The Global Vacation Rental Market is estimated to account for US$ 65,465.5 Mn in terms of value by the end of 2021. Vacation rental homes can be a great option for families and groups. They are large and spacious, with 2 to six bedrooms, full kitchens, and other conveniences. There is even a dishwasher and a washer/dryer in many rentals. It's a great way to have the convenience of home while being close to the action. Vacation Rental services have risen in popularity over the years. Companies such as Airbnb and VRBO provide an online platform for privately owned properties to be rented by vacationers. With a high demand for vacation homes, these sites are a great way to earn additional income.
Global Vacation Rental Market: Drivers
Increasing popularity of transformational and wellness trips after lockdown is expected to fuel growth of the global vacation rental market over the forecast period. The trend of transformational traveling is increasing all over the world for restoring balance and transform spirit, mind and body. As per the a blog released by Hospitality Net, typical holidays like sand, sun, sea, sightseeing, skiing and shopping will be high in demand in the coming time. Moreover, the inclination towards domestic travel as compared to international is expected to grow in the near future, which will propel growth of the domestic vacation rental business around the world. This in turn is expected to support growth of the global vacation rental market.
Global Vacation Rental Market: Opportunities
Increasing number of stakeholders engaged in the industry are focusing on sustainability in past few years, which is expected to create growth opportunities in the global vacation rental market over the forecast period. Due to unsustainable state of environment, and troubling scientific certitude, the number of stakeholders in the industry focusing on sustainability is increasing all over the world. Major players are investing significant resources and time for creating an environment-friendly accommodation in the face of high cost of short-term development and low return on investment. This is creating opportunities for front runners in the industry of tourism, in environmental and social issues creating new models for businesses, collaborative partnerships and corporate strategies.
Global Vacation Rental Market: Restraints
Unfavorable conditions caused by the Coivd-19 pandemic is anticipated to hamper growth of the global vacation rental market over the forecast period. The outbreak of coronavirus negatively impacted several industries. It affected more than 200 countries, due to which many countries imposed preventative measures such as nationwide lockdowns. As most of the countries closed down their borders to control the virus spread, the tourism industry was significantly impacted. International as well as domestic travel and tourism was banned during this period, in many countries. This further negatively impacted growth of the global vacation rental market.
Global Vacation Rental Market - Impact of Coronavirus (Covid-19) Pandemic:
The coronavirus outbreak in China spread across more than 100 countries around the world. It adversely impacted several industries. In order to control the virus spread, many countries imposed lockdown regulations under which various business were closed down. Traveling and tourism was closed down in many countries. Moreover, due to the virus outbreak, initially people were skeptical about traveling. Due to the disrupted tourism industry during the Covid-19 pandemic, the global vacation rental market was negatively impacted. As per the AirDNA data, weekly bookings during January to March 2020 were significantly declined. The number of bookings in Beijing declined by 96%, Seoul by 46%, Rome by 41% and Shanghai by 71%.
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Global Vacation Rental Market Key Takeaways:
The global vacation rental market was valued at US$ 65,465.5 Mn in 2021 and is forecast to reach a value of US$ 116,756.8 Mn by 2030 at a CAGR of 5.3% between 2022 and 2030.
Home segment held dominant position in the global vacation rental market in 2021, accounting for 47.5% share in terms of value, increasing approval and launch of new products is expected to propel growth of the segment during the forecast period.
Global Vacation Rental Market Trends:
Increasing travel connectivity along with rise in penetration of high-speed internet in Europe is expected to fuel growth of the global vacation rental market over the forecast period. Due to rise these factors, the most remote places in European regions have become more accessible for travelers. This further increases the need for exploring exotic, new and exciting locations in the regions, which in turn is driving the growth of vacation rental market in the region. Moreover, increasing number of vacation rentals in the regions, is also driving growth of the global market. The number of vacation rentals is highest in cities such as Paris, London, Madrid, Rome, Moscow, Barcelona, Saint Petersburg, Milano, Batumi and Lisbon.
The home accommodation segment is gaining traction in the market, which is likely to boost growth of the global vacation rental market over the forecast period. This is owing to increasing popularity of homes in travelers due to its various benefits such as access to amenities, space availability and safety. Moreover, the cost home accommodation in rural and travel destinations is low in many regions, which also supports growth of the segment. Thus, this trend is likely to continue in the market over the forecast period.
Global Vacation Rental Market: Competitive Landscape
9flats.com Pte Ltd., Expedia Group Inc., NOVASOL A/S, Booking Holdings Inc., MakeMyTrip Pvt. Ltd., Wyndham Destinations Inc., Tripadvisor Inc., Airbnb, Hotelplan Management AG, and Oravel Stays Pvt. Ltd.
Global Vacation Rental Market: Recent Developments
In December 2020, MakeMyTrip announced the launch of Special Bubble Holidays with company’s first scheduled in Goa, India. This traveling concepts focuses on providing safe and all-inclusive package to travelers in major destinations and it includes sanitized cabs, Covid-testing, charter flights and luxury stays.
In September 2020, Hotelplan Group revealed that the company has appointed a new CEO Laura Meyer, who is a member of the board of directors. This initiative of the company aims at providing important impetus for the further growth of the company.
