PUBLISHER: The Business Research Company | PRODUCT CODE: 1961546
PUBLISHER: The Business Research Company | PRODUCT CODE: 1961546
A vacation rental is a form of lodging where homeowners or property managers lease out fully furnished homes or individual rooms to travelers and tourists for short stays. These rentals provide an alternative to traditional hotels, often offering more space, privacy, and amenities that cater to the needs of travelers. They can be a versatile and often more affordable option for those seeking extra room, privacy, and the comforts of home.
Vacation rentals come in several types, including houses, resorts or condominiums, apartments, townhomes, and villas. A 'home' in this context refers to privately owned, fully furnished houses, cottages, or cabins available for short-term rental. These rentals can vary in price from economical to luxury and can be booked through various methods, including online and offline channels. The typical user base includes Generation Z, Millennials, Generation X, and Baby Boomers.
Tariffs have indirectly impacted the vacation rental market through higher costs of imported furniture, smart home devices, appliances, and renovation materials. Property owners in North America and Europe have experienced increased setup and refurbishment expenses due to tariffs on electronics and furnishings sourced from Asia. These added costs have influenced rental pricing strategies and return expectations. However, tariffs have encouraged sourcing from local manufacturers and artisans. This shift has supported domestic supply chains while enhancing regional authenticity in vacation rental offerings.
The vacation rental market research report is one of a series of new reports from The Business Research Company that provides vacation rental market statistics, including vacation rental industry global market size, regional shares, competitors with a vacation rental market share, detailed vacation rental market segments, market trends and opportunities, and any further data you may need to thrive in the vacation rental industry. This vacation rental market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The vacation rental market size has grown strongly in recent years. It will grow from $94.83 billion in 2025 to $101.06 billion in 2026 at a compound annual growth rate (CAGR) of 6.6%. The growth in the historic period can be attributed to rise of online accommodation platforms, growth in leisure travel demand, preference for home-like stays, cost advantages over hotels, expansion of peer-to-peer rentals.
The vacation rental market size is expected to see strong growth in the next few years. It will grow to $129.84 billion in 2030 at a compound annual growth rate (CAGR) of 6.5%. The growth in the forecast period can be attributed to growth of digital nomad travel, ai-driven pricing optimization, stricter short-term rental regulations, demand for premium vacation homes, expansion into secondary destinations. Major trends in the forecast period include platform-based property management, smart home enabled rentals, sustainable and eco-friendly stays, remote work and long-stay rentals, experience-led local hosting.
The expansion of the travel and tourism sectors is anticipated to drive the growth of the vacation rental market. These sectors are broad and intricate, covering everything from transportation that takes travelers to their destinations to the variety of services and experiences that make travel enjoyable. The growth in travel and tourism is attributed to improved transportation infrastructure, globalization, trade liberalization, a rising preference for experiential travel, and increased interest in health and wellness tourism. Vacation rentals support these sectors by offering diverse accommodation options, boosting local economies, encouraging longer stays, and enhancing traveler experiences with more personalized and flexible lodging choices. For instance, in April 2024, the World Travel and Tourism Council reported that in 2023, travel and tourism contributed about 9.1% to the global gross domestic product (GDP), totaling over $9.9 trillion. It forecasts continued growth, with the sector's GDP contribution expected to reach $11.1 trillion by 2024. Thus, the rapid expansion in travel and tourism is fueling the growth of the vacation rental market.
Leading companies in the vacation rental market are focusing on business expansion through innovative solutions such as premium vacation rental homes to attract high-end travelers, enhance guest experiences, and stand out in a competitive market. Premium vacation rental homes are luxury properties offering exceptional amenities, superior comfort, and unique experiences for travelers seeking upscale accommodations and personalized services. For example, in June 2024, OYO Rooms, an India-based hospitality company, launched the premium vacation rental brand Belvilla in collaboration with Sojo Stays, a UK-based apartment rental chain. This partnership aims to offer a curated collection of Belvilla by Oyo vacation homes in prime locations across several major UK cities. Guests can book these properties for short-term and longer stays through Belvilla platforms and other booking sites. The launch of Belvilla by Oyo in the UK reflects the company's efforts to diversify its geographic footprint and capitalize on the growing demand for premium vacation rental experiences.
In May 2023, Guesty, Inc., an Israel-based property management software company, acquired StaySense, LLC. for an undisclosed amount. Through this acquisition, Guesty aims to enhance its direct booking and marketing capabilities for vacation rental managers, strengthen its position in the U.S. vacation rental market, and further its strategy of consolidating the fragmented hospitality industry under its platform. StaySense LLC is a US-based technology company specializing in marketing and distribution solutions for the vacation rental industry.
Major companies operating in the vacation rental market are Airbnb Inc., Wyndham Destinations Inc., Vacasa LLC, VRBO Inc., NOVASOL A/S, Pacaso Inc., AvantStay Inc., 9flats GmbH, Panhandle Getaways Inc., StayMarquis LLC, Coastal Living Group LLC, Elliott Realty Group, Sonder Holdings Inc., Blueground, Casai, OYO Vacation Homes, Plum Guide, GuestReady, Awning.com, TurnKey Vacation Rentals
Europe was the largest region in the vacation rental market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the vacation rental market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the vacation rental market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain
The vacation rental market includes revenues earned by entities by providing services such as kitchen facilities, entertainment, internet access, maintenance, and safety features. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Vacation Rental Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses vacation rental market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for vacation rental ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The vacation rental market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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