GVR Report cover Short-term Vacation Rental Market Size, Share & Trends Report

Short-term Vacation Rental Market Size, Share & Trends Analysis Report By Booking Mode (Online, Offline), By Accommodation Type (Apartments, Home), By Region (APAC, North America), And Segment Forecasts, 2022 - 2030

  • Report ID: GVR-4-68039-979-1
  • Number of Pages: 83
  • Format: Electronic (PDF)

Report Overview

The global short-term vacation rental market size was valued at USD 99.38 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 11.1% from 2022 to 2030. The growth is driven by the high demand for staycations, rising expenditure on travel and tourism, and travelers’ inclination toward budget-friendly accommodations. During the COVID-19 pandemic, the demand for short-term vacation rentals declined in 2020. According to the statistics published by World Tourism Organization (UNWTO), the COVID-19 pandemic caused a 71% decline in tourist arrivals in 2021, and 72% in 2020, compared to 2019 representing a loss of 2.1 billion international arrived in both years combined.

U.S. short-term vacation rental market size, by accommodation type, 2020 - 2030 (USD Billion)

This negatively impacted short-term rental bookings through Airbnb and Booking.com. However, in the post-pandemic world, the lines are blurred between leisure and work and the growing trend of work-from-home brought a flexible approach to work. In recent years, eco-friendly vacation rental has witnessed strong growth among environment-conscious travelers. According to a survey conducted by TripAdvisor in 2021, Americans are increasingly looking for a vacation rental that provides sustainable amenities. Nearly 46% of the surveyed respondents mentioned that they’d prefer to stay in a property that uses less energy and water and 43% of them mentioned they would choose an environmental-friendly rental if available.

Moreover, increased demand for international travel in emerging markets followed by low airfare prices across the globe will boost the industry growth. In addition, key players are listing a variety of short rental stays, such as private homes, villas, beach houses, and apartments to attract millennials and travelers looking for aesthetic stays. This is expected to boost the real estate industry's development, thereby supporting market growth. Although, since the pandemic, there has been a decrease in travel due to expenditure concerns. According to the U.S. Bureau of Economic Analysis, a decrease in real Personal Consumption Expenditures (PCE) reflected a decline of USD 829.9 billion in spending on services and USD 104.9 billion in spending on goods as of April 30, 2020.

Furthermore, a fake listing of apartments, condos, and homes is acting as a restraint for industry growth. Thus, the above-mentioned factors are projected to hamper the industry growth over the forecast period. However, consumers’ knowledge of services and offerings is growing as a result of the internet and social media. Several services, exotic places, and amenities are being offered, specifically for female visitors, by key firms to capture a higher market share. For instance, Golightly, a platform for holiday rental, run entirely by women and open to female guests only, was introduced in January 2020 and over 350 properties are owned by the organization worldwide.

Accommodation Type Insights

On the basis of accommodation types, the global industry has been further categorized into homes, apartments, resorts/condominiums, and others. In terms of revenue, the home accommodation type segment dominated the global industry in 2021 and accounted for the maximum share of more than 42.00% of the overall revenue. The segment is estimated to retain its leading position growing at a steady CAGR during the forecast period. New trends surrounding family travel have remarkably increased the demand for vacation home rentals across the globe.

According to HomeAway in 2019, millennials are giving up their solitary backpacker mentality and starting to travel with larger groups of friends and their young families. However, the resort/condominium accommodation type segment is projected to register the fastest growth rate during the forecast period. The rising popularity of mini vacations has made rental resorts an ideal option owing to their multiple benefits and comfortable services. These include upfront costs, seamless service by employees, safer tourist spots, spa & wellness facilities, planned activities & adventures, and favorable social interactions.

Booking Mode Insights

On the basis of booking modes, the global industry has been further segmented into online and offline. In terms of revenue, the online booking mode segment dominated the global industry and accounted for the maximum share of more than 67.00%in 2021. The segment will expand further at the fastest CAGR retaining its leading position throughout the forecast years. Technology is making everything easier in the short-term rental space and companies want to keep up with the expectations of a customer for a pleasant experience. Short-term rentals often have a high turnover with lots of visitors.

Global short-term vacation rental market share, by booking mode, 2021 (%)

By streamlining bookings, automation delivers maximum efficiency while providing a positive experience for travelers and enables companies to gain a competitive edge in the market. The offline segment is also estimated to register a significant growth rate during the forecast period. There is a high preference for offline booking mode among baby boomers and Gen X, which comprise the major consumer base. The preference of consumers for precise access to lodging, leisure, and other perks is associated with growth. The demand for authentic travel experiences, flexibility, and cost efficiency are three main drivers of the expansion of internet booking.

Regional Insights

North America dominated the global industry in 2021 and accounted for the maximum share of more than 35.40% of the overall revenue. The region will continue to lead the industry throughout the forecast period. An increasing number of travelers, especially millennials, have been looking to change the way they explore new places & gain unique experiences, and glamping has emerged as a popular trend. Increasing income levels among this group of travelers, coupled with the desire to experience new types of vacations, are expected to have a positive impact on the regional market of North America over the forecast period.

Short Term Vacation Rental Market Trends by Region

On the other hand, the market for short-term rentals in the Asia Pacific region is expected to grow at the fastest CAGR during the forecast period. The fast-paced growth of the region can be attributed to the rapidly expanding regional tourism sector, demographic features, and consumer disposable income levels. The growth can also be attributed to the increasing expenditure of consumers on travel and accommodation. The rising expenditure levels of travelers from other developing countries, such as Australia, are further estimated to support the growth of this region.

Key Companies & Market Share Insights

The industry is characterized by the presence of a few established players and new entrants. Many major players are increasing their focus on the growing trend of the short-term vacation rental. Industry participants are diversifying the service offering to maintain their industry share.

  • For instance, in December 2020, Airbnb and Nasdaq announced a new joint campaign to host a stay on New Year’s Eve in New York. The one-night stay was arranged in a private dome with a view of the Times Square ball drop

  • For instance, in October 2019, Booking Holdings, Inc. invested in a New Zealand-based travel and expense technology company, Serko. Through this deal, Booking Holdings will help Zeno, an online platform of Serko, to expand its global presence, whereas Serko plans to integrate content from Booking.com into its Zeno travel booking tool

Some of the key players operating in the global short-term vacation rental market include:

  • 9flats.com Pte. Ltd.

  • Airbnb, Inc.

  • Booking Holdings, Inc.

  • Expedia Group, Inc.

  • Hotelplan Management AG

  • MakeMyTrip Pvt. Ltd.


  • Oravel Stays Pvt. Ltd.

  • TripAdvisor, Inc.

  • Wyndham Destinations Inc.

Short-term Vacation Rental Market Report Scope

Report Attribute


Market size value in 2022

USD 109.76 billion

Revenue forecast in 2030

USD 256.31 billion

Growth rate

CAGR of 11.1% from 2022 to 2030

Base year for estimation


Historical data

2017 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD million/billion and CAGR from 2022 to 2030

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Accommodation type, booking mode, region

Regional scope

North America; Europe; Asia Pacific; South America; Middle East & Africa

Country scope

U.S.; Canada; Mexico; U.K.; Germany; France; Italy; Spain; China; India; Japan; South Korea; Australia; South Africa Brazil

Key companies profiled

9flats.com PTE Ltd.; Airbnb Inc.; Booking Holdings Inc.; Expedia Group, Inc.; Hotelplan Management AG; MakeMyTrip Pvt. Ltd..; NOVASOL A/S, Oravel Stays Pvt. Ltd.; TripAdvisor, Inc.; Wyndham Destinations Inc.

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

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Avail customized purchase options to meet your exact research needs. Explore purchase options


Global Short-term Vacation Rental Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global short-term vacation rental market report based on accommodation type, booking mode, and region:

Global Short Term Vacation Rental Market Segmentation

  • Accommodation Type Outlook (Revenue, USD Million, 2017 - 2030)

    • Home

    • Apartments

    • Resort/Condominium

    • Others

  • Booking Mode Outlook (Revenue, USD Million, 2017 - 2030)

    • Online

    • Offline

  • Regional Outlook (Revenue, USD Million, 2017 - 2030)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • U.K.

      • Germany

      • France

      • Italy

      • Spain

    • Asia Pacific

      • China

      • India

      • Japan

      • South Korea

      • Australia

    • South America

      • Brazil

    • Middle East & Africa (MEA)

      • South Africa

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