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Short Term Vacation Rental Market
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Short Term Vacation Rental Market

Author: Vineet Pandey - Business Consultant, Report ID - DS1601008, Published - December 2024

Segmented in Property Type (Single-Family Homes, Condos and Apartments, Unique Spaces like Barns or Boats, Shared Spaces), Rental Duration (Weekend Stays, Weekly Rentals, Monthly Rentals), Traveler Demographics, Purpose of Travel and Regions - Global Industry Analysis, Size, Share, Trends, and Forecast 2024 – 2034

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Global Short Term Vacation Rental
Market Outlook

The short term vacation rental sector is currently undergoing a transformation that is reshaping the landscape of the travel industry altogether. The market, for Short term vacation rental was estimated at $171.2 billion in 2024. It is anticipated to increase to $346.7 billion by 2030 with projections indicating a growth to around $624.2 billion by 2035. This expansion represents a compound annual growth rate (CAGR) of 12.48% over the forecast period. Amidst the challenges faced by hotels and accommodations due, to this innovative trend many vacationers and business travelers are opting for these cozy home like alternatives, enticed by their blend of local charm and unique amenities.


Short term vacation rentals are essentially accommodations that are serviced and available for rent for a period of time. Anywhere from a few days to several months. What sets these rentals apart is that they come in forms. From luxurious condos and beachfront homes, to charming cottages and stylish city apartments. Catering to the preferences of all types of travelers.


Market Size Forecast & Key Insights

2019
$171B2024
2029
$554B2034

Absolute Growth Opportunity = $384B

The Short Term Vacation Rental market is projected to grow from $171.2 billion in 2024 to $554 billion in 2034. This represents a CAGR of 12.48%, reflecting rising demand across Flexible Accommodation Options, Dynamic Pricing Strategies and Innovative Experiences.

The Short Term Vacation Rental market is set to add $384 billion between 2024 and 2034, with manufacturer targeting Condos and Apartments & Unique Spaces like Barns or Boats Property Type projected to gain a larger market share.

With Growth in online travel services, and Technological advancements in property management, Short Term Vacation Rental market to expand 224% between 2024 and 2034.

Opportunities in the Short Term Vacation Rental Market

Green Vacations

With sustainability gaining popularity in the industry taking a green approach could set properties apart, from the rest. An eco friendly vacation rental featuring energy appliances renewable energy sources and environmentally friendly waste management systems might attract travelers who prioritize sustainability and the environment.

Expanding Luxurious Amenities and Capitalizing On Remote Work Trend

Targeting the high end market segment might present avenues for growth for short term vacation rental platforms as trends move from conventional lodging experiences to opulent and lavish ones with offerings such, as exclusive chef services or personalized wellness programs and excursions tailored for luxury clients.

Due to the pandemics impact on working habits more people are choosing to work opening up new opportunities in the short term vacation rental industry. By upgrading properties, with workspaces or shared co working areas these rentals could appeal to remote workers and digital nomads seeking a workation. Providing internet access private workspaces and comfortable ergonomic furniture could transform these rentals into productive work environments.

Growth Opportunities in North America and Europe

Europe Outlook

In Europe's market scene varies greatly with both local businesses and international giants like Airbnb operating within it. Famous travel spots like Paris, London and Barcelona remain quite popular among tourists. The changing travel behaviors resulting from the impact of COVID. 19 Offer opportunities for development, in countryside and suburban areas. Countries stringent rules and taxes may present obstacles to navigate through.

North America Outlook

The North American short term vacation rental market is highly competitive with platforms like Airbnb and Vrbo leading the way alongside Booking. com. Urban hotspots and picturesque locations like towns are in high demand among travelers. The availability of digital networks and widespread internet access contributes to the popularity of booking vacation rentals online. Nonetheless regulatory hurdles in regions pose a challenge for the industry. There is potential, for growth by emphasizing stays and promoting remote and secluded properties tailored for remote workers and individuals looking to maintain social distance while traveling.

North America Outlook

The North American short term vacation rental market is highly competitive with platforms like Airbnb and Vrbo leading the way alongside Booking. com. Urban hotspots and picturesque locations like towns are in high demand among travelers. The availability of digital networks and widespread internet access contributes to the popularity of booking vacation rentals online. Nonetheless regulatory hurdles in regions pose a challenge for the industry. There is potential, for growth by emphasizing stays and promoting remote and secluded properties tailored for remote workers and individuals looking to maintain social distance while traveling.

Europe Outlook

In Europe's market scene varies greatly with both local businesses and international giants like Airbnb operating within it. Famous travel spots like Paris, London and Barcelona remain quite popular among tourists. The changing travel behaviors resulting from the impact of COVID. 19 Offer opportunities for development, in countryside and suburban areas. Countries stringent rules and taxes may present obstacles to navigate through.

Growth Opportunities in North America and Europe

Established and Emerging Market's Growth Trend 2025–2034

1

Major Markets : United States, France, Spain, Italy, United Kingdom are expected to grow at 11.2% to 15.0% CAGR

2

Emerging Markets : Croatia, Mexico, Malaysia are expected to grow at 8.7% to 13.1% CAGR

Market Analysis Chart

The main factors boosting the short term vacation rental sector are affordability, convenience in booking accommodations lodging experiences, as well as the expansion of the global travel and tourism sectors. Choosing a short term vacation rental often results in cost savings compared to hotel stays, for bigger groups or extended trips. Moreover the proliferation of online booking websites has made it easier and clearer to locate and book short term rentals.

Recent Developments and Technological Advancement

December 2024

Airbnb introduced updated cleanliness protocols to meet the increasing expectations of guests seeking improved safety measures.

October 2024

Booking. com introduced a pricing strategy targeting budget conscious customers in the market segment.

July 2024

Vbro revealed a collaboration, with Expedia aiming to broaden its international presence and provide customers with a wider range of exciting experiences.

The Short term Vacation Rental market has seen advancements in recent times with a standout trend being the increased customer preference for personalized and one of a kind experiences sought after by millennial and Gen Z travelers This shift has led vacation rental companies to broaden their range of properties offering diverse styles, in distinct locations.

Impact of Industry Transitions on the Short Term Vacation Rental Market

As a core segment of the Tourism & Entertainment industry, the Short Term Vacation Rental market develops in line with broader industry shifts. Over recent years, transitions such as Shift Towards Digital Platforms and Emergence of Regulatory and Legal Frameworks have redefined priorities across the Tourism & Entertainment sector, influencing how the Short Term Vacation Rental market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.

1

Shift Towards Digital Platforms:

The short term vacation rental market has seen a shift with the emergence of digital platforms such, as Airbnb and VRBO in recent times. In the past this industry heavily depended on advertising methods and referrals to draw in renters. However today it is predominantly influenced by user friendly online platforms. These platforms not make it easier for consumers to find and reserve vacation rentals but also offer property owners efficient and successful means to promote their properties globally.

2

Emergence of Regulatory and Legal Frameworks:

The rise of the short term vacation rental industry has attracted attention from policymakers and regulatory authorities globally.

Global Events Shaping Future Growth

The chart below highlights how external events including emerging market developments, regulatory changes, and technological disruptions, have added another layer of complexity to the Tourism & Entertainment industry. These events have disrupted supply networks, changed consumption behavior, and reshaped growth patterns. Together with structural industry transitions, they demonstrate how changes within the Tourism & Entertainment industry cascade into the Short Term Vacation Rental market, setting the stage for its future growth trajectory.

Market Dynamics and Supply Chain

Driver: Growth in Online Travel Services, and The Rise of Solo and Family Travel

The growth of travel websites and online agencies has also significantly boosted the market for short term vacation rentals. Modern travelers tend to favor platforms for their convenience and ease of comparing options. This trend has also resulted in an increase, in property listings leading to market expansion.
The growing trend of individuals and families opting for solo and group travel is also a factor driving the market forward. These travelers are also looking for an environment while on the move which has also led to a significant increase in the demand for short term vacation rentals. This pattern is also expected to persist and have also an impact, on the market.
Cutting edge tools and software have also made property management and booking processes easier to handle these days. A change that benefits the short term rental sector by enabling property owners to oversee multiple units and expand their presence in the market.

Restraint: Regulatory Challenges

People involved in the Short term Vacation Rental sector frequently encounter regulatory frameworks that differ significantly from one country to another and even within cities and states themselves. Getting a handle on these regulations and ensuring compliance can be a burdensome process that eats into resources and time while also potentially hindering the industrys expansion. Depending on the location in question; these rules might cover areas, like zoning restrictions, housing codes safety standards or tax requirements. Violating these regulations could lead to fines and legal entanglements which would only further compound the operational difficulties and financial burdens faced by businesses.

Challenge: Market Saturation

The market, for short term vacation rentals is getting more crowded with big companies and new businesses entering the scene.

Supply Chain Landscape

Property Acquisition & Management

Airbnb

Vrbo

Booking.com

Property Setup & Furnishing

IKEA

Ashley Furniture

Walmart

Marketing & Advertising
Google Ads / Facebook Ads / Airbnb Plus
Guest Service & Experience
HelloGuest / GuestReady / Airsorted
Property Acquisition & Management

Airbnb

Vrbo

Booking.com

Property Setup & Furnishing

IKEA

Ashley Furniture

Walmart

Marketing & Advertising

Google Ads

Facebook Ads

Airbnb Plus

Guest Service & Experience

HelloGuest

GuestReady

Airsorted

Banner LogoBanner Logo

Leading Providers and Their Strategies

Application AreaIndustryLeading ProvidersProvider Strategies
Short-Term Stay
Hospitality and Tourism
Airbnb, Booking.com, Vrbo
Promoting unique and localized experiences, leveraging user reviews for trust and credibility, ensuring superior customer service and incorporating flexible cancellation policies
Corporate Rentals
Real Estate and Corporate Housing
Zillow, FlipKey, Apartments.com
Offering furnished apartments for corporate clients, marketing properties with close proximity to business centers, offering competitive pricing and providing customizable lease terms
Event Hosting
Events and Entertainment
Peerspace, Splacer, Event Homes
Providing unique spaces for various events, catering to specific event needs, clear pricing structures & insurance coverage included, leveraging visuals for advertising
Luxury Rentals
Luxury Travel and Real Estate
Luxury Retreats, Onefinestay, BeautifulPlaces
Focusing on the luxury market with high-end properties, offering personalized concierge services, undertaking strict quality inspections, promoting immersive local experiences

Elevate your strategic vision with in-depth analysis of key applications, leading market players, and their strategies. The report analyzes industry leaders' views and statements on the Short Term Vacation Rental market's present and future growth.

Our research is created following strict editorial standards. See our Editorial Policy

Applications of Short Term Vacation Rental in Dynamic Pricing Strategies, Innovative Experiences and Flexible Accommodation Options

Dynamic Pricing Strategies

Many short term vacation rentals now use dynamic pricing techniques to adjust rates according to demand levels and seasonal variations or local events to maximize earnings efficiently. Known industry players such as Beyond Pricing offer pricing tools to vacation property owners, for setting competitive prices in live updates.

Innovative Experiences

Vacation rentals frequently offer one of a kind experiences that traditional lodging options lack. They might showcase architectural styles or provide amenities like private pools and gardens. They also cater to pet owners. Come with fully equipped kitchens for a cozy atmosphere. Popular companies, like VRBO are renowned for highlighting these offerings.

Flexible Accommodation Options

Short term holiday rentals offer a choice to the usual hotels with a variety of accommodations like apartments and cottages in different places that cater to different travelers – from budget conscious adventurers to those seeking luxury experiences worldwide Airbnb is a prominent player in this field with listings in more, than 220 countries globally.

Short Term Vacation Rental vs. Substitutes:
Performance and Positioning Analysis

Short term vacation rentals offer an atmosphere and privacy for guests to enjoy their stay comfortably; however hotels provide comprehensive services for a more lavish experience. One distinctive aspect of vacation rentals is their market opportunity, on platforms which support potential growth and personalized customer experiences.

Short Term Vacation Rental
  • Hotel stays /
  • Bed and Breakfast establishments /
  • Hostels
    Flexible income potential, convenient for travelers
    High maintenance costs, unpredictable occupancy rates
    Affordable cost, broader cultural experience
    Limited privacy, inconsistency in standards & services

Short Term Vacation Rental vs. Substitutes:
Performance and Positioning Analysis

Short Term Vacation Rental

  • Flexible income potential, convenient for travelers
  • High maintenance costs, unpredictable occupancy rates

Hotel stays / Bed and Breakfast establishments / Hostels

  • Affordable cost, broader cultural experience
  • Limited privacy, inconsistency in standards & services

Short term vacation rentals offer an atmosphere and privacy for guests to enjoy their stay comfortably; however hotels provide comprehensive services for a more lavish experience. One distinctive aspect of vacation rentals is their market opportunity, on platforms which support potential growth and personalized customer experiences.

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Research Methodology

This market research methodology defines the Short Term Vacation Rental market scope, gathers reliable data, and validates findings using integrated primary and secondary research. Our systematic framework ensures precise market sizing, growth trend analysis, and competitive benchmarking.


Secondary Research Approach


We begin secondary research by defining the targeted market at macro and micro levels. As part of the Tourism & Entertainment ecosystem, we analyze Short Term Vacation Rental across Single-Family Homes, Condos and Apartments, and Unique Spaces like Barns or Boats Applications. Our team gathers data systematically from country level ministerial sources, industry associations & federations, trade databases, company annual & quarterly reports and other credential sources, enabling us to map global and regional market size, pricing trends, regulatory standards, and technology advancements.



Key Sources Referenced:

Annual Reports / Industry Magazines / Country Level Ministerial Sources

Interviews of Industry Stake Holders

Industry Views of Consultants

Analyst Views

• Annual Business Surveys (US, EU, Japan)

• NAICS - Economic Statistics (US, Canada)

We benchmark competitors such as Airbnb Inc, Booking Holdings Inc, and Expedia Group Inc by reviewing company financial statements, and regulatory filings. Our secondary insights identify key market drivers and constraints, forming the analytical foundation for primary research.


Primary Research Methods


We conduct structured interviews and surveys with industry stakeholders, including Property Acquisition & Management, Property Setup & Furnishing, and Marketing & Advertising. Our geographic coverage spans Americas (40%), Europe (30%), Asia-Pacific (25%) and Middle East & Africa (5%). Our online surveys generally achieve a response rate of above 65%, and telephone interviews yield 60%, resulting in above 92% confidence level with a ±7% margin of error.


Through targeted questionnaires and in-depth interviews, we capture purchase intent, adoption barriers, brand perception across Segment Type. We use interview guides to ensure consistency and anonymous survey options to mitigate response bias. These primary insights validate secondary findings and align market sizing with real-world conditions.


Market Engineering & Data Analysis Framework


Our data analysis framework integrates Top-Down, Bottom-Up, and Company Market Share approaches to estimate and project market size with precision.


Top-down & Bottom-Up Process


In Top-down approach, we disaggregate global Tourism & Entertainment revenues to estimate the Short Term Vacation Rental segment, using historical growth patterns to set baseline trends. Simultaneously, in Bottom-up approach, we aggregate Country-Level Demand Data to derive regional and global forecasts, which provide granular consumption insights. By reconciling both approaches, we ensure statistical precision and cross-validation accuracy.


We evaluate the supply chain, spanning Property Acquisition & Management (Airbnb, Vrbo), Property Setup & Furnishing (IKEA, Ashley Furniture), and Marketing & Advertising. Our parallel substitute analysis examines Hotel stays, Bed and Breakfast establishments, and Hostels, highlighting diversification opportunities and competitive risks.


Company Market Share & Benchmarking


We benchmark leading companies such as Airbnb Inc, Booking Holdings Inc, and Expedia Group Inc, analyzing their capabilities in pricing, product features, technology adoption, and distribution reach. By assessing company-level revenues and product portfolios, we derive market share comparisons, clarifying competitive positioning and growth trajectories across the ecosystem.


Our integration of data triangulation, supply chain evaluation, and company benchmarking, supported by our proprietary Directional Superposition methodology enables us to deliver precise forecasts and actionable strategic insights into the Short Term Vacation Rental market.


Quality Assurance and Compliance


We cross-reference secondary data with primary inputs and external expert reviews to confirm consistency. Further, we use stratified sampling, anonymous surveys, third-party interviews, and time-based sampling to reduce bias and strengthen our results.


Our methodology is developed in alignment with ISO 20252 standards and ICC/ESOMAR guidelines for research ethics. The study methodology follows globally recognized frameworks such as ISO 20252 and ICC codes of practice.

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Short Term Vacation Rental Market Data: Size, Segmentation & Growth Forecast

Report AttributeDetails
Market Value in 2025USD 192 billion
Revenue Forecast in 2034USD 554 billion
Growth RateCAGR of 12.48% from 2025 to 2034
Base Year for Estimation2024
Industry Revenue 2024171 billion
Growth OpportunityUSD 384 billion
Historical Data2019 - 2023
Growth Projection / Forecast Period2025 - 2034
Market Size UnitsMarket Revenue in USD billion and Industry Statistics
Market Size 2024171 billion USD
Market Size 2027243 billion USD
Market Size 2029308 billion USD
Market Size 2030346 billion USD
Market Size 2034555 billion USD
Market Size 2035624 billion USD
Report CoverageMarket revenue for past 5 years and forecast for future 10 years, Competitive Analysis & Company Market Share, Strategic Insights & trends
Segments CoveredProperty Type, Rental Duration, Traveler Demographics, Purpose of Travel
Regional scopeNorth America, Europe, Asia Pacific, Latin America and Middle East & Africa
Country scopeU.S., Canada, Mexico, UK, Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Mexico, Argentina, Saudi Arabia, UAE and South Africa
Companies ProfiledAirbnb Inc, Booking Holdings Inc, Expedia Group Inc, TripAdvisor Inc, Trivago N.V, HomeAway Inc, Tujia.com International, OYO Rooms, Ctrip.com International Ltd, MakeMyTrip Pvt. Ltd, Thomas Cook Group PLC and Marriott International
CustomizationFree customization at segment, region or country scope and direct contact with report analyst team for 10 to 20 working hours for any additional niche requirement which is almost equivalent to 10% of report value

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Table of Contents

Industry Insights Report - Table Of Contents

Chapter 1

Executive Summary

Major Markets & Their Performance - Statistical Snapshots

Chapter 2

Research Methodology

2.1Axioms & Postulates
2.2Market Introduction & Research MethodologyEstimation & Forecast Parameters / Major Databases & Sources
Chapter 3

Market Dynamics

3.1Market OverviewDrivers / Restraints / Opportunities / M4 Factors
3.2Market Trends
3.2.1Introduction & Narratives
3.2.2Market Trends - Impact Analysis(Short, Medium & Long Term Impacts)
3.3Supply Chain Analysis
3.4Porter's Five ForcesSuppliers & Buyers' Bargaining Power, Threat of Substitution & New Market Entrants, Competitive Rivalry
Chapter 4

Short Term Vacation Rental Market Size, Opportunities & Strategic Insights, by Property Type

4.1Single-Family Homes
4.2Condos and Apartments
4.3Unique Spaces like Barns or Boats
4.4Shared Spaces
Chapter 5

Short Term Vacation Rental Market Size, Opportunities & Strategic Insights, by Rental Duration

5.1Weekend Stays
5.2Weekly Rentals
5.3Monthly Rentals
Chapter 6

Short Term Vacation Rental Market Size, Opportunities & Strategic Insights, by Traveler Demographics

6.1Millennials
6.2Gen X
6.3Baby Boomers
Chapter 7

Short Term Vacation Rental Market Size, Opportunities & Strategic Insights, by Purpose of Travel

7.1Leisure and Vacation
7.2Business
7.3Events and Weddings
7.4Custom Experiences like Wellness Retreats or Adventure Trips
Chapter 8

Short Term Vacation Rental Market, by Region

8.1North America Short Term Vacation Rental Market Size, Opportunities, Key Trends & Strategic Insights
8.1.1U.S.
8.1.2Canada
8.2Europe Short Term Vacation Rental Market Size, Opportunities, Key Trends & Strategic Insights
8.2.1Germany
8.2.2France
8.2.3UK
8.2.4Italy
8.2.5The Netherlands
8.2.6Rest of EU
8.3Asia Pacific Short Term Vacation Rental Market Size, Opportunities, Key Trends & Strategic Insights
8.3.1China
8.3.2Japan
8.3.3South Korea
8.3.4India
8.3.5Australia
8.3.6Thailand
8.3.7Rest of APAC
8.4Middle East & Africa Short Term Vacation Rental Market Size, Opportunities, Key Trends & Strategic Insights
8.4.1Saudi Arabia
8.4.2United Arab Emirates
8.4.3South Africa
8.4.4Rest of MEA
8.5Latin America Short Term Vacation Rental Market Size, Opportunities, Key Trends & Strategic Insights
8.5.1Brazil
8.5.2Mexico
8.5.3Rest of LA
8.6CIS Short Term Vacation Rental Market Size, Opportunities, Key Trends & Strategic Insights
8.6.1Russia
8.6.2Rest of CIS
Chapter 9

Competitive Landscape

9.1Competitive Dashboard & Market Share Analysis
9.2Company Profiles (Overview, Financials, Developments, SWOT)
9.2.1Airbnb Inc
9.2.2Booking Holdings Inc
9.2.3Expedia Group Inc
9.2.4TripAdvisor Inc
9.2.5Trivago N.V
9.2.6HomeAway Inc
9.2.7Tujia.com International
9.2.8OYO Rooms
9.2.9Ctrip.com International Ltd
9.2.10MakeMyTrip Pvt. Ltd
9.2.11Thomas Cook Group PLC
9.2.12Marriott International