure development, promotional campaigns, and regulatory reforms designed to enhance the overall tourist experience. The government's consistent efforts have been particularly evident in the after-effects of the COVID-19 pandemic, with strategic interventions aimed at reviving the sector and restoring it to pre-pandemic levels. The global pandemic, with its travel restrictions and safety concerns, brought the tourism and hospitality industry to a standstill worldwide. India, with its stringent lockdown measures, experienced a sharp decline in tourist arrivals, resulting in a substantial contraction of the industry in 2020. However, the resilience of the sector, coupled with the concerted efforts of the authorities, has facilitated a gradual recovery. The phased reopening of tourist destinations, implementation of health and safety protocols, and promotional campaigns have collectively contributed to the industry's resurgence. The recovery of the Indian tourism and hospitality sector post-pandemic exemplifies its adaptability and resilience. While challenges persist, the industry's ability to navigate through adversity underscores its significance as a key driver of economic growth. The restoration of foreign exchange earnings and the rejuvenation of tourism-related activities are indicative of the sector's pivotal role in India's economic landscape.

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Segment Analysis

The India Vacation Rentals market has been segmented based on booking mode, pricing, end user, gender, age group, type, and property type.

Based on type, the market is segmented into short-term and medium-term. The short-term were attributed to holding the largest market share in 2022, with a market share of ~95.57% revenue, as estimated by MRFR analysts. This segment is expected to maintain its dominance through 2032, reaching a projected value of USD 1,952.00 million. For the study of the India vacation rentals market, the short-term segment is defined as those rental properties that are rented out for a period of less than 30 days. Short-term is leading the market owing to the limited availability of lengthy holiday options in the Indian work landscape. The majority of the population in the group and business end users prefer short-term stays typically less than a week or 10 days. According to the MRFR analysis of consumer groups' behavior around 80% to 90% of the trips and tours taken by individuals falling in the age group of 18 to 35 during the historical period of analysis prefer to go only on short vacations owing to the limited financial budget availability and availability of earned leaves/holiday options.

Based on property type, the India Vacation Rentals market has been segmented into individual house, apartments (incl. serviced apartments), cottages & resorts, villas, boutique hotels, and others. The apartments segment was expected to hold the largest market share in 2022. contributing around ~40.69% to the market revenue. The apartment segment comprises a fully furnished apartment with multiple rooms that are equipped with the amenities of a regular house and provide similar comfort while business traveling or on family vacations. The segment includes regular apartments, condominiums, and service apartments. On average, even for the same cost as traditional hotel rooms the apartments and serviced apartments provide approximately 20 to 30% more space.

Based on gender, the India Vacation Rentals market has been segmented into men and woman. The men segment was expected to hold the largest market share in 2022. contributing around ~56.98% to the market revenue. The increasing workhours across different sectors and the tighter work schedules are one of the key factors that are responsible for the segment’s largest shareholding in the market over the years. According to MRFR analysis on the gender-based travel trends in the Indian tourism market around 50% of regular male travelers are shifting towards vacation rentals from traditional hotels given the various benefits and additional features of the former which is expected to positively influence the growth of the segment during the forecast period.

Based on pricing, the India Vacation Rentals market has been segmented into economy, mid-range, and premium. The economy segment was expected to hold the largest market share in 2022. contributing around ~42.44% to the market revenue. The surge in the domestic tourism market is attributed to the improved transportation and connectivity of many new and remote tourist spots. The advent of social media and deeper penetration of internet usage among the population in the country is giving rise to the emergence of new destinations that are different and far-located from traditional tourist places. For instance, tier II and tier III locations in the country like Madurai, Tamil Nadu; Rajkot, Gujarat; Lonavala, Maharashtra; and others are gaining popularity among travelers than trend during pre-pandemic times owing to the increasing contents from these areas on social media platforms like Instagram, Facebook, YouTube, and others.

Based on age group, the India Vacation Rentals market has been segmented into gen alpha, gen Z, millennials, gen X, and baby boomers. The millennials segment was expected to hold the largest market share in 2022. contributing around ~43.68% to the market revenue. Millennials are those population that were born between 1981 and 1996, one of the largest consumer groups that are engaged in the workforce compared to other groups. The consumer group presently in their early 40s and 30s are occupying mid-management roles and higher level positions in their career resulting in higher spending power for entertainment and leisure purposes including travel-related expenses.

Based on end user, the India Vacation Rentals market has been segmented into individual, group, and business. The group segment was expected to hold the largest market share in 2022. contributing around ~54.73% to the market revenue. The group segment comprises travelers who travel as couples, family, and a group of friends. Traditionally in the Indian culture group travel has been the norm for vacation and tourism. The segment constitutes also colleagues who travel in groups based on their planning without the involvement of corporate or business funds.

Based on booking mode, the India Vacation Rentals market has been segmented into online and offline. The offline segment was expected to hold the largest market share in 2022. contributing around ~58.24% to the market revenue. The offline mode of booking comprises the booking of vacation rentals directly by physically reaching the location of the vacation rental often referred to as spot bookings or directly through the store-based travel agencies in person and over phone bookings.

Key Findings of the Study

• The India Vacation Rentals market is expected to reach USD 11,774.99 million by 2032, at a CAGR of 19.18% during the forecast period.


• The west region accounted for the fastest-growing market, as it has region's large manufacturing and logistics industries.


• Based on end user, the by end use group was attributed to holding the largest market in 2022, with an approximate market share of 54.73%.


• The key players in the market Airbnb Inc., MakeMyTrip Limited, Booking Holdings, Oravel Stays Limited, Yatra Online, Inc., Expedia Group, Inc., Tripadvisor LLC, StayVista, Homestay.Com, and SaffronStays.