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.

The revenue 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 4.5 billion U.S. dollars (+22.2 percent). After the ninth consecutive increasing year, the revenue is estimated to reach 24.78 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 user penetration and number of users. The Statista Market Insights cover a broad range of additional markets.

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.

Attribute	Detail
Short-term Vacation Rental Market Size, 2023	US$ 1,21,416.8 million
Estimated Market Size, 2024	US$ 1,35,258.3 million
Projected Market Size, 2034	US$ 3,77,191.2 million
Value-based CAGR, 2024 to 2034	10.80%

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

Attributes	Details
Historical Market Value (2019)	US$ 83,840.20 million
Short-term Vacation Rental Market Value (2023)	US$ 1,21,416.8 million
Historical CAGR (2019 to 2023)	9.70%

Historical CAGR (2019 to 2023)	9.70%
Forecasted CAGR (2024 to 2034)	10.80%

Country-wise Insights

Countries	CAGR (2024 to 2034)
United States	5.90%
Germany	9.20%
China	14.60%
India	15.70%
Australia	9.70%

Category-wise Insights

Top Accommodation Type	Resorts
Market Share (2024)	40.40%

Top Booking Mode	Online
Market Share (2024)	59.40%

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.

As per newly released data by Future Market Insights (FMI), the global vacation rentals market is estimated at US$ 74.8 billion in 2023 and is projected to reach US$ 132.7 billion by 2033, at a CAGR of 5.9% from 2023 to 2033.

Attributes	Details
Historical Value (2022)	US$ 74 billion
Current Year Value (2023)	US$ 74.8 billion
Expected Forecast Value (2033)	US$ 132.7 billion
Projected CAGR (2023 to 2033)	5.9%
2022 Value Share of North America in Global Market	24%
2022 Value Share of Europe in Global Market	19%

2018 to 2022 Global Vacation Rentals Market Outlook Compared to 2023 to 2033 Forecast

Historical CAGR (2018 to 2022)	5.4%
Forecasted CAGR (2023 to 2033)	5.9%

Country-wise Insights

Country	2022 Value Share in Global Market
United States	4.5%
Germany	3%
Japan	3.7%

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 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?

Request Free Sample

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.

Get a glance at the market report of share of various segments Request Free Sample

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.

For more insights on the market size of various regions, Request Free Sample

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 number of users 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 7.9 million users (+12.33 percent). After the ninth consecutive increasing year, the number of users is estimated to reach 71.94 million users and therefore a new peak in 2029. Notably, the number of users 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 user penetration. The Statista Market Insights cover a broad range of additional markets.

Vacation Rental Market Report is Segmented by Booking Type (Home, Apartments, Resort/Condominium, Others), Booking Mode (Online and Offline), and Geography (North America, Europe, Asia Pacific, Middle East & Africa, and Latin America). The Market Sizes and Forecasts Regarding Value (USD) for all the Above Segments are Provided.

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 vacation rental website market is valued at US$ 1,482.6 Million in 2022. It is estimated to grow at a promising CAGR of 12.1% over the forecast period, reaching a value of US$ 4,640.2 Million by 2032.

Attribute	Details
Vacation Rental Website Size Value in 2022	US$ 1,482.6 Million
Vacation Rental Website Forecast Value in 2032	US$ 4,640.2 Million
Vacation Rental Website CAGR Global Growth Rate (2022 to 2032)	12.1%

Scope of Report

Attribute	Details
Forecast Period	2022 to 2032
Historical Data Available for	2017 to 2022
Market Analysis	US$ Million for Value and MT for Volume
Key Regions Covered	North America Latin America Europe The Middle East and Africa East Asia
Key Countries Covered	USA, Canada, Brazil, Mexico, Chile, Peru, Germany, United Kingdom, Spain, Italy, France, Russia, Poland, China, India, Japan, Australia, New Zealand, GCC Countries, North Africa, South Africa, and Turkey
Key Segments Covered	Property Type End User Region
Key Companies Profiled	BookingSync CiiRUS Kigo Inc. Virtual Resort Manager LiveRez OwnerRez 365Villas Convoyant 9flats Pvt Limited Airbnb Inc Booking Holdings Inc Expedia Group Hotelplan Holding AG MakeMyTrip Limited NOVASOL Oravel Stays Private Limited TripAdvisor Inc Rentalo Inc. Wyndham Destinations Inc World Travel Holdings Inc
Report Coverage	Market Forecast, Company Share Analysis, Competition Intelligence, Drivers, Restraints, Opportunities and Threats Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives
Customization & Pricing	Available upon Request

Vacation Rental Market valued at US$ 79.34 billion in 2025, is anticipated to reaching US$ 117.03 billion by 2032, with a steady annual growth rate of 5.7%.

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 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.

This statistic shows the average rental income for vacation rental properties in selected markets in the United States in 2019. The average rental income from a vacation rental in Nashville, Tennessee amounted to 91,500 U.S. dollars in 2019.

The global vacation rental platforms market is estimated to reach a value of USD 15.3 billion by 2025, exhibiting a CAGR of 7.3% during the forecast period. The growth of the market is attributed to the rising popularity of vacation rentals, increasing travel and tourism, and the convenience of booking accommodations online. The market is also driven by the growing trend of sharing economy and the increasing adoption of mobile devices. The market is segmented based on application, type, and region. By application, the market is divided into rental property businesses and independent owners. By type, the market is classified into cloud, web-based platforms, on-premise, installed, and mobile. By region, the market is segmented into North America, South America, Europe, Middle East & Africa, and Asia Pacific. North America is expected to dominate the market due to the presence of well-established vacation rental platforms and the high penetration of the internet. Europe is projected to be the second-largest market due to the growing popularity of vacation rentals in the region. Asia Pacific is anticipated to witness the highest growth rate during the forecast period due to the increasing disposable income and the growing number of outbound travelers in the region.

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.

In 2023, Expedia led the vacation rentals market in the United States, achieving an aided brand awareness of 54.93 percent among consumers. AirBnB followed with 48.81 percent awareness. Booking.com and Kayak reported 44.73 percent and 42.78 percent, respectively.

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 global market for Vacation Rental Management Tools is projected to reach $216.6 million by 2033, expanding at a CAGR of 4.6% from 2025 to 2033. The growth of the market is primarily driven by the increasing popularity of vacation rentals and the rising number of vacation rental property owners worldwide. Other key factors contributing to market growth include the growing adoption of cloud-based solutions, the proliferation of mobile devices, and the need for efficient property management. The market is segmented based on application, type, and region. By application, the market is divided into SMEs and large enterprises. By type, the market is classified into cloud-based and on-premise solutions. Geographically, the market is segmented into North America, South America, Europe, the Middle East & Africa, and Asia Pacific. North America held the largest share in the global market in 2025 and is expected to continue its dominance throughout the forecast period. The Asia Pacific region is anticipated to witness the highest CAGR during the forecast period due to the increasing number of vacation rental properties in the region. The market is highly competitive, with a number of key players offering vacation rental management solutions. Some of the major companies in the market include BookingSync, CiiRUS, RealPage (Kigo), Hostaway, LiveRez, OwnerRez, 365Villas, Convoyant (ResNexus), AirGMS (iGMS), Avantio, Smoobu, Streamline, Lodgify, and Hostfully. Report Description This report provides an in-depth analysis of the vacation rental management tool (VRMT) market, covering market size, growth drivers, challenges, trends, and key players. With a global market size of over $10 billion, the VRMT market is poised to experience significant growth in the coming years, driven by the increasing popularity of vacation rentals and the growing number of property owners seeking professional management services.

This statistic shows the value of the vacation rental market worldwide in 2016 and 2021. In 2021, the value of the global vacation rental market was estimated to reach 193.89 billion U.S. dollars.