A merged dataset of the Hotels, Motels, B&Bs, and Boarding Houses and the Short-Term Rentals datasets.

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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

Booming family vacation rental market projected to reach $95 billion by 2033, fueled by rising disposable incomes and a surge in demand for personalized travel experiences. Explore key trends, challenges, and leading players in this dynamic sector. Discover insights into CAGR, market segmentation, and regional growth projections.

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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 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 trajectory is fueled by several factors. Firstly, the increasing popularity of short-term rentals for leisure and business travel is significantly boosting demand. Secondly, technological advancements, including improved search functionalities, secure payment gateways, and enhanced user interfaces, are improving the overall user experience and driving platform adoption. Thirdly, the expansion of the market into emerging economies with a burgeoning middle class and increased internet penetration contributes to this impressive growth. However, regulatory challenges in various regions, concerns about property security, and the need for effective dispute resolution mechanisms pose some restraints. Segment-wise, apartments and villas represent the largest share of the market, particularly within the commercial application for short-term rentals. However, the growth of the hostel and B&B segments is particularly notable due to budget-conscious travelers and the popularity of experiential tourism. Key players such as Airbnb, Booking.com, and Zillow continue to dominate the market, though increased competition from regional players and innovative startups is anticipated. The Asia-Pacific region, particularly China and India, is experiencing the fastest growth, driven by rapid urbanization and a growing tourism sector. North America and Europe maintain significant market share due to established tourism infrastructure and strong consumer adoption. The forecast suggests continued expansion for the online home rental services market, with substantial growth opportunities for both established and emerging players.

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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

Vacation Home Real Estate Market Outlook

According to our latest research, the global vacation home real estate market size reached USD 87.4 billion in 2024, reflecting a robust and expanding sector. The market is anticipated to experience a compound annual growth rate (CAGR) of 6.2% from 2025 to 2033. By 2033, the forecasted market size is projected to attain USD 149.5 billion, driven by rising disposable incomes, increasing interest in lifestyle and experiential travel, and the proliferation of digital platforms facilitating property transactions and rentals. As per our latest research, the sectorÂ’s momentum is fueled by evolving consumer preferences and the diversification of investment portfolios by both individuals and institutions.

A significant growth factor for the vacation home real estate market is the changing perception of secondary homes from luxury assets to practical investments and lifestyle enablers. The rise of remote work and flexible working arrangements has encouraged many professionals and families to invest in vacation properties that can serve dual purposes: as personal retreats and as income-generating assets through short-term rentals. This shift is further amplified by the increasing popularity of platforms such as Airbnb and Vrbo, which have democratized access to vacation rental markets and enabled owners to monetize their properties with ease. As a result, the demand for vacation homes is no longer confined to affluent individuals but is increasingly appealing to middle-class buyers seeking both leisure and financial returns.

Another key driver is the expanding global tourism industry, which has rebounded strongly post-pandemic. As international and domestic travel resumes, there is a renewed interest in private and exclusive accommodations that offer enhanced safety, privacy, and comfort compared to traditional hotels. Vacation homes, particularly those located in scenic or culturally rich destinations, are in high demand among travelers looking for unique and immersive experiences. This trend is further supported by governments in various regions offering incentives and favorable policies to attract foreign investment in real estate, thereby stimulating market growth and cross-border property acquisitions.

Technological advancements and the digital transformation of the real estate industry have also played a pivotal role in the expansion of the vacation home market. Online platforms and virtual tour technologies have made it easier for buyers to discover, evaluate, and purchase properties remotely, reducing barriers to entry and transaction costs. Fintech solutions, such as digital mortgages and blockchain-based property registries, are streamlining the buying process and enhancing transparency. These innovations are empowering a new generation of tech-savvy investors and buyers, further broadening the marketÂ’s demographic reach and geographic scope.

From a regional perspective, North America continues to dominate the vacation home real estate market, accounting for the largest share in 2024, followed closely by Europe and the Asia Pacific. The United States, in particular, benefits from a strong tradition of second-home ownership, robust domestic travel, and a mature real estate infrastructure. EuropeÂ’s market is buoyed by high demand in Mediterranean and Alpine regions, while the Asia Pacific is experiencing rapid growth due to rising wealth in countries such as China, Australia, and Thailand. Latin America and the Middle East & Africa, though smaller in market size, are emerging as attractive destinations for both regional and international buyers, driven by favorable climates, investment incentives, and the development of new tourism corridors.

In the realm of vacation home real estate, the role of Vacation Rental Photography cannot be overstated. High-quality images are crucial in capturing the essence and allure of a property, making it stand out in a crowded marketplace. With the increasing reliance on online platforms for property listings, visually compelling photography serves as the first impression for potential buyers and renters. It not only highlights the unique features and amenities of a property but also evokes the lifestyle and experiences that come with it. Professional photography can significantly enhance the percei

Discover the booming online home rental market! Our analysis reveals a $150 billion market in 2025, projected to grow at a 12% CAGR through 2033. Explore key trends, regional insights, and leading companies shaping this dynamic sector. Learn how to capitalize on the opportunities in short-term rentals, vacation homes, and more.

In 2020, Le Tréport was the cheapest place to rent a vacation home by the sea in France, according to the ******* vacation rentals offers evaluated on the Likibu website. In this seaside resort, holiday home rentals were available for *** euros per week on average. Furthermore, the least expensive place for renting a vacation home on the French Mediterranean coast was Le barcarès, with an average price of *** euros per week.

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 .

The second home management service market is experiencing robust growth, driven by the increasing ownership of vacation homes and a rising demand for convenient and professional property management solutions. The surge in remote work opportunities and a shift towards flexible living arrangements have further fueled this expansion. Owners of second homes often lack the time or local expertise to effectively manage their properties, creating a significant need for specialized services. These services encompass a wide range of tasks, including property maintenance, cleaning, guest management, and rental coordination, all designed to maximize property value and minimize owner burden. The market is segmented by service type (e.g., cleaning, maintenance, guest services), property type (e.g., residential, commercial), and geographic location. Competitive dynamics are shaped by both established national players and local, specialized firms. While large companies leverage economies of scale, smaller, local firms often provide more personalized attention and cater to unique regional demands. Future growth will likely be driven by technological advancements, such as smart home integration and automated property management systems, which enhance efficiency and convenience. Expanding into new geographical markets and offering tailored packages to target specific owner demographics also present considerable growth opportunities. The competitive landscape is characterized by a blend of established national chains and local businesses. National players, like Vacasa and SkyRun, benefit from brand recognition and established operational networks. However, smaller, regional companies often provide a more personalized service, catering to the unique needs of their local clientele. This creates a dynamic market with opportunities for both large and small players, suggesting future consolidation and diversification of service offerings. The market's future growth will hinge on factors such as economic conditions, travel trends, and technological advancements. The continued rise in remote work and the growing popularity of vacation home rentals strongly suggest sustained market growth in the foreseeable future. Effective marketing strategies that highlight convenience, security, and peace of mind will be crucial for success in this increasingly competitive market.

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Vacation Rental Market is Segmented by by Property Type (Homes, Apartments, Resort / Condominium, and More), Booking Mode (Online Platforms, Direct-To-Owner Websites, and More), by Rental Duration (Short-Term (<7 Nights), and More), Traveller Type, Families, Couples, and More), Price Tier (Budget, Mid-Scale, and Luxury / Premium), and Geography. The Market Forecasts are Provided in Terms of Value (USD).

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.

Comprehensive dataset containing 81 verified Vacation home rental agency businesses in RS with complete contact information, ratings, reviews, and location data.