Press release
Primary Catalyst Driving Vacation Rental Market Evolution in 2025: Travel And Tourism Growth Spurs Demand In Vacation Rental Market Driver
Vacation Rental
The expansion of the travel and tourism sectors is expected to propel the growth of the vacation rental market. As the travel and tourism industries grow, driven by improvements in infrastructure, globalization, and shifting consumer preferences, vacation rentals are becoming an increasingly popular option for travelers. These rentals offer diverse, flexible accommodation options that provide unique and personalized experiences. For instance, the World Travel and Tourism Council highlighted that the travel and tourism sector accounted for 9.1% of global GDP in 2023, with expectations for continued growth. This growth is translating into increased demand for vacation rentals, as travelers seek alternatives to traditional hotel stays, which is propelling the market.
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How will the growth rate of the vacation rental market shape industry trends by 2034?
The vacation rental market has expanded significantly, projected to grow from $89.45 billion in 2024 to $95.67 billion in 2025, at a CAGR of 7.0%. Growth is driven by the booming tourism sector, evolving travel habits, regulatory changes, high demand during peak seasons, and increasing urbanization.
The vacation rental market will expand to $123.4 billion by 2029 at a CAGR of 6.6%, driven by remote work adoption and rising disposable incomes. Trends include smart home integration, online booking platforms, contactless check-ins, personalized guest experiences, and safety enhancements.
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What trends are poised to drive the future success of the vacation rental market?
In the vacation rental market, companies are focusing on expanding their offerings with premium vacation rental homes to attract high-end travelers. For example, in June 2024, OYO Rooms launched its premium vacation rental brand, Belvilla, in partnership with Sojo Stays in the UK. This partnership offers luxury vacation homes in prime locations, providing guests with exclusive experiences and positioning OYO to tap into the growing demand for upscale accommodations.
Which primary segments of the vacation rental market are driving growth and industry transformations?
The vacation rental market covered in this report is segmented -
1) By Accommodation Type: Home, Resort Or Condominium, Apartments, Hometown, Villas
2) By Price Point: Economic, Mid Range, Luxury
3) By Booking Mode: Online, Offline, Other Booking Modes
4) By End User Generation: Generation Zoomer, Millennials, Generation X, Boomers
Subsegments:
1) By Home: Single-Family Homes, Luxury Homes, Beach Houses, Country Homes, Eco-Friendly Homes
2) By Resort Or Condominium: Resort Villas, Condo Units in Resorts, Timeshare Properties, All-Inclusive Resort Rentals
3) By Apartments: Studio Apartments, 1-Bedroom Apartments, 2-Bedroom Apartments, Luxury Apartments, Penthouse Apartments
4) By Hometown: Local Guesthouses, Traditional Hometown Inns, Bed And Breakfasts (B And Bs), Historic Homes, Boutique Hotels
5) By Villas: Luxury Villas, Poolside Villas, Beachfront Villas, Private Villas With Staff, Eco-Friendly Villas
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Which geographical regions are pioneering growth in the vacation rental market?
Europe was the largest region in the vacation rental market in 2023. 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, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Who are the influential players reshaping the vacation rental market landscape?
Major companies operating in the vacation rental market are Airbnb Inc., Wyndham Destinations Inc., Agoda Company Pte. Ltd., TripAdvisor LLC, Vacasa LLC, Trivago GmbH, Priceline LLC, VRBO Inc., NOVASOL A/S, Hotels.com L.P., MakeMyTrip Pvt. Ltd., Pacaso Inc., KAYAK Software Corporation, AvantStay Inc., Hotelplan Management AG, HotelsCombined Pty Ltd, Whitetail Properties Real Estate LLC, Stellar MLS, Elliott Realty Group, 9flats GmbH, Panhandle Getaways Inc., StayMarquis LLC, Coastal Living Group LLC
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What Is Covered In The Vacation Rental Global Market Report?
•Market Size Forecast: Examine the vacation rental market size across key regions, countries, product categories, and applications.
•Segmentation Insights: Identify and classify subsegments within the vacation rental market for a structured understanding.
•Key Players Overview: Analyze major players in the vacation rental market, including their market value, share, and competitive positioning.
•Growth Trends Exploration: Assess individual growth patterns and future opportunities in the vacation rental market.
•Segment Contributions: Evaluate how different segments drive overall growth in the vacation rental market.
•Growth Factors: Highlight key drivers and opportunities influencing the expansion of the vacation rental market.
•Industry Challenges: Identify potential risks and obstacles affecting the vacation rental market.
•Competitive Landscape: Review strategic developments in the vacation rental market, including expansions, agreements, and new product launches.
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