The global vacation rental website market is valued at USD 1,482.6 Million in 2022. It is estimated to grow at a promising CAGR of 12.1% over the forecast period, reaching a value of USD 4,640.2 Million by 2032.
There is an increase in travel, vacation, and accommodation expenditures among the millennial generation, which is driving the growth of the market. It is estimated that 200,000 million global tourists are millennials, and they spend roughly USD 180 billion on travel every year.
A majority of travelers in the market choose vacation rental properties over hotels because of comfort, low cost, and more privacy. In addition to this, vacation rental homes are designed with families and dogs in mind. Vacation rental properties are more cost-effective than hotels with similar amenities are the major factors that drive consumer inclination towards vacation rental homes. For example, according to the TurnKey Vacation Rentals 2019 survey, 64% of travelers prefer staying in vacation rental homes over hotels.
Additionally, it has been observed that clients are quite concerned with their comfort and facilities while selecting a vacation rental when traveling with their family. 71% of families traveling with kids like to cook their own meals, which is one of the reasons they first chose to stay in a vacation rental, according to a poll done by iProperty Management in 2021.
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In addition, Stratos Jet Charters, Inc. reports that owing to the low cost compared to hotels, the rising supply of vacation rentals is increasing the demand and availability of vacation rentals.
According to Airbnb statistics, there are currently 2.9 million hosts on the platform worldwide, with over 14,000 new hosts joining every month in 2021. There are also around 220 countries where Airbnb operates, with more than 100,000 cities that have active Airbnb listings as of 2021, which is a significant number.
Social media and the internet are having a significant influence on increasing consumer awareness related to services and offerings. Key players are offering a wide variety of services, exotic locations, and amenities to gain market share, and they are also offering services specifically for female travelers.
In January 2020, for example, a vacation rental platform called Golightly began operations. This is a platform run by women and exclusively available for female guests, but also allows male guests to rent from them. The company owns more than 350 properties across the world.
| Attribute | Details |
|---|---|
| Vacation Rental Website Size Value in 2022 | USD 1,482.6 Million |
| Vacation Rental Website Forecast Value in 2032 | USD 4,640.2 Million |
| Vacation Rental Website CAGR Global Growth Rate (2022 to 2032) | 12.1% |
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By 2032, the vacation rental website market is predicted by FMI to reach over USD 4,640.2 Million. It is estimated that the global vacation rental website market share increased by 12.7% in the first half of 2022, which is a market share valued at USD 1335.7 Million. Though not equally distributed throughout all regions, this growth is stronger in developing markets. It is predicted to reach the end of 2022 valued at USD 1,482.6 Million registering at a CAGR of 12.1%.
The Growing Tourism Industry
The Rise in Online Booking Mode
Online booking mode is predicted to grow due to consumers’ preference to have detailed access to the offerings of accommodation, amenities, and other benefits. Travelers are increasingly turning to online bookings for a variety of reasons, including value for money, convenience, and the search for authentic travel experiences. As a result, there is a growing number of start-ups and third-party companies offering travel booking services exclusively through their applications and websites.
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Instant booking is a major factor supporting vacation rental website market share growth. As the trend towards instant bookings continues to grow, the global market is likely to benefit as the process of making instant bookings is accompanied by minimal or zero waiting times.
Vacation rental sites that offer online bookings facilitate the ability to book vacation rentals in real time, and this value-added feature will make it easier for customers to book vacation rentals, which in turn will increase customer satisfaction.
Among the major challenges facing the vacation rental website market in the near future are the risks associated with fraudulent vacation rental houses, apartments, and homestays. Several scams, fraudulent reviews, and unethical dealings are impacting the operations of key vendors in the market.
Although these activities are being undertaken by counterfeit players, they have an impact on the business operations of key vendors in the market as well. As a result, market revenue declines and market expansion is constrained. In recent years, the market's overall revenue has decreased as a result of false advertising, the bait-and-switch strategy, and the prevalence of double bookings.
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The hotel/hostel property types segment dominated the revenue table in 2021. This is because it had a share of over 73.1% and the highest CAGR of 13.6%. This represents a share of almost 73% of the global market. This is attributed to the high popularity of hotels among travelers owing to space availability, safety, and access to amenities.
Millennials are majorly responsible for driving this segment because they are more inclined to spend money on things such as barbecue pits, games, swimming pools, clubhouses, and tennis courts, among other amenities. As per a study by iProperty Management published in 2021, 12% of millennials plan to move into a villa/estate, while only 6% of Boomers and 9% of Gen Xers plan to move into one. Furthermore, the low cost of accommodation in rural areas and travel destinations is acting as a major driver for the segment.
In the vacation rental market, vacation rental agencies hold the largest market share for the end-user segment and they have a market share of 43.3% with a CAGR of 10.7%. The market players are engaged in providing leisure and relaxing experiences to the end-users through better facilities in the properties.
To gain a larger share of the market, agencies are engaging in strategic acquisition processes, such as product launches, Research and Development, agreements, and collaborations with other agencies. It appears that Airbnb Inc. is looking forward to expanding its domain of short-term rentals to long-term rentals in order to capitalize on the growing online rental market.
Accordingly, the company is expected to raise funds amounting to USD 1 billion in both equity and debt. The company noted higher levels of acceptance of lengthier rental alternatives from residents of the same city as the standard brokerage system for leasing and decided to take this step to accommodate those looking for rental options that run longer than a month.
As a result of the improved tourist infrastructure, favorable government conditions, and increasing customer awareness in North America, the North American vacation rental websites had the largest share of 34.3% in the forecast period and recorded a CAGR of 8.5% over this period.
According to Airbnb, there are more than 1.6 billion people around the world who are over the age of 50 on the planet. There is also a significant number of Baby Boomers in North America who are looking forward to traveling as one of their top goals.
Vacation rental websites are growing rapidly due to developments in resorts and condominiums such as spas, boats, private beaches, and yoga centers, and the development of luxurious amenities in North America.
| Country | Statistics |
|---|---|
| United States | The USA is one of the most influential markets for vacation rental websites and contributes greatly to the growth of the North American market share. Over time, vacation rental websites have evolved in the USA during various stages, and today it is one of the largest markets in the hospitality industry. The vacation rental website in the USA currently holds the maximum number of shares and the market was projected to reach a CAGR of 8.7% by the end of 2021. Market Share in 2021: 23.1% |
| Germany | Germany is the leading country in the European region and is accountable for advancing at a fast-paced CAGR of 12.6% by the end of 2021. The rise in the number of glamping resorts and condominiums is attributed to the big tour operators and online tour operators catching up with the growing trend of glamping. This is because of the rising expenditures for booking accommodation in resorts and condominiums. Market Share in 2021: 15.2% |
| India | India is projected to advance at a rapid pace, registering a CAGR of 10.9% through the forecast period. In India, exploring untapped locations, soul-searching trips, yoga retreats, and promoting health and wellness have taken off. Also due to the rapid expansion of middle-class households and the rapid development of road and rail networks in the country, there has been rapid growth in the number of mid-range accommodations in the country. Market Share in 2021: 11.2% |
| China | China is projected to advance at a moderate pace, registering a CAGR of 6.3% through the forecast period. China has become more and more evident across the globe due to the amazing sites such as Yunnan's Himalayan foothills and Mission Hills Volcanic Mineral Springs & Spa, which possess an immense amount of potential. Market Share in 2021: 7.9% |
| Japan | The Japanese vacation rental website is anticipated to advance at a fast-paced CAGR of 11.1% during the forecast period. Market Share in 2021: 9.7% |
Different Vendors Add an Edge to the Vacation Rental Website Dynamics
Vacation rental websites are a highly fragmented market, and different vendors are deploying a variety of organic and inorganic growth strategies to compete for a share of the market There has been an increase in the level of competition in the market.
This is forcing vendors to adopt various growth strategies, such as promotional activities and advertisements. This is to improve the visibility of their products to attract potential customers. It has also been observed that some vendors are adopting inorganic growth strategies such as mergers and acquisitions to remain competitive in the market.
It is estimated that more than 60 percent of start-ups aim to increase profitability by improving the hospitality business, building traveler confidence, attracting new clients, and making data-driven decisions. Competitive Landscape
| Attribute | Details |
|---|---|
| Forecast Period | 2022 to 2032 |
| Historical Data Available for | 2017 to 2022 |
| Market Analysis | USD Million for Value and MT for Volume |
| Key Regions Covered | North America; Latin America; Europe; The Middle East and Africa; East Asia |
| Key Countries Covered | USA, Canada, Brazil, Mexico, Chile, Peru, Germany, United Kingdom, Spain, Italy, France, Russia, Poland, China, India, Japan, Australia, New Zealand, GCC Countries, North Africa, South Africa, and Turkey |
| Key Segments Covered | Property Type, End User, Region |
| Key Companies Profiled | BookingSync; CiiRUS; Kigo Inc.; Virtual Resort Manager; LiveRez; OwnerRez; 365Villas; Convoyant; 9flats Pvt Limited; Airbnb Inc; Booking Holdings Inc; Expedia Group; Hotelplan Holding AG; MakeMyTrip Limited; NOVASOL; Oravel Stays Private Limited; TripAdvisor Inc; Rentalo Inc.; Wyndham Destinations Inc; World Travel Holdings Inc |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Drivers, Restraints, Opportunities and Threats Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
North America dominates the market for vacation rental websites.
The vacation rental website is expected to increase at a CAGR of around 12.1% over the forecast period.
The vacation rental website is expected to reach a value of USD 1,482.6 Million by 2022 end.
The global vacation rental website market is highly fragmented with the presence of various leading and emerging players including TripAdvisor, Airbnb Inc, etc.
1. Executive Summary | Vacation Rental Website Market 2. Market Overview 3. Market Background 4. Global Market Analysis 2017 to 2021 and Forecast, 2022 to 2032 5. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Vacation Type 5.1. Domestic Vacation 5.2. International Vacation 6. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Websites 6.1. Static Website 6.2. Dynamic Website 7. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Region 7.1. North America 7.2. Latin America 7.3. Europe 7.4. South Asia 7.5. East Asia 7.6. Oceania 7.7. Middle East and Africa (MEA) 8. North America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 9. Latin America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 10. Europe Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 11. South Asia Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 12. East Asia Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 13. Oceania Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 14. MEA Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. Airbnb 17.2. Holidu 17.3. Vrbo 17.4. Vacasa 17.5. Booking.com 17.6. Expedia 17.7. Tripadvisor 17.8. Tripping 17.9. Hotels.com 17.10. Coolstays 17.11. Hostelworld 18. Assumptions & Acronyms Used 19. Research Methodology
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Vacation Rental Website Market
