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 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

Snapshot img

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

Snapshot img

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 Short-term Vacation Rental Market was valued at USD 121.42 billion in 2023 and is projected to reach USD 255.28 billion by 2032, with an expected CAGR of 11.2 % during the forecast period.

The Short-term Vacation Rental Market size is expected to reach USD 113.9 billion in 2024 growing at a CAGR of 2.7. Focused on Short-term Vacation Rental Market size, segmentation, consumer behavior, demand trends, and forecast analysis.

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Global Short-Term Vacation Rental Market is segmented by Application (Leisure travelers_Business travelers_Families_Digital nomads_Group travel_Couples_Event attendees_Long-term stays), Type (Entire homes_Private rooms_Shared rooms_Villas_Apartments_Cabins_Boutique rentals_Unique stays (treehouses_boats)), and Geography (North America_ LATAM_ West Europe_Central & Eastern Europe_ Northern Europe_ Southern Europe_ East Asia_ Southeast Asia_ South Asia_ Central Asia_ Oceania_ MEA)

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BASE YEAR	2024
HISTORICAL DATA	2019 - 2023
REGIONS COVERED	North America, Europe, APAC, South America, MEA
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
MARKET SIZE 2024	104.5(USD Billion)
MARKET SIZE 2025	108.3(USD Billion)
MARKET SIZE 2035	156.3(USD Billion)
SEGMENTS COVERED	Property Type, Booking Platform, Customer Type, Pricing Model, Regional
COUNTRIES COVERED	US, Canada, Germany, UK, France, Russia, Italy, Spain, Rest of Europe, China, India, Japan, South Korea, Malaysia, Thailand, Indonesia, Rest of APAC, Brazil, Mexico, Argentina, Rest of South America, GCC, South Africa, Rest of MEA
KEY MARKET DYNAMICS	Rising travel demand, Technology integration, Regulatory challenges, Diverse accommodation options, Increased competition
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	FlipKey, Getaway, Expedia Group, Tripping.com, TurnKey Vacation Rentals, Sonder, Plum Guide, Tujia, HomeAway, OYO Rooms, Airbnb, Tripadvisor, Roomorama, Booking Holdings, Vacasa, Vrbo, Couchsurfing
MARKET FORECAST PERIOD	2025 - 2035
KEY MARKET OPPORTUNITIES	Rising remote work trends, Increasing domestic travel, Integration of smart home technology, Expanding eco-friendly accommodations, Enhanced guest experience offerings
COMPOUND ANNUAL GROWTH RATE (CAGR)	3.7% (2025 - 2035)

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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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--- DATASET OVERVIEW --- This dataset captures detailed information about each vacation rental property listing, providing insights that help users understand property distribution, characteristics, management styles, and guest preferences across different regions. With extensive global coverage and regular weekly updates, this dataset offers in-depth snapshots of vacation rental supply traits at scale.

The data is sourced directly from major OTA platforms using advanced data collection methodologies that ensure high accuracy and reliability. Each property listing is tracked over time, enabling users to observe changes in supply, amenity offerings, and host practices.

--- KEY DATA ELEMENTS --- Our dataset includes the following core performance metrics for each property: - Property Identifiers: Unique identifiers for each property with OTA-specific IDs - Geographic Information: Location data including neighborhood, city, region, and country - Listing Characteristics: Property type, bedroom count, bathroom count, in-service dates. - Amenity Inventory: Comprehensive list of available amenities, including essential facilities, luxury features, and safety equipment. - Host Information: Host details, host types, superhost status, and portfolio size - Guest Reviews: Review counts, average ratings, detailed category ratings (cleanliness, communication, etc.), and review timestamps - Property Rules: House rules, minimum stay requirements, cancellation policies, and check-in/check-out procedures

--- USE CASES --- Market Research and Competitive Analysis: VR professionals and market analysts can use this dataset to conduct detailed analyses of vacation rental supply across different markets. The data enables identification of property distribution patterns, amenity trends, pricing strategies, and host behaviors. This information provides critical insights for understanding market dynamics, competitive positioning, and emerging trends in the short-term rental sector.

Property Management Optimization: Property managers can leverage this dataset to benchmark their properties against competitors in the same geographic area. By analyzing listing characteristics, amenity offerings and guest reviews of similar properties, managers can identify optimization opportunities for their own portfolio. The dataset helps identify competitive advantages, potential service gaps, and management optimization strategies to improve property performance.

Investment Decision Support: Real estate investors focused on the vacation rental sector can utilize this dataset to identify investment opportunities in specific markets. The property-level data provides insights into high-performing property types, optimal locations, and amenity configurations that drive guest satisfaction and revenue. This information enables data-driven investment decisions based on actual market performance rather than anecdotal evidence.

Academic and Policy Research: Researchers studying the impact of short-term rentals on housing markets, urban development, and tourism trends can use this dataset to conduct quantitative analyses. The comprehensive data supports research on property distribution patterns and the relationship between short-term rentals and housing affordability in different markets.

Travel Industry Analysis: Travel industry analysts can leverage this dataset to understand accommodation trends, property traits, and supply and demand across different destinations. This information provides context for broader tourism analysis and helps identify connections between vacation rental supply and destination popularity.

--- ADDITIONAL DATASET INFORMATION --- Delivery Details: • Delivery Frequency: weekly | monthly | quarterly | annually • Delivery Method: scheduled file loads • File Formats: csv | parquet • Large File Format: partitioned parquet • Delivery Channels: Google Cloud | Amazon S3 | Azure Blob • Data Refreshes: weekly

Dataset Options: • Coverage: Global (most countries) • Historic Data: N/A • Future Looking Data: N/A • Point-in-Time: N/A • Aggregation and Filtering Options: • Area/Market • Time Scales (weekly, monthly) • Listing Source • Property Characteristics (property types, bedroom counts, amenities, etc.) • Management Practices (professionally managed, by owner)

Contact us to learn about all options.

--- DATA QUALITY AND PROCESSING --- Our data collection and processing methodology ensures high-quality data with comprehensive coverage of the vacation rental market. Regular quality assurance processes verify data accuracy, completeness, and consistency.

The dataset undergoes continuous enhancement through advanced data enrichment techniques, including property categorization, geographic normalization, and time series alignment. This processing ensures that users receive clean, structured data ready for immediate analysis without extensive preprocess...

The booming vacation rental market is driving explosive growth in vacation rental software. Discover key trends, market size projections to 2033, leading companies, and regional insights in this comprehensive market analysis. Learn how cloud-based solutions, AI, and channel management are shaping the future of vacation rental property management.

Short-Term Rental Software Market Outlook

According to our latest research, the global short-term rental software market size reached USD 2.4 billion in 2024, reflecting the sectorÂ’s robust momentum. The market is expected to expand at a promising CAGR of 14.2% from 2025 to 2033, projecting a value of USD 7.5 billion by 2033. The primary growth factor driving this surge is the increasing digitization of the hospitality industry, coupled with the rising demand for seamless property management solutions among property owners and managers. The proliferation of online travel agencies and the growing popularity of vacation rentals have further accelerated the adoption of advanced short-term rental software globally.

A significant growth driver for the short-term rental software market is the exponential rise in global tourism and the corresponding increase in demand for alternative accommodation options. As travelers increasingly seek unique, flexible, and cost-effective lodging experiences, property owners and managers are compelled to leverage sophisticated software solutions to streamline booking processes, manage multiple listings, and optimize pricing strategies. These platforms offer comprehensive features such as automated bookings, channel management, guest communication, and analytics, which collectively enhance operational efficiency and guest satisfaction. The integration of artificial intelligence and machine learning into these solutions is further enabling predictive analytics, dynamic pricing, and personalized guest experiences, all of which are crucial for staying competitive in the evolving hospitality landscape.

Another pivotal factor fueling the marketÂ’s expansion is the rising adoption of cloud-based solutions, which offer unparalleled scalability, flexibility, and cost-effectiveness for users. Cloud deployment allows property managers and homeowners to access real-time data and manage their properties remotely, a feature that has become particularly critical in the post-pandemic era where contactless operations and remote management are highly valued. The ability to integrate with third-party platforms, such as payment gateways, smart locks, and IoT devices, has also contributed to the growing reliance on cloud-based short-term rental software. Furthermore, the increasing number of small and medium enterprises (SMEs) entering the vacation rental market is driving the demand for affordable and user-friendly software solutions that can accommodate varying operational scales and needs.

The market is also being shaped by evolving regulatory frameworks and heightened competition among short-term rental providers. Local governments across different regions are introducing new regulations to manage the proliferation of short-term rentals, which is prompting property managers and real estate agents to adopt software solutions that ensure compliance and facilitate reporting. Additionally, the competitive landscape is intensifying as both established players and new entrants strive to differentiate themselves through innovative features, superior customer support, and integration capabilities. This competitive pressure is fostering continuous product development and technological advancements in the short-term rental software market, thereby benefiting end-users with more robust and versatile solutions.

From a regional perspective, North America currently dominates the global short-term rental software market, accounting for the largest revenue share in 2024. The regionÂ’s leadership is attributed to the high concentration of vacation rental properties, advanced digital infrastructure, and the presence of major market players. Europe follows closely, driven by the regionÂ’s thriving tourism sector and the widespread adoption of digital property management solutions. The Asia Pacific region is emerging as a lucrative market, supported by rapid urbanization, increasing internet penetration, and a growing middle-class population with rising disposable incomes. Latin America and the Middle East & Africa are also witnessing steady growth, albeit at a comparatively slower pace, as market awareness and adoption rates continue to improve.

Guest Screening for Short-Term Rentals has become an increasingly important aspect of property management in the short-term rental market. As

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