The global vacation rentals market is estimated at USD 74.0 billion in 2022 and is projected to reach USD 119.0 billion by 2032, at a CAGR of 5.0% from 2022 to 2032.
According to Future Market Insights, the rising travel connectivity and development in roadways and other transport services has contributed majorly in the rise of tourism. Meanwhile, the internet services have help to expand the connectivity across the globe. Both together helped in better connectivity establishment with remote regions.
Nowadays remote regions are attracting the huge number of travellers due to the rising trends of eco-tourism, ethno tourism, sustainability tourism and rural tourism. The governments from various parts of the world are focusing on remote place such as villages and countryside for development of tourism infrastructure as this contribute to the development of towns and villages.
Meanwhile, various vacation rental providers are focusing on building their infrastructure in such areas due to low cost of land, subsidies from government, scarcity of lands in towns & cities and due to ecological balance. Also, this help create opportunity for local players to participate in market and cater the needs of travellers.
Thus, in upcoming years the development of remote regions will help to generate new opportunities for tourism industry and will result in growth of vacation rentals market.
As such, the global vacation rentals market is estimated to expand at a CAGR of over 5.0% throughout the forecast period of 2022-2032, to be valued at US$ 119.0 Bn by the end of 2032.
Key Takeaways from the Vacation Rentals Market Study
- The rising participation of travellers in eco-tourism, sustainability tourism, ethno tourism is anticipated to rise the market for vacation rentals in tourism industry. The trends of such social tourism are trending and will contribute majorly to the market.
- In last few years, there is a rise in growth of international travellers traveling for various reasons across the regions. As they search for budget friendly accommodation there might be a great demand from international travellers for vacation rentals.
- The vacation rentals market is anticipated to be high on demand and grow rapidly in developing countries. Various tourist attraction places in developing countries are located near remote locations and the market is fragmented with various new participant’s in rental vacation market.
Impact of COVID-19 on the Market
Covid 19 had a significant impact on the tourism industry, resulting in a dramatic fall in business and prospective customers in the tourism industry. Due to limited opportunities and decline in economic activity many vacation rentals providers faced a tremendous loss, whereas in post covid situations vacation rentals continued to face lack of business due to the precautionary measures abide by government in various regions and the fear of getting infected discouraged the vacationers to participate in tourism activities.
Meanwhile, it is projected that vacation rentals would continue to flourish in the post-pandemic era. The foundations of vacation rentals allow travellers to be as comfortable as they would at home without the danger of contracting a contagious disease.
Who is winning?
Leading manufacturers of vacation rentals market are focused on promotional strategies to acquire new customers, upgradations and technological development to provide better experience, and new merger strategies to improve efficiency have driven sales growth of vacation rentals market globally.
Major players present in the vacation rentals market are Airbnb Inc., 9flats.com Pte Ltd., Wyndham Destinations Inc., Expedia Group Inc., MakeMyTrip Pvt. Ltd., Oravel Stays Pvt. Ltd., Booking Holdings Inc., Hotelplan Holding AG, NOVASOL AS, TripAdvisor Inc., Destination Club, Tripping.com, Peer-to-Peer Property rental, Canada Stays and Homeaway, are among others.