Vacation Rental Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Accommodation Type (Home, Resort/Condominium, Others), By Booking Mode (Online, Offline), By Region, By Competition, 2020-2030F

Market Overview

The Global Vacation Rental Market, valued at USD 93.87 Billion in 2024, is projected to experience a CAGR of 5.02% to reach USD 125.94 Billion by 2030. The global vacation rental market encompasses the provision of short-term accommodations in diverse property types, including apartments, houses, and villas, offered as alternatives to traditional hotels. This market’s expansion is primarily supported by consumer preferences for authentic and personalized travel experiences, the increasing adoption of flexible work arrangements fostering longer stays, and the economic benefits perceived by both travelers and property owners. According to the Vacation Rental Management Association (VRMA), professionally managed short-term rentals experienced a 6% revenue increase in 2024, contrasting with a 4% decline observed by individual operators.

Despite this growth, a significant impediment to market expansion remains the escalating regulatory scrutiny and the implementation of varied local laws. These regulations, often pertaining to zoning, licensing, and taxation, create operational complexities and compliance burdens for property managers and owners, potentially limiting supply and increasing operational costs in key urban and tourist destinations.

Key Market Drivers

The global vacation rental market's significant expansion is primarily driven by the evolving traveler demand for unique experiences. Modern travelers increasingly seek accommodations that provide authentic immersion into local cultures, personalized amenities, and distinct architectural styles, extending beyond the standardized offerings of traditional hotels. This shift reflects a desire for stays that are not merely lodging but integral, memorable components of the travel narrative, fulfilling a preference for distinctive and localized experiences. According to Booking Holdings Inc. 's Q1 2024 earnings call transcript, in May 2024, alternative accommodation room nights for Booking. com grew 13% compared to the prior year, underscoring this robust preference for diverse lodging options. Concurrently, the proliferation of online booking platforms has dramatically expanded access to a vast and varied inventory of vacation rentals. These digital ecosystems enable efficient connections between property owners and a global audience, offering advanced search functionalities, transparent pricing, and comprehensive guest reviews. This accessibility and convenience have significantly accelerated market adoption and facilitated the discovery of unique properties. According to Airbnb's Q4 2023 financial results, in February 2024, Nights and Experiences Booked on its platform totaled 99 million, representing a 12% year-over-year growth, demonstrating the expansive reach and effectiveness of online booking platforms.

This market dynamism is further evidenced by robust financial performance within the sector. According to Airbnb's Q4 2023 financial results, in February 2024, the company's full-year 2023 revenue increased 18% year-over-year to $9.9 billion, indicating strong overall market health and continued consumer expenditure on vacation rentals.

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Key Market Challenges

Escalating regulatory scrutiny and the implementation of varied local laws represent a significant challenging factor within the global vacation rental market. These diverse regulations, frequently encompassing zoning restrictions, licensing mandates, and taxation adjustments, create substantial operational complexities and compliance burdens for property managers and owners. The fragmented legal landscape requires constant monitoring and adaptation, diverting resources that could otherwise be allocated to market expansion or service enhancement. According to the 2024 State of the STR Industry Study by Rent Responsibly and the College of Charleston, 10% of property managers and hosts cited short-term rental regulation tracking as a top challenge. This burden directly affects the market by increasing operational costs and potentially limiting the available supply of vacation rentals in key urban and tourist destinations, as owners may find compliance too onerous or unprofitable. Such limitations on supply and increased overheads directly impede the market's organic growth potential.

Key Market Trends

The Global Vacation Rental Market is significantly influenced by the increased adoption of smart technology and automation, which streamlines operations and enhances guest experiences. Property managers are increasingly integrating AI-powered tools for various tasks, from dynamic pricing to guest communication. According to Hostaway's 2024 AI Report, published in May 2024, AI usage among property managers and owners more than doubled in just six months, with 70 percent of respondents utilizing AI tools, a notable increase from 43 percent in November 2023. This shift allows for greater efficiency in managing bookings, inquiries, and property access, thereby reducing operational overheads. For instance, Guesty, a property management software platform, in September 2024, introduced an AI Assistant website builder and ReviewSmart AI. Since its beta launch, the AI Assistant was adopted by 25 percent of Guesty's website builder users, demonstrating a tangible integration of advanced technology into rental operations.

Another prominent trend shaping the market is the emphasis on sustainable and eco-conscious rentals, driven by growing traveler awareness and a desire for responsible tourism. Guests are actively seeking accommodations that minimize environmental impact and support local communities. According to Avantio's "Sustainable Tourism Statistics: 2023 Ultimate List Statistics and Trends," updated in July 2024, a significant 78 percent of travelers planned to stay in eco-friendly accommodation in 2023, indicating a strong consumer preference for environmentally responsible options. This trend compels property owners to invest in sustainable practices, such as energy-efficient systems and waste reduction initiatives. Airbnb's "2024 Sustainability and Community Update," released in December 2024, highlighted progress in developing sustainable operations, noting that their corporate absolute emissions in 2023 remained approximately equivalent to their 2019 baseline, despite substantial revenue growth.

Segmental Insights

The Resort/Condominium segment is emerging as a rapidly expanding category within the Global Vacation Rental Market. This growth is primarily driven by travelers seeking a blend of privacy and comprehensive resort-style amenities. Guests are increasingly drawn to accommodations that offer the comforts and space of a condominium, combined with access to upscale facilities such as swimming pools, fitness centers, and concierge services, typically found in a resort setting. This combination provides a hassle-free, premium vacation experience, appealing to individuals, couples, families, and remote workers desiring both independence and professional services in prime tourist destinations.

Regional Insights

Key regional insights indicate Europe holds a prominent position within the global vacation rental market. This dominance stems from the continent's exceptional cultural, architectural, and geographic diversity, which continuously attracts a broad spectrum of travelers seeking unique and personalized accommodation experiences. Europe benefits from its highly developed tourism infrastructure and efficient transportation networks, facilitating extensive travel across numerous popular destinations. The widespread adoption and established presence of major online booking platforms further streamline accessibility for both hosts and guests. Evolving consumer preferences, particularly among younger demographics, increasingly favor authentic, localized stays over traditional hotels, aligning well with the vacation rental model. Moreover, a dynamic regulatory environment, with initiatives from bodies like the European Commission, actively works to enhance market transparency and uphold quality standards, thereby reinforcing consumer confidence.

Recent Developments

• In September 2025, Expedia Group announced enhancements to its Vrbo brand, including expanded distribution and new technological features for vacation rental partners. The company began rolling out eligible Vrbo properties through its extensive B2B network, collaborating with partners such as Delta and Alaska Airlines to diversify demand. Additionally, Vrbo introduced new AI-powered features and improvements to its guest review experience, aiming to simplify travel planning and boost traveler certainty. These developments sought to elevate the quality and reliability of bookings, driving more demand for hosts within the global vacation rental marketplace.

• In May 2025, Rental Escapes, a luxury villa rental company, announced its most substantial portfolio expansion to date. The company added over 600 meticulously selected villas across the United States, including properties in sought-after states such as California, Florida, and Hawaii. This significant growth was a direct response to increasing demand for high-end domestic travel experiences and aimed to bolster the company's network of travel advisor partners. The expansion allowed Rental Escapes to offer a broader array of luxury options, delivering enhanced service and unique experiences within the vacation rental market.

• In April 2024, Airbnb introduced its "Guest Favorite" badge, designed to highlight the most highly-rated and reliable homes on its platform. This new designation, impacting host visibility and potential bookings, identifies properties based on excellent guest feedback, high overall star ratings, and consistent reliability metrics. To qualify, listings needed at least five reviews with an average rating of 4.9 stars or above across various categories such as cleanliness, accuracy, and host communication. This initiative aimed to enhance guest trust and facilitate booking decisions in the competitive vacation rental market.

• In April 2024, Vrbo, part of Expedia Group, significantly expanded its "One Key" loyalty program by rolling it out internationally, starting with the United Kingdom. This initiative integrated the earning and redemption of rewards across Vrbo, Hotels.com, and Expedia platforms. The program was designed to offer travelers a unified loyalty experience, allowing them to accumulate points for future discounts and perks across the extensive Expedia Group ecosystem. This strategic move aimed to foster increased customer retention and encourage repeat bookings within the company's diverse travel offerings, reinforcing its position in the global vacation rental market.

Key Market Players

• Hotelplan Group
• MakeMyTrip (India) Private Limited
• Awaze A/S (NOVASOL)
• Airbnb, Inc.
• Booking Holdings Inc.
• Expedia, Inc.
• Belvilla AG
• Sonder Holdings Inc.
• Plu&m Limited
• Wyndham Destinations Inc.

Report Scope:

In this report, the Global Vacation Rental Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Vacation Rental Market, By Accommodation Type:

o   Home

o   Resort/Condominium

o   Others

• Vacation Rental Market, By Booking Mode:

o   Online

o   Offline

• Vacation Rental Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Vacation Rental Market.

Available Customizations:

Global Vacation Rental Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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