Vacation Rental Market Size, Share, and Trends 2025 to 2034

Vacation Rental Market Size and Forecast 2025 to 2034

The global vacation rental market size accounted for USD 94.45 billion in 2024 and is expected to exceed USD 134.26 billion by 2034, growing at a CAGR of 3.57% from 2025 to 2034. The rapid growth of the travel and tourism industries’ all over the world will continue boosting the demand for vacation rental market in the forecast period.

Vacation Rental Market Key Takeaways

• Europe led the global vacation rental market with the largest market share of 34% in 2024.
• By accommodation, the homes segment has held the biggest market share of 49% in 2024.
• By accommodation, the resorts segment is expected to grow at a remarkable CAGR during the forecast period.
• By booking mode, the offline segment captured the highest market share of 70% in 2024.
• By booking mode, the online segment is expected to expand at the fastest CAGR over the projected period.

Role of Artificial Intelligence in Tourism Industry

There have been many technological advancements in the last few years including artificial intelligence (AI). The rising number of people using ecommerce platforms for vacation rentals booking has skyrocketed. Inclusion of AI technology on these platforms enhances the consumer experience. AI and machine learning (ML) can analyze data and offer more personalized options for the customers to choose from and analyze evolving demands of consumers. AI technology can help property owners to optimize their pricing, marketing and even customize experience, which will improve the guest experience at their property. Such applications of AI technology will help the vacation rental market expand further in the forecast period. 

Europe Vacation Rental Market Size and Growth 2025 to 2034

The Europe vacation rental market size was evaluated at USD 32.11 billion in 2024 and is projected to be worth around USD 46.32 billion by 2034, growing at a CAGR of 3.73% from 2025 to 2034.

Based on region, Europe dominated the market by acquiring a market share of around 36.14% in 2024. Europe is characterized by the presence of top tourism operators. Moreover, increased tourism activities in Europe owing to its huge popularity of destinations among the tourists and the presence of developed infrastructure has exponentially contributed towards the market growth. Countries like Germany, UK, and Spain are expected to have significant market shares in the European market.

Asia Pacific is estimated to be the most opportunistic market during the forecast period. Asia Pacific is among the most popular destinations for the travelers. The growing dependency of several economies on tourism and the rising government investments on the development of sophisticated infrastructure for attracting tourists is a major driver of the market. Moreover, the government of countries such as India, Indonesia, China, Vietnam, Australia, and Thailand are focusing on developing tourism sector in order to generate revenues, employment, and to boost the overall development of the region through tourism. Furthermore, the increasing awareness among the travelers regarding the availability of the vacation rentals is fueling the demand. Hence, the Asia Pacific is anticipated to be the fastest-growing market.

Market Overview

The growing number of people that go on vacations is continuously rising. This has been a big boost for the travel and tourism industry and by extension for the vacation rental market. People have different expectations and budgets when it comes to vacations and the vacation rental stay can offer different options that suitable for different needs. These rentals are bigger and can accommodate more guests together comfortably which suits people with big families or large travelling groups. It allows customers to feel more at ease with a cozy and homely vibe while offering benefits like cooked or option of cooking meals, pick up and drop services, laundry services etc. 

Vacation Rental Market Growth Factors

• The rapid growth in the travel and tourism sector across the globe is a major contributor in the growth of the global vacation rental market.
• The expenditure of the consumers in tourism activities is growing rapidly. The demand for the vacation rentals among the travelers is rising rapidly owing to the conveniences and low costs associated with it.
• The millennials are expected to drive the market growth in during the forecast period. As per Airbnb, by the year 2025, the younger generations and the millennials are expected to constitute around 75% of the traveler population.
• Rising awareness regarding the alternatives to hotels and lodges during tourism is contributing towards the market growth.
• The tourism activities are increasing rapidly owing to the various factors such as sports, wellness, and adventure activities undertaken by the consumers.
• Social media and internet platforms are exponentially contributing in the promotions of the various tourist destinations, hotels, and restaurants among the millennials, which drives the growth of the global vacation rental market.

Market Scope

Market Dynamics

Driver

Growing preference of wellness and fitness vacations

The changing and hectic life of people around the world is inspiring them to focus on health and fitness more. The rising demand for vacation trips that focused on some sort of fitness and wellness are rapid increasing, especially amongst the urban population. Travelers are choosing vacation spots that include hiking, trekking, biking etc., activities. Even wellness vacation is a market trend. People are opting for peaceful activities like yoga, meditation. The spending on these activities is given a preference by customers, making vacation rentals an attractive and economical choice. This shift in preference is driving the growth of vacation rental market.

Opportunity

Strategies by key players

The market is moderately fragmented with the presence of several local companies. These market players are striving to gain higher market share by adopting strategies, such as investments, partnerships, and acquisitions & mergers. Companies are also spending on the development of improved products. Moreover, they are also focusing on maintaining competitive pricing. The various developmental strategies like new product launches, acquisitions, and partnerships fosters market growth and offers lucrative growth opportunities to the market players.

Accommodation Insights

Based on the accommodation, the homes segment accounted for around 48% of the market share in 2024. The comfort, convenience, safety, spacious, and access to amenities are the major features provided by the homes vacation rental that had resulted in the increased adoption among the travelers. Usually, the availability of homes on rent especially in the remote and rural destination at a cheap price is driving the segment’s growth.

On the other hand, the resorts segment is estimated to be the fastest-growing segment during the forecast period. The increasing preferences of the millennials to opt for premium and luxury services and hotels is expected to drive the growth of this segment. The resorts provide function rooms, club houses, swimming pools, and various premium services that attracts the attention of the millennials and the generation X.

Booking Mode Insights

Based on the booking mode, the offline segment accounted for over 70% of the market share in 2024. The baby boomers and the family travelers have increased preferences for the offline booking mode. Moreover, the wide spread penetration of the various offline ticket providers and travel planners have huge contributions in the growth of this segment.

On the other hand, the online is estimated to be the most opportunistic segment during the forecast period. The rapidly surging number of internet users coupled rising adoption of smartphones across the globe is a major factors that propels the growth of the online booking mode. The increasing popularity of the online ticket platforms are projected to play a crucial role in the market growth.

Vacation Rental Market Companies

• 9flats
• Airbnb
• Booking.com
• Expedia
• Hotelplan Management AG
• MAKEMYTRIP PVT. LTD.
• NOVASOL
• OYO Hotels & Homes
• TripAdvisor LLC
• Wyndham Destinations
• Trivago
• Agoda Company Pte. Ltd.
• Yatra Online Private Limited
• Hotwire, Inc.
• HotelsCombined
• Hotels.com
• BookingBuddy.com, Inc.
• priceline.com LLC
• KAYAK
• Google

Recent Developments

• In September 2024, Stayflexi announced their integration with Google. This will enable Stayflexi to get direct bookings for vacation rentals through Google. 
• In October 2024, an Indian vacation rental startup, Elivaas secured a funding of $5 million. This funding will help the company in their expansion plans. 

Segments Covered in the Report

By Accommodation

• Apartments
• Homes
• Resorts
• Others

By Booking Mode

• Offline
• Online

By Geography

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
• Asia Pacific
  • China
  •  
  • India
  • Japan
  • South Korea
• Rest of the World