New York, Dec. 11, 2024 (GLOBE NEWSWIRE) -- Market Overview
Global Short Term Rental Market is forecasted to reach USD 131.4 billion by the end of 2024 and grow to USD 341.9 billion in 2033, with a CAGR of 11.2%.
Short-term rentals involve temporary leasing of a residential property, usually for a few days or several weeks. These are commonly availed by tourists, vacationers, or business persons who would want temporary accommodation. These dwellings are usually listed on websites like Airbnb and VRBO and can be offered by their owners on a flexible rental basis.
The attractions of short-term stay rentals come from convenience, a homelike atmosphere, and costs that are often lower than those of hotels. Rising tourism, trends in remote work, and demand for more personalized travel experiences have triggered the growth in this market.
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The US Short-Term Rental Market
The US Short Term Rental Market is projected to reach USD 42.1 billion by the end of 2024 and grow substantially to an expected USD 103.5 billion market by 2033 at an anticipated CAGR of 10.5%.
This is because the growth of the US short-term rental market is being fueled by sought-after travel experiences with unique accommodations. Thus, due to personalized and local experiences, demand for short-term rentals has increased in hotels.
There is a trend for luxury and eco-friendly properties, as travelers give more emphasis to sustainability and comfort. Technology-driven solutions-automated check-ins, smart home devices, and data-driven pricing strategies-continue to change how hosts and guests interact.
Important Insights
- Market Growth: It is expected that the global Short Term Rental Market is estimated to grow by USD 341.9 billion , growing at a CAGR of 11.2%.
- Accommodation Analysis: Home segment is expected to dominate the market with a revenue share of 47.2% by 2024.
- Mode of Booking Analysis: The online segment is likely to lead the market with a share of 65.3% in revenue by 2024.
- Regional Analysis: North America is predicted to dominate the global short-term rental market and is projected to have a 38.1% market share by 2024.
Latest Trends
- Rise of Extended Stays: Growth in remote work leads to longer stays in short-term rentals, catering to flexible living arrangements.
- Sustainability Focus: Hosts are adopting eco-friendly practices and certifications to attract environmentally conscious guests.
Competitive Landscape
- Highly Competitive and Fragmented: Numerous large and small players operate domestically and internationally, with global brands like Airbnb, Booking.com, Vrbo, and Sonder leading.
- Enhanced Service Offerings: Major platforms are introducing flexible booking, improved interfaces, and integrated experiences to stay competitive.
- Local and Regional Players: Regional platforms and local property management companies add to the diversity and competition within the market.
Some of the prominent market players:
- 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.
- Others
- Other Key Players
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Global Short-Term Rental Market Scope
| Report Highlights | Details |
| Market Size (2023) | USD 131.4 Bn |
| Forecast Value (2032) | USD 341.9 Bn |
| CAGR (2023-2032) | 11.2% |
| The US Market Size (2024) | USD 42.1 Bn |
| Leading Region in terms of Revenue Share | North America |
| Percentage of Revenue Share by Leading Region | 38.1% |
| Historical Data | 2018 - 2023 |
| Forecast Data | 2025 - 2033 |
| Base Year | 2023 |
| Estimate Year | 2024 |
| Segments Covered | By Accommodation, By Booking Mode |
| Regional Coverage | North America, Europe, Asia Pacific, Latin America, Middle East & Africa (MEA) |
Market Analysis
The home segment dominates the short-term rental market, accounting for 47.2% of the revenue share in 2024, due to its diverse categories of houses, villas, flats, and condos that range from different tastes and preferences of travelers. It allows visitors to immerse themselves in the local culture and lifestyle, enabling them to travel like locals, which differs greatly from hotel accommodations.
Accommodations with homestays are personalized, convenient, and even economical compared to the traditional hotel stay. People travel in preference for home-based rentals; they offer this feeling of "living like a local" with things such as kitchens and private spaces.
Short-Term Rental Market Segmentation
By Accommodation
- Home
- Resort/Condominium
- Apartments
- Others
By Booking Mode
- Online/Platform-based
- Offline
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Drivers
- Popularity of Corporate Travel, Adventure Travel, and Staycations: Increasing demand for personalized and flexible accommodations from diverse traveler preferences.
- Homeowners Drawn to Short-Term Rentals for Revenue: The income potential for homeowners renting properties through platforms like Airbnb boosts market growth.
Restraints
- Regulatory Restrictions: Strict regulations in various cities limit rental days, require licenses, or ban short-term rentals, hindering market growth.
- Increased Competition: Rising competition from platforms like Airbnb and new entrants lowers profitability for hosts, especially in high-demand areas.
Opportunities
- Gen Z and Millennials Favor Internet Booking: Preference for online booking and unique stays drives demand for short-term rentals, especially among younger travelers.
- New Entrants and Specialty Platforms: Specialty platforms targeting specific demographics expand rental options, fostering market growth.
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Regional Analysis
North America is expected to dominate in the global short-term rental market with a revenue share of 38.1% in 2024. Some of the major global short-term rental markets like Airbnb and HomeAway, are present in this region. Also, cultural shifts in North America have embraced the sharing economy, leading to widespread acceptance of renting personal properties for short stays, which has contributed to the market's growth.
This region is the hub for technological innovation which also supported this expansion. The region’s expertise in fast internet allows seamless short-term rental services, with modern digital platforms and smartphone apps making it easier for guests to book stays and hosts to list properties.
By Region
North America
- The U.S.
- Canada
Europe
- Germany
- The U.K.
- France
- Italy
- Russia
- Spain
- Benelux
- Nordic
- Rest of Europe
Asia-Pacific
- China
- Japan
- South Korea
- India
- ANZ
- ASEAN
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Rest of Latin America
Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Israel
- Egypt
- Rest of MEA
Recent Developments
- September 2024: Zumper partnered with Airbnb to market Airbnb-friendly rental communities directly on its platform, enhancing accessibility for renters to find and sublet living spaces part-time.
- August 2022: Zumper launched its short-term rental product, raising USD 178 million in funding, including a USD 30 million Series D extension, to expand housing flexibility in response to consumer demand.
- December 2022: Booking Holdings Inc. acquired Getaroom for USD 1.2 billion, aiming to enhance the brand's pipeline and expand its presence in the short-term rental market.
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