The short-term vacation rental market is expected to expand at a CAGR of 10.80% through 2034. The market value is projected to increase from USD 1,35,258.3 million in 2024 to USD 3,77,191.2 million by 2034. The short-term vacation rental industry share was valued at USD 1,21,416.8 million in 2023.
| Attribute | Detail |
|---|---|
| Short-term Vacation Rental Market Size, 2023 | USD 1,21,416.8 million |
| Estimated Market Size, 2024 | USD 1,35,258.3 million |
| Projected Market Size, 2034 | USD 3,77,191.2 million |
| Value-based CAGR, 2024 to 2034 | 10.80% |
The travel and tourism sector is undergoing a massive shift as consumers show an increased appetite for adventure, travel, and exploration activities.
The emerging pattern is contributing to the popularity of rental property for short stays, which permits travelers to book local stays for workcation, vacation, or even to experience digital nomad life. Increasing competition in the market is anticipated to boost innovation and lead to the growth of short-term vacation rentals.
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| Attributes | Details |
|---|---|
| Historical Market Value (2019) | USD 83,840.20 million |
| Short-term Vacation Rental Market Value (2023) | USD 1,21,416.8 million |
| Historical CAGR (2019 to 2023) | 9.70% |
The short-term vacation rental market registered a CAGR of 9.70% from 2019 to 2023. The market reached USD 1,21,416.8 million in 2023 from USD 83,840.20 million in 2019. The expanding millennial demographic, along with the growing trend of vacation, travel, and lodging expenditure, is fueling market growth. Other key factors contributing to market growth are as follows:
Increasing safety concerns for travelers, especially females, is resulting in dedicated services by leading players to capture this market segment. For instance, in 2020, Golightly came into being. This platform provides holiday rentals and home-shares in a vetted community. The platform is run and offered only to female guests.
The market is expected to inflate from USD 1,35,258.3 million in 2024 to USD 3,77,191.2 million by 2034. The market is anticipated to expand at an impressive CAGR of 10.80% through the forecast period.
| Historical CAGR (2019 to 2023) | 9.70% |
|---|---|
| Forecasted CAGR (2024 to 2034) | 10.80% |
| Countries | CAGR (2024 to 2034) |
|---|---|
| United States | 5.90% |
| Germany | 9.20% |
| China | 14.60% |
| India | 15.70% |
| Australia | 9.70% |
In the United States, the short-term vacation rental market is set to register a CAGR of 5.90% through 2034. The top contributors to market growth are as follows:
These trends, along with the rising discretionary incomes of these travelers, are propelling market growth.
The German short-term vacation rental market is anticipated to register a CAGR of 9.20% through 2034. Top factors propelling the demand for this type of accommodation are as follows:
The short-term vacation rental market in China is anticipated to record a robust CAGR of 14.60% through 2034. The following factors complement the market’s growth:
The demand for short-term vacation rentals in India is expected to experience a CAGR of 15.70% through 2034. The leading factors for the industry’s growth are as follows:
All these factors play a crucial role in helping the market in India advance. The market is expected to rise exponentially, with sufficient investments in the Indian economy.
Short-term vacation rentals in Australia is significantly contributing to its tourism sector. Going forward, the country is anticipated to account for a CAGR of 9.70% through 2034. Top factors pushing the market’s growth are given below:
| Top Accommodation Type | Resorts |
|---|---|
| Market Share (2024) | 40.40% |
As per the latest market projections, the resort segment is anticipated to acquire a market share of 40.40% in 2024. The growing appeal of mini vacations is increasing the attractiveness of rental resorts among travelers. Various advantages and convenient services offered by resorts attract a significant population for this type of accommodation. A few of the benefits include safer tourist spots, favorable social interactions, and planned activities and adventures.
| Top Booking Mode | Online |
|---|---|
| Market Share (2024) | 59.40% |
Online booking mode is anticipated to represent a dominant market share of 59.40% in 2024. The segment is expected to expand at a rapid pace, too, raising the market share by 2034. Consumers are opting for online channels to ease the process of booking rental properties.
Companies are optimizing their sites by using advanced technologies to provide a user-friendly experience. Technology enables streamlined booking and automation for maximum efficiency. As a result, property owners opt for online mediums to get bookings.
Key players in the market are aiming for a higher volume of customers by adopting various strategies like expansion into new verticals. Additionally, players are focusing on diversification of their services to expand their market share.
Market leaders are reaching new markets by listing their properties in new countries, cities, and regions. This strategy is being propelled by the rising popularity of short-term vacation rentals as an alternative to conventional hotels.
Industry participants are further acquiring smaller platforms, thus allowing them access to the latest properties and more customers. Acquisition strategy also helps expand the technological capabilities of companies.
Market players are also collaborating with hotels to provide their services to a wider customer base. Additionally, companies are investing in the latest technologies to enhance the booking experience of their customers. This consists of enhancing booking functionality, developing new mobile apps, and providing personalized recommendations.
Industry participants are curating experiences and packages to provide enhanced experiences to their customers. By doing so, they can enjoy a competitive advantage over other players.
New Developments Shaping the Short-term Vacation Rental Market
The short-term vacation rental market is estimated to be valued at USD 1,35,258.3 million in 2024.
The market is predicted to expand at a CAGR of 10.8% through 2034.
The short-term vacation rental market is anticipated to reach USD 3,77,191.2 million by 2034.
The market in India is predicted to provide high growth opportunities.
The resorts segment acquires a leading share of the market.
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Short-term Vacation Rental Market
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