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 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.

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.

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Short Term Vacation Rental Market Size 2025-2029

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

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

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

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

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

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

Mode Of Booking

  Offline
  Online


Management

  Managed by owners
  Professionally managed


Type

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


Geography

  Europe

    Germany
    UK
    France
    Italy


  North America

    Canada
    US


  APAC

    China
    Japan


  Middle East and Africa



  South America

By Mode Of Booking Insights

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

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

Regional Analysis

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

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The European short-term vacation rental market is projected to expand due to the rising demand for travel and tourism, particularly for budget-friendly accommodations.

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%

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.

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 market size was over USD 94.77 billion in 2024 and is expected to grow at a CAGR of over 3.5%, surpassing USD 148.22 billion by 2037. Europe industry is likely to account for largest revenue share of 42% by 2037, driven by focus on sustainable tourism and increasing demand for cultural heritage experiences.

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

The 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 Asia-Pacific vacation rental market offers a wide range of vacation rental properties, including apartments, condominiums, homes, and others. The most popular property types are apartments and condominiums, which are preferred by travelers for their affordability and convenience. Vacation rentals are often equipped with amenities such as kitchens, bathrooms, and laundry facilities, which make them a more comfortable and convenient option than traditional hotel rooms. Recent developments include: June 2019: Peng Tao, president of Airbnb China, declared that the firm undertook to introduce educational initiatives to educate landlords in second and third-tier cities in China. This initiative expanded the quality of the company's listings, consolidated online reviews, and encouraged brand-building.. Notable trends are: Increasing trend of transformational travel drives market growth.

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 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 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 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.

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.

--- DATASET OVERVIEW --- This dataset captures detailed performance data for individual vacation rental properties, providing a complete picture of operational success metrics across different timeframes and market conditions. With weekly updates and four years of historical data, it enables both point-in-time analysis and long-term trend identification for property-level performance.

The data is derived from OTA platforms using advanced methodologies that capture listing, calendar and quote details. Our algorithms process this raw information to produce standardized and enriched performance metrics that facilitate accurate comparison across different property types, locations, and time periods. By leveraging our other datasets and machine learning models, we are able to accurately detect guest bookings, revenue generation, and occupancy patterns.

--- KEY DATA ELEMENTS --- Our dataset includes the following core performance metrics for each property: - Property Identifiers: Unique identifiers for each property with OTA-specific IDs - Geographic Information: Location data including neighborhood, city, region, and country - Property Characteristics: Property type, bedroom count, bathroom count, and capacity - Occupancy Metrics: Daily, weekly, and monthly occupancy rates based on actual bookings - Revenue Generation: Total revenue, average daily rate (ADR), and revenue per available day (RevPAR) - Booking Patterns: Lead time distribution, length of stay patterns, and booking frequency - Seasonality Indicators: Performance variations across seasons, months, and days of week - Competitive Positioning: Performance relative to similar properties in the same market - Historical and Forward Looking Trends: Year-over-year and month-over-month performance changes

--- USE CASES --- Property Performance Optimization: Property managers can leverage this dataset to evaluate the performance of individual listings against market benchmarks. By identifying properties that underperform relative to similar listings in the same area, managers can implement targeted improvements to pricing strategies, property amenities, or marketing approaches. The granular performance data enables precise identification of specific improvement opportunities at the individual property level.

Competitive Benchmarking: Property owners and managers can benchmark their listings against competitors with similar characteristics in the same market. The property-level performance metrics enable detailed comparison of occupancy rates, ADR, and revenue generation across comparable properties. This competitive intelligence helps identify realistic performance targets and market positioning opportunities.

Portfolio Optimization: Vacation rental portfolio managers can analyze performance variations across different property types and locations to optimize investment and management decisions. The dataset supports identification of high-performing property configurations and locations, enabling strategic portfolio development based on actual performance data rather than assumptions.

Seasonal Strategy Development: The historical performance data across different seasons enables development of targeted seasonal strategies. Property managers can analyze how different property types perform during specific seasons or events, informing marketing focus, pricing adjustments, and operational planning throughout the year.

Performance Forecasting: Historical performance patterns can be leveraged to develop accurate forecasts for future periods. By analyzing year-over-year trends and seasonal patterns, property managers can anticipate performance expectations and set realistic targets for occupancy and revenue generation.

--- ADDITIONAL DATASET INFORMATION --- Delivery Details: • Delivery Frequency: daily | weekly | monthly | quarterly | annually • Delivery Method: scheduled file loads • File Formats: csv | parquet • Large File Format: partitioned parquet • Delivery Channels: Google Cloud | Amazon S3 | Azure Blob • Data Refreshes: daily

Dataset Options: • Coverage: Global (most countries) • Historic Data: Available (2021 for most areas) • Future Looking Data: Available (Current date + 180 days+) • Point-in-Time: Available (with weekly as of dates) • Aggregation and Filtering Options: • Area/Market • Time Scales (daily, weekly, monthly) • Listing Source • Property Characteristics (property types, bedroom counts, amenities, etc.) • Management Practices (professionally managed, by owner)

Contact us to learn about all options.

--- DATA QUALITY AND PROCESSING --- Our data processing methodology ensures high-quality, reliable performance metrics that accurately represent actual property performance. The raw booking and revenue data undergoes extensive validation and normalization processes to address inconsistencies, identify anomalies, and ensure comparability across different pro...

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.