Vacation Rental Market To Reach $150.2 Billion by 2033

The report “Vacation Rental Market By Accommodation (Apartments, Homes, Resorts), By Booking Mode (Offline, Online)” is expected to reach USD 150.2 billion by 2033, registering a CAGR of 8.40% from 2026 to 2033, according to a new report by Transpire Insight.

Booking for accommodations worldwide is in a state of continuous development in line with the changing nature of travelers’ behavior in favor of flexibility, technology-enabled accessibility, and experiential stays. Various types of accommodations such as apartments, homes, resorts, and others are supported in the market through offline as well as online booking options. Increase in travel patterns remains the primary factor promoting the growth of the market. Demand trends are being increasingly driven by emerging passenger expectations, with emphasis on convenience, customization, and value for money. Apartments and private residences are becoming accepted as conventional, albeit increased, alternatives for families, corporate, and extended stay passengers. Resorts, on the other hand, are still fueled by upmarket leisure travel and wellness-related tourism. Online transformation continues to play an important role in the market development process. Online booking systems have ensured simplicity in searching and comparing, and now mobile-based booking, dynamic pricing, and AI-based recommendations are further adding to the engagement and conversion rate of customers.

Moving ahead, the industry is likely to grow with an increasing number of people having rising disposable income, tourism infrastructure, and the adaptation of digital payment systems. Although the digital medium leads in terms of volume, the offline medium is still an important part of the competition quotient, keeping a balanced scenario in the industry.

The Aprtments segment is projected to witness the highest CAGR in the Vacation Rental market during the forecast period.

According to Transpire Insight Apartments stand out as the most prominent type of accommodations in the market due to the feasibility and adaptability that apartments offer to potential customers. However, with the trend of urbanization and the growth of the concept of remote and hybrid work environments, the need for apartments for lodging purposes has considerably increased, especially in the cities. Ultimately, customers tend to prefer apartments due to the home-like atmosphere they offer to the guests.

The sector enjoys good platform visibility, standardized quality, and a scalable number of rooms in various regions. Apartments offer customers looking for value for money both leisure and business conveniences without spending too much on a stay. Being one of the segments whose customers have been adopting changing travel behavior, apartments are predicted to be a foundation sector in the future.

The Online segment is projected to witness the highest CAGR in the Vacation Rental market during the forecast period.

Online booking is currently the most popular form of booking, with convenience, speed, and instant access to prices and availability being the primary driving factors. The widespread technology adoption, including smart phone technology, has enabled consumers to access hotel booking services on an online platform.

Enhanced analytics capabilities, recommendations, and the inclusion of customer reviews have further increased the appeal of online channels. The trend of making booking decisions on the go, especially among young customers, is propelling online penetration further. With increased offerings in the accommodations category and better experience on the platforms, online booking is likely to sustain its leading position in the world.

The North America region is projected to witness the highest CAGR in the Vacation Rental market during the forecast period.

North America is a mature and high-value market in the worldwide hotel booking market. The domestic travel demand, disposable income, and digital infrastructure in the region create favorable conditions for a stable market. The United States drives the growth in this region due to the widespread use of internet booking tools and a range of accommodation options.

Apartments and private homes are gaining well in urban and peripheral areas, whereas resorts are sustaining demand in non-work destinations. The region is driven by healthy competition from major platforms, transparency of pricing, and gradual changes in customer expectations in housing industry to make North America an example of innovation and performance.

Key Players

The top 15 players in the Vacation Rental market include Booking Holdings Inc., Airbnb, Inc., Expedia Group, Inc., Marriott International, Inc., Hilton Worldwide Holdings Inc., Accor S.A., InterContinental Hotels Group PLC, Trip.com Group Limited, OYO Hotels & Homes, Hyatt Hotels Corporation, Wyndham Hotels & Resorts, Inc., Radisson Hotel Group, MakeMyTrip Limited, Agoda Company Pte. Ltd., and Trivago N.V.

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