In terms of revenue, the Global Vacation Rental Market is expected to reach USD 99.6 Billion by 2028, growing at a Compound Annual Growth Rate (CAGR) of 5.1% from 2022 to 2028.
Rising expenditure on travel and accommodation among the young generation drives the market growth. Also, multiple government benefits offered to agencies to promote tourism drive the market growth. Thus, rise in tourism industry and promotion for domestic and international travellers further fuels the market growth.
- The resorts/condominium sub-segment of the accommodation type segment is anticipated to dominate the Vacation Rental Market. Majority of travellers prefer resorts for their travel. As these are easily available and offer wide benefits such as easy accessibility, cost effectiveness and other benefits.
- The online sub-segment of the booking type segment is accounted for the largest market share in 2021 for the Vacation Rental Market. Easy availability of smart phones and increasing digitalization make the online segment prominent for booking.
- Europe is the largest regional segment. This surge is attributed to the rising demand for vacation rentals in developed economies such as the U.S. and Canada. Stable economy and strong income ratio of majority of the population develops interest for organising travel plans in this region. Also, government benefits offered to travel agencies makes this region prominent for the market to grow.
The rising expansion of the tourism industry contributes significantly to country's GDP. Various government plans and strategies favouring the growth of the global tourism industry further drive the market. The rise in the tourist’s leads and increasing demand for vacation rental properties fuels the growth of Vacation Rental Market. Thus, the growth of the tourism industry and an increase in the number of domestic and international travellers has positively impacted the demand for vacation rental properties.
Additionally, online booking is a major trend supporting the vacation rental market share growth. Thus value-addition will improve the convenience of booking vacation rentals, leading to increased customer satisfaction. Many existing market vendors have invested in auto responder technology, which saves time and money. This technology enables automated responses to inquiry emails and repetitive inquiries, which is expected to create a unique user experience.
Europe is expected to dominate the Global Vacation Rental Market in 2021 and is likely to continue the same trend during the forecast period. This region has the majority of the vacation rental organisations and investors. Also, growing technological advancements with the availability of surplus knowhow in executing this technique makes this region prominent for the market to flourish in coming years. On the other hand, developing countries such as India, China and Indonesia are showing huge potential to adapt vacation rentals in their respective organizations. However, insufficient funds, lack of skilled labour and social issues make it difficult for the market to grow.