Short-term Vacation Rental Market to Grow with a CAGR of 8.4% through 2029F

Rising disposable incomes and changing travel preferences, with a shift towards unique and personalized experiences are factors driving the global Short-term Vacation Rental market in the forecast period 2025-2029.

 

According to TechSci Research report, “Short-term Vacation Rental Market - Global Industry Size, Share, Trends, Competition Forecast & Opportunities, 2029F”, the Global Short-term Vacation Rental Market stood at USD 110.2 Billion in 2023 and is anticipated to grow with a CAGR of 8.4% in the forecast period, 2025-2029. In recent years, the short-term vacation rental market has undergone a significant evolution, propelled by a combination of technological advancements, evolving consumer tastes, and broader shifts in the travel and hospitality sector.

Experiencing exponential growth over the past decade, this market surge is attributed to the increasing prominence of online booking platforms, changing consumer preferences, and the burgeoning sharing economy. Short-term vacation rentals entail the leasing of residential properties, typically for brief periods, catering to travelers in search of lodging for leisure or business purposes. Distinguished from conventional hotels, these rentals encompass a diverse array of accommodations, spanning apartments, houses, villas, and unconventional options like treehouses or houseboats.

 

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The integration of advanced technologies like artificial intelligence, machine learning, and smart home features has significantly improved both the guest experience and operational efficiency for property owners in the short-term vacation rental market. Modern travelers are increasingly drawn to unique, personalized experiences, shifting away from traditional hotel stays. Short-term vacation rentals, with their diverse array of options, cater well to this demand for authenticity and local immersion.

This market is witnessing a surge in the adoption of cutting-edge technologies, including AI, machine learning, smart home features, and contactless processes, all of which elevate the guest experience and streamline operations. There's also a growing emphasis on sustainability, with property owners embracing eco-friendly practices to attract environmentally conscious travelers and contribute to a more sustainable tourism industry.

The future of the short-term vacation rental market will be shaped by ongoing trends and emerging factors. Continued technological advancements are expected to drive further innovation in user experience, property management, and sustainability initiatives. Addressing regulatory challenges and ensuring housing affordability will be crucial for long-term sustainability and growth. As the market evolves, it will need to adapt to changing traveler preferences, particularly with the rise of remote work and blurred distinctions between business and leisure travel. Emphasizing sustainability and responsible tourism will become increasingly important, with property owners striving to meet the expectations of environmentally conscious guests.

Collaborations within the industry and with external travel platforms will likely continue, offering travelers more seamless and integrated experiences. Regulatory frameworks are also expected to evolve, providing greater clarity and consistency across different regions. In summary, the short-term vacation rental market has emerged as a disruptive force in the travel industry, offering flexible and diverse accommodation options. Its growth trajectory, driven by technological innovation and evolving consumer preferences, demonstrates its resilience and potential for continued success. Despite challenges, the market is well-positioned to meet the evolving needs of travelers and contribute positively to the future of tourism.

The global Short-term Vacation Rental market is segmented into accommodation type, booking mode, location and region.

Based on booking mode in the short-term vacation rental market, online booking mode emerges as the fastest-growing segment due to several reasons. As the widespread adoption of digital platforms and the internet has made online booking more accessible and convenient for travelers worldwide. This trend is further accelerated by the proliferation of smartphones and mobile applications, allowing travelers to book accommodations on the go. Additionally, online booking platforms offer a wide range of options, allowing travelers to easily compare prices, read reviews, and make secure transactions, thus enhancing the overall booking experience. The convenience, efficiency, and transparency of online booking modes contribute significantly to their rapid growth in the short-term vacation rental market.

 

Major companies operating in global Short-term Vacation Rental market are:

• 9flats PTE. Limited
• Airbnb, Inc.
• Booking Holdings Inc.
• Expedia, Group, Inc.
• MTCH AG (Hotelplan Group)
• MakeMyTrip (India) Private Limited
• Awaze A/S (NOVASOL)
• Oravel Stays Limited
• Tripadvisor LLC
• Wyndham Destinations Inc.  

           

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“The short-term vacation rental market is experiencing significant growth due to several key factors. As there is a rising trend among travelers towards personalized and unique experiences, driving demand for alternative accommodations. Additionally, advancements in technology have made it easier for property owners to list their spaces and for travelers to find and book rentals conveniently. The flexibility and affordability offered by short-term rentals compared to traditional hotels also contribute to their popularity. Furthermore, the increasing preference for staycations and the desire for more spacious and private accommodations, especially in the wake of the COVID-19 pandemic, further propel the growth of the market.” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

“Short-term Vacation Rental Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Accommodation Type (Home, Apartments, Resort/Condominium, Others), By Booking Mode (Online, Offline), By Location (Urban, Rural, Beach, Mountain, Others), By Region, By Competition, 2019-2029F, has evaluated the future growth potential of global Short-term Vacation Rental market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the global Short-term Vacation Rental market.

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