Vacation Rental Market Size To Reach $119.0 Billion By 2030

Vacation Rental Market Growth & Trends

The global vacation rental market size is expected to reach USD 119.0 billion by 2030, expanding at a CAGR of 3.7% from 2024 to 2030, according to a new report by Grand View Research, Inc. Owing to the comfort, low cost, privacy, and kids & pet-friendly nature of accommodation, travelers are more inclined toward vacation rental property and homes over hotels.  

Moreover, vacation rentals offer a variety of high-quality, affordable accommodation options at several destinations, which is likely to drive the growth of the market. As per the Turnkey blog in 2019, the industry is at roughly a 10% growth rate this decade, largely affected by travelers’ desires to stay in a home instead of a hotel. According to the TurnKey Vacation Rentals’ 2019 Consumer Travel Survey, 64% of travelers preferred staying in vacation rentals as opposed to hotels, which is up by 10% from the 2018 Consumer Travel Survey.

Additionally, the evolving trend of transformational travel surrounding wellness trips in order to restore balance and transform the mind and body is expected to drive the market over the forecast period. According to a blog by Hospitality Net, typical holidays such as sun, sand, and sea; skiing; sightseeing; and shopping are expected to be high in demand. Furthermore, a higher preference for domestic travel compared to international travel is likely to boost the domestic vacation rental business across the globe.

Europe region witnessed dominance in the vacation rental market with a revenue share of 34.8% in 2021. Rising travel connectivity, coupled with rapid penetration of high-speed internet, has made even the most remote places in Europe more accessible to travelers. This is driving the need to explore new, exotic, and exciting locations across the region, thereby fueling the market growth over the forecast period.

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Vacation Rental Market Report Highlights

• Based on accommodation type, the home segment accounted for a substantial market share in 2023. Higher preference for homes among travelers owing to the availability of space, safety features, and access to amenities is pushing the dominance of the segment in the market

• Based on booking mode, the online segment is expected to grow at the fastest CAGR from 2024 to 2030. Rise in penetration of internet and smartphone devices across regions, vacation rental service providers are augmenting the growth of online bookings through the rising number of monthly visitors

• Asia Pacific region is expected to witness substantial growth from 2024 to 2030. The growth of the industry in the region is mainly attributed to the rising expenditure of consumers on traveling and accommodation. Moreover, the rising expenditure of travelers from developing countries, such as India, the Philippines, Vietnam, and Australia, is further estimated to support the market growth in the region

Vacation Rental Market Segmentation

Grand View Research has segmented the global vacation rental market based on accommodation type, booking mode, and region:

Vacation Rental Accommodation Type Outlook (Revenue, USD Million, 2018 - 2030)

• Home

• Apartments

• Resort/Condominium

• Others

Vacation Rental Booking Mode Outlook (Revenue, USD Million, 2018 - 2030)

• Online

• Offline

Vacation Rental Regional Outlook (Revenue, USD Million, 2018 - 2030)

• North America

  • U.S.

  • Canada

• Europe

  • Germany

  • UK

  • France

• Asia Pacific

  • China

  • Japan

  • Australia

• Central & South America

  • Brazil

• Middle East & Africa

  • Saudi Africa

List of Key Players of Vacation Rental Market

• 9flats.com Pte Ltd.

• Airbnb Inc.

• Booking Holdings Inc.

• Expedia Group Inc.

• Hotelplan Holding AG

• MakeMyTrip Pvt. Ltd.

• NOVASOL AS

• Oravel Stays Pvt. Ltd.

• TripAdvisor Inc.

• Wyndham Destinations Inc.