Vacation Rental Market Landscape 2025: Forecast Data and Growth Strategy Insights

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What Is the Expected CAGR for the Vacation Rental Market Through 2025?
The market size for vacation rentals has seen significant expansion in the past few years. The sector is projected to rise from $89.45 billion in 2024 to $95.67 billion in 2025, demonstrating a compound annual growth rate (CAGR) of 7.0%. The observed growth during the historic period can be ascribed to factors such as an upsurge in the tourism industry, changes in travel behavior, amendments in regulations and local policies, high demand in peak travel seasons, and an increase in urban development.

What's the Projected Size of the Global Vacation Rental Market by 2029?
In the upcoming years, the vacation rental market size is poised to experience robust growth. The market is projected to expand to $123.4 billion in 2029, progressing at a compound annual growth rate (CAGR) of 6.6%. The anticipated growth during the forecast span can be linked to the increased use of effective promotional strategies, the upswing of remote work, higher disposable incomes, and heightened focus on celebrity endorsements. Notable trends during the forecast stretch include collaboration with online platforms, technology adoption like smart locks, trend towards longer-term rentals, enhancing guest experiences via personalized amenities and touchless check-ins, and implementation of safety precautions.

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Top Growth Drivers in the Vacation Rental Industry: What's Accelerating the Market?
Expansions in the travel and tourism industries are anticipated to drive the vacation rental market's growth. Spanning everything from transport solutions facilitating trades to a myriad of services that add to the joy and longevity of travel memories, the travel and tourism sectors play a comprehensive role. Factors such as enhanced transport infrastructure, globalization, liberalized trade, a growing inclination towards experiential travel, along with increased interest in health and wellness tourism facilitate growth in these sectors. Vacation rentals contribute to the travel and tourism industries by offering varied lodging options, stimulating local economies, promoting extensive stays, and upgrading travel experiences through more personalized and flexible accommodation options. For example, as per the UK-based World Travel and Tourism Council's April 2024 report, travel and tourism contributed almost 9.1% to the global GDP, amounting to more than $9.9 trillion in 2023. The sector is predicted to maintain this growth trajectory, with its GDP contribution expected to hit $11.1 trillion by 2024. Thus, the swift expansion of the travel and tourism sectors is fueling the vacation rental market's growth.

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What Trends Will Shape the Vacation Rental Market Through 2029 and Beyond?
Leading companies in the vacation rental market are exploring expansion strategies through creative solutions like premium vacation rental homes to allure high-end travelers, elevate guest experiences, and establish a distinctive presence in the market. Premium vacation rentals are typically luxurious properties that provide exceptional amenities, superior comfort, and unique experiences, catering to the needs of travelers looking for high-end accommodations and tailored services. For example, OYO Rooms, a hospitality firm based in India, introduced the premium vacation rental brand Belvilla in June 2024. They collaborated with Sojo Stays, a UK-based apartment rental chain, to launch a specially selected collection of Belvilla by Oyo vacation homes in prime areas across many key UK cities. These Belvilla properties can be booked for short and prolonged stays via the Belvilla platforms and other booking websites. The introduction of Belvilla by Oyo in the UK underscores the company's initiative to broaden its geographical reach and seize the growing demand for first-rate vacation rental experiences.

What Are the Main Segments in the Vacation Rental Market?
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 Top Companies are Driving Growth in the Vacation Rental Market?
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

Which Regions Will Dominate the Vacation Rental Market Through 2029?
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.

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