Expected to grow at 10.80% CAGR, the short-term vacation rental market transforms hospitality, driven by digital trends and millennial preferences.
The short-term vacation rental market is expected to expand at a CAGR of 10.80% through 2034. The market value is projected to increase from US$ 1,35,258.3 million in 2024 to US$ 3,77,191.2 million by 2034. The short-term vacation rental industry share was valued at US$ 1,21,416.8 million in 2023.
Emerging Trends in Short-term Vacation Rental Market
- ·The hospitality industry is transforming as online platforms are contributing to the increasing popularity of vacation rentals. Distinct accommodations, from apartments to villas, are offering personalized experiences and raising competition for traditional hotels.
- Surging family and group travel is providing opportunities for leading players. Digital nomads and millennials demonstrate a strong appeal for these accommodations due to immersive travel experiences.
Growing Trend of Short-term Vacation Rentals Among Millennials and Digital Nomads in India
The demand for short-term vacation rentals in India is expected to experience a CAGR of 15.70% through 2034. The leading factors for the industry’s growth are as follows:
- Consumers are increasingly requesting personalized options while planning their vacation trips. This is anticipated to positively influence the short-term vacation rental industry.
- Millennials and digital nomads find these accommodations highly appealing. This is because short-term vacation rentals offer flexible and indulging experiences, suited to their requirements.
- Property owners are leveraging their unused space and properties by putting them up on rentals. These rentals allow owners to generate passive income.
Growing Demand for Distinct Vacation Options in the United States
In the United States, the short-term vacation rental market is set to register a CAGR of 5.90% through 2034. The top contributors to market growth are as follows:
- A growing number of travelers, particularly millennials, are seeking new ways to explore new places and acquire distinct experiences.
- Emerging trend of glamping is favoring the demand for short-term vacation rentals.
Top Strategies of Leading Companies Operating in the Short-term Vacation Rental Market
Key players in the market are aiming for a higher volume of customers by adopting various strategies like expansion into new verticals. Additionally, players are focusing on diversification of their services to expand their market share.
Market leaders are reaching new markets by listing their properties in new countries, cities, and regions. This strategy is being propelled by the rising popularity of short-term vacation rentals as an alternative to conventional hotels.
New Developments Shaping the Short-term Vacation Rental Market
- In April 2023, Evolve showcased a seasonal analysis of the latest trends in vacation the rental sector during the winter of 2022-23. Insights and metrics offered by Evolve are valuable for owners of short-term rentals who want to maximize their property’s performance.
- Zumper, a privately owned rental marketplace, in March 2023, advertised the launch of Vacations by Zumper. It is a focused site with vacation rental listings as part of its broader focus on the short-term rental market. This development showcases Zumper’s commitment to expand its presence in the short-term rental sector.