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Vacation Rental Market Size 2025-2029

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

Major Market Trends & Insights

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

Market Size & Forecast

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

Market Summary

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

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

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

The vacation rental industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Management

  Managed by owners
  Professionally managed


Method

  Offline
  Online


Type

  Home
  Apartments
  Resort/Condominium
  Others


Geography

  North America

    US
    Canada


  Europe

    France
    Italy
    UK


  APAC

    China
    India
    Japan


  South America

    Brazil


  Rest of World (ROW)

By Management Insights

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

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

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

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

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

The 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

Market Snapshot

Attribute	Details
Current Market Size (2024A)	USD 101 Billion
Estimated Market Size (2025E)	USD 108 Billion
Projected Market Size (2035F)	USD 278 Billion
Value CAGR (2025 to 2035)	9.8%
Market Share of Top 10 Players	~55% (2024)

Country-Wise Vacation Rental Stays - 2024 Booking Volume

Country	Vacation Rental Guests (2024)
United States	72 Million
France	54 Million
Italy	48 Million
Japan	43 Million
Australia	39 Million
Canada	36 Million
Germany	32 Million
Brazil	28 Million
India	25 Million
South Korea	23 Million

The global vacation rental market size surpassed USD 95.78 billion in 2025 and is projected to witness a CAGR of over 3.6% between 2026 and 2035, attributed to surge in digital platforms.

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.

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Short Term Vacation Rental Market Size 2025-2029

The short term vacation rental market size is forecast to increase by USD 114.1 billion, at a CAGR of 13.5% between 2024 and 2029.

The market is experiencing significant growth, driven by the expanding tourism industry and the increasing popularity of alternative accommodation options. Travelers seek flexibility, convenience, and unique experiences, making short term rentals an attractive choice over traditional and boutique hotels. Technological advancements further enhance the market's appeal, with digital platforms simplifying the booking process and offering personalized recommendations based on traveler preferences. However, the market faces challenges in ensuring consistent quality across vacation rental properties. The lack of standardization and regulation can lead to inconsistencies in the guest experience, potentially impacting customer satisfaction and brand reputation.
Addressing this challenge requires a commitment to quality assurance, from property maintenance and cleanliness to guest communication and support. Companies that prioritize these aspects and leverage technology to streamline operations will capitalize on the market's opportunities while navigating challenges effectively.

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

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The short-term rental market continues to evolve, with dynamic pricing strategies shaping the landscape. Property managers employ guest management systems to optimize operations, while digital marketing and channel management tools expand reach. Email marketing and social media platforms engage guests, driving direct bookings. Property valuation relies on data analysis, including occupancy rates and revenue management. Seasonal demand influences pricing, with peak seasons offering higher yields. Energy efficiency and green initiatives attract eco-conscious travelers, while luxury rentals cater to affluent guests.

Amenities, from smart home technology to concierge services, enhance the guest experience. Calendar synchronization ensures seamless booking and maintenance services maintain property condition. Legal compliance remains crucial, with security systems and yield management tools addressing safety and revenue optimization. Budget rentals and cabin rentals cater to diverse markets, expanding the market's reach. Overall, the short-term rental market's continuous evolution reflects the industry's adaptability and innovation.

How is this Short Term Vacation Rental Industry segmented?

The short term vacation rental industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Mode Of Booking

  Offline
  Online


Management

  Managed by owners
  Professionally managed


Type

  Apartments and condominiums
  Villas and luxury homes
  Cottages and cabins
  Resorts and bungalows
  Others


Location

  Urban
  Rural
  Coastal
  Mountain


Traveler Type

  Leisure Travelers
  Business Travelers
  Families


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    The Netherlands
    UK


  APAC

    China
    Japan


  Rest of World (ROW)

By Mode Of Booking Insights

The offline segment is estimated to witness significant growth during the forecast period.

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The Offline segment was valued at USD 87.10 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

Europe is estimated to contribute 32% to the growth of the global market during the forecast period.Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The European the market is experiencing growth due to the rising demand for travel and unique experiences. Travelers seek more personalized accommodations, leading to the popularity of short term rentals over traditional hotels. Weekend getaways and city breaks align with the trend of experiential travel, further fueling market growth. Short term rentals offer flexible options and can be cost-effective for families or groups. Pricing strategies, such as dynamic pricing and seasonal demand, influence rental income. Guest management systems, email marketing, and channel management help optimize bookings. Operating expenses include cleaning services, maintenance, and property management software. Energy efficiency and green initiatives are essential property amenities.

Smart home technology enhances the guest experience, while calendar synchronization and inve

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

Global Vacation Rental Market was valued at USD 83.87 billion in 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 4.89% through 2029.

Pages	185
Market Size	2023: USD 83.87 Billion
Forecast Market Size	2029: USD 111.32 Billion
CAGR	2024-2029: 4.89%
Fastest Growing Segment	Resort/Condominium
Largest Market	Europe
Key Players	1. Hotelplan Group 2. MakeMyTrip (India) Private Limited 3. Awaze A/S (NOVASOL) 4. Airbnb, Inc. 5. Booking Holdings Inc. 6. Expedia, Inc. 7. Belvilla AG 8. Sonder Holdings Inc. 9. Plu&m Limited 10. Wyndham Destinations Inc.

The vacation rental market size to rise from USD 95.07 bn in 2024 is to calculate USD 137.88 bn by 2034, expanding at a CAGR of 3.85% between 2025 and 2034.

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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

Global vacation rental market size was worth around USD 92.93 billion in 2023 and is to grow to around USD 129.99 billion by 2032, (CAGR) of 3.80% between 2024 and 2032

The vacation rental market is experiencing robust growth, driven by increasing disposable incomes, a preference for unique travel experiences, and the rise of the sharing economy. The market's expansion is fueled by several key trends: the increasing popularity of alternative accommodations beyond traditional hotels, the growing adoption of online booking platforms, and the diversification of rental options, ranging from apartments and private homes to unique properties like villas and cabins. Technological advancements, such as improved search functionalities and mobile booking apps, are further enhancing accessibility and convenience for travelers. While factors like fluctuating travel restrictions and economic downturns can pose challenges, the market's inherent resilience and the continued demand for flexible and personalized travel experiences suggest a positive long-term outlook. The segmentation within the market indicates strong performance across various applications, including the travel industry and commercial sectors, with apartment and private home rentals holding significant market share. Major players like Airbnb, Booking Holdings, and Expedia are key contributors to market growth, constantly innovating to attract and retain customers. Geographic data indicates North America and Europe as major revenue generators, although Asia Pacific and other regions are showing significant growth potential. The forecast period (2025-2033) suggests continued expansion, driven by consistent demand and technological enhancements. Competition is fierce but opportunities abound for established players and new entrants alike who can effectively leverage technology and cater to evolving traveler preferences. The competitive landscape is dynamic, with established players like Airbnb and Booking Holdings continuously innovating their platforms and services to remain competitive. New entrants are also emerging, leveraging technological advancements and specialized offerings to carve out niche markets. However, regulatory challenges, particularly concerning licensing and taxation, represent a significant restraint for the industry. Maintaining sustainable practices and addressing environmental concerns are also becoming increasingly important. Despite these challenges, the long-term growth trajectory for the vacation rental market remains optimistic, propelled by persistent demand for unique and personalized travel experiences, and the ongoing evolution of technology within the hospitality sector. Data suggests that this market will experience significant growth across all regions, with some exhibiting faster growth rates than others. Understanding the nuances of regional demand and preferences will be crucial for success in this dynamic market.

Global Vacation Rental market size is expected to reach $122.08 billion by 2029 at 6.5%, segmented as by home, single-family homes, luxury homes, beach houses, country homes, eco-friendly homes

Global Short-term Vacation Rental Market was valued at USD 110.2 Billion in 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 8.4% through 2029.

Pages	181
Market Size	2023: USD 110.2 Billion
Forecast Market Size	2029: USD 178.3 Billion
CAGR	2024-2029: 8.4%
Fastest Growing Segment	Online
Largest Market	North America
Key Players	1. 9flats PTE. Limited 2. Airbnb, Inc. 3. Booking Holdings Inc. 4. Expedia Group, Inc. 5. MTCH AG (Hotelplan Group) 6. MakeMyTrip (India) Private Limited 7. Awaze A/S (NOVASOL) 8. Oravel Stays Limited 9. Tripadvisor LLC 10. Wyndham Destinations Inc.

The vacation rental market, valued at $86.12 billion in 2025, is experiencing robust growth, projected to expand at a compound annual growth rate (CAGR) of 25.79% from 2025 to 2033. This surge is driven by several factors. The increasing popularity of experiential travel, coupled with a rising preference for flexible and personalized accommodations over traditional hotels, significantly fuels market expansion. Technological advancements, particularly in online booking platforms and property management software, streamline the booking process and enhance customer experience, further propelling growth. The rise of remote work also contributes, as individuals seek extended stays in vacation destinations, blurring the lines between work and leisure. Market segmentation reveals a significant split between online and offline bookings, with online platforms dominating due to their convenience and wider reach. Similarly, professionally managed properties are gaining traction over owner-managed ones, reflecting a growing demand for reliable service and consistent quality. Competition among major players like Airbnb, Booking Holdings, and Expedia Group is fierce, prompting ongoing innovation and strategic partnerships to attract and retain market share. However, certain restraints impact market growth. Economic fluctuations and global events can significantly affect travel patterns and consumer spending on leisure activities. Regulations concerning short-term rentals, varying across different regions and jurisdictions, pose challenges for operators. Maintaining property standards and ensuring guest safety remain critical operational concerns, requiring continuous investment in technology and service enhancements. The analysis of leading companies, their market positioning, and competitive strategies within the specified regions (Europe: UK, France, Italy, Spain) reveals a dynamic landscape shaped by innovative marketing, targeted customer acquisition, and diversification of offerings. Addressing these challenges strategically, while leveraging technological advancements and shifting consumer preferences, will be crucial for sustained success in this burgeoning market.

Global Short-Term Vacation Rental 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)

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

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.

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%.