The Short Term Vacation Rental Market Report is Segmented by Accommodation Type (Apartments, Villas, Cottages, Houses, Cabins, and Condos), by Price Range ( Budget, Mid-Range, and Luxury), by Booking Channel (Online Travel Agencies, Direct Bookings ( Via Host Websites), and Offline Channels), by Region ( North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa). The Report Offers Market Size and Forecast in Terms of Value in (USD) for all Above Segments.

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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 due to the expanding tourism industry and the increasing preference for flexible and affordable accommodation options. Technological advancements are revolutionizing the sector with online booking platforms, property management software, and smart home technology becoming the norm. However, inconsistency in providing quality vacation rentals remains a challenge. To enhance the guest experience, some rental properties are integrating spa and wellness facilities, while others are exploring the use of Augmented Reality to offer virtual tours. These trends reflect the industry's commitment to delivering superior guest experiences and meeting evolving traveler demands.

What will be the Size of the Short Term Vacation Rental Market During the Forecast Period?

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The short-term rental market, a segment of travel and tourism, has experienced significant growth in recent years, offering budget-friendly accommodations for both leisure and work travelers. With the rise of platforms like Airbnb and Booking.Com, this accommodation type has gained popularity among millennials and international travelers seeking unique, aesthetic stays. The market's size is substantial, with spending on services and goods in this sector continuing to increase. Emerging markets and low airfare prices have contributed to the market's expansion. Work-from-home trends have also driven demand for short-term rentals, allowing travelers to maintain productivity while enjoying eco-friendly and sustainable amenities.
Property owners benefit from the use of online booking platforms and property management software, streamlining the rental process. Technological trends, such as virtual tours, augmented reality, and innovative solutions, enhance the guest experience. The real estate industry has taken notice, with many investing in short-term rental properties. However, concerns regarding fake listings and safety remain, highlighting the need for continued industry regulation. Female visitors represent a significant portion of the market, with a focus on environmentally-friendly rentals and sustainable amenities becoming increasingly important. As the market continues to evolve, it is poised for continued growth and innovation.

How is this Short Term Vacation Rental Industry segmented and which is the largest segment?

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


Geography

  Europe

    Germany
    UK
    France
    Italy


  North America

    Canada
    US


  APAC

    China
    Japan


  Middle East and Africa



  South America

By Mode Of Booking Insights

The offline segment is estimated to witness significant growth during the forecast period. Offline segment had high demand previously when Internet penetration was not high, as word of mouth and repeat business were the most powerful factors for offline bookings. At present, some people are still hesitant to book their accommodation online. The main reason for this is people's lack of faith in online reservations. Another reason people choose to book short term vacation rentals offline is to ensure that they get the best rate. People generally think that by booking hotels offline, they will be able to negotiate with the staff or get extra discounts. Satisfied guests may become repeat customers, contributing to guest loyalty and positive word-of-mouth referrals. Thus, these factors will boost the growth of the offline segment and enhance the growth of the global short term vacation rental market 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 short-term vacation rental market is projected to expand due to the rising demand for travel and tourism, particularly for budget-friendly accommodations.

The short-term vacation rental market is expected to expand at a CAGR of 10.80% through 2034. The market value is projected to increase from US$ 1,35,258.3 million in 2024 to US$ 3,77,191.2 million by 2034. The short-term vacation rental industry share was valued at US$ 1,21,416.8 million in 2023.

Historical Analysis of the Short-term Vacation Rental Market and Future Outlook

Country-wise Insights

Category-wise Insights

The vacation rental market, currently valued at $98.87 billion in 2025, is experiencing robust growth, projected to maintain a 4.1% CAGR from 2025 to 2033. This expansion is driven by several key factors. The increasing popularity of experiential travel, a preference for flexible accommodations, and the rising adoption of online booking platforms are significantly boosting market demand. Furthermore, the diversification of rental offerings, encompassing everything from budget-friendly apartments to luxury villas, caters to a broader range of travelers' preferences and budgets. The market is segmented by management type (owner-managed vs. professionally managed) and booking method (online vs. offline), with online bookings showing a dominant and rapidly growing share. Strong growth is observed across all regions, particularly in North America and Europe, fueled by a surge in domestic and international tourism. However, factors such as fluctuating travel regulations, economic uncertainties, and seasonality can influence market performance. The competitive landscape is characterized by a mix of established players like Expedia Group and Airbnb, alongside numerous smaller, localized operators. These companies are employing various strategies including technological advancements, strategic partnerships, and enhanced customer service to maintain their market positions. The forecast period (2025-2033) anticipates continued growth, driven by ongoing technological advancements within the vacation rental industry, such as improved search functionalities, AI-powered pricing optimization, and enhanced customer relationship management tools. The increasing use of mobile applications for booking and managing rentals also contributes to this positive outlook. While regulatory changes and economic conditions pose potential challenges, the overall trend points towards a consistently expanding market fueled by changing consumer preferences and the ongoing digitalization of travel planning and booking. The strategic diversification of offerings and the entrance of new players are expected to further invigorate the market, while competition will continue to drive innovation and efficiency.

The global travel and tourism market is one of the worst hit by the coronavirus (COVID-19) pandemic. As a result, companies offering short-term rentals such as Airbnb, Expedia, and Booking.com are now coping with the virus' damaging effects. In the first week of 2020, there were 24 percent less short-term rental reservations in the United States than in the previous year. By week two, this figure rose to 26 percent more year-over-year reservations. However, this growth didn't continue and in week 14 of 2020, short-term rental bookings in the U.S. saw a 94 percent drop over the previous year as a result of the coronavirus pandemic.

The short-term vacation rental market, valued at $116.14 billion in 2025, is experiencing robust growth, projected to expand at a compound annual growth rate (CAGR) of 8.32% from 2025 to 2033. This expansion is fueled by several key drivers. The rising popularity of experiential travel, coupled with the increasing affordability and accessibility of online booking platforms like Airbnb, Booking.com, and Expedia, significantly contributes to market growth. Furthermore, the diversification of rental options, including professionally managed properties catering to a wider range of traveler preferences, and the growing adoption of vacation rentals by families and groups seeking more space and privacy compared to traditional hotels, are driving demand. The preference for unique and authentic travel experiences, often found in vacation rentals, also fuels this sector's growth. Geographic expansion into emerging markets and the ongoing technological advancements in property management systems are also contributing factors. However, the market faces certain challenges. Seasonal fluctuations in demand and potential regulatory hurdles related to licensing, taxation, and guest safety standards pose significant constraints. Competition from established hotel chains offering comparable amenities and pricing strategies necessitates continuous innovation and strategic adaptations by vacation rental providers. Fluctuations in global economic conditions and the impact of geopolitical events can also influence traveler spending and market growth. Nevertheless, the overall outlook remains positive, with the market poised for substantial expansion driven by sustained demand and evolving traveler preferences. The diverse range of booking methods (online and offline) and management styles (owner-managed and professionally managed) further contributes to the market's dynamism and adaptability. Key players are employing various competitive strategies, including strategic partnerships, technological upgrades, and brand building, to maintain a strong market presence and capture a larger share of this expanding market.

The global housing rental platform market, currently valued at $41.94 billion (2025), is poised for significant growth. While the precise CAGR is unavailable, considering the rapid expansion of the short-term rental market fueled by platforms like Airbnb and the increasing preference for flexible living arrangements, a conservative estimate would place the annual growth rate between 10-15%. This growth is driven by several factors: the increasing popularity of vacation rentals, the rise of remote work fostering a demand for longer-term rentals in diverse locations, and technological advancements enhancing platform functionalities (e.g., streamlined booking processes, enhanced property management tools). Trends such as the integration of AI for personalized recommendations and the increasing adoption of mobile-first booking strategies further contribute to market expansion. However, the market faces challenges including regulatory hurdles related to licensing and taxation of short-term rentals, concerns about property security and guest safety, and competition from traditional real estate agencies. Market segmentation reveals substantial opportunities within both the type of platform (cloud-based solutions gaining traction for scalability and accessibility) and application (short-term rentals dominate the market share, although long-term lease platforms are seeing substantial growth driven by the remote work trend). Geographic distribution shows strong performance in North America and Europe, driven by established platforms and high adoption rates. However, significant untapped potential exists in Asia-Pacific and other emerging markets with increasing internet penetration and urbanization. The competitive landscape is dynamic, with established players like Airbnb and Booking.com facing competition from niche platforms catering to specific needs (e.g., long-term rentals, corporate housing). Future growth will depend on continued technological innovation, regulatory compliance, and effective strategies to address market challenges and tap into emerging markets.

The penetration rate in the 'Vacation Rentals' segment of the travel & tourism market in the United States was forecast to continuously increase between 2024 and 2029 by in total 1.8 percentage points. After the ninth consecutive increasing year, the penetration rate is estimated to reach 20.52 percent and therefore a new peak in 2029. Notably, the penetration rate of the 'Vacation Rentals' segment of the travel & tourism market was continuously increasing over the past years.Find other key market indicators concerning the average revenue per user (ARPU) and revenue. The Statista Market Insights cover a broad range of additional markets.

Detailed US vacation rental property listing compilation including identifiers, valuation metrics, and tax information from OTAs.

The VR OTA Real Estate dataset provides a detailed real estate listing compilation that includes property identifiers, valuation metrics, physical characteristics, and tax information for vacation rental properties listed on OTAs.

The global revenue in the 'Vacation Rentals' segment of the travel & tourism market was forecast to continuously increase between 2024 and 2029 by in total 25.4 billion U.S. dollars (+25.34 percent). After the ninth consecutive increasing year, the revenue is estimated to reach 125.58 billion U.S. dollars and therefore a new peak in 2029. Notably, the revenue of the 'Vacation Rentals' segment of the travel & tourism market was continuously increasing over the past years.Find other key market indicators concerning the average revenue per user (ARPU) and number of users. The Statista Market Insights cover a broad range of additional markets.

The online home rental services market is experiencing robust growth, driven by increasing urbanization, the rise of the sharing economy, and the convenience offered by digital platforms. The market size in 2025 is estimated at $150 billion, exhibiting a Compound Annual Growth Rate (CAGR) of 12% from 2025 to 2033. This growth is fueled by several key factors. Firstly, the increasing preference for short-term rentals among both business and leisure travelers contributes significantly to market expansion. Secondly, technological advancements, such as improved search functionalities, secure payment gateways, and sophisticated property management systems, enhance user experience and drive market penetration. The rise of mobile-first booking experiences further simplifies the process, attracting a broader range of users. Finally, the diversification of accommodation types, encompassing apartments, resorts, villas, and unique stays, caters to various travel preferences and budgets, fostering market diversification and expansion. However, the market faces some challenges. Regulatory hurdles in different regions regarding licensing, taxation, and safety standards can impede growth. Furthermore, competition among established players and the emergence of new entrants necessitate continuous innovation and strategic adaptation. Fluctuations in tourism and travel patterns due to global events, like economic downturns or pandemics, also introduce an element of uncertainty. Despite these challenges, the long-term outlook remains positive, driven by the ongoing shift toward digital platforms for travel and accommodation booking, and the consistently expanding global travel market. The segmentation of the market by application (commercial vs. personal) and property type (apartments, resorts, etc.) allows for targeted strategies and a deeper understanding of the specific needs and preferences within each niche.

The holiday home market, valued at $665.9 million in 2025, is experiencing robust growth driven by several key factors. The increasing preference for unique and personalized travel experiences, coupled with the rising disposable incomes in developed and emerging economies, fuels demand for alternative accommodations beyond traditional hotels. The segment is diversified, encompassing various property types like castles, country houses, farmhouses, large barns, and luxury cottages, catering to diverse traveler preferences and budgets. The burgeoning popularity of eco-tourism and rural getaways further contributes to market expansion. Travel agencies and B&Bs are significant players in the distribution channel, leveraging their networks to reach a broader customer base. While data on the precise CAGR is unavailable, a conservative estimate, considering the aforementioned growth drivers, would place it between 5-7% annually for the forecast period (2025-2033). This growth is expected to be particularly pronounced in regions with strong tourism infrastructure and a growing middle class, such as North America and Europe. However, potential restraints include seasonal fluctuations in demand, the impact of global economic downturns, and the increasing competition from other short-term rental platforms. The market is witnessing significant technological advancements, with online booking platforms and property management systems streamlining the process for both homeowners and renters. Furthermore, the rise of sustainable tourism practices and a focus on environmentally friendly accommodations is influencing the design and management of holiday homes. The competitive landscape is fragmented, with several major players like Interhome Group and Hashtag Holiday Home LLC competing alongside numerous smaller, regional operators. Future growth will likely hinge on adapting to evolving traveler preferences, investing in technology, and embracing sustainable practices to maintain a competitive edge. Strategic partnerships with travel agencies and other tourism-related businesses will also play a crucial role in market penetration and expansion.

The global tourism real estate market is experiencing robust growth, driven by a surge in global travel and a rising preference for unique and memorable travel experiences. The increasing demand for vacation homes, short-term rentals, and tourism-oriented commercial properties is fueling this expansion. While precise market sizing requires further data, we can reasonably estimate the 2025 market value to be around $500 billion based on the substantial growth observed in related sectors like hospitality and travel. A Compound Annual Growth Rate (CAGR) of 7% is projected for the forecast period (2025-2033), suggesting a market exceeding $1 trillion by 2033. Key drivers include the expanding middle class in emerging economies, increased disposable incomes globally, and the growing popularity of experiential travel. The segmentation reveals strong performance across various property types, with tourism commercial real estate (hotels, resorts) and tourist holiday real estate (vacation homes, second homes) exhibiting the highest growth potential. Rental segments are currently dominant, but the sales market is anticipated to witness significant expansion, particularly in popular tourist destinations. The market's growth trajectory is influenced by several factors. Trends like sustainable tourism and the rise of the "work from anywhere" lifestyle are shaping demand for eco-friendly accommodations and properties in remote, scenic locations. However, constraints such as fluctuating tourism patterns due to geopolitical events or economic downturns, stringent regulations on short-term rentals in certain regions, and the overall impact of global inflation represent challenges. Leading developers like Evergrande, Vanke, and Country Garden, primarily concentrated in Asia Pacific, are significant players, leveraging their expertise and large-scale projects. Expanding into new markets and focusing on sustainable and technologically advanced projects are crucial for future success in this competitive landscape. The Asia-Pacific region, particularly China, is expected to dominate market share, followed by North America and Europe, reflecting the region's thriving tourism sector and high concentration of real estate development.

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Car Rental (Self Drive) Market Size 2025-2029

The car rental (self drive) market size is forecast to increase by USD 2.36 billion, at a CAGR of 30.6% between 2024 and 2029.

The market is experiencing significant growth due to several key trends. One notable trend is the increasing interest in self-driving vehicles, which offer travellers greater convenience and flexibility. Another trend is the integration of telematics technology in self-drive car rentals, enabling real-time vehicle tracking and monitoring. However, the high cost of self-driving car rentals remains a challenge for market growth. Despite this, the market is expected to continue expanding as technology advances and becomes more affordable. The use of telematics in self-drive car rentals offers numerous benefits, such as improved safety, reduced insurance costs, and enhanced customer experience. 
Car rental services cater to intercity and intracity travel, offering inexpensive alternatives to private automobiles for tourists and business travellers alike. However, the high initial investment required for implementing telematics technology and the high cost of self-driving vehicles are major obstacles for market growth. Overall, the self-drive car rental market is poised for growth, driven by the increasing popularity of self-driving vehicles and the integration of telematics technology.

What will be the Size of the Car Rental (Self Drive) Market During the Forecast Period?

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The market represents a significant and dynamic sector within the global mobility industry. This market caters to both tourism and commuting needs, offering short-term and long-term rental options for various vehicle types, including hatchbacks, sedans, SUVs, MUVs, and standard, and luxury models. The market is organized and unorganized, with both online and offline channels serving customers' diverse preferences. Millennials, as a major demographic, are driving growth In the market due to their increasing demand for flexible, cost-effective, and convenient mobility solutions. The market's size is substantial, with millions of transactions occurring annually, especially at airports and tourist destinations.
Mobility infrastructure plays a crucial role In the market's development, with Wi-Fi networks, entertainment systems, GPS systems, and insurance plans enhancing the rental experience. The market's direction is towards greater customization and integration of technology, enabling customers to easily compare prices, book vehicles, and manage their rentals online. The market's continued expansion is driven by the evolving needs of consumers, who seek efficient, flexible, and affordable mobility solutions.

How is this Car Rental (Self Drive) Industry segmented and which is the largest segment?

The car rental (self drive) 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.

Vehicle Type

  Economic cars
  Luxury cars


Mode Of Booking

  Offline
  Online


Type

  Short-term rentals
  Long-term rentals


Application

  Leisure and vacation travel
  Corporate and business use
  Airport rentals
  Intercity and intracity rentals
  Subscription and leasing services


Geography

  North America

    Canada
    US


  Europe

    Germany
    UK
    France
    Italy
    Spain


  APAC

    China
    Japan


  South America



  Middle East and Africa

By Vehicle Type Insights

The economic cars segment is estimated to witness significant growth during the forecast period. Self-drive car rentals, particularly those offering economic cars, have gained significant traction in both the tourism and commuting sectors. Millennials, in particular, prefer this mobility option due to its convenience and affordability. Online and offline channels, including websites, mobile applications, and e-booking services, facilitate easy booking. New-age startups have disrupted the car rental sector with custom services, after-sale support, and complementary offerings such as Wi-Fi networks, entertainment systems, and GPS systems. The organized market dominates, but the unorganized sector also plays a role, especially in rural areas. Short-term and long-term rental options cater to various consumer needs. Tourists, service professionals, and corporate offices are significant consumers.

The tourism sector, with international, tourist, and foreign tourist arrivals, drives demand for car rentals at tourist destinations. National highways and road transportation infrastructure development further boost the market. Insurance options are crucial for consumers. Self-drive car rental services offer a range of ownership and lease contracts, allowing customers to choose based on their requirements. Companies

The size and share of the market is categorized based on Application (Leisure Travel, Business Travel, Long-term Stays, Short-term Stays) and Product (Hotels, Resorts, Hostels, Vacation Rentals, Bed and Breakfasts) and geographical regions (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

In 2023, the revenue in the vacation rentals segment of the travel & tourism market in Malaysia was estimated to reach one billion U.S. dollars. It was forecast to continuously increase between 2024 and 2027 with CAGR of 7.09 percent. The revenue is forecasted to amount to 1.46 billion U.S. dollars in 2028.

The revenue in the 'Vacation Rentals' segment of the travel & tourism market in Spain was forecast to continuously increase between 2024 and 2029 by in total 0.4 billion U.S. dollars (+11.73 percent). After the ninth consecutive increasing year, the revenue is estimated to reach 3.76 billion U.S. dollars and therefore a new peak in 2029. Notably, the revenue of the 'Vacation Rentals' segment of the travel & tourism market was continuously increasing over the past years.Find other key market indicators concerning the number of users and user penetration. The Statista Market Insights cover a broad range of additional markets.

What makes your data unique? - We have our proprietary AI to clean outliers and to calculate occupancy rate accurately.

How is the data generally sourced? - Web scraped data from Airbnb. Scraped on a weekly basis.

What are the primary use-cases or verticals of this Data Product? - Tourism & DMO: A one-page CSV will give you a clear picture of the private lodging sector in your entire country. - Property Management: Understand your market to expand your business strategically. - Short-term rental investor: Identify profitable areas.

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