Vacation Rental Market Research Report: By Property Type (House, Apartment, Villa, Cabin, Condominium), By Booking Platform (Online Travel Agencies, Direct Booking Websites, Property Management Systems, Mobile Apps), By Customer Type (Leisure Travelers, Business Travelers, Family Groups, Couples), By Duration of Stay (Short-term, Mid-term, Long-term) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa)- Forecast to 2035

Vacation Rental Market Overview

Vacation Rental Market Size was estimated at 102.09 (USD Billion) in 2023.The Vacation Rental Market Industry is expected to grow from 106.26(USD Billion) in 2024 to 165 (USD Billion) by 2035. The Vacation Rental Market CAGR (growth rate) is expected to be around 4.08% during the forecast period (2025 - 2035).

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

Key Vacation Rental Market Trends Highlighted

Changing consumer tastes and technology are driving notable developments in the worldwide vacation rental market. The increasing need for distinctive and customized travel experiences is one of the main industry factors. Travelers are more searching for lodgings that represent local culture; they want more than just a place to sleep. Many people are choosing vacation rentals over conventional hotels since this trend has spurred more alternative lodging. The growing use of technology—including mobile applications and online booking systems—is another factor driving this trend since it enables consumers to locate and reserve holiday rentals.

The worldwide vacation rental industry is full of possibilities, especially for hosts who can use local knowledge to provide one-of-a-kind vacations. Among eco-conscious consumers, adopting sustainable practices and supporting environmentally friendly properties is becoming more popular. This emphasis on sustainability is opening doors for companies to be creative and draw a specialized market. The growth of remote work has also created possibilities as it lets individuals work from wherever thereby driving the need for longer-term holiday rentals. Latest trends draw attention to the rise of hybrid travel, which combines work and pleasure visits. Many consumers want homes that fit both leisure and business.

Moreover, social media's impact is affecting rental decisions as colourful images usually motivate reservations. Keeping current on these trends as consumer behavior changes may provide insights for players in the worldwide vacation rental sector, hence guiding adaptive tactics in line with the shifting environment.

Vacation Rental Market Drivers

Increasing Preference for Alternative Accommodations

More tourists are choosing alternative lodgings instead of conventional hotels, which is significantly changing the Global Vacation Rental Market Industry. Recent statistics show that almost 40% of vacationers said they preferred holiday rentals because of their affordability and distinctive experiences. Platforms like Airbnb and Vrbo have further fueled this trend by drawing a large market share. The United Nations World Tourism Organization reports that in 2019, there were 1.5 billion international tourist visits; forecasts suggest that up to 25% of these visitors are moving toward utilizing vacation rentals.

This change not only shows the rising acceptability of holiday rentals but also underlines the sector's potential development. Local governments are also changing to fit this trend; some areas are enacting good rules to help the Global Vacation Rental Market expand.

Growth in Online Travel Booking

Digital technology's arrival has transformed the Global Vacation Rental Market Industry mainly by expanding online travel booking systems. Statistics from the International Air Transport Association indicate that almost 70% of all travel reservations are now done online. Given this significant web presence, potential consumers may more easily find and book holiday rentals, which helps to boost reservations. Long-standing businesses like Booking.com and Expedia are always improving their systems to provide flawless reservation experiences.

Government programs in some nations seek to encourage digital tourism as a component of their economic policies, hence supporting this expansion even further. The rise in customers using online travel services underlines the need for digital accessibility to attract a bigger consumer base in the industry.

Rising Disposable Incomes and Travel Budgets

Growing disposable income worldwide is reflected in higher travel expenditures, which benefits the Global Vacation Rental Market Industry. Studies show that middle-class families are expected to double in the next 10 years, especially in developing countries like Asia-Pacific, which might greatly increase outbound travel. The World Bank estimates that rising global GDP will help to raise per capita income, which will then lead to more travel and hotel expenditures.

This trend builds a bigger customer base ready to spend in vacation rentals for distinctive and engaging travel experiences. HomeAway and other businesses have customized their products to fit these changing budgets, guaranteeing they satisfy the demands of a more general population with more buying power.

Shift Towards Sustainable Travel

Increasing focus on sustainable travel practices is also helping the Global Vacation Rental Market. A Global Sustainable Tourism Council survey reveals that 75% of tourists are more likely to choose hotels that show sustainable behavior. This change is driving property owners to implement environmentally friendly operating rules and features, therefore improving their attractiveness in the market. Major companies are funding environmental certifications and publicizing their sustainable projects to attract eco-conscious visitors.

Governments in many different areas are also supporting sustainable tourist policies, guaranteeing that laws support rentals and encouraging environmental responsibility. This shared effort toward sustainability may uniquely expand the vacation rental industry.

Vacation Rental Market Segment Insights

Vacation Rental Market Property Type Insights

The Global Vacation Rental Market exhibits an impressive trajectory through its diverse Property Type segment, which encompasses various accommodations suited for travelers. With a notable valuation of 106.26 USD Billion in 2024, this segment is poised to cater to the growing demand for alternative lodging options over traditional hotels. Among the Property Types, Houses emerge as the dominant player, commanding a significant portion of the market with a valuation of 42.5 USD Billion in 2024. This high valuation reflects their appeal to families and groups seeking spacious living arrangements that enhance their overall vacation experience.Apartments follow as a substantial contributor, valued at 28.0 USD Billion, making them increasingly favored by solo travelers and couples due to their convenience and essential amenities. The Villa segment holds a valued position with 16.5 USD Billion, often chosen by travelers looking for an exclusive and luxurious experience during their stay. Meanwhile, Cabins, with a valuation of 9.3 USD Billion, serve as cherished retreats in nature, attracting those wishing to escape urban settings. Lastly, the Condominium segment, valued at 10.0 USD Billion, offers flexibility with home-like amenities, appealing to those seeking comfort during extended vacations.The insights from the Global Vacation Rental Market data illustrate a well-rounded landscape where distinct preferences guide travelers to choose their accommodation types, driving market growth. As the market continues to expand, each Property Type is expected to adapt to evolving consumer preferences, thus fueling opportunities for innovation and enhanced guest experiences across the sector.

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

Vacation Rental Market Booking Platform Insights

The Global Vacation Rental Market has seen significant growth, with the overall market expected to be valued at 106.26 billion USD in 2024. The Booking Platform segment plays a crucial role in this expansion, offering various channels for consumers to access vacation rentals. Online Travel Agencies dominate this arena, providing convenience and extensive options for users, ultimately leading to a more streamlined booking experience. Direct Booking Websites also contribute significantly, often offering competitive pricing and exclusive deals that attract budget-conscious travelers.Property Management Systems are essential for property owners, allowing for more efficient management and marketing of their listings, while Mobile Apps enhance consumer engagement, making reservations effortless and accessible from anywhere. The incorporation of technology and user-friendly interfaces in these platforms drives market growth. Furthermore, the increasing trend of personalized travel experiences presents substantial opportunities for innovation in the Booking Platform sector, positioning it as a pivotal part of the overall Global Vacation Rental Market industry.With evolving consumer preferences and technological advancements, this segment is poised to thrive in the forthcoming years, driven by a myriad of factors such as convenience, accessibility, and diverse options for travelers.

Vacation Rental Market Customer Type Insights

The Global Vacation Rental Market is projected to be valued at 106.26 USD Billion in 2024, reflecting a robust growth trajectory influenced by diverse customer types. The market segmentation reveals that Leisure Travelers represent a substantial portion, driving demand for unique and personalized experiences, particularly during peak seasons. Business Travelers are increasingly leveraging vacation rentals as cost-effective alternatives to hotels, appreciating the added space and amenities for extended stays. Family Groups, seeking accommodations that cater to their specific needs, are also significant, as they prioritize convenience and comfort when traveling.Couples often opt for vacation rentals for romantic getaways, valuing privacy and distinctive locales that enhance their travel experiences. With the market growth fueled by changing consumer preferences and the increasing popularity of remote work, each of these customer types plays a critical role in shaping the Global Vacation Rental Market dynamics, presenting both opportunities and challenges for providers aiming to meet varied expectations.

Vacation Rental Market Duration of Stay Insights

The Duration of Stay segment in the Global Vacation Rental Market is a vital component that greatly influences market dynamics and consumer preferences. As of 2024, the market is expected to be valued at 106.26 billion USD, reflective of ongoing trends in travel behavior. This segment primarily comprises Short-term, Mid-term, and Long-term rentals, each catering to different traveler needs. Short-term rentals have gained immense popularity due to the rise of urban tourism and business travel, providing flexible accommodation options for weekend getaways or brief work assignments.Mid-term rentals cater to those seeking housing for weeks or months, often appealing to digital nomads and relocating professionals. Long-term rentals are increasingly favored for housing stability, particularly in urban centers, appealing to individuals or families seeking a more permanent residence. The Global Vacation Rental Market statistics underscore a consistent demand for various durations of stay, driven by evolving tourism patterns and changing lifestyles. With ongoing urbanization and a shift towards remote work, the market is projected to experience steady growth as it adapts to meet diverse customer preferences throughout the global landscape.

Vacation Rental Market Regional Insights

The Global Vacation Rental Market revenue is projected to showcase strong growth across diverse regions, with a total market valuation reaching 106.26 USD Billion in 2024. North America emerges as a dominant player, holding a significant market value of 45.0 USD Billion, which is expected to rise to 69.5 USD Billion by 2035, largely driven by high travel demand and a well-established rental infrastructure. Europe follows closely with a valuation of 30.0 USD Billion in 2024, anticipated to grow to 47.5 USD Billion, supported by an expanding tourism sector and favorable regulations.The Asia-Pacific (APAC) region is expected to experience robust growth, moving from 20.0 USD Billion in 2024 to 32.0 USD Billion in 2035, attributed to increasing urbanization and a growing middle class facilitating greater travel opportunities. Meanwhile, South America is set to expand from 7.5 USD Billion to 12.0 USD Billion, benefiting from an increase in international travelers seeking authentic experiences. The Middle East and Africa (MEA) will rise slightly from 3.76 USD Billion to 4.0 USD Billion, reflecting a gradual shift towards more diverse tourism offerings.These market dynamics highlight the significance of each region, illustrating how varying tourism trends and economic factors influence their respective positions in the Global Vacation Rental Market segmentation and industry growth.

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

Vacation Rental Market Key Players and Competitive Insights

The Global Vacation Rental Market has witnessed exponential growth over recent years, driven by increasing consumer preference for unique travel experiences and the rise of digital platforms facilitating property rentals. The competitive landscape comprises a mix of established players, emerging startups, and a diverse range of accommodation options, all vying for market share in a segment characterized by fragmentation and innovation. Companies are adapting to evolving traveler preferences, enhancing technological capabilities, and engaging in strategic partnerships to gain a competitive edge. Insights into market dynamics reveal varying strategies among competitors, focusing on customer service, pricing models, and the ability to provide personalized experiences. The advent of advanced technologies such as AI and machine learning further shapes competitive strategies, paving the way for improved customer interactions and operational efficiencies.Booking Holdings stands out in the Global Vacation Rental Market due to its extensive market presence and strong brand recognition. The company has successfully built a comprehensive portfolio of services beyond traditional hotel bookings, tapping effectively into the vacation rental space. Its platform offers users a seamless experience, integrating aspects like pricing transparency, user-friendly interfaces, and a wide variety of accommodation options that cater to diverse consumer needs. This adaptability ensures a firm foothold in the lucrative vacation rental segment. The company’s investment in technology enhances operational efficiencies and customer satisfaction, making it a formidable player in the market. Its global reach allows Booking Holdings to target tourists and travelers across numerous regions, thereby leveraging market trends to bolster its competitive advantage.OYO Rooms has also made significant inroads in the Global Vacation Rental Market through its innovative approach to hospitality. The company focuses on providing budget-friendly accommodations while maintaining quality standards, which has resonated with a wide demographic of travelers. OYO’s service portfolio includes not just vacation rentals but also various hotel formats, among which holiday homes and managed apartments have gained substantial traction in the rental landscape. Its strategic mergers and acquisitions have enabled OYO Rooms to expand rapidly across different geographies, reinforcing its market position. By leveraging advanced technology to streamline booking processes and enhance customer experiences, OYO has solidified its presence globally. Moreover, its strong emphasis on customer feedback and satisfaction underscores its commitment to delivering quality services, further solidifying its place in the competitive vacation rental sector.

Key Companies in the Vacation Rental Market Include

• Booking Holdings


• OYO Rooms


• Plum Guide


• HomeAway


• Vacasa


• Airbnb


• Wyndham Destinations


• Travelocity


• Tujia


• Sonder


• FlipKey


• Tripadvisor


• Expedia Group


• Getaway


• Misterb and b

Vacation Rental Market Industry Developments

Recent developments in the Global Vacation Rental Market indicate a trend towards increased competition and innovation among key players. Booking Holdings and Airbnb continue to dominate with expansive offerings and technology enhancements, while OYO Rooms and Vacasa are working on expanding their footprints in emerging markets. In September 2023, Sonder announced plans to expand its portfolio in Europe, reflecting the growing traveler interest in short-term rentals within urban settings. Major mergers and acquisitions have shaped the landscape, with Expedia Group completing the integration of Vrbo into its offerings in November 2022, further solidifying its position in the market. Additionally, the ongoing partnership between Tripadvisor and various vacation rental hosts aims to increase visibility and streamline booking experiences for users. The market has seen significant growth, with valuations reflecting strong consumer demand for flexible accommodation options post-pandemic, impacting property management strategies. In June 2023, industry reports highlighted that new regulations in key markets could affect competition dynamics, prompting companies like Plum Guide and Tujia to adapt their business models accordingly. Overall, the Global Vacation Rental Market remains dynamic, characterized by both challenges and opportunities as companies adapt to evolving consumer preferences.

Vacation Rental Market Segmentation Insights

Vacation Rental Market Property Type Outlook

• House


• Apartment


• Villa


• Cabin


• Condominium

Vacation Rental Market Booking Platform Outlook

• Online Travel Agencies


• Direct Booking Websites


• Property Management Systems


• Mobile Apps

Vacation Rental Market Customer Type Outlook

• Leisure Travelers


• Business Travelers


• Family Groups


• Couples

Vacation Rental Market Duration of Stay Outlook

• Short-term


• Mid-term


• Long-term

Vacation Rental Market Regional Outlook

• North America


• Europe


• South America


• Asia Pacific


• Middle East and Africa

Report Scope

Report Attribute/Metric Source	Details
MARKET SIZE 2023	102.09 (USD Billion)
MARKET SIZE 2024	106.26 (USD Billion)
MARKET SIZE 2035	165.0 (USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	4.08% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	Booking Holdings, OYO Rooms, Plum Guide, HomeAway, Vacasa, Airbnb, Wyndham Destinations, Travelocity, Tujia, Sonder, FlipKey, Tripadvisor, Expedia Group, Getaway, Misterb and b
SEGMENTS COVERED	Property Type, Booking Platform, Customer Type, Duration of Stay, Regional
KEY MARKET OPPORTUNITIES	Rising demand for alternative accommodations, Increased popularity of remote work stays, Growth in eco-friendly travel options, Expansion of booking platforms and technology, Diversification of property types and experiences
KEY MARKET DYNAMICS	increased travel demand, rise of technology platforms, changing consumer preferences, regulatory challenges, competitive pricing strategies
COUNTRIES COVERED	North America, Europe, APAC, South America, MEA