Vacation rentals encompass a broad range of property types, catering to diverse target markets. Homes and apartments remain popular choices, offering a home-like experience with furnished accommodations and kitchen facilities. Resorts and condominiums provide a more luxurious experience, featuring amenities such as pools, fitness centers, and concierge services. Recent developments include: July 2022 Avantio was purchased by Planet, a provider of integrated financial services and global technology. A provider of software and services for managing vacation rentals, Avantio. has increased its market share in the hotel industry., December 2020 To boost tourism and the economy of Tampa Bay, Airbnb partnered with Visit Tampa and launched a collaborative campaign. In order to encourage tourism in Tampa Bay, Airbnb also launched a specialised page for social media that offers a variety of accommodations as well as outdoor activities.. Notable trends are: Rising tourism sector to drive the market growth.

The market is projected to surpass USD 4,00,911.98 Million by 2035, growing at a CAGR of 10.4% during the forecast period.

Metric	Value
Market Size in 2025	USD 1,49,059.03 Million
Projected Market Size in 2035	USD 4,00,911.98 Million
CAGR (2025 to 2035)	10.4%

Country-wise Outlook

Country	CAGR (2025 to 2035)
United States	10.5%

Country	CAGR (2025 to 2035)
United Kingdom	10.3%

Country	CAGR (2025 to 2035)
European Union	10.4%

Country	CAGR (2025 to 2035)
South Korea	10.6%

Segmentation Outlook

Accommodation Type	Market Share (2025)
Apartments	42.5%

Booking Mode	Market Share (2025)
Online/Platform-based	76.3%

Company Name	Estimated Market Share (%)
Airbnb Inc.	30-35%
Booking Holdings Inc.	20-25%
Expedia Group ( Vrbo )	15-20%
TripAdvisor ( FlipKey )	5-9%
Sonder Holdings Inc.	3-7%
Other Companies (combined)	15-25%

Competitive Outlook

Snapshot img

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 synchroniz

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).

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 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. The vacation rental market has appreciated over the years, driven by growing demand for alternative accommodations and the rise of platforms such as Airbnb, Vrbo, and Booking.com. Vacation rentals are designed to provide travelers with more personalized and flexible and cost-effective options beyond what traditional hotels can offer when it comes to experiencing unique experiences in areas ranging from city apartments to remote cabins. This trend is mainly driven by a desire for more space, more privacy, and the ability to live like a local while traveling. Furthermore, the COVID-19 pandemic had accelerated the change toward vacation rentals, as travelers preferred private accommodations over crowded hotels for safety. Owner-to-owner vacation rental properties, residential and commercial in nature, continue to capitalize on this demand to offer well-updated homes fully equipped with services in houses, pools, and outdoor sitting areas. Continued growth in popularity of remote working and digital nomadism leads to the rise of the rental market for continued flexible lodging among travelers around the world. 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 .

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

In 2024, Global Vacation Rental Market was worth USD 84.06 billion. It is projected to grow to USD 123.69 billion by 2032, at a 4.90% CAGR during 2024-2032

The size of the Short-term Vacation Rental Market was valued at USD 121.42 billion in 2023 and is projected to reach USD 255.28 billion by 2032, with an expected CAGR of 11.2 % during the forecast period. Short-term vacation rentals are properties rented out for a short period of time, often for several days to a few weeks. Travelers are often looking for a more personal, budget-friendly, and flexible stay than a typical hotel can provide. This is where short-term vacation rentals come in, with properties ranging from apartments and houses to unique offerings like cabins or beachfront villas, listed on sites like Airbnb and Vrbo. Vacation rental owners fully furnish spaces equipped with kitchens, Wi-Fi, and laundry facilities, making them feel like a home. Demand for authentic experiences, cost savings, and the convenience of staying in a residential area are some of the reasons why the market has exploded. Short-term rentals have also opened a source of side income for homeowners who can earn money by letting out their house or even their spare rooms. However, the industry faces regulatory challenges in some regions as local governments seek to balance growth with zoning and housing concerns.

The Indian vacation rental market exhibits regional variations:North India: With popular tourist destinations like Delhi, Jaipur, and Agra, North India experiences strong demand for vacation rentals.South India: Kerala and Goa are renowned tourist hotspots, attracting both domestic and international travelers seeking beach vacations and cultural experiences.West India: Mumbai and Pune are major cities in West India, catering to business and leisure travelers.East India: Kolkata and Darjeeling attract tourists with their historical and cultural significance. Recent developments include: January 2023: The Hotelplan Group's completely owned subsidiary, Interhome Group, has partnered with Sol og Strand, a Danish vacation rental broker with over 6,000 holiday houses and apartments, to strategically extend its portfolio to include Denmark., May 2023: The short-term vacation rental company MakeMyTrip Pvt. Ltd. established a partnership with Microsoft to expand trip planning accessibility with the introduction of voice-assisted booking in Indian languages. By combining Azure Cognitive Services with Microsoft Azure OpenAI Service, a technology stack has been created that allows for user-specific travel recommendations.. Notable trends are: Growing trend of short-term rental homes is driving the market growth.

The Europe Vacation Rental Market size was valued at USD 32.65 billion in 2023 and is projected to reach USD 40.16 billion by 2032, exhibiting a CAGR of 3.0 % during the forecasts period. The Europe Vacation Rental market is the rental service that provides private detached residences in the form of Apartments, Houses, Villas, and Cottages to travelers on a short-term basis. These rent for holidays basically through the Internet and are a plus to traditional accommodations as they are cheaper, roomier, and quite flexible during vacation time. Some of the uses of vacation rentals include but are not limited to leisure travel, family traveling, group traveling, and even business traveling. Future trends include more management companies dealing with vacation rentals, more rural areas and off-the-beaten-path locations, and the handling of properties in an environmentally friendly way with an emphasis on recycling, energy efficiency, and the use of green materials. There are personal changes in the travelers who prefer to make bookings through convenient channels and the need to travel to seek novelty and engage in experiential tourism. Recent developments include: In December 2020, Hotels.com, an Expedia Group, Inc. company, was labeled as the official traveling partner of the NBA. The contract will enable Hotel.com to communicate with NBA fans and travelers through cohesive marketing efforts, which will demonstrate that using Hotel.com is the most benefitting way to reserve accommodations. , In December 2020, Tripadvisor announced the unveiling of its new trip designing platform called Reco. The platform provides tailor-made itineraries to travelers, which features highlights of destinations in over 100 countries. Reco entails the expertise of over 300 trip designers. .

The global vacation rental market was valued at USD 95.07 billion in 2024 and is projected to surpass USD 137.88 billion by 2034, growing at a CAGR of 3.85%.

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

Vacation Rental Market Outlook

The global vacation rental market size was valued at USD 87.09 billion in 2023, and it is projected to reach USD 144.02 billion by 2032, growing at a CAGR of 5.8% during the forecast period. The market is experiencing significant growth due to increasing awareness and preference for personalized, flexible, and affordable accommodation options among travelers. This surge in preference for alternative lodging options over traditional hotels is being driven by the rise of online platforms facilitating easy and transparent booking processes.

One of the primary growth factors for the vacation rental market is the increasing penetration of the internet and the widespread adoption of smartphones. The digital revolution has greatly influenced the way travelers plan their trips, offering them the convenience of comparing various accommodation options and prices at their fingertips. Additionally, the growth of social media and online reviews has enhanced trust and reliability, making it easier for travelers to book vacation rentals with confidence.

Another significant growth driver is the rising trend of experiential travel, wherein travelers seek unique and personalized experiences that reflect local culture and lifestyle. Vacation rentals often provide a home-like environment and the opportunity to live like a local, which is highly appealing to modern travelers, especially millennials and Gen Z. This shift in consumer preferences is encouraging property owners and managers to invest in the vacation rental market, thereby expanding the supply of diverse accommodation options.

Economic factors such as competitive pricing and cost-effectiveness compared to traditional hotel stays are also contributing to the market's growth. Vacation rentals often offer more space, privacy, and amenities at a lower cost per person, making them an attractive option for group travel and families. Moreover, the additional income potential for property owners and the relatively low barriers to entry are motivating more individuals to list their properties on vacation rental platforms, further driving market expansion.

The regional outlook highlights that North America and Europe dominate the vacation rental market due to the high adoption of digital booking platforms and a well-established tourism infrastructure. However, emerging markets in the Asia Pacific and Latin America are witnessing rapid growth driven by increasing disposable incomes, a growing middle class, and expanding tourism sectors. The Middle East & Africa region is also expected to see steady growth, particularly with the rising number of international events and investments in tourism infrastructure.

Accommodation Type Analysis

Apartments hold a significant share in the vacation rental market, primarily due to their widespread availability and cost-effectiveness. Apartments cater to a broad audience, including solo travelers, couples, and small families, offering a comfortable and flexible living space. Urban centers, which attract a large number of tourists, particularly benefit from the availability of apartment rentals, providing visitors with the option to stay in the heart of the city at competitive prices. The rise of business travel is also contributing to the demand for apartments, as they often provide the necessary amenities for a comfortable and productive stay.

Houses are another critical segment within the vacation rental market. They are especially popular among larger groups and families who require more space and privacy than what apartments typically offer. Houses often come with additional features such as gardens, pools, and multiple bedrooms, making them ideal for extended stays and family vacations. This segment is seeing increased demand in suburban and rural areas, where travelers seek a peaceful retreat away from the hustle and bustle of city life.

Villas represent the luxury segment of the vacation rental market, providing high-end accommodations with premium amenities and services. Villas are particularly popular in tourist destinations known for their scenic beauty and luxury tourism, such as coastal areas and exotic islands. The demand for villas is driven by affluent travelers seeking exclusive and indulgent experiences. This segment continues to grow as more property owners and developers invest in building and maintaining high-quality vill

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 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.

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.

Global Vacation Rental market size is expected to reach $123.4 billion by 2029 at 6.6%, segmented as by home, single-family homes, luxury homes, beach houses, country homes, eco-friendly homes

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

The global vacation rental market size exceeded USD 94.77 billion in 2024 and is set to expand at a CAGR of over 3.5%, surpassing USD 148.22 billion revenue by 2037. Homes segment is predicted to reach 49.5% industry share, attributed to the comfort and flexibility they offer to families and long-stay travelers.