India Vacation Rentals Market Research Report by Type (short-term and medium-term), by Property Type {Individual House, Apartments (incl Serviced Apartments), Cottages & Resorts, Villas, Boutique Hotels, and Others}, by Age Group (gen alpha, gen Z, millennials, gen X, and baby boomers), by Gender (men and women), by End User (individual, group, and business), by Pricing (Economy, Mid-Range, and Premium), by Booking Mode {Offline, Online (Direct and Travel Agencies)} and By Region (North America, Europe, Asia-Pacific, Middle East & Africa, a

India Vacation Rentals Market Overview

India Vacation Rentals Market Size was valued at USD 2,042.38 million in 2022. The Vacation Rentals market industry is projected to grow from USD 2,427.98 million in 2023 to USD 11,774.99 million by 2032, exhibiting a compound annual growth rate (CAGR) of 19.18% during the forecast period (2023 - 2032). Growing Indian tourism industry, increasing trend of transformational travel, and increasing availability of vacation rentals are the key market drivers boosting the growth of the Vacation Rentals market.  

FIGURE 1: INDIA VACATION RENTALS MARKET SIZE 2019-2032 (USD MILLION)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Vacation Rentals Market Trends

Growing Indian Tourism Industry

The hotel rental market in India has experienced expansion in recent years, owing to the changing nature of the travel and hospitality industries. One of the most significant market developments has been the growing desire for personal and expert knowledge. Travelers are no longer satisfied with regular hotels; they want the unique experiences and traditions that resorts can provide. The growth of digital platforms and online travel agencies (OTAs) has had a significant impact on the evolution of holiday destinations in India. Airbnb, Booking.com, and MakeMyTrip have gained popularity by providing a simple interface for homeowners to sell their houses and travellers to discover and book lodging. This digitalization not only expands the vacation space, but also increases transparency and trust through user reviews and ratings.

Another difference to note is the difference between vacation destinations. While homes and condos have always been a popular choice, there has also been an increase in unique and non-traditional properties on the market. Treehouses, houseboats, historic homes and boutique villas are becoming increasingly popular and appeal to guests looking for a unique experience. These trends indicate a growing need for programs tailored to specific preferences, such as eco-friendly accommodations or environmental practices. The COVID-19 pandemic has had a major impact on international travel, and the Indian hotel rental industry is no exception. The shift to remote working and the rise of ‘office spaces’ has led to an increase in demand for long-term rentals. Travelers are now looking for comfortable and functional hotels for work and leisure. These trends have allowed owners and managers to adapt their products to meet the changing needs of new travelers. Partnerships and collaborations between resorts and community gatherings have also created business. These collaborations aim to promote cultural tourism, ensure compliance with local regulations and improve overall tourism. By working closely with business associations, vacation rentals can increase the accountability and growth of the Indian tourism industry.

Vacation Rentals Market Component Segment Insights:

Vacation Rentals Type Insights.

Based on type, the India Vacation Rentals market segmentation includes short-term and medium-term. The Short-Term held the majority share in 2022, contributing around ~95.57% to the market revenue. In 2022, 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.

FIGURE 2: INDIA VACATION RENTALS MARKET, BY TYPE, 2022 VS 2032 (USD MILLION)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Vacation Rentals Property Type Insights

Based on property type, the India Vacation Rentals market segmentation includes individual house, apartments (incl. serviced apartments), cottages & resorts, villas, boutique hotels, and others. The apartments held the majority share in 2022. 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. Many corporates are shifting their preference to renting out apartments and serviced apartments to accommodate clients and employees during conferences, meetings, and other business occasions in place of regular hotel rooms. This trend is mainly attributed to the comfort provided by such apartments that are on-par with home-like experience in addition to the cos-saved in such apartments while renting out for mid-term as per-day cost of hotels are considerably higher in metro cities and other attractive destinations compared to the apartments. On average, even for the same cost as traditional hotel rooms the apartments and serviced apartments provide approximately 20 to 30% more space. The additional space helps in storing and accommodating users’ products like sports equipment, large bags, and other accessories, especially for users who are renting out for more than a couple of weeks.

Vacation Rentals Gender Insights

Based on gender, the India Vacation Rentals market segmentation includes men and woman. The men held the majority share in 2022. The men segment represents the revenue generated by the male population in the India vacation rentals market and has accounted for an overall market value of USD 1,163.74 million in 2022 which is expected to reach a value of USD 6,056.68 million by 2032. 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.

Vacation Rentals Pricing Insights

Based on pricing, the India Vacation Rentals market segmentation includes economy, mid-range, and premium. The economy held the majority share in 2022. The economy segment represents the vacation rentals that charge a fee of USD 60 per night (Under INR 5,000) and is one of the most common price ranges that are offered by various small-scale and compactly built property types. Compared to various other trending countries for vacation globally, India is considered one of the budget-friendly options for foreign/international tourists, and with the wide availability of various property types in the economy price range is contributing to the largest market share of 42.44% in 2022 in the market. One of the key driving factors of the segment growth over the historical years and base years is the increasing volume of the domestic population going on vacation, as India's travel & tourism market recorded a growth of 11.05% om the domestic tourists volume in 2021 compared to 2020.

Vacation Rentals Age Group Insights

Based on age group, the India Vacation Rentals market segmentation includes gen alpha, gen Z, millennials, gen X, and baby boomers. The millennials held the majority share in 2022. 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. Owing to the pandemic-related changes in the work model across various sectors including the remote-work culture, hybrid, and work-from-home options have resulted in millennials exploring and experiencing working from remote places. Also, the pandemic has restricted people's movement in general, and with increased workload for certain positions and certain roles has resulted in the trend of revenge travel in the first relaxation of lockdown in 2021 and continued further in 2022 and 2023.

Vacation Rentals End User Insights

Based on end user, the India Vacation Rentals market segmentation includes individual, group, and business. The group held the majority share in 2022. 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. According to the MRFR analysis, post the pandemic the desire for group travel has been witnessing significant growth, especially among high-income and affluent travelers. Preference for luxury domestic and international travel with friends and family has topped their travel priority level among the affluent income group as a means to spend quality and meaningful time. Also, the consumer preferences among the group travelers have highlighted that the availability of a wide range of entertainment activities is part of the accommodation and the choice of personally tailored tour packages are two of the key parameters that influence the selection of a particular vacation rental property type.

Vacation Rentals Booking Mode Insights

Based on booking mode, the India Vacation Rentals market segmentation includes online and offline. The offline held the majority share in 2022. 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. Offline mode held the largest market share of 58.24% in 2022 owing to the trust and familiarity of the offline mode among the elderly population constituting the Gen X and Baby Boomers. Apart from the elderly age group people, a considerable amount of people in the millennials still prefer the offline mode of booking as it provides them the opportunity to confirm the accurate details of location and a space to negotiate the check-in times, accommodation total fees, and other terms. It is also perceived that around 50 to 55% of the active travelers perceive the offline mode of booking provides a personal connect and results in repeat visits and increased visibility among the user’s friends & family circle. Offline booking mode also provides flexibility in booking if there is any need for modification of dates at any moment.

Vacation Rentals Regional Insights

By Region, the study provides market insights into North, South, West, and East. The South Vacation Rentals market accounted for ~47.02% in 2022. This is majorly attributed to the increasing popularity of India as a tourist destination among various global countries as the infrastructure in the country and connectivity with multiple global countries through air and seaways have improved over the years making it an easy and comfortable journey for the international tourists. The geographical position of the country along with its diverse cultural heritage is making India an attractive spot for entertainment and leisure.

Further, the increasing government initiatives, schemes, and policies to promote the tourism industry in the country are expected to drive the overall travel & tourism industry in the upcoming years which is projected to positively influence the demand for vacation rentals in the country and create a new set of opportunities for the players in the market.

FIGURE 3: INDIA VACATION RENTALS MARKET SIZE BY REGION 2022 VS 2032 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

South India accounts for the largest market share in the vacation rentals market owing to the presence of various religious tourist spots in Tamil Nadu amounting to approximately 33,000 temples in 2022 is a key attraction to both domestic and international cultural tourists. Further, consumer surveys of travelers have highlighted that the majority of individuals prefer hill stations and coastal getaways for short-term vacations. India has a total coastline of 7,516.6 Km constituting the majority of southern states namely Karnataka, Kerala, Tamil Nadu, Andhra Pradesh, and Puducherry making most of these coastal cities a preferred tourist destination. The region houses around 25 hill stations comprising popular destinations like Ooty, Kodaikanal, Munnar, Coorg, Yercaud, Wayanad, and others making the region a popular choice for vacation which is expected to drive the demand for vacation rentals positively from 2023 to 2032.

Vacation Rentals Key Market Players & Competitive Insights.

With a strong presence across different verticals and geographies, the Vacation Rentals market is highly competitive and dominated by established, pure-play vendors. Over 10 vendors cater to this market, and they continually innovate their solutions to meet the evolving needs of businesses by adopting new technologies. These vendors have a robust geographic footprint and partner ecosystem to cater to diverse customer segments. The Vacation Rentals market is highly competitive, with many vendors offering similar products and services.  

The major players in the market include Airbnb Inc., MakeMyTrip Limited, Booking Holdings, Oravel Stays Limited, Yatra Online, Inc., Expedia Group, Inc., Tripadvisor LLC, StayVista, Homestay.Com, and SaffronStays Corporation constantly takes on new challenges to ensure the stability of its management foundation by extending its reach into business fields. In 2022, the Vacation Rentals market remains highly fragmented, characterized by a diverse array of players, from large multinational corporations to numerous smaller, local firms. This fragmentation is evident from the market share distribution, where the leading companies command only a small fraction of the overall market. It concentrates on broadening its product offerings to reach new audiences in the global market.

The India Vacation Rentals market is consolidated, increasing competition, acquisitions, mergers, and other strategic market developments and decisions to improve operational effectiveness.

Key Companies in the Vacation Rentals market include

• Airbnb Inc.


• MakeMyTrip Limited


• Booking Holdings


• Oravel Stays Limited


• Yatra Online, Inc.


• Expedia Group, Inc.


• Tripadvisor LLC


• StayVista


• Com


• SaffronStays

Vacation Rentals Industry Developments

• In May 2023, MakeMyTrip Limited and Rentals United announced the partnership regarding the vacation rentals marketplace across Asia to ease up the booking process and support the listing process of the property managers.


• In February 2023, StayVista has collaborated with Marriott International to present its luxury villas on the Homes & Villas by Marriott Bonvoy platform.


• in March 2022, Vista Rooms rebranded its name to StayVista, this approach was mainly based on a dynamic market and upgradation of identity and user experience.

Vacation Rentals Market Segmentation:

India Vacation Rentals Type Outlook

• Short-Term


• Medium-Term

India Vacation Rentals Age Group Outlook

• Gen Alpha


• Gen Z


• Millennials


• Gen X


• Baby Boomers

India Vacation Rentals End User Outlook

• Individual


• Group


• Business

India Vacation Rentals Pricing Outlook

• Economy


• Mid-Range


• Premium

India Vacation Rentals Booking Mode Outlook

• Online
  
  
  
  • Direct
  
  
  • Travel Agencies
  
  
  
  


• Offline

India Vacation Rentals Gender Outlook

• Men


• Women

India Vacation Rentals Property Type Outlook

• Individual House


• Apartments (incl


• Serviced Apartments)


• Cottages & Resorts


• Villas


• Boutique Hotels


• Others

Vacation Rentals Regional Outlook

• India
  
  
  
  • North
  
  
  • East
  
  
  • West
  
  
  • South