The global short-term rental market is poised for exceptional expansion, with a projected Compound Annual Growth Rate (CAGR) of approximately 20% between 2023 and 2030. According to recent market analysis, the valuation of the short-term rental sector is expected to surge to the US$15 billion mark by the close of 2030.
A Growing Phenomenon
The short-term rental market encompasses the temporary rental of residences such as apartments, homes, and vacation properties for brief periods, catering to the rising demand for unique and authentic travel experiences. This sector has witnessed exponential growth, driven by factors such as transformational travel and the preference for vacation rental homes among modern travelers.
Key Market Highlights
- 20% CAGR Growth: The global short-term rental market is set to grow at a substantial CAGR of 20% from 2023 to 2030, propelled by the increasing popularity of transformational travel.
- Vacation Homes on the Rise: The demand for short-term rental properties, especially vacation homes, is on the rise, with travelers, particularly millennials and Gen Z, seeking authentic and unique experiences.
- Online Booking Dominance: Online booking platforms, exemplified by companies like Airbnb, Vrbo, and Booking.com, are leading the market, offering confidence, convenience, and secure payment options for travelers.
- Regional Leadership: North America is anticipated to maintain its dominance in the short-term rental market, while the Asia Pacific region is expected to witness the most substantial growth by 2030.
Driving Factors
- Rise in Vacation Home Rentals: The growing preference for vacation rental homes, offering more space, privacy, and amenities compared to traditional hotels, is a major driver of market growth.
- Transformational Travel: The trend of wellness vacations that focus on personal transformation and local experiences is boosting the demand for short-term rentals.
Key Segments and Opportunities
- Home Rentals: Homes, ranging from cottages to luxurious villas, dominate the market, offering a wide array of choices for travelers seeking distinct experiences.
- Online Booking: Online booking platforms are experiencing strong demand due to their convenience and cost-effectiveness, catering to the preferences of Generation X and baby boomers.
Regional Outlook
- North America: North America continues to lead the short-term rental market, driven by the increasing preference for vacation rentals over traditional hotels.
- Asia Pacific: The Asia Pacific region is poised for rapid growth, with a focus on cultural experiences and the emergence of vacation rental management services.
Competitive Landscape
Leading players in the short-term rental market include 9flats.com PTE Ltd., NOVASOL A/S, Airbnb, Inc., Booking Holdings, Inc., Hotelplan Management AG, Expedia Group, Inc., MakeMyTrip Pvt. Ltd., Oravel Stays Pvt. Ltd., Wyndham Destinations, Inc., and TripAdvisor, Inc.
Global Short-term Rental Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2030 - (By Accommodation Type Coverage, By Booking Mode Coverage, By Geographic Coverage and Leading Companies):
https://www.fairfieldmarketresearch.com/report/short-term-rental-market
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