In terms of revenue, the Global Short-Term Rental Market is expected to reach by 2030, growing at a CAGR (Compound Annual Growth Rate) of 10.8% from 2023 to 2030.
Short-Term Rental, also known as vacation rental, have become a popular form of accommodation for travelers in recent years. This market includes properties rented out for a short period, generally less than 30 days. Short-Term Rental can range from spare rooms in hosts’ homes on platforms like Airbnb to luxurious villas and apartments rented through property management companies. The Short-Term Rental market has grown significantly, driven by an increase in travelers seeking unique experiences and affordable accommodations. While Short-Term Rental can provide travelers with a home-like experience, they have also faced criticism from some local communities due to concerns about noise, safety, and the impact on the local housing market. As a result, many cities have introduced regulations and restrictions on Short-Term Rental. Despite some challenges, the Short-Term Rental market is projected to continue growing in the coming years, driven by the popularity of home-sharing platforms and the search for unique travel experiences.
Key Highlights from the Report
· Based on Accommodation Type, Home Accommodation Type is accounted for the maximum share. The demand for vacation home rentals has significantly expanded globally due to new family travel patterns.
· Based on Booking Mode, the online booking mode segment dominates the market. Technology has simplified things in the Short-Term Rental industry, and businesses seek to meet their client's expectations for a positive experience. There is frequent traffic at Short-Term Rental and a high turnover rate.
· Regarding Region, North America held the most significant market share in 2022 and is expected to be the major market in the forecast period. This is due to the rising income levels among this category of vacationers and their willingness to try out different vacation experiences.
The Short-Term Rental market is experiencing an increasing demand due to recent changes in the tourism industry. The rise of travel technology platforms and relatively affordable flights have made it easier for people to travel to various destinations, creating a larger market for Short-Term Rental. The market dynamics continuously evolve, requiring property owners and vacation rental managers to stay current with industry developments to remain competitive. One trend that has emerged in recent years is the concept of ‘experiences,' where travelers seek more authentic, local, and immersive experiences. This trend has led to the emergence of personalized and specialized Short-Term Rental such as historic homes, eco-friendly properties, or mountain cabins.
Another trend that has emerged is the rise of the “staycation” market, where people are looking for quick getaways to refresh, especially when international travel is limited. This market shift has prompted Short-Term Rental property managers to invest more in the local market and to provide high-quality experiences to the local community, such as exclusive deals or last-minute bookings.
The Short-Term Rental market dynamic is also highly influenced by the regulations of local laws and government policies. For instance, in some areas, governments have implemented strict regulations and limitations on the use of Short-Term Rental, while in others, it is lenient, leading to a favorable environment for Short-Term Rental. Therefore, property managers and vacation rental owners must monitor and stay updated with regulatory changes to mitigate any negative impact on their operations and profitability.
The North America Short-Term Rental market has been expanding in recent years, driven mainly by the rise of platforms such as Airbnb and VRBO. The United States is the largest market for Short-Term Rental in North America, with major cities like New York, Los Angeles, and San Francisco being popular destinations for domestic and international travelers. However, Canada's market is also growing, particularly in urban areas such as Toronto, Vancouver, and Montreal. One of the main factors driving the growth of the Short-Term Rental market in North America is the increasing popularity of alternative accommodation options among travelers. Short-Term Rental offers a more affordable and flexible alternative to traditional hotels, often providing a more authentic and immersive travel experience.
In Asia Pacific, the Short-Term Rental market has seen rapid growth in recent years, driven by increasing tourism and digitalization. Countries such as Japan, Thailand, and Indonesia have seen a surge in demand for Short-Term Rental accommodations driven by the popularity of services such as Airbnb. Moreover, the Short-Term Rental market in Europe is well established and continues to grow, particularly in popular tourist destinations such as France, Italy, and Spain.
The Global Short-Term Rental Market is Segmented as follows
- Accommodation Type
- Other Accommodations
- Booking Mode
- North America
- Asia Pacific
- Latin America
- Middle East & Africa
List of the Key Players of the Global Short-Term Rental Market is
9flats.com Pte. Ltd. (Singapore), Airbnb Inc. (U.S.), Booking Holdings Inc. (U.S.), Expedia Group Inc. (U.S.), Hotelplan Management AG (Switzerland), MakeMyTrip Pvt. Ltd. (India), NOVASOL A/S (Denmark), Oravel Stays Pvt. Ltd. (India), TripAdvisor Inc. (U.S.), Wyndham Destinations Inc. (U.S.)
The Global Short-Term Rental Market Scope can be Tabulated as below
|Market Size Provided for Years
|2017 - 2030
|2017 - 2021
|2023 - 2030
|Regions & Counties Covered
|Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, technology landscape, patent analysis, market attractiveness analysis by segments and North America, company market share analysis, and COVID-19 impact analysis