Press release
Vacation Rental Market to Surpass USD 117.03 Billion by 2032
Vacation Rental Market
According to Coherent Market Insights, The vacation rental market [https://www.coherentmarketinsights.com/market-insight/vacation-rental-market-5376] is estimated to be valued at US$ 79.34 Bn in 2025 and is expected to reach US$ 117.03 Bn by 2032, growing at a compound annual growth rate (CAGR) of 5.7% from 2025 to 2032. This industry is fueled by the growing demand for experiential and immersive travel. As travelers increasingly seek personalized and customized vacations, many are choosing full-home or private-room vacation rentals over traditional hotel accommodations.
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Global Vacation Rental Market Key Takeaways
According to Coherent Market Insights (CMI), the global vacation rental market size is projected to expand at a moderate CAGR of 5.7%, reaching USD 79.34 Bn in 2025 and USD 117.03 Bn by 2032.
Based on booking mode, offline segment is expected to account for nearly 2/3 of the global vacation rental market share in 2025.
By accommodation type, home category is anticipated to hold nearly two-fifths of the global vacation rental industry revenue share by 2025, owing to rising demand for home vacation rentals.
In terms of price point, mid-range segment is projected to account for over 36.73 Bn in 2025.
North America vacation rental market is set to be valued at around USD 28.72 Bn by 2025.
As per Coherent Market Insights' latest vacation rental market analysis, Asia Pacific is expected to exhibit fastest growth. This can be attributed to rising demand for cost-efficient vacation rentals and presence of popular spots for vacation rental properties.
Rising Demand for Experiential Travel Fueling Market Growth
Coherent Market Insights' latest vacation rental market report highlights major factors fueling the industry's growth. One such prominent growth driver is the increasing demand for experiential travel.
Modern travelers, particularly millennials and Gen Z, are increasingly seeking unique and immersive experiences that reflect the local culture. This is expected to drive demand for vacation rentals as they provide authentic accommodations that align better with this trend.
Vacation rentals offer home-like environments, flexibility, and opportunities to stay in residential neighborhoods rather than commercial tourist areas. This enhances the overall travel experience by enabling guests to live like locals.
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Regulatory Challenges and Competition from Hotels Limiting Growth
The prospective vacation rental market outlook appears optimistic. However, regulatory challenges and competition from traditional hotels are expected to limit market growth to some extent during the assessment period.
Many countries and cities impose strict regulations on short-term rentals, including zoning restrictions and licensing requirements. These regulatory measures are expected to limit expansion of the vacation rental market.
Travelers who prioritize a standardized experience often choose hotels as they offer predictable service and amenities. This preference might also lead to reduced vacation rental market demand in the coming years.
Impact of AI on the Vacation Rental Market
From enhancing personalization to improving guest experiences, Artificial Intelligence (AI) is significantly impacting the vacation rental industry. Its adoption enables companies to deliver more efficient and tailored services to travelers.
AI-powered tools help hosts dynamically optimize pricing as well as predict demand and automate guest communications through chatbots. Platforms use machine learning to offer smarter property recommendations, while predictive analytics assist property managers in making data-driven decisions.
This increased efficiency not only boosts occupancy rates and revenue but also enhances customer satisfaction. Courtesy of this, AI is becoming a key driver of innovation and competitiveness in the vacation rental industry.
Agoda is a recent example of a company successfully integrating AI into its services. In 2025, the company unveiled its AI-enabled Vacation Planner tailored for Indian travelers. This cutting-edge tool instantly generates fully personalized itineraries, making vacation rental planning seamless and highly customized.
Rise of Online Booking Platforms Unlocking Growth Opportunities
The cost-effectiveness of vacation rentals is acting as a catalyst encouraging their adoption. Vacation rentals often provide more space and amenities at a lower cost compared to hotels. As consumer demand for affordable travel continues to grow, the vacation rental market is expected to benefit significantly.
Rising popularity of online booking platforms is expected to create lucrative growth opportunities for vacation rental companies. Platforms like Vrbo and Airbnb are making it easy for travelers to find, compare, and book rentals globally. They also empower property owners to list and manage their properties.
Emerging Vacation Rental Market Trends
Growing popularity of remote work is set to positively impact the global vacation rental market value. Many remote workers prefer vacation rentals for long-term stays or as comfortable, quiet workstations away from traditional offices or crowded hotels.
Sustainability is emerging as a key growth-shaping trend in the vacation rental industry. Eco-conscious travelers are prioritizing green accommodation, prompting hosts to adopt sustainable practices like solar energy and eco-friendly products.
Rising popularity of hyper-personalization is significantly impacting growth of vacation rental sales. Modern travelers increasingly seek customized experiences, right from local recommendations to curated itineraries and personalized amenities. This is driving demand for vacation rentals that offer a more individualized stay.
Leading vacation rental platforms are integrating advanced technologies like IoT devices and smart tech to enhance guest convenience and security. This technological integration is anticipated to provide a strong thrust for the growth of vacation rental market.
Analyst's View
"The global vacation rental market is poised to record moderate growth, owing to resurgence of global travel and tourism, rising preference for experiential travel, and expanding use of online booking platforms," said a senior analyst at CMI. " Cost-efficiency of vacation rentals is also contributing to their growing popularity and demand."
Current Events and Their Impact on the Vacation Rental Market
Event
Description and Impact
Urban Travel Rebound Post-COVID (2024-2025)
* Description: Tourists are returning to major cities like Paris, Tokyo, and NYC for work and leisure trips.
* Impact: This resurgence is driving demand for urban vacation rentals, especially for longer stays with work amenities.
AI Adoption in Travel Planning
* Description: AI tools like ChatGPT are being used for trip planning, pricing, and property recommendations.
* Impact: This trend enhances the visibility, accessibility, and availability of vacation rentals.
Rise of Sustainable Tourism
* Description: Modern travelers increasingly prioritize eco-conscious accommodations and low-impact travel.
* Impact: Demand is rising for vacation rentals with green certifications, renewable energy use, and sustainable amenities.
Competitor Insights
Key companies listed in vacation rental market research report:
- Hotelplan Management AG
- Yatra Online Private Limited
- Booking.com
- OYO Hotels & Homes
- Hotwire, Inc.
- Agoda Company Pte. Ltd.
- BookingBuddy.com, Inc.
- HotelsCombined
- KAYAK
- Hotels.com
- Booking Holdings Inc.
- Priceline.com LLC
- Airbnb Inc.
- Hotelplan Holding AG
- Expedia Group Inc.
- MakeMyTrip Pvt. Ltd.
- Oravel Stays Pvt. Ltd.
- NOVASOL AS
- TripAdvisor Inc.
- Wyndham Destinations Inc.
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Key Developments
In April 2025, Garnett Station Partners launched Stayterra, a newly formed premium vacation rental management collection. Stayterra aims to provide elevated, professionally managed vacation rental experiences in highly sought-after destinations across the United States.
In March 2025, MakeMyTrip introduced a new AI-powered feature called Collections aimed at personalizing homestay and hotel discovery for users. The new feature uses artificial intelligence as well as traveler insights to provide tailored recommendations, thereby enhancing user experience.
In March 2025, Vrbo unveiled its 2025 Vacation Rentals of the Year, an annual collection highlighting ten standout private vacation rentals across the United States.
About Us:
Coherent Market Insights leads into data and analytics, audience measurement, consumer behaviors, and market trend analysis. From shorter dispatch to in-depth insights, CMI has exceled in offering research, analytics, and consumer-focused shifts for nearly a decade. With cutting-edge syndicated tools and custom-made research services, we empower businesses to move in the direction of growth. We are multifunctional in our work scope and have 450+ seasoned consultants, analysts, and researchers across 26+ industries spread out in 32+ countries.
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