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/Platform-based, Offline), By Accommodation Type (Home, Resort/Condominium), By Region, And Segment Forecasts, 2023 - 2030

  • Report ID: GVR-4-68039-979-1
  • Number of Pages: 120
  • Format: Electronic (PDF)

Report Overview

The global short-term vacation rental market size was estimated at USD 109.76 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 11.2% from 2023 to 2030. The growth of the global market is driven by the rising demand for staycations, expenditure on travel & 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 arrivals in both years combined. This negatively impacted short-term rental bookings through Airbnb and Booking.com.

U.S. Docking Station Market size and growth rate, 2023 - 2030

However, post-pandemic, 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. The spread of the COVID-19 pandemic altered the way travelers planned their domestic and international trips. The pandemic had a significant socio-economic impact on the tourism sector and the millions of livelihoods directly or indirectly associated with it.

The crisis presented an opportunity to reconsider how tourism interacts with local societies and other economic sectors and to accelerate the shift toward a carbon-neutral and resilient short-term vacation rental economy. 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. However, 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. 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. The organization owns over 350 properties worldwide.

Technological trends are reshaping the global industry by introducing innovative solutions that enhance the overall guest experience and streamline operations for property owners. Technological solutions, such as online booking platforms, property management software, virtual tours, and Augmented Reality (AR), allow operators to manage their properties and provide a seamless booking experience. The adoption of these technological trends in the industry presents lucrative business opportunities for operators and companies. By capitalizing on these advancements, operators can streamline their operations, elevate the guest experience, boost booking rates, and fuel revenue growth.

Accommodation Type Insights

Based on accommodation type, the global industry has been further categorized into homes, apartments, resorts/condominiums, and others. The home accommodation type segment dominated the global industry in 2022 and accounted for the maximum share of 41.8% 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 families.

However, the resort/condominium accommodation type segment is projected to register the fastest CAGR of 12.1% from 2023 to 2030. 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. The increasing popularity of mini vacations has elevated rental resorts as an appealing choice due to their numerous advantages and comfortable services. These benefits encompass upfront costs, seamless employee service, secure tourist destinations, spa and wellness facilities, organized activities and adventures, and favorable social interactions.

Booking Mode Insights

On the basis of booking modes, the global industry has been further segmented into online/platform-based and offline. The online/platform-based booking mode segment dominated the global industry and accounted for the maximum revenue share of more than 67.6% in 2022. 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. 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.

Global Short-term Vacation Rental Market share and size, 2022

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 the three main drivers of the expansion of Internet booking. Generation X and baby boomers comprise the major share of tourists in the global market.

Individuals in these generations are most likely to book their tours through travel agencies and other offline channels that provide convenient and easy services. According to a blog by Stayfi, in August 2020, a significant portion (25%) of vacation rental bookings in the U.S. were conducted offline. This offline booking trend underscores the value of travel agencies in the vacation rental sector, offering customers expert advice, attractive package deals, in-person interactions, and customized travel experiences. Travel agencies leverage various tools to facilitate connections between short-term rental suppliers and B2B buyers.

Regional Insights

North America dominated the global industry in 2022 and accounted for the maximum share of 35.22% 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. On the other hand, Asia Pacific is expected to grow at the fastest CAGR of 12.2% during the forecast period. 

Short-term Vacation Rental Market Trends, by Region, 2023 - 2030

This growth 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 region’s growth. According to the Australian Bureau of Statistics, there were 4,999 million visitors as of March 2023, which is an 816% year-on-year increase. Also, according to the same sources, on average, tourists stayed 37 nights. Through its contribution to GDP and employment creation, the short-term rental sector has grown to be a significant participant in the Australian tourism market.

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 short-term vacation rentals. Industry participants are diversifying their service offerings to maintain their industry share. For instance:

  • In May 2023, MakeMyTrip Pvt. Ltd., a short-term vacation rental company announced a collaboration with Microsoft to broaden access to travel planning by introducing voice-assisted booking in Indian languages. Azure Cognitive Services and Microsoft Azure OpenAI Service have been combined to develop a technology stack that enables personalized travel recommendations based on user preferences. This partnership aims to make travel planning more inclusive and enhance the overall experience for a wider audience.

  • In January 2023, the Interhome Group-a fully owned subsidiary of the Hotelplan Group-expanded its portfolio to include Denmark through a strategic relationship with Sol og Strand, a Danish vacation rental broker that offers more than 6,000 vacation homes and flats.

Some of the prominent players 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 Private Limited

  • Tripadvisor, Inc.

  • Wyndham Destinations, Inc.

Short-term Vacation Rental Market Report Scope

Report Attribute


Market size value in 2023

USD 121.42 billion

Revenue forecast in 2030

USD 256.31 billion

Growth rate

CAGR of 11.2% from 2023 to 2030

Base year for estimation


Historical data

2017 - 2021

Forecast period

2023 - 2030

Report updated

August 2023

Quantitative units

Revenue in USD billion and CAGR from 2023 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; Central & South America; Middle East & Africa

Country scope

U.S.; Canada; UK; Germany; France; China; Japan; Australia; Brazil; South Africa

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 Private Limited; 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

Pricing and purchase options

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


Global Short-term Vacation Rental Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2017 to 2030. For 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 Report Segmentation

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

    • Home

    • Apartments

    • Resort/Condominium

    • Others

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

    • Online/Platform-based

    • Offline

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

    • North America

      • U.S.

      • Canada

    • Europe

      • UK

      • Germany

      • France

    • Asia Pacific

      • China

      • Japan

      • Australia

    • Central & South America

      • Brazil

    • Middle East & Africa

      • South Africa

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