Vacation Rental Market Size, Growth, Share & Industry Trends, 2025

Name: Vacation Rental Market Size, Growth, Share & Industry Trends, 2025 - 2030
Creator: Mordor Intelligence
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Vacation Rental Market Size and Share

Market Overview

Study Period	2019 - 2030
Market Size (2025)	USD 104.62 Billion
Market Size (2030)	USD 131.16 Billion
Growth Rate (2025 - 2030)	4.63% CAGR
Fastest Growing Market	Asia Pacific
Largest Market	North America
Market Concentration	Medium
Major Players *Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Vacation Rental Market (2025 - 2030) — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Vacation Rental Market Analysis by Mordor Intelligence

The vacation rental market is valued at USD 104.62 billion in 2025 and is projected to reach USD 131.16 billion by 2030, advancing at a 4.63% CAGR. Demand moderation versus the pre-pandemic years signals that the vacation rental market is moving from hyper-growth to disciplined expansion, driven by new local rules that reward professionally managed inventory and stable occupancy. Millennials and Gen Z now account for 42% of users, amplifying digital-first booking behavior and spurring platform consolidation as operators race to offer friction-free mobile journeys. Bleisure travel is expanding the addressable base because 46% of business travelers extend trips for leisure, a pattern that funnels incremental nights into the vacation rental market. Regionally, Asia-Pacific shows the strongest acceleration as international arrivals rebound and the region’s expanding middle class channels discretionary spending into domestic road trips and outbound tourism. Technology adoption, especially AI-enabled pricing, is improving yield management, while premiumization raises average daily rates in the luxury tier.

Key Report Takeaways

By property type, homes held 42.70% of the vacation rental market share in 2024; resort and condominium units are forecast to expand at a 5.60% CAGR through 2030.
By booking mode, offline channels retained 51.20% share of the vacation rental market in 2024; online portals are projected to post a 6.50% CAGR to 2030.
By rental duration, short-term stays accounted for 62.30% share of the vacation rental market size in 2024; mid-term stays are set to advance at a 7.60% CAGR over the same period.
By traveller type, families represented 45.60% share of the vacation rental market in 2024; solo travellers and digital nomads are anticipated to climb at a 7.90% CAGR to 2030.
By price tier, mid-scale listings captured 47.40% share of the vacation rental market in 2024; luxury and premium properties are on course for a 6.30% CAGR up to 2030.
By geography, North America controlled 36.50% revenue share of the vacation rental market in 2024; Asia-Pacific is expected to accelerate at an 8.90% CAGR through 2030.

Global Vacation Rental Market Trends and Insights

Drivers Impact Analysis

Driver	(~) % Impact on CAGR Forecast	Geographic Relevance	Impact Timeline
Mainstream rise of online booking platforms	+1.2%	Global with focus in Asia-Pacific	Medium term (2-4 years)
Growing millennial and Gen Z travel spending	+0.9%	North America and Europe	Long term (≥ 4 years)
Expansion of mid-term “workcation” demand	+0.7%	Urban peripheries and digital-nomad hubs	Medium term (2-4 years)
AI-driven dynamic pricing adoption	+0.4%	Technology-advanced markets worldwide	Short term (≤ 2 years)
Professionalisation of property management	+0.5%	North America and Europe	Long term (≥ 4 years)
Regulatory incentives for rural tourism	+0.3%	Europe and Asia-Pacific	Long term (≥ 4 years)

Source: Mordor Intelligence

Mainstream rise of online booking platforms

Digital journeys dominate discovery and purchase as 90% of Gen Z travellers source trip ideas on social media and then convert within app-based ecosystems. Inventory depth and instant confirmations are increasing platform stickiness, illustrated by a 22.2% jump in Booking Holdings’ merchant revenue in Q1 2025 ^{[1]Securities and Exchange Commission, “Booking Holdings Inc. Form 10-Q Q1 2025,” sec.gov}. Operators deploying AI search and voice assistants report lower abandonment rates, signalling that frictionless UX is now a competitive baseline.

Growing millennial and Gen Z travel spending

Delayed home ownership and a bias toward experiences over assets redirect discretionary income toward travel. A Global Business Travel Association study confirmed that 46% of corporate travellers now combine work and holiday, blending spending from employer budgets with personal outlays ^{[2]Global Business Travel Association, “BTI Outlook 2025,” gbta.org}. Price rather than brand loyalty guides 88% of younger customers, favouring transparent marketplaces that surface total stay costs up-front.

Expansion of mid-term “workcation” demand

Remote-friendly employment policies sustain longer itineraries. Purpose-built extended-stay listings in Bangkok produced an 18.8% year-on-year revenue improvement, supported by strong fibre availability and co-working access. Countries such as Thailand are adding digital-nomad visas, which lengthens average length of stay and boosts local spend on groceries, transport and entertainment.

AI-driven dynamic pricing adoption

Yield-management engines scrape local events, competitor rates and lead-time curves to refresh nightly prices. OYO credited machine-learning tools for a 15% revenue rise in its UK portfolio during 2024. Smaller hosts plug into third-party APIs to match these capabilities, creating a data gap advantage for tech-enabled managers.

Restraints Impact Analysis

Restraint	(~) % Impact on CAGR Forecast	Geographic Relevance	Impact Timeline
Safety and security concerns	-0.8%	Global, pronounced for solo and female guests	Medium term (2-4 years)
Tightening local STR regulations	-1.1%	North America, Europe, select Asia-Pacific	Short term (≤ 2 years)
Rising cleaning and compliance costs	-0.6%	High-labour-cost markets worldwide	Medium term (2-4 years)
Hotel sector’s targeted loyalty discounts	-0.4%	North America and Europe	Short term (≤ 2 years)

Source: Mordor Intelligence

Safety and security concerns

High-profile incidents remind travellers that host-run properties lack uniform brand standards. The fragmented supply base complicates regulatory supervision, while many travel-insurance products exclude damage cover for vacation rentals. Platforms now require identity verification and install tamper-proof smart locks, yet inconsistent roll-outs perpetuate guest hesitation.

Tightening local STR regulations

Municipal bodies are imposing licence caps, principal-residence rules and zoning limits. Barcelona’s plan to phase out short-term rental licences by 2028 underscores the political risk that trims inventories and raises compliance costs. Platform engineering teams must refactor listings to surface only fully compliant homes, reducing available nights in high-demand cities.

Segment Analysis

By Property Type: sustained appetite for resort-style condominiums

Resort and condominium units are expanding at a 5.60% CAGR, surpassing traditional homes that still hold 42.70% of the vacation rental market share in 2024. The vacation rental market size for resort-style inventory is forecast to widen further as affluent travellers migrate from hotels toward full-service apartments with on-site gyms and pools.

Premiumisation deepens as smart locks, touchless thermostats and integrated media hubs become standard. Villas and cabins secure niche demand among privacy-seekers and rural tourists, but scale economics currently favour multi-unit complexes that amortise amenity investments across larger keys.

By Booking Mode: online portals widen revenue gap

Offline agents still controlled 51.20% of the vacation rental market share in 2024, yet online portals are forecast to grow at a 6.50% CAGR. Mobile usage climbs as 68% of travellers now complete an entire booking journey on a smartphone, favouring one-click checkout and in-app support.

Hosts are investing in direct-booking engines to preserve margin, but aggregated marketplaces remain discovery gateways thanks to SEO dominance and loyalty wallets that unlock instant refunds. Social media’s influence is unmistakable; 90% of Gen Z travellers say trip ideas start on TikTok or Instagram. Voice search adoption is next: early pilots by Booking Holdings show a 9% uplift in conversion when travellers can query accommodation options hands-free. To safeguard brand trust, portals now highlight verified reviews, mandatory identity checks, and flexible cancellation badges, dampening post-purchase anxiety and nudging indecisive browsers toward confirmation.

By Rental Duration: mid-term stays rewrite operating models

Short-term bookings dominated with 62.30% of vacation rental market share in 2024, but mid-term contracts spanning 8–30 nights are expanding at a 7.60% CAGR. Corporate “workcation” policies fuel demand for units with ergonomic desks, dual monitors and 100 Mbps fibre. Cities such as Bangkok recorded 18.8% year-over-year revenue growth for properties targeting these travellers.

For owners, lower cleaning frequency and decreased vacancy offset the slightly reduced nightly rate, lifting net yields by as much as 11 percentage points. Platforms have responded with calendar tools that auto-discount longer inquiries and integrate coworking passes. Municipal regulators, keen to discourage speculative flips, often grant preferential licences to stays above seven nights, inadvertently steering hosts toward the mid-term segment. This regulatory nudge, combined with remote-first employment cultures, positions mid-term inventory as the single largest source of incremental nights sold through 2030.

By Traveller Type: solo explorers and digital nomads take off

Families generated 45.60% of the vacation rental market share during 2024, whereas solo travellers and digital nomads are scaling fastest at a 7.90% CAGR. Parental demand centres on multi-bedroom safety-certified homes close to theme parks and beaches, sustaining high-season spikes.

Single guests prioritise location independence, reliable Wi-Fi, and community events; listings that bundle co-living gatherings achieve 12% longer average stays. Hassle-free self-check-in reassures female travellers concerned about late-night arrivals, while smart-lock audit trails reduce host liability. Loyalty programmes now experiment with wellness add-ons, yoga classes, and local language workshops to retain this increasingly experience-driven cohort. The blended effect is a wider demand spectrum that compels property managers to segment amenities and pricing with greater precision.

By Price Tier : mid-scale leads, luxury lifts margins

Mid-scale units accounted for 47.40% of vacation rental market share in 2024, yet luxury and premium properties are expanding at a 6.30% CAGR. Affluent households gravitate toward private pools, cinema rooms and chef services, underpinning a 73% spike in demand for rentals priced above USD 1,000 per night since 2019.

Operators upsell airport transfers, yacht charters, and personalised excursions, boosting ancillary revenue by up to 22%. Sustainability credentials matter: solar panels and grey-water recycling often feature in listing descriptions aimed at high-income but eco-conscious travellers. Budget stock, although slower growing, benefits from cash-strapped millennials who still prefer homes over economy hotels, preserving stable off-peak occupancy. Closing the value gap, mid-scale hosts adopt dynamic pricing dashboards that harvest 3%–5% incremental RevPAR, ensuring this bracket remains the foundation for consistent cash flow across seasons.

Geography Analysis

North America commands 36.50% of 2024 revenue, reflecting a mature but regulation-strained environment. Inventory caps in New York and Los Angeles suppress listing growth, but suburban and drive-to destinations gain share as domestic leisure trips remain sticky. AI pricing tools and smart-device automation improve cost control for professional managers in Orlando and Scottsdale.

Asia-Pacific is the growth engine with an 8.90% CAGR to 2030. The Pacific Asia Travel Association projects international arrivals to reach 813.7 million by 2027, fuelling room-night demand across Japan, Indonesia, and India ^{[3]Pacific Asia Travel Association, “Asia Pacific Visitor Forecasts 2024-2027,” pata.org}. Middle-class expansion, supported by Mastercard’s consumer-expenditure forecasts, channels spending into domestic long-weekend breaks and outbound group tours ^{[4]Mastercard Economics Institute, “Travel Industry Trends 2025,” mastercard.com}. Governments from Thailand to Malaysia now issue digital-nomad visas that stimulate mid-term bookings and diversify seasonal revenue.

Europe remains structurally important yet highly fragmented. Municipal crack-downs restrict city-core supply, pushing growth to rural wine routes and coastal eco-villages backed by European Union sustainability grants. Hosts retrofit energy-efficient HVAC and install solar panels to comply with upcoming carbon-reporting directives, positioning green features as a rate premium rather than a cost burden.

Competitive Landscape

Market structure is moderately fragmented: the five largest operators capture about 35% of gross bookings. Airbnb retains brand primacy but Booking Holdings and Expedia Group leverage metasearch traffic to narrow the gap. Cross-listing APIs allow hosts to syndicate inventory effortlessly, intensifying price competition and accelerating response times.

Professional management platforms pursue scale via mergers. Casago’s May 2025 purchase of Vacasa for USD 128.6 million created a 40,000-unit portfolio with unified revenue-management software and a shared housekeeping workforce. Guesty added USD 130 million of growth capital in 2024 to broaden its property-tech stack into 80 countries.

Strategic alliances flourish. Mastercard and select operators run joint marketing campaigns that bundle cardholder perks with instant booking credits. Telecommunications firms in Korea and Japan supply discounted fibre to hosts in exchange for in-unit branding. These moves underscore that technology integrations, regulatory compliance capacity and financing heft are now core differentiators in the vacation rental market.

Vacation Rental Industry Leaders

Airbnb Inc.
Booking Holdings, Inc.
Expedia Group, Inc.
Vacasa LLC
Sonder Holdings Inc.
*Disclaimer: Major Players sorted in no particular order

Vacation Rental Market Concentration — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

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Recent Industry Developments

May 2025: Casago completed its acquisition of Vacasa for USD 128.6 million, creating a management platform spanning 40,000 North American properties Vacasa.
April 2025: Booking.com partnered with Maldives to widen listing depth, while HomeToGo launched five localized portals to improve price discovery Rental Scale-Up.
April 2025: Garnett Station Partners introduced Stayterra, a premium management collection targeting high-end U.S. destinations.
February 2025: OYO announced the India launch of its European vacation-rental brand DanCenter to diversify domestic supply.

Table of Contents for Vacation Rental Industry Report

1. INTRODUCTION

1.1 Market Definition and Study Assumptions
1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

4.1 Market Overview
4.2 Market Drivers
- 4.2.1 Mainstream rise of online booking platforms
- 4.2.2 Growing millennial and Gen-Z travel spending
- 4.2.3 Expansion of mid-term workcation demand
- 4.2.4 Professionalisation of property management
- 4.2.5 AI-driven dynamic pricing adoption
- 4.2.6 Regulatory incentives for rural tourism
4.3 Market Restraints
- 4.3.1 Safety and security concerns
- 4.3.2 Tightening local STR regulations
- 4.3.3 Rising cleaning and compliance costs
- 4.3.4 Hotel sector's targeted loyalty discounts
4.4 Value / Supply-Chain Analysis
4.5 Evaluation of Critical Regulatory Framework
4.6 Impact Assessment of Key Stakeholders
4.7 Technological Outlook
4.8 Porter's Five Forces Analysis
- 4.8.1 Bargaining Power of Suppliers
- 4.8.2 Bargaining Power of Consumers
- 4.8.3 Threat of New Entrants
- 4.8.4 Threat of Substitutes
- 4.8.5 Intensity of Competitive Rivalry
4.9 Impact of Macro-economic Factors

5. MARKET SIZE AND GROWTH FORECASTS (VALUE)

5.1 By Property Type
- 5.1.1 Homes
- 5.1.2 Apartments
- 5.1.3 Resort / Condominium
- 5.1.4 Villas
- 5.1.5 Cabins / Cottages
- 5.1.6 Others
5.2 By Booking Mode
- 5.2.1 Online Platforms
- 5.2.2 Direct-to-Owner Websites
- 5.2.3 Offline / Travel Agent
5.3 By Rental Duration
- 5.3.1 Short-Term (<7 nights)
- 5.3.2 Mid-Term (8-30 nights)
- 5.3.3 Long-Term (>30 nights)
5.4 By Traveller Type
- 5.4.1 Families
- 5.4.2 Couples
- 5.4.3 Solo / Digital Nomads
- 5.4.4 Business Travellers
- 5.4.5 Groups (Friends, Events)
5.5 By Price Tier
- 5.5.1 Budget
- 5.5.2 Mid-scale
- 5.5.3 Luxury / Premium
5.6 By Geography
- 5.6.1 North America
- 5.6.1.1 United States
- 5.6.1.2 Canada
- 5.6.1.3 Mexico
- 5.6.2 South America
- 5.6.2.1 Brazil
- 5.6.2.2 Argentina
- 5.6.2.3 Rest of South America
- 5.6.3 Europe
- 5.6.3.1 Germany
- 5.6.3.2 United Kingdom
- 5.6.3.3 France
- 5.6.3.4 Italy
- 5.6.3.5 Spain
- 5.6.3.6 Russia
- 5.6.3.7 Rest of Europe
- 5.6.4 Asia-Pacific
- 5.6.4.1 China
- 5.6.4.2 Japan
- 5.6.4.3 India
- 5.6.4.4 South Korea
- 5.6.4.5 Australia and New Zealand
- 5.6.4.6 Rest of Asia-Pacific
- 5.6.5 Middle East and Africa
- 5.6.5.1 Middle East
- 5.6.5.1.1 Saudi Arabia
- 5.6.5.1.2 United Arab Emirates
- 5.6.5.1.3 Turkey
- 5.6.5.1.4 Rest of Middle East
- 5.6.5.2 Africa
- 5.6.5.2.1 South Africa
- 5.6.5.2.2 Nigeria
- 5.6.5.2.3 Egypt
- 5.6.5.2.4 Rest of Africa

6. COMPETITIVE LANDSCAPE

6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)
- 6.4.1 Airbnb, Inc.
- 6.4.2 Vrbo (Expedia Group, Inc.)
- 6.4.3 Booking Holdings Inc.
- 6.4.4 TripAdvisor, Inc.
- 6.4.5 Expedia Group, Inc.
- 6.4.6 Vacasa LLC
- 6.4.7 Sonder Holdings Inc.
- 6.4.8 Wyndham Destinations, Inc.
- 6.4.9 MakeMyTrip Limited
- 6.4.10 Oravel Stays Private Limited (OYO)
- 6.4.11 9flats.com Pte Ltd.
- 6.4.12 Hotelplan Holding AG
- 6.4.13 NOVASOL A/S
- 6.4.14 Interhome AG
- 6.4.15 Evolve Vacation Rental Network, Inc.
- 6.4.16 TUI AG (Holiday Homes)
- 6.4.17 TurnKey Vacation Rentals, Inc.
- 6.4.18 Agoda Company Pte. Ltd.
- 6.4.19 Trip.com Group Limited (Homestay)
- 6.4.20 Stayz Pty Ltd.

7. MARKET OPPORTUNITIES AND FUTURE TRENDS

7.1 White-space and Unmet-need Assessment

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Global Vacation Rental Market Report Scope

Vacation rentals are privately owned properties leased to travelers for short-term stays, primarily for leisure or vacation purposes. Typically fully furnished and equipped with traveler-centric amenities, these rentals present a viable alternative to conventional hotel accommodations.

The study tracks the revenue accrued through the sale of the vacation rental market by various players across the globe. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The study further analyses the overall impact of COVID-19 aftereffects and other macroeconomic factors on the market. The report’s scope encompasses market sizing and forecasts for the various market segments.

The vacation rental market is segmented by booking type (home, apartments, resort/condominium, others), booking mode (online and offline), and geography (North America, Europe, Asia Pacific, Middle East & Africa, and Latin America). The market sizes and forecasts regarding value (USD) for all the above segments are provided.

By Property Type	Homes
	Apartments
	Resort / Condominium
	Villas
	Cabins / Cottages
	Others
By Booking Mode	Online Platforms
	Direct-to-Owner Websites
	Offline / Travel Agent
By Rental Duration	Short-Term (<7 nights)
	Mid-Term (8-30 nights)
	Long-Term (>30 nights)
By Traveller Type	Families
	Couples
	Solo / Digital Nomads
	Business Travellers
	Groups (Friends, Events)
By Price Tier	Budget
	Mid-scale
	Luxury / Premium

By Geography	North America	United States
		Canada
		Mexico

	South America	Brazil
		Argentina
		Rest of South America

	Europe	Germany
		United Kingdom
		France
		Italy
		Spain
		Russia
		Rest of Europe

	Asia-Pacific	China
		Japan
		India
		South Korea
		Australia and New Zealand
		Rest of Asia-Pacific

	Middle East and Africa	Middle East	Saudi Arabia
			United Arab Emirates
			Turkey
			Rest of Middle East

		Africa	South Africa
			Nigeria
			Egypt
			Rest of Africa

By Property Type

Homes

Apartments

Resort / Condominium

Villas

Cabins / Cottages

Others

By Booking Mode

Online Platforms

Direct-to-Owner Websites

Offline / Travel Agent

By Rental Duration

Short-Term (<7 nights)

Mid-Term (8-30 nights)

Long-Term (>30 nights)

By Traveller Type

Families

Couples

Solo / Digital Nomads

Business Travellers

Groups (Friends, Events)

By Price Tier

Budget

Mid-scale

Luxury / Premium

By Geography

North America	United States
	Canada
	Mexico
South America	Brazil
	Argentina
	Rest of South America
Europe	Germany
	United Kingdom
	France
	Italy
	Spain
	Russia
	Rest of Europe
Asia-Pacific	China
	Japan
	India
	South Korea
	Australia and New Zealand
	Rest of Asia-Pacific

Middle East and Africa	Middle East	Saudi Arabia
		United Arab Emirates
		Turkey
		Rest of Middle East

	Africa	South Africa
		Nigeria
		Egypt
		Rest of Africa

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Key Questions Answered in the Report

What is the current size of the vacation rental market?

The vacation rental market is worth USD 104.62 billion in 2025 and is forecast to grow to USD 131.16 billion by 2030.

Which region is expanding fastest for vacation rentals?

Asia-Pacific leads with an 8.90% CAGR through 2030 due to rebounding international arrivals and supportive digital-nomad policies.

Why are mid-term stays important?

Stays of 8–30 nights are growing at 7.60% CAGR as remote work and bleisure trends lengthen average trip duration and boost total booking value.

How are regulations affecting the market?

Cities in North America and Europe impose stricter short-term rental licences and zoning rules, limiting supply and raising compliance costs.

What technologies influence host revenue?

AI-powered dynamic pricing, smart-home automation and direct-booking engines help hosts increase occupancy, streamline operations and enhance guest experience.

Is luxury inventory outperforming?

Yes, luxury and premium homes record 6.30% CAGR due to affluent travellers seeking privacy, space and concierge-style amenities not available in traditional hotels.