Short Term Vacation Rental Market to Reach USD 222.70 Billion by 2030 Driven by Rising Demand for Flexible Travel Options

Mordor Intelligence has published a new report on the "Short Term Vacation Rental Market" offering a comprehensive analysis of trends, growth drivers, and future projections

Introduction

The Short-Term Vacation Rental Market was valued at USD 131.45 billion in 2025 and is projected to reach USD 222.70 billion by 2030, advancing at a CAGR of 11.12% during the forecast period. This strong growth reflects shifting consumer travel preferences, the digitalization of booking platforms, and the increasing appeal of personalized accommodations over conventional hotel stays. With global tourism continuing its recovery and new travel patterns emerging, short-term rentals are gaining prominence as a central part of modern lodging solutions.
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Key Trends Shaping the Short Term Vacation Rental Market

Rising Popularity of Alternative Accommodations

Travelers are increasingly seeking authentic, home-like experiences that standard hotels cannot always provide. Apartments, villas, and private homes allow visitors to immerse themselves in local communities while enjoying more space and flexibility. This preference is especially evident among younger demographics and families, who value the ability to cook, host, or work remotely in a comfortable setting.

Technology Integration in Booking and Guest Management

The integration of technology into booking and property management systems continues to accelerate. Online platforms are using data analytics and machine learning to improve search results, suggest tailored properties, and optimize pricing strategies. Hosts are also leveraging smart locks, automated check-ins, and digital concierge services to enhance guest satisfaction and streamline operations. These improvements in digital infrastructure are not only reshaping booking behaviors but also driving greater trust in the sector.

Shifts in Work and Travel Culture

The rise of remote work and hybrid professional arrangements has blurred the lines between leisure and business travel. "Bleisure" travelers, those combining work trips with leisure activities, are choosing short-term vacation rentals for longer stays. This shift is boosting demand for accommodations equipped with workspaces, strong internet connections, and quiet environments that enable productivity alongside leisure experiences.

Expansion of Online Travel Agencies and Direct Channels

Distribution channels are diversifying, with online travel agencies (OTAs) and direct booking websites both playing pivotal roles. OTAs continue to drive visibility and global reach, while property owners and managers increasingly invest in direct websites to lower commission costs and build stronger relationships with guests. This balance between OTA influence and direct bookings is reshaping how travelers discover and secure vacation rentals.

Growing Regulatory Oversight and Compliance

As the market expands, local governments and municipalities are paying closer attention to regulatory frameworks governing short-term rentals. These measures often address taxation, safety standards, zoning, and neighborhood impacts. While regulations can introduce operational challenges, they also contribute to greater professionalization and credibility of the industry, fostering long-term stability.

Sustainability and Eco-Conscious Travel Demand

Sustainability is becoming an essential trend across tourism, and short-term rentals are adapting accordingly. Travelers are showing greater interest in properties that highlight eco-friendly practices, such as energy-efficient appliances, waste reduction systems, and sustainable construction materials. Property managers adopting these practices are aligning with broader vacation rental industry trends while appealing to environmentally conscious travelers.

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Market Segmentation in the Short Term Vacation Rental Market

The short term rental market analysis highlights a broad segmentation that reflects the diversity of consumer preferences and distribution models:

By Accommodation Type

Apartments / Condominiums

Homes / Villas

Others (Cabins, Studios, Unique Stays)

By Booking Channel

Online Travel Agencies

Direct Owner Websites

Others (Property Management Platforms, Offline Agents)

By Guest Type

Leisure Travelers

Business and Bleisure Travelers

Others (Group Bookings, Extended Stays)

By Geography

North America

Europe

Asia-Pacific

Latin America

Middle East & Africa

This segmentation demonstrates the range of options available to consumers, from urban apartments catering to business visitors to beachside villas favored by leisure travelers. The increasing variety underscores the adaptability of the market in meeting different traveler needs.

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Key Players in the Short Term Vacation Rental Market

Competition in the market remains strong, with global players enhancing their portfolios through partnerships, acquisitions, and technology adoption. The leading companies include:

Airbnb, Inc. - Widely recognized as the pioneer of the sector, Airbnb continues to expand its global footprint, focusing on unique stays and experiences that enrich the traveler journey. Its host-driven ecosystem enables diverse lodging options across regions.

Booking Holdings Inc. - Leveraging its established travel platforms, Booking Holdings integrates vacation rentals alongside traditional hotel offerings, providing travelers with greater choice while supporting seamless cross-platform bookings.

Expedia Group, Inc. - With a wide network of lodging partnerships, Expedia is enhancing its short-term rental portfolio to appeal to both leisure and business travelers. The company's strong technological base ensures efficient booking and customer service experiences.

Trip.com Group Ltd. - Particularly strong in the Asia-Pacific region, Trip.com is expanding its short-term rental offerings to cater to a growing base of regional and international travelers.

Vacasa, LLC - Specializing in professionally managed vacation rentals, Vacasa stands out for its focus on property management services, offering end-to-end solutions that combine hospitality standards with localized experiences.

These companies are at the forefront of shaping vacation rental industry statistics, each bringing unique strategies to strengthen their presence across global markets.

Conclusion

The short term vacation rental market is positioned for strong growth, fueled by evolving traveler expectations, technology adoption, and the flexibility it offers compared to traditional accommodations. As consumer preferences lean toward personalized, immersive, and digitally enabled experiences, industry players are adapting their offerings to capture emerging demand. While regulatory frameworks and sustainability concerns will continue to influence the sector, the outlook remains positive, with the market set to play an increasingly central role in the global tourism ecosystem.

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