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Europe Vacation Rental Market Size 2025-2029

The europe vacation rental market size is valued to increase USD 239.8 billion, at a CAGR of 27.3% from 2024 to 2029. Increase in number of tourists in Europe will drive the europe vacation rental market.

Major Market Trends & Insights

By Mode Of Booking - Offline segment was valued at USD billion in 
By Management - Managed by owners segment accounted for the largest market revenue share in 
CAGR from 2024 to 2029 : 27.3%

Market Summary

The market is a dynamic and continually evolving sector, characterized by the adoption of advanced technologies and applications. With the increasing number of tourists in Europe, reaching over 713 million in 2020, the demand for vacation rentals has surged. However, providing quality rental properties remains a challenge, with inconsistencies persisting in the market. To stay competitive, vacation rental providers are embracing effective promotional strategies, such as digital marketing and partnerships with online travel agencies. Core technologies like virtual tours and smart home automation are also gaining traction, enhancing the user experience. Despite these opportunities, regulatory compliance poses a significant challenge, with varying rules across European countries. As of 2021, Airbnb holds a 39.4% market share in Europe, underscoring the market's potential for growth.

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

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How is the Vacation Rental in Europe Market Segmented ?

The vacation rental in europe 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 BookingOfflineOnlineManagementManaged by ownersProfessionally managedEnd-userLeisureBusinessGroupGeographyEuropeFranceItalySpainUK

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 billion in 2019 and showed a gradual increase during the forecast period.

Market Dynamics

Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

The European vacation rental market is a thriving sector, driven by the increasing preference for flexible and personalized accommodations among travelers. Property management software plays a pivotal role in optimizing revenue management, with dynamic pricing models and guest communication tools significantly impacting satisfaction scores and booking conversions. Seasonal demand pricing strategies are analyzed to maximize rental income projections, while digital marketing campaigns are measured for their return on investment. Feedback mechanisms are essential for improving guest experience and managing property maintenance costs efficiently. Vacation rental insurance policies are assessed to mitigate risks, and compliance regulations are strictly adhered to in the rental industry. Effective payment processing fees are a critical consideration, with data analytics used to optimize occupancy rates and enhance online booking system usability. Best practices for managing guest reviews and reputation include using integration cleaning services for efficiency and reducing cancellation rates through effective policies. Strategies for promoting local experiences for guests and optimizing property listing descriptions are also essential for increasing bookings. The integration of cleaning services efficiency shows a notable improvement in the industry, with over 60% of leading players adopting this approach compared to only 30% in the past. Effective customer relationship management is crucial for fostering loyalty and repeat business. Techniques for improving search engine optimization listings and enhancing online booking system usability are essential for attracting and retaining customers. By focusing on these strategies, European vacation rental providers can maximize their rental income projections and maintain a competitive edge in the market.

What are the key market drivers leading to the rise in the adoption of Vacation Rental in Europe Industry?

The significant rise in European tourism has emerged as the primary market driver, attracting a substantial influx of tourists and fueling economic growth. 

The European vacation rental market experiences continuous expansion due to the rising number of tourists in Europe. Europe is a significant contributor to the socio-economic activities within the European Union (EU), with touris

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Vacation Rental Market Size 2025-2029

The vacation rental market size is valued to increase USD 22 billion, at a CAGR of 4.1% from 2024 to 2029. Growing tourism industry and increasing popularity of short-term vacation rental properties will drive the vacation rental market.

Major Market Trends & Insights

Europe dominated the market and accounted for a 32% growth during the forecast period.
By Management - Managed by owners segment was valued at USD 48.50 billion in 2023
By Method - Offline segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 68.07 billion
Market Future Opportunities: USD 22.00 billion
CAGR : 4.1%
Europe: Largest market in 2023

Market Summary

The market encompasses the provision of short-term stays in residential properties, including houses, apartments, and homestays. This market is experiencing significant growth due to the expanding tourism industry and the increasing popularity of flexible accommodation options. According to recent data, the vacation rental sector is projected to account for over 20% of the global accommodations market share by 2025. Core technologies, such as instant booking features and digital payment systems, are revolutionizing the vacation rental industry, making it more accessible and convenient for travelers.
However, challenges persist, including the risks associated with fraudulent listings and the need for robust regulatory frameworks to ensure consumer protection. As the market continues to evolve, it presents numerous opportunities for innovation, particularly in the areas of personalized services and sustainable tourism practices.

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

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How is the Vacation Rental Market Segmented and what are the key trends of market segmentation?

The 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.

Management

  Managed by owners
  Professionally managed


Method

  Offline
  Online


Type

  Home
  Apartments
  Resort/Condominium
  Others


Geography

  North America

    US
    Canada


  Europe

    France
    Italy
    UK


  APAC

    China
    India
    Japan


  South America

    Brazil


  Rest of World (ROW)

By Management Insights

The managed by owners segment is estimated to witness significant growth during the forecast period.

The markets witness significant trends shaping their operations and growth. Automated check-in and check-out systems streamline the guest experience, reducing manual labor and increasing efficiency. Social media marketing plays a crucial role in attracting and engaging potential renters, with 55% of travelers using social media to plan their trips. Legal compliance requirements are essential for vacation rental businesses, with occupancy rate optimization and access control systems ensuring adherence to regulations. Property valuation methods and smart home technology enhance the value proposition for renters, while energy management systems contribute to cost savings and sustainability. Keyless entry systems and guest review management tools facilitate seamless communication and improve the guest experience.

Customer service automation, cleaning service scheduling, revenue management strategies, and property management software enable owners to optimize their operations and maximize revenue. Rental agreement templates, digital marketing strategies, online booking systems, maintenance request systems, booking calendar software, dynamic pricing models, and channel management platforms are essential tools for vacation rental businesses. Guest experience platforms, yield management techniques, rental income projections, search engine optimization, payment gateway integration, tax calculation software, guest data analytics, customer relationship management, fraud prevention measures, accounting software integration, housekeeping management systems, guest communication tools, pricing optimization algorithms, insurance policy management, security system integration, and performance tracking metrics are all integral components of the evolving the market.

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The Managed by owners segment was valued at USD 48.50 billion in 2019 and showed a gradual increase during the forecast period.

Industry growth is expected to be robust, with 32% of travelers expressing interest in vacation rentals as an alternative to hotels. Additionally, the adoption of technology in vacation rental businesses is projected to increase by 37% in the next five years (Source: Market Research). These trends underscore the import

The revenue in the 'Vacation Rentals' segment of the travel & tourism market in Europe was modeled to amount to ************* U.S. dollars in 2024. Between 2017 and 2024, the revenue rose by *********** U.S. dollars, though the increase followed an uneven trajectory rather than a consistent upward trend. The revenue will steadily rise by ************ U.S. dollars over the period from 2024 to 2030, reflecting a clear upward trend.Further information about the methodology, more market segments, and metrics can be found on the dedicated Market Insights page on Vacation Rentals.

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.

The number of users in the 'Vacation Rentals' segment of the travel & tourism market in Europe was modeled to be ************** users in 2024. Between 2017 and 2024, the number of users rose by ************* users, though the increase followed an uneven trajectory rather than a consistent upward trend. The number of users will steadily rise by ************* users over the period from 2024 to 2030, reflecting a clear upward trend.Further information about the methodology, more market segments, and metrics can be found on the dedicated Market Insights page on Vacation Rentals.

The global vacation rental market size is projected to grow from USD 95.3 billion in 2025 to USD 139.72 billion by 2035, recording a CAGR of 3.9%. Organizations driving sector growth include Airbnb, Booking.com, Vrbo, Expedia, TripAdvisor, influencing market dynamics worldwide.

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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

The size of the Vacation Rental Market was valued at USD 95.66 billion in 2023 and is projected to reach USD 123.36 billion by 2032, with an expected CAGR of 3.7 % during the forecast period. Recent developments include: In August 2022, Oravel Stays Private Limited bought Bornholmske Feriehuse, an operator of vacation rentals to expand its presence in Europe. The acquisition aimed to increase Oyo's presence in Croatia, where it had over 7,000 houses on its Traum Ferienwohnungen platform and close to 1,800 vacation homes on its Belvilla platform , In May 2023, in honor of Global Accessibility Awareness Day, Airbnb, Inc. stated that its agents had checked and verified the accuracy of approximately 300,000 accessible elements in residences globally. These accessibility features included step-free entrances, fixed grab bars, or bath or shower chairs .

Vacation Rental Market Outlook

According to our latest research, the global vacation rental market size reached USD 94.2 billion in 2024, demonstrating robust expansion driven by evolving traveler preferences and digital transformation. The market is projected to grow at a CAGR of 6.8% from 2025 to 2033, reaching an estimated USD 173.3 billion by 2033. This consistent growth is primarily attributed to increased demand for personalized travel experiences, the proliferation of online booking platforms, and the rising popularity of alternative accommodation options among both leisure and business travelers.

One of the primary growth drivers for the vacation rental market is the shift in consumer behavior towards experiential and authentic travel. Modern travelers, particularly millennials and Gen Z, increasingly seek accommodations that offer local immersion, flexibility, and home-like amenities. This trend has led to a surge in demand for vacation rentals such as apartments, villas, and cottages, which provide more space, privacy, and unique experiences compared to traditional hotels. The growing influence of social media and travel blogs has further amplified the appeal of vacation rentals, with travelers sharing their positive experiences and inspiring others to opt for alternative accommodations.

Digital transformation has played a pivotal role in propelling the vacation rental market forward. The widespread adoption of smartphones and the internet has made it easier for consumers to discover, compare, and book vacation rentals online. Leading platforms such as Airbnb, Vrbo, and Booking.com have revolutionized the booking process, offering user-friendly interfaces, secure payment options, and real-time availability. Additionally, the integration of advanced technologies like artificial intelligence, virtual tours, and personalized recommendations has enhanced the customer experience, fostering trust and encouraging repeat bookings. These digital advancements have not only expanded the marketÂ’s reach but also enabled property owners to efficiently manage their listings and maximize occupancy rates.

Another significant factor fueling market growth is the increasing acceptance of vacation rentals among business travelers. Traditionally dominated by leisure travelers, the vacation rental market is witnessing a notable uptick in bookings from corporate clients seeking comfortable, flexible, and cost-effective accommodation solutions for extended stays and business trips. The rise of remote work and “workcation” trends, accelerated by the global pandemic, has further blurred the lines between leisure and business travel. Companies are now more open to providing employees with vacation rental options that support work-life balance and productivity, thereby broadening the market’s end-user base and contributing to sustained growth.

The concept of Tiny House Rental is gaining traction as a unique and sustainable accommodation option within the vacation rental market. These compact, eco-friendly homes offer a minimalist lifestyle experience, appealing to travelers who prioritize sustainability and simplicity. Tiny houses provide all the essential amenities in a smaller footprint, often located in scenic or off-the-beaten-path destinations. This trend is particularly popular among millennials and Gen Z travelers who seek novel experiences and are conscious of their environmental impact. As the demand for unique and personalized travel experiences grows, tiny house rentals are poised to become a significant segment within the alternative accommodation landscape.

From a regional perspective, Europe continues to dominate the vacation rental market, accounting for a significant share of global revenues in 2024. This is closely followed by North America and the Asia Pacific, both of which are experiencing rapid growth due to increased international tourism, rising disposable incomes, and supportive regulatory frameworks. Latin America and the Middle East & Africa are also emerging as promising markets, driven by expanding tourism infrastructure and growing awareness of vacation rental options. Each region presents unique opportunities and challenges, with local regulations, cultural preferences, and economic conditions shaping market dynamics.

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)

The arpu in the 'Vacation Rentals' segment of the travel & tourism market in Europe was modeled to be ****** U.S. dollars in 2024. Following a continuous upward trend, the arpu has risen by ***** U.S. dollars since 2017. Between 2024 and 2030, the arpu will rise by ***** U.S. dollars, continuing its consistent upward trajectory.Further information about the methodology, more market segments, and metrics can be found on the dedicated Market Insights page on Vacation Rentals.

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Vacation Rental Co-Hosting Market Outlook

According to our latest research, the global vacation rental co-hosting market size reached USD 2.8 billion in 2024, driven by the rapid expansion of the short-term rental industry and the increasing adoption of professional property management services. The market is forecasted to grow at a CAGR of 13.6% from 2025 to 2033, reaching an estimated USD 8.8 billion by 2033. This robust growth is primarily attributed to the rising demand for seamless guest experiences, technological advancements in property management, and the proliferation of online booking platforms, which are transforming the way property owners manage and monetize their vacation rentals.

One of the key growth factors fueling the vacation rental co-hosting market is the increasing complexity and competitiveness of the short-term rental landscape. As platforms like Airbnb, Vrbo, and Booking.com continue to attract millions of travelers worldwide, property owners are recognizing the need for professional co-hosting services to maximize occupancy rates, optimize pricing, and deliver superior guest experiences. The surge in global travel, coupled with evolving guest expectations for personalized and hassle-free stays, has made it challenging for individual hosts to manage operations single-handedly. This has led to a significant uptick in demand for both full-service and partial-service co-hosting providers, who offer expertise in guest communications, cleaning coordination, marketing, and revenue management, thus enabling property owners to achieve higher returns and better reviews.

Another pivotal driver is the integration of advanced technologies into the vacation rental ecosystem. The emergence of property management platforms, AI-driven pricing tools, and automated guest communication systems has revolutionized the co-hosting market. These tools not only streamline operational workflows but also provide actionable insights for hosts and co-hosts to make data-driven decisions. The adoption of smart home devices, keyless entry systems, and contactless check-in/out solutions has further elevated the guest experience, making properties more attractive to travelers and reducing operational burdens for hosts. As the industry continues to digitize, co-hosting service providers that leverage technology are gaining a competitive edge, attracting a broader client base and driving market growth.

A third significant growth factor is the diversification of property owners and investors entering the short-term rental market. The rise of real estate investors and property management companies seeking to scale their portfolios has created new opportunities for specialized co-hosting services. Unlike individual hosts who may require basic support, these professional stakeholders demand comprehensive solutions encompassing regulatory compliance, multi-property management, financial reporting, and strategic advisory. The evolving regulatory landscape, especially in urban markets, has also heightened the need for expert guidance and compliance management, further boosting the demand for consulting and advisory co-hosting services. As the market matures, co-hosting providers are increasingly tailoring their offerings to meet the nuanced requirements of diverse end users, driving both market expansion and service innovation.

From a regional perspective, North America continues to dominate the vacation rental co-hosting market, accounting for the largest share in 2024, followed by Europe and Asia Pacific. The mature short-term rental ecosystem in the United States and Canada, coupled with high digital adoption rates and a robust travel industry, has fostered a thriving environment for co-hosting service providers. Europe, with its rich tourism heritage and diverse property types, is witnessing steady growth, particularly in popular destinations such as Spain, France, and Italy. Meanwhile, Asia Pacific is emerging as a high-growth region, propelled by urbanization, rising disposable incomes, and increasing international travel. The market outlook for Latin America and the Middle East & Africa is also positive, supported by government initiatives to promote tourism and the gradual adoption of digital property management solutions.

Service Type Analysis

The service type segment of the vacation rental co-hosting market is broadly categorized into Full-Service Co-Hosting, Partial-Service Co-Hosting, and Consulting and Advisory</b