Vacational Rental Market Size, Share, Competitive Landscape and Trend Analysis Report, by Accommodation, by Price Point, by Booking Type, by Location Type, by End User Generation : Global Opportunity Analysis and Industry Forecast, 2024-2033

Market Introduction and Definition 

Vacation rental is the practice of short-term lodging travelers in furnished homes, villas, or apartments. Compared to regular hotels, this alternate lodging preference has recently gained popularity as it provides families and individuals with flexibility, affordability, and unique experiences. Vacation rentals often offer a cozy ambiance that resembles a home-away-from-home. The accommodation comes with amenities such as well-equipped kitchens, spacious living areas, and several bedrooms, ensuring that guests have a comfortable and stress-free experience. Its availability and booking have become convenient with the introduction of online platforms and booking websites, which has fueled the expansion of this exciting new segment of the tourism industry. 

Key Takeaways 

• The vacational rental industry study covers 20 countries. The research includes a segment analysis of each country in terms of value for the projected period. 

• More than 1, 500 product literatures, industry releases, annual reports, and other such documents of major vacation rental industry participants along with authentic industry journals, releases from trade associations, and government websites have been reviewed for generating high-value industry insights. 

• The study integrated high-quality data, professional opinions and analysis, and critical independent perspectives. The research approach is intended to provide a balanced view of global markets and assist stakeholders in making educated decisions to achieve their most ambitious growth objectives.

Key market dynamics 

The landscape and growth of the vacation rentals sector are constantly changing due to many?factors. The demand for vacation rentals has been driven by shift in consumer tastes toward experiential travel and demand for genuine and engaging interactions. Tourists often opt for rental properties instead of traditional hotels due to their flexibility and local charm, as they seek unique accommodations that offer a home-away-from-home experience. 

Moreover, significant advancements in technology are influencing the vacational rental market expansion, resulting in a shift in market dynamics. The widespread availability of vacation rentals is largely attributed to popular platforms such as Airbnb, VRBO, and Booking.com. These digital platforms streamline the booking experience for travelers, making it easier for them to find and book accommodations for their journeys. In addition, these platforms have expedited booking procedures, improved transparency and trust through user reviews & ratings, and simplified communication between hosts & guests. 

Regulations and industry standards have a significant impact on the market's dynamics. The vacation rental market is affected by a diverse set of regulations, with certain locations prohibiting short-term rentals and others requiring permits. Compliance with local laws and tax rates is essential for both hosts and platform operators to guarantee sustainable growth and stay out of trouble with the law. 

The state of the economy is an influence on market dynamics, as are patterns in travel and disposable income. A decline in the economy is expected to affect consumer expenditure on travel, which is anticipated to change the market for vacation rental. On the other hand, increase in foreign travel and rise in disposable incomes support market expansion. 

Parent Market Overview of the Global Vacation Rental Market 

Vacation rentals are a part of the global hospitality and lodging sector, which includes a range of lodging options, including hotels, resorts, hostels, and bed & breakfasts. Personalized experiences in homes, condos, villas, and flats are possible with vacation rentals, which provide an alternative to typical lodging. Several?factors, including emergence of online booking platforms, changes in consumer attitudes toward experiential travel, and demand for private & spacious rooms have contributed toward the rapid growth of this sector of the hotel business. Consequently, the entire hospitality industry now incorporates holiday rentals as a significant and competitive element. 

Market Segmentation 

The vacation rental market is segmented into accommodation, price point, booking, location type, end-user generation, and region. Depending on accommodation, it is classified into home, condos, hometown, and villas. According to price point, the market is categorized into economy, mid-range, and luxury. As per mode of booking, it is segregated into online travel agency, hotel website, and others. By location type, the vacational rental market is divided into resort area, rural area, small towns, and others. Depending on end-user generation, it is classified as Gen Z, Millennials, Gen X, and Boomers. Region wise, the market is studied across North America (U.S., Canada, and Mexico) , Europe (Germany, Spain, UK, Italy, France, Switzerland, and rest of Europe) , Asia-Pacific (India, China, Japan, Australia, and rest of Asia-Pacific) , and LAMEA (Latin America, Middle East, and Africa) . 

Regional/Country Market Outlook 

The vacational rental market outlook at both regional and national levels differs significantly based on various factors, such as the economic conditions, travel patterns, legal regulations, and cultural inclinations. Vacation rentals are still quite popular in developed countries such as the U.S. and Europe. The vacational rental market demands is fueled by some factors such as strong travel culture, well-established rental platforms, and increase in demand for experiential lodging. These areas benefit from having a high internet penetration rate and strong infrastructure, which makes it simple to access online booking sites. 

The vacation rental industry is experiencing rapid growth in emerging economies in Latin America, Asia-Pacific, and some portions of Eastern Europe. The demand for alternative accommodation is increasing due to rise in the middle class, higher disposable incomes, and better internet connectivity in these areas. In addition, government initiatives aimed at improving infrastructure and boosting tourism are contributing to the market's expansion. 

 However, variations are observed across regions despite these general tendencies. For instance, countries in the Asia-Pacific such as Japan and Australia have established thriving vacation rental industries, whereas some have started exploring the vacational rental market. Vacation rental has experienced substantial growth in popular tourist destinations in North America, including Mexico and Latin America, including Brazil, in comparison to other destinations. Meanwhile, other countries have been slower to adopt this trend. 

At the regional and national levels, market dynamics are impacted by issues including property management standards, hotel competition, and regulatory uncertainty. Therefore, for vacation rental companies hoping to take advantage of opportunities across the globe, comprehending local market conditions, and modifying strategy accordingly are essential. Due to this, the vacation rental industry offers different opportunities in various geographic areas, emphasizing the significance of customized strategies for market entry and vacational rental market growth. 

Industry Trends: 

• Currently, 23, 000 vacation rental companies operate?in the U.S., accounting for 20% of all vacation rental companies globally.  

• The typical rental revenue varies significantly depending on a home's size, closeness to the beach, and level of facilities. Vacation rentals with one bedroom in the fiftieth percentile bring in roughly $38, 490 annually, while those with three bedrooms bring in $98, 688.  

Competitive Landscape 

Major players operating in the vacational rental market include MakeMyTrip Pvt. Ltd., Airbnb Inc., Tripping.com, TripAdvisor Inc., Extra Holidays, Novasol as, HomeToGo, 9flats.com, Expedia, Inc., Vrbo, Booking.com, Hotels.com, HotelsCombined, Hotwire, Inc., Yatra Online Private Limited, Homestay.com, and Atraveo GMBH. 

Recent Key Strategies and Developments 

• In May 2023, Airbnb, Inc. announced its participation in Global Accessibility Awareness Day that its representatives have examined and confirmed the accuracy of about 300, 000 accessible items in homes globally. These accessible features included shower or bath seats, fixed grab bars, and step-free entrances. 

•  In July 2022, Avantio, a provider of services and software for managing vacation rental, was acquired by Planet, a global technology and integrated financial services supplier. This acquisition expanded Avantio's presence in the hotel sector, allowing them to enhance their vacational rental market share.  

• In August 2022, Hopper and Evolve announced a partnership that will allow Hopper's worldwide user base to easily access vacation rentals by integrating over 24, 000 Evolve vacation homes across 750 markets into the Hopper travel app.  

Key Benefits For Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the vacational rental market analysis to identify the prevailing market opportunities.
• The market research is offered along with information related to key drivers, restraints, and vacational rental market opportunity.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the vacational rental market segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global vacational rental market trends, key players, market segments, application areas, and market growth strategies.

Key Sources Referred 

• Vacation Rental Management Association (VRMA)  

• Vacation Rental Owners Association (VROA)  

• Airbnb Host Clubs 

• European Holiday Home Association (EHHA)  

• Vacation Rental Housekeeping Professionals (VRHP)  

• HomeAway Community 

• Vacation Rental Managers Association of Southern Africa (VRMA-SA)  

• Australian Short Term Accommodation Association (ASTRA)  

• Vacation Rental Data & Revenue Management Association (VRDRA)  

• Vacation Rental Legal Professionals (VRLP)