Market Summary

The global Vacation Rental market size was valued at USD 78.2 billion in 2025 and is projected to reach USD 150.2 billion by 2033, growing at a CAGR of 8.40% from 2026 to 2033. Increasing demand for flexible lodging options, growing digital booking ecosystems, and more international travel activity all contribute to the market's CAGR growth. Urbanization, distant work patterns, and rising spending on leisure and experience travel in both established and emerging nations all contribute to growth..

Market Size & Forecast

• 2025 Market Size: USD 78.2 Billion
• 2033 Projected Market Size: USD 150.2 Billion
• CAGR (2026-2033): 8.40%
• North America: Largest Market in 2026
• Asia Pacific: Fastest Growing Market

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Key Market Trends Analysis

• In North America, due to the region's high travel frequency established level of online booking penetration, and growing demand for apartments and vacation homes, exceptional growth rate. The region's top performer is the United States.
• Due to increased middle-class population, urbanization, and discretionary spending, the Asia Pacific region becomes profitable. The need for Hotel Quick Booking is fueled by domestic travel in China and India as well as the trend of mobile bookings.
• Apartments are the most dominant segment in accommodations as more and more travelers look for cost-effective and more flexible accommodation options involving longer stays. City break visitors, businesspeople, as well as digital nomads find the apartment segment most appealing as compared to traditional accommodation offerings.
• The homes business remains on a growing path because of rising demand for group travel, and also families and privacy-focused accommodation. The segment can appreciate the experiential tourism movement, a culture of remote work, and consumer acceptance of short-term rental markets.

So, The market includes various types of lodging, such as apartments, houses, resorts, and other lodging, offered through both online and offline channels. The market caters to various forms of travelers, ranging from leisure travelers, business travelers, families, and long-stay visitors, who travel domestically as well as internationally. Market developments are intricately linked with consumer behavior, as travelers are increasing their demand for flexibility, customization, and value-for-money when considering overnight stays. Digital distribution platforms have dramatically altered the way in which bookings are made, and immediate booking, variable pricing, and expanded inventory are possible.

Growth is further driven by macroeconomic trends such as an increase in disposable income, urbanization, and investment in tourism infrastructure. Although the dominant form in booking is through the internet, there are still other channels in use, such as in the case of luxury, business, and customized travel segments. In short, the industry is quite resilient and poised for long-term growth.

Vacation Rental Market Segmentation

By Accommodation

• Apartments

Apartments are rapidly becoming the accommodation of choice for travelers who want flexibility, privacy, and a budget-friendly option, especially when staying for longer periods of time. They appeal to city-bound travelers, businesspeople, and even families seeking home-like accommodations in the best city locations.

• Homes

Homes support large groups, family travelers who require a more spacious environment, or individuals needing a sense of living locally. This business segment takes advantage of the increasing demand for vacation rentals, the work-from-anywhere culture, and experiential travel.

• Resorts

Resorts are still a popular choice, particularly for the luxury and leisure markets that seek out all-inclusive resorts. High-end vacation costs in the coastal and island regions, destination weddings, and wellness tourism are the main sources of demand. Others This category includes hostels, guest homes, serviced lodging, and boutique lodging. It primarily targets budget-conscious tourists, lone travelers, and niche groups looking for unique lodging.

• Others

Hostels, guesthouses, serviced lodgings, and boutique stays fall under this category. Budget-conscious tourists, lone travelers, and specialized audiences looking for unusual or themed hotel options are its key target markets.

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By Booking Mode

• Offline

Offline booking remains relevant for premium travel, corporate reservations, and customized itineraries. For complex travel and high-value stays, travel agencies and direct hotel bookings remain trusted.

• Online

It dominates due to the convenience of online booking, real-time price comparison, and immediate confirmation. Growth will be pinned by mobile penetration, digital payment adoption, and expansions in online travel platforms across the globe.

Regional Insights

The North America market, including countries such as the United States of America, Canada, and Mexico, has established itself as a mature and premium segment with significant domestic travel activity and widespread adoption of digital technologies and hotel bookings. The United States marks a significant contributor to this regional performance in this segment with well established hotels such as apartments/homes and hotels for booking purposes.

Europe, which also includes Germany, United Kingdom, France, Spain, Italy, and Rest of Europe, experiences heavy intra-European travel and cultural tourism. Apartments and alternative accommodations are strong in this region, and both online and offline booking are present because of traditional methods in some regions.

Asia Pacific, comprising Japan, China, Australia and New Zealand, South Korea, India, and the Rest of Asia Pacific, is the fastest-growing market. With the increasing disposal incomes and the emergence of the middle class in the Asia Pacific countries with mobile booking behavior, market growth is enhanced. South America, led by Brazil and Argentina, continues its steady growth, thanks in part to the rise of leisure tourism and advancements in digital infrastructure. Apartments and home adoption are rising, especially in tourism-oriented and urban regions.The Middle East & Africa, which includes Saudi Arabia, the UAE, South Africa, and the Rest of MEA, exhibits robust demands for resorts as well as luxury hotels. Tourism investments and luxury travels drive growth.

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Recent Development News

• January 2026, Expedia Group has rolled out better vacation rental distribution and new technologies for Vrbo partners such as AI-powered guest reviews and performance milestones to help improve host performance and visibility in the marketplace effective early 2026

(Source: https://www.expediagroup.com/investors/news-and-events/news/default.aspx

• In June 2025, com augments its travel offerings extensively with the addition of a significant 28% increase in tours and activities and experiences (TAE) since late 2024, outperforming its peers in the market.

(Source:https://in.investing.com/news/analyst-ratings/bookingcom-gains-ground-in-tours-market-outpacing-rivals

Key Vacation Rental Company Insights

Booking Holdings Inc. emerges as a major player in the international hotel booking industry owing to the presence of a diverse range of brands in the organization such as Booking.com, Priceline, Agoda, and Kayak. The presence of a strong digital platform strategy along with a strong ability to process a wide range of data and an extensive portfolio of hotels globally for apartments, homes, and hotels acts favorably for the organization. Furthermore, the strong presence of the organization in the hotel booking industry is bolstered due to a strong brand trust position along with strong penetration in the Americas, Europe, and the Asia Pacific.

Key Vacation Rental Companies:

• Booking Holdings Inc.
• Airbnb, Inc.
• Expedia Group, Inc.
• Marriott International, Inc.
• Hilton Worldwide Holdings Inc.
• Accor S.A.
• InterContinental Hotels Group PLC
• com Group Limited
• OYO Hotels & Homes
• Hyatt Hotels Corporation
• Wyndham Hotels & Resorts, Inc.
• Radisson Hotel Group
• MakeMyTrip Limited
• Agoda Company Pte. Ltd.
• Trivago N.V.

Global Vacation Rental Market Report Segmentation

By Accommodation

• Apartments
• Homes
• Resorts
• Others

By Booking Mode

• Offline
• Online

Regional Outlook

• North America
  • United States
  • Canada
  • Mexico
• Europe
  • Germany
  • United Kingdom
  • France
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • Australia & New Zealand
  • South Korea
  • India
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • United Arab Emirates
  • South Africa
  • Rest of the Middle East & Africa