Short Term Rental Platform Market Research Report By Property Type (Houses, Apartments, Villas, Condominiums, Bed and Breakfasts), By Booking Method (Online Booking Platforms, Direct Bookings, Property Management Companies, Travel Agents, Peer-to-Peer Rental Services), By Hosting Type (Entire Property Rentals, Private Room Rentals, Shared Room Rentals, Vacation Home Rentals, Serviced Apartments), By Business Model (Commission-Based Model, Subscription-Based Model, Freemium Model, Value-Added Services, Hybrid Models) and By Regional (North

Short Term Rental Platform Market Overview

The Short-Term Rental Platform Market Size was estimated at 173.78 (USD Billion) in 2022.The Short-Term Rental Platform Market Industry is expected to grow from 221.26(USD Billion) in 2023 to 1,944.6 (USD Billion) by 2032. The Short Term Rental Platform Market CAGR (growth rate) is expected to be around 27.32% during the forecast period (2024 - 2032).

Key Short Term Rental Platform Market Trends Highlighted

Key Market Drivers

The increasing popularity of online travel agencies and the rise of the sharing economy have significantly contributed to the growth of the short-term rental platform market. Moreover, the growing number of travelers seeking authentic and immersive experiences has fueled the demand for alternative accommodation options. Opportunities to be Captured Emerging markets, particularly in the Asia-Pacific region, offer substantial growth potential for short-term rental platforms. Additionally, the integration of technology, such as artificial intelligence and machine learning, presents opportunities for enhancing user experiences, optimizing pricing, and improving guest safety.

Recent Market Trends

The short-term rental platform market is witnessing a shift towards professionalized management, with companies offering comprehensive services including property onboarding, guest screening, and maintenance. Furthermore, the adoption of sustainability initiatives, such as energy-efficient appliances and waste reduction programs, is becoming increasingly prevalent among platform operators and property owners.

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

Short Term Rental Platform Market Drivers

Rising Popularity of Experiential Travel

The growing demand for authentic and immersive travel experiences is a key driver of the  Short Term Rental Platform Market Industry. Travelers are increasingly seeking unique and local accommodations that offer a sense of place and community. Short-term rental platforms provide a wide range of options that cater to this demand, from cozy apartments in urban centers to secluded cabins in remote destinations. This trend is expected to continue in the coming years, as more and more travelers seek to create memorable and personalized travel experiences.

Increasing Adoption of Technology

The rapid advancement of technology is another major driver of growth in the  Short Term Rental Platform Market Industry. Online booking platforms and mobile applications have made it easier than ever for travelers to search for and book short-term rentals. Additionally, the use of smart home technology and keyless entry systems has enhanced the convenience and security of short-term rentals. These technological advancements are expected to further drive the adoption of short-term rentals in the coming years.

Growing Popularity of Bleisure Travel

The increasing popularity of bleisure travel, which combines business and leisure travel, is also contributing to the growth of the  Short Term Rental Platform Market Industry. Short-term rentals offer a flexible and cost-effective accommodation option for business travelers who need to extend their stay for personal reasons. Additionally, short-term rentals provide more space and privacy than traditional hotel rooms, making them ideal for families or groups traveling together for business.

Short Term Rental Platform Market Segment Insights

Short Term Rental Platform Market Property Type Insights  

The Short Term Rental Platform Market is segmented by property type into Houses, Apartments, Villas, Condominiums, and Bed and Breakfasts. Houses accounted for the largest market share in 2023, and this trend is expected to continue during the forecast period. Houses offer more space and privacy than other property types, which makes them ideal for families and groups of friends. Additionally, houses are often located in desirable neighborhoods, which makes them more appealing to tourists. Apartments are the second most popular property type in the short-term rental market.

Apartments are typically smaller and less expensive than houses, which makes them a good option for budget-conscious travelers. Additionally, apartments are often located in urban areas, which makes them convenient for exploring cities. Villas are luxury homes that are typically rented for special occasions such as weddings, anniversaries, and family reunions. Villas offer a high level of privacy and exclusivity, and they often come with amenities such as swimming pools, hot tubs, and private gardens. Condominiums are units in a multi-unit building.

Condominiums are typically smaller than houses and apartments, but they offer the same amenities. Condominiums are often located in desirable locations, which makes them a good option for both tourists and business travelers. Bed and Breakfasts are small, owner-operated establishments that offer bed and breakfast accommodations. Bed and Breakfasts offer a more personal and intimate experience than other property types. 

Additionally, Bed and Breakfasts are often located in charming towns and villages, which makes them a good option for travelers who want to experience the local culture.Overall, the  Short Term Rental Platform Market is expected to grow significantly in the coming years. The growth of the market is being driven by a number of factors, including the increasing popularity of short-term rentals, the rise of the sharing economy, and the growing number of travelers.

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

Short Term Rental Platform Market Booking Method Insights  

The Short Term Rental Platform Market segmentation by Booking Method includes Online Booking Platforms, Direct Bookings, Property Management Companies, Travel Agents, and Peer-to-Peer Rental Services. Online Booking Platforms are expected to hold the largest market share in 2023, due to the convenience and ease of use they offer to users. Direct Bookings are also expected to grow significantly, as travelers seek to avoid the fees associated with Online Booking Platforms. Property Management Companies are expected to play a key role in the growth of the Short Term Rental Platform Market, as they provide a range of services that make it easier for property owners to manage their rentals.Travel Agents are also expected to contribute to the growth of the market, as they offer a range of services that make it easier for travelers to find and book short-term rentals. Peer-to-Peer Rental Services are expected to grow at a rapid pace, as they offer a more affordable and flexible option for travelers.

Short Term Rental Platform Market Hosting Type Insights 

The Short Term Rental Platform Market is segmented by Hosting Type into Entire Property Rentals, Private Room Rentals, Shared Room Rentals, Vacation Home Rentals, and Serviced Apartments. The Entire Property Rentals segment held the largest market share in 2023, accounting for over 55% of the  market revenue. The Private Room Rentals segment is expected to grow at the highest CAGR during the forecast period, owing to the increasing popularity of budget-friendly travel options. Vacation Home Rentals is expected to witness significant growth due to the rising trend of family and group travel. Serviced Apartments is projected to hold a significant share of the market in 2024, driven by the growing demand for extended-stay accommodations.

Short Term Rental Platform Market Business Model Insights  

The Short-Term Rental Platform Market segmentation by business model offers insights into the different revenue models adopted by players in the industry. The commission-based model remains dominant, accounting for a significant share of the market revenue. In this model, platforms charge a commission on each booking made through their platform. The subscription-based model, where users pay a monthly or annual fee for access to the platform's services, is gaining traction. The freemium model, which offers basic services for free and charges for premium features, is also being adopted by some platforms. Value-added services, such as property management and insurance, are becoming increasingly important, providing additional revenue streams for platforms. Hybrid models, which combine elements of different business models, are also emerging, offering flexibility to both platforms and users.

Short Term Rental Platform Market Regional Insights  

The regional segmentation of the  Short Term Rental Platform Market offers insights into distinct growth trajectories and competitive landscapes across various regions. North America holds a significant market share, driven by the presence of established players such as Airbnb and Vrbo. Europe follows closely, with a diverse range of short-term rental platforms catering to different traveler preferences. The Asia-Pacific region is emerging as a promising market, fueled by the growth of tourism and the increasing popularity of online booking platforms. South America and the Middle East and Africa (MEA) regions are expected to witness steady growth in the coming years, as these markets become more accessible to international travelers. The  Short Term Rental Platform Market is projected to reach a valuation of 445.8 billion U.S. dollars by 2026, reflecting a steady growth rate over the forecast period.

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

Short Term Rental Platform Market Key Players And Competitive Insights

Major Short Term Rental Platform Market players strive to enhance the competitiveness of their business models by adopting innovative strategies and expanding their offerings. The main forces that propel the development of the sector include the desire to increase the reach of market solutions and attract as many customers as possible. It is also worth noticing that a number of market players strive to cement their position within the sector by investing heavily in acquisition or forming strategic partnerships. In addition to this, the majority of companies are involved in product development and concentrate on unveiling new features and preserving loyalty among customer pools. Thus it might be concluded that the Short Term Rental Platform Market is a highly competitive sector where almost all market players are acutely aware of the trends and know how to effectively respond to the evolutionary needs of the industry.

One of the companies that have taken the lead within the  Short Term Rental Platform Market is Airbnb. The entrepreneurial solution rapidly transformed into a  platform with an extensive range of property listings. The winning combination of the laconic yet functional user interface, massive marketing campaigns along with the customer-oriented nature of the company made a significant contribution to the company’s success. Moreover, Airbnb successfully increased the availability of the solutions provided by the company by entering new markets and introducing new business lines and forming partnerships. Issues related to ensuring trust and safety and overcoming regulatory challenges also played an essential role. Booking holdings is another prominent market player that has successfully managed to form one of the world’s largest travel brands with Booking.com and Agoda. Honesty with all partners, developing innovations for the hospitality segment, and improving the user experience of each customer are the five integral components.

Key Companies in the Short Term Rental Platform Market Include

• Hilton


• Hyatt Hotels Corporation


• Sonder


• Radisson Hotel Group


• Accor


• com


• Wyndham Hotels Resorts


• Airbnb


• Vrbo (part of Expedia Group)


• Tripadvisor


• InterContinental Hotels Group


• Best Western Hotels Resorts


• Choice Hotels International


• Marriott International


• Wyndham Destinations

Short Term Rental Platform Market Industry Developments

The  short-term rental platform market is projected to grow from USD 221.26 billion in 2023 to USD 1944.6 billion by 2032, at a CAGR of 27.32%. This growth is attributed to the increasing popularity of short-term rentals among travelers and the growing adoption of online booking platforms. The market is expected to be driven by the increasing number of travelers, the growing popularity of online booking platforms, and the increasing demand for alternative accommodation options. Recent developments in the market include the launch of new platforms, the expansion of existing platforms into new markets, and the introduction of new features and services. For example, Airbnb recently launched a new platform for business travel, and Vrbo expanded into Europe. Additionally, many platforms have introduced new features such as instant booking and mobile check-in. This increase in competition is expected to drive down prices and improve the quality of services offered by short-term rental platforms.

Short Term Rental Platform Market Segmentation Insights

Short Term Rental Platform Market Property Type Outlook

• Houses


• Apartments


• Villas


• Condominiums


• Bed and Breakfasts

Short Term Rental Platform Market Booking Method Outlook

• Online Booking Platforms


• Direct Bookings


• Property Management Companies


• Travel Agents


• Peer-to-Peer Rental Services

Short Term Rental Platform Market Hosting Type Outlook

• Entire Property Rentals


• Private Room Rentals


• Shared Room Rentals


• Vacation Home Rentals


• Serviced Apartments

Short Term Rental Platform Market Business Model Outlook

• Commission-Based Model


• Subscription-Based Model


• Freemium Model


• Value-Added Services


• Hybrid Models

Short Term Rental Platform Market Regional Outlook

• North America


• Europe


• South America


• Asia Pacific


• Middle East and Africa