The market is projected to surpass USD 4,00,911.98 Million by 2035, growing at a CAGR of 10.4% during the forecast period.

Metric	Value
Market Size in 2025	USD 1,49,059.03 Million
Projected Market Size in 2035	USD 4,00,911.98 Million
CAGR (2025 to 2035)	10.4%

Country-wise Outlook

Country	CAGR (2025 to 2035)
United States	10.5%

Country	CAGR (2025 to 2035)
United Kingdom	10.3%

Country	CAGR (2025 to 2035)
European Union	10.4%

Country	CAGR (2025 to 2035)
South Korea	10.6%

Segmentation Outlook

Accommodation Type	Market Share (2025)
Apartments	42.5%

Booking Mode	Market Share (2025)
Online/Platform-based	76.3%

Company Name	Estimated Market Share (%)
Airbnb Inc.	30-35%
Booking Holdings Inc.	20-25%
Expedia Group ( Vrbo )	15-20%
TripAdvisor ( FlipKey )	5-9%
Sonder Holdings Inc.	3-7%
Other Companies (combined)	15-25%

Competitive Outlook

The Short Term Vacation Rental Market is Segments by Accommodation Type (Apartments / Condominiums, Homes / Villas, and More), by Booking Channel (Online Travel Agencies, Direct Owner Websites, and More), by Guest Type (Leisure Travelers, Business and Bleisure Travelers, and More) and by Geography (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa). The Market Forecasts are Provided in Terms of Value (USD)

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Short Term Vacation Rental Market Size 2025-2029

The short term vacation rental market size is forecast to increase by USD 114.1 billion, at a CAGR of 13.5% between 2024 and 2029.

The market is experiencing significant growth, driven by the expanding tourism industry and the increasing popularity of alternative accommodation options. Travelers seek flexibility, convenience, and unique experiences, making short term rentals an attractive choice over traditional and boutique hotels. Technological advancements further enhance the market's appeal, with digital platforms simplifying the booking process and offering personalized recommendations based on traveler preferences. However, the market faces challenges in ensuring consistent quality across vacation rental properties. The lack of standardization and regulation can lead to inconsistencies in the guest experience, potentially impacting customer satisfaction and brand reputation.
Addressing this challenge requires a commitment to quality assurance, from property maintenance and cleanliness to guest communication and support. Companies that prioritize these aspects and leverage technology to streamline operations will capitalize on the market's opportunities while navigating challenges effectively.

What will be the Size of the Short Term Vacation Rental Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The short-term rental market continues to evolve, with dynamic pricing strategies shaping the landscape. Property managers employ guest management systems to optimize operations, while digital marketing and channel management tools expand reach. Email marketing and social media platforms engage guests, driving direct bookings. Property valuation relies on data analysis, including occupancy rates and revenue management. Seasonal demand influences pricing, with peak seasons offering higher yields. Energy efficiency and green initiatives attract eco-conscious travelers, while luxury rentals cater to affluent guests.

Amenities, from smart home technology to concierge services, enhance the guest experience. Calendar synchronization ensures seamless booking and maintenance services maintain property condition. Legal compliance remains crucial, with security systems and yield management tools addressing safety and revenue optimization. Budget rentals and cabin rentals cater to diverse markets, expanding the market's reach. Overall, the short-term rental market's continuous evolution reflects the industry's adaptability and innovation.

How is this Short Term Vacation Rental Industry segmented?

The short term vacation rental industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Mode Of Booking

  Offline
  Online


Management

  Managed by owners
  Professionally managed


Type

  Apartments and condominiums
  Villas and luxury homes
  Cottages and cabins
  Resorts and bungalows
  Others


Location

  Urban
  Rural
  Coastal
  Mountain


Traveler Type

  Leisure Travelers
  Business Travelers
  Families


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    The Netherlands
    UK


  APAC

    China
    Japan


  Rest of World (ROW)

By Mode Of Booking Insights

The offline segment is estimated to witness significant growth during the forecast period.

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The Offline segment was valued at USD 87.10 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

Europe is estimated to contribute 32% to the growth of the global market during the forecast period.Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The European the market is experiencing growth due to the rising demand for travel and unique experiences. Travelers seek more personalized accommodations, leading to the popularity of short term rentals over traditional hotels. Weekend getaways and city breaks align with the trend of experiential travel, further fueling market growth. Short term rentals offer flexible options and can be cost-effective for families or groups. Pricing strategies, such as dynamic pricing and seasonal demand, influence rental income. Guest management systems, email marketing, and channel management help optimize bookings. Operating expenses include cleaning services, maintenance, and property management software. Energy efficiency and green initiatives are essential property amenities.

Smart home technology enhances the guest experience, while calendar synchronization and inve

Short-Term Rental Market Outlook

As per our latest research, the global short-term rental market size in 2024 stands at USD 120.8 billion, reflecting a robust growth trajectory. The market is experiencing a strong compound annual growth rate (CAGR) of 11.2% from 2025 to 2033. By the end of 2033, the market is forecasted to reach USD 282.3 billion. This impressive growth is primarily driven by the increasing preference for alternative accommodation, the proliferation of digital booking platforms, and a surge in both leisure and business travel worldwide.

One of the most significant growth factors for the short-term rental market is the rising popularity of experiential travel among millennials and Gen Z consumers. These demographic segments are showing a marked preference for unique and personalized accommodation experiences that traditional hotels often cannot provide. The flexibility, cost-effectiveness, and variety offered by short-term rental properties, such as apartments, villas, and houses, have positioned them as a preferred choice for travelers seeking authentic local experiences. Furthermore, the rapid expansion of online travel agencies (OTAs) and peer-to-peer rental platforms has simplified the booking process, making it easier for consumers to discover and reserve short-term rentals globally. This digital transformation is expected to continue fueling market growth as more travelers embrace the convenience of online platforms.

Another critical driver is the increasing adoption of remote and hybrid work models, which has expanded the use case for short-term rentals beyond traditional vacation stays. Professionals and digital nomads are now seeking flexible accommodation options for extended periods, blurring the lines between leisure and business travel. This shift has led to a surge in demand for rentals that offer home-like amenities, such as fully equipped kitchens, workspaces, and high-speed internet connectivity. Property owners and managers are responding by upgrading their offerings to cater to these evolving needs, further enhancing the attractiveness of short-term rentals. Additionally, the rise of "bleisure" travel, where business trips are combined with leisure activities, is contributing to sustained demand across various end-user segments.

The surge in international tourism, coupled with increasing disposable incomes in emerging markets, is also playing a pivotal role in the expansion of the short-term rental market. Countries in Asia Pacific and Latin America are witnessing a growing influx of both domestic and international tourists, driven by improved air connectivity and government initiatives to promote tourism. This trend is encouraging property owners in these regions to list their homes and apartments on global rental platforms, thereby expanding the supply side of the market. Moreover, the growing acceptance of short-term rentals among business travelers, supported by corporate travel policies that favor cost-effective accommodation, is further accelerating market growth.

From a regional perspective, North America continues to dominate the short-term rental market, accounting for the largest share in 2024. However, Asia Pacific is emerging as the fastest-growing region, driven by rapid urbanization, a burgeoning middle class, and increasing smartphone penetration. Europe remains a key market, supported by a strong tradition of holiday rentals and favorable regulatory environments in several countries. Latin America and the Middle East & Africa are also witnessing steady growth, albeit from a smaller base, as digital adoption increases and tourism infrastructure improves. Overall, the global outlook for the short-term rental market remains highly positive, with significant opportunities for expansion across both developed and emerging regions.

Accommodation Type Analysis

The accommodation type segment in the short-term rental market comprises apartments, houses, villas, condos, and others. Among these, apartm

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Data includes occupancy rates, average daily rates, and revenue per available rental.

USD 34.45 Million in 2024; projected USD 82.46 Million by 2033; CAGR 10.15%.

The short-term rental platform market is projected to grow from USD 9.1 billion in 2025 to USD 52.0 billion by 2035, at a CAGR of 19.1%. On-Premise Short-Term Rentals will dominate with a 48.3% market share, while house/apartment will lead the accommodation segment with a 55.6% share.

Metric	Value
Industry Size (2025E)	USD 9.1 billion
Industry Value (2035F)	USD 52.0 billion
CAGR (2025 to 2035)	19.1%

USD 49.11 Million in 2024; projected USD 117.45 Million by 2033; CAGR 10.19%.

Explore the booming Vacation Rental market analysis, revealing key insights, market size, CAGR, drivers, and future trends for 2025-2033. Discover growth opportunities in apartment rentals and private home rentals.

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Short-Term Rental Pricing Software Market Outlook

According to our latest research, the global short-term rental pricing software market size reached USD 1.3 billion in 2024, reflecting robust demand as property owners and managers increasingly leverage data-driven solutions to maximize rental income. The market is set to expand at a CAGR of 13.2% from 2025 to 2033, projecting a value of approximately USD 3.8 billion by 2033. This accelerated growth is primarily driven by the surge in vacation rental activities, digital transformation in the real estate sector, and mounting competition among property owners seeking to optimize occupancy rates and dynamic pricing strategies.

The primary growth factor for the short-term rental pricing software market is the rapid digitization of the hospitality and real estate industries. As the sharing economy matures, property owners and managers are increasingly adopting advanced software solutions to automate pricing, monitor market trends, and respond swiftly to fluctuating demand. The proliferation of online travel agencies (OTAs) and platforms such as Airbnb, Vrbo, and Booking.com has intensified competition, making it critical for stakeholders to leverage sophisticated pricing tools to remain competitive. Additionally, the integration of artificial intelligence and machine learning in pricing software is enabling real-time analytics and predictive modeling, further enhancing the ability of users to optimize revenue and occupancy.

Another significant driver is the increasing awareness among property managers and individual hosts about the tangible benefits of dynamic pricing. Traditional static pricing models are rapidly being replaced by intelligent, automated systems that analyze vast datasets, including local events, seasonality, competitor rates, and market demand. This shift is particularly pronounced in urban and vacation rental markets, where occupancy rates and rental yields are highly sensitive to pricing strategies. The growing number of professional property management firms and the entry of institutional investors into the short-term rental space are also fueling demand for scalable, feature-rich pricing software capable of managing large and diverse property portfolios.

Moreover, the COVID-19 pandemic has catalyzed the adoption of digital tools in the short-term rental sector, as property owners sought to recover lost revenues and adapt to volatile market conditions. The pandemic underscored the importance of agile pricing strategies, as travel restrictions and changing consumer preferences led to unpredictable demand patterns. As a result, there is a heightened focus on leveraging technology to gain actionable insights, automate workflows, and ensure business continuity. The emergence of contactless check-ins, enhanced cleaning protocols, and flexible cancellation policies are further contributing to the demand for integrated pricing and property management solutions.

Dynamic Pricing has emerged as a transformative approach in the short-term rental industry, enabling property owners to adjust rates in real-time based on fluctuating market conditions. This strategy leverages advanced algorithms and data analytics to assess factors such as local events, competitor pricing, and consumer demand, ensuring that rental prices are optimized for maximum revenue. By adopting dynamic pricing, property managers can not only enhance occupancy rates but also respond swiftly to market changes, thereby gaining a competitive edge. The ability to dynamically adjust prices is particularly beneficial in high-demand urban and vacation markets, where rental rates can vary significantly over short periods.

Regionally, North America continues to lead the short-term rental pricing software market, accounting for the largest share in 2024, followed by Europe and Asia Pacific. This dominance is attributed to the high penetration of short-term rentals, advanced digital infrastructure, and a mature ecosystem of property management companies. However, Asia Pacific is expected to witness the fastest growth rate over the forecast period, driven by rising urbanization, a burgeoning middle class, and increasing adoption of digital solutions in emerging economies. Europe remains a significant market, supported by strong tourism activity and progressive regulatory frameworks that encourage innovation in the ren

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USD 40.62 Million in 2024; projected USD 101.26 Million by 2033; CAGR 10.71%.

The year-over-year monthly change in the number of short-term rental bookings worldwide decreased across all regions during March and April 2020. The region with the largest drop in short term rental bookings in April 2020 was Europe, at *** percent. The sharp decrease in hotel searches was due to the impact of the coronavirus (COVID-19) pandemic on international travel and the hotel industry.

Guest Screening for Short-Term Rentals Market Outlook

According to our latest research, the global guest screening for short-term rentals market size reached USD 1.27 billion in 2024, reflecting a robust demand for advanced security and risk mitigation solutions in the rapidly growing short-term rental sector. The market is expected to expand at a CAGR of 14.2% from 2025 to 2033, reaching a forecasted value of USD 3.86 billion by 2033. This significant growth is fueled by increasing adoption of digital screening tools, heightened regulatory scrutiny, and the need for enhanced guest verification to protect property owners and ensure community safety.

One of the primary growth drivers for the guest screening for short-term rentals market is the exponential rise in the number of short-term rental properties worldwide. The popularity of platforms such as Airbnb, Vrbo, and Booking.com has led to a surge in property listings, with millions of hosts seeking to maximize returns while minimizing risks. As the volume of transactions increases, so does the potential for fraudulent activity, property damage, and neighborhood disturbances. Consequently, property managers and individual hosts are prioritizing comprehensive guest screening solutions that leverage artificial intelligence, machine learning, and big data analytics to assess guest backgrounds, detect red flags, and ensure compliance with local laws and community standards. This widespread adoption is further supported by the integration of screening tools directly into booking platforms, making the process seamless and efficient for both hosts and guests.

Another significant factor propelling market growth is the evolving regulatory landscape governing short-term rentals. Many cities and municipalities have enacted stringent regulations that require hosts to verify guest identities, maintain detailed records, and adhere to occupancy limits to protect residential communities. Compliance with these regulations has become a critical concern for property owners, especially in regions with high tourist traffic and frequent incidents of unauthorized parties or criminal activity. As a result, demand for guest screening services—ranging from identity verification and background checks to real-time risk scoring—has soared. Service providers are responding by offering customizable solutions tailored to local regulatory requirements, thereby helping hosts avoid costly fines and legal challenges while fostering trust with neighbors and authorities.

Technological advancements are also shaping the future of the guest screening for short-term rentals market. The integration of biometrics, facial recognition, and blockchain-based digital identity verification is transforming how hosts authenticate guests and secure their properties. These technologies not only streamline the screening process but also enhance accuracy and reduce manual intervention, allowing for real-time decision-making and improved user experience. Furthermore, the rise of data privacy concerns and the implementation of global data protection regulations, such as GDPR and CCPA, are prompting service providers to prioritize secure data handling and transparent consent protocols. This dual emphasis on innovation and compliance is expected to drive sustained investment in guest screening platforms, creating new opportunities for market expansion.

From a regional perspective, North America currently dominates the guest screening for short-term rentals market, accounting for over 38% of global revenue in 2024. This leadership is attributed to the high concentration of short-term rental properties, proactive regulatory frameworks, and widespread adoption of digital screening technologies. Europe follows closely, driven by robust tourism industries in countries such as the United Kingdom, France, and Spain, as well as increasing regulatory enforcement. The Asia Pacific region is emerging as a high-growth market, with rising urbanization, expanding travel and tourism sectors, and growing awareness of the importance of guest screening among property owners. Latin America and the Middle East & Africa are also witnessing steady growth, albeit at a slower pace, as digital transformation initiatives and regulatory reforms gain momentum.

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Year-end data on occupancy rates, ADR changes, and regional market performance

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