Vacation Rental Market Size, Share, and Trends 2026 to 2035
Vacation Rental Market (By Accommodation: Apartments, Homes, Resorts, Others; By Booking Mode: Offline, Online) - Global Industry Analysis, Size, Trends, Leading Companies, Regional Outlook, and Forecast 2026 to 2035
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What is the Vacation Rental Market Size?
The global vacation rental market size is calculated at USD 97.85 billion in 2025 and is predicted to increase from USD 101.37 billion in 2026 to approximately USD 138.74 billion by 2035, expanding at a CAGR of 3.55% from 2026 to 2035.
Vacation Rental Market Key Takeaways
- Europe led the global vacation rental market with the largest market share of 34% in 2025.
- By accommodation, the homes segment has held the biggest market share of 49% in 2025.
- By accommodation, the resorts segment is expected to grow at a remarkable CAGR during the forecast period.
- By booking mode, the offline segment captured the highest market share of 70% in 2025.
- By booking mode, the online segment is expected to expand at the fastest CAGR over the projected period.
Market Overview
The growing number of people that go on vacations is continuously rising. This has been a big boost for the travel and tourism industry and by extension for the vacation rental market. People have different expectations and budgets when it comes to vacations and the vacation rental stay can offer different options that suitable for different needs. These rentals are bigger and can accommodate more guests together comfortably which suits people with big families or large travelling groups. It allows customers to feel more at ease with a cozy and homely vibe while offering benefits like cooked or option of cooking meals, pick up and drop services, laundry services etc.
The vacation rental market is witnessing steady growth, driven by the expanding tourism industry and the increasing preference for experiential travel, where travelers prioritize quality time with family members. Demand is further supported by the availability of cost-effective accommodation options, whether for short staycations or extended vacations. The emergence of platform-based models such as Airbnb has significantly transformed the market by offering affordable lodging alternatives that provide a home-like experience. According to a global survey conducted by the Tourism Department of India, approximately 30,000 vacation rentals are used for leisure travel.
Role of Artificial Intelligence in Tourism Industry
There have been many technological advancements in the last few years including artificial intelligence (AI). The rising number of people using ecommerce platforms for vacation rentals booking has skyrocketed. Inclusion of AI technology on these platforms enhances the consumer experience. AI and machine learning (ML) can analyze data and offer more personalized options for the customers to choose from and analyze evolving demands of consumers. AI technology can help property owners to optimize their pricing, marketing and even customize experience, which will improve the guest experience at their property. Such applications of AI technology will help the vacation rental market expand further in the forecast period.
Vacation Rental Market Growth Factors
- The rapid growth in the travel and tourism sector across the globe is a major contributor in the growth of the global vacation rental market.
- The expenditure of the consumers in tourism activities is growing rapidly. The demand for the vacation rentals among the travelers is rising rapidly owing to the conveniences and low costs associated with it.
- The millennials are expected to drive the market growth in during the forecast period. As per Airbnb, by the year 2025, the younger generations and the millennials are expected to constitute around 75% of the traveler population.
- Rising awareness regarding the alternatives to hotels and lodges during tourism is contributing towards the market growth.
- The tourism activities are increasing rapidly owing to the various factors such as sports, wellness, and adventure activities undertaken by the consumers.
- Social media and internet platforms are exponentially contributing in the promotions of the various tourist destinations, hotels, and restaurants among the millennials, which drives the growth of the global vacation rental market.
Market Outlook
- Industry Growth Overview: The vacation rental market is growing due to rising domestic and international tourism, increasing demand for flexible and experiential stays, and the expansion of short-term rental platforms like Airbnb and Vrbo. Additionally, the popularity of remote work stays, family vacations, and luxury accommodations is further fueling market growth.
- Global Expansion: The market is expanding across the developed and emerging economies. North America and Europe continue to dominate the market due to high travel frequency and strong digital adoption, while regions including Asia Pacific, Latin America, the Middle East & Africa offer immense opportunities due to the expansion of the travel & tourism sector.
- Major Investors: Major investors in the market include platforms like Airbnb and Vrbo, real estate investment firms, and hospitality companies, who provide capital, technology, and property listings to expand market reach. Their contributions enhance accessibility, improve booking platforms, and support the development of premium and diverse rental accommodations, driving overall market growth.
Market Scope
| Report Coverage | Details |
| Market Size by 2035 | USD 134.26 Billion |
| Market Size in 2025 | USD 97.85 Billion |
| Market Size in 2026 | USD 101.37 Billion |
| Growth Rate from 2026 to 2035 | CAGR of 3.55% |
| Largest Market | Europe |
| Fastest Growing Market | Asia Pacific |
| Base Year | 2025 |
| Forecast Period | 2026 to 2035 |
| Segments Covered | Accommodation, Booking Mode, and Region |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Market Dynamics
Drivers
Growing preference of wellness and fitness vacations
The changing and hectic life of people around the world is inspiring them to focus on health and fitness more. The rising demand for vacation trips that focused on some sort of fitness and wellness are rapid increasing, especially amongst the urban population. Travelers are choosing vacation spots that include hiking, trekking, biking etc., activities. Even wellness vacation is a market trend. People are opting for peaceful activities like yoga, meditation. The spending on these activities is given a preference by customers, making vacation rentals an attractive and economical choice. This shift in preference is driving the growth of vacation rental market.
Opportunity
Strategies by key players
The market is moderately fragmented with the presence of several local companies. These market players are striving to gain higher market share by adopting strategies, such as investments, partnerships, and acquisitions & mergers. Companies are also spending on the development of improved products. Moreover, they are also focusing on maintaining competitive pricing. The various developmental strategies like new product launches, acquisitions, and partnerships fosters market growth and offers lucrative growth opportunities to the market players.
Segment Insights
Accommodation Insights
The homes segment accounted for around 48% of the market share in 2024. The comfort, convenience, safety, spacious, and access to amenities are the major features provided by the homes vacation rental that had resulted in the increased adoption among the travelers. Usually, the availability of homes on rent especially in the remote and rural destination at a cheap price is driving the segment's growth.
The resorts segment is estimated to be the fastest-growing segment during the forecast period. The increasing preferences of the millennials to opt for premium and luxury services and hotels is expected to drive the growth of this segment. The resorts provide function rooms, club houses, swimming pools, and various premium services that attracts the attention of the millennials and the generation.
Booking Mode Insights
The offline segment accounted for over 70% of the market share in 2025. The baby boomers and the family travelers have increased preferences for the offline booking mode. Moreover, the wide spread penetration of the various offline ticket providers and travel planners have huge contributions in the growth of this segment.
The online is estimated to be the most opportunistic segment during the forecast period. The rapidly surging number of internet users coupled rising adoption of smartphones across the globe is a major factors that propels the growth of the online booking mode. The increasing popularity of the online ticket platforms are projected to play a crucial role in the market growth.
Regional Insights
Europe Vacation Rental Market Size and Growth 2026 to 2035
The Europe vacation rental market size was exhibited at USD 32.11 billion in 2025 and is projected to be worth around USD 48.06 billion by 2035, growing at a CAGR of 3.75% from 2026 to 2035.
Europe dominated the market by acquiring a market share of around 36.14% in 2025. Europe is characterized by the presence of top tourism operators. Moreover, increased tourism activities in Europe owing to its huge popularity of destinations among the tourists and the presence of developed infrastructure has exponentially contributed towards the market growth. Countries like Germany, UK, and Spain are expected to have significant market shares in the European market.
France is a major contributor to the vacation rental market. The high tourist preference for the destination and the presence of a diverse landscape like the Riviera and French Alps help in the market growth. The presence of a variety of rental options, including chic apartments in cities to charming cottages in the countryside, drives the market growth.
The growing preference for experiential travel increases demand for the vacation rental system. The rise in vacation rentals and accessible, well-developed infrastructure like amenities & transportation networks helps in the market growth. The availability of a wide range of rental properties like chateaux, apartments, houses, and villas drives the overall market growth.
Spain is growing in the vacation rental market. The growing popularity as a tourist destination and the growing demand for vacation rentals in cities like Valencia, Madrid, and Barcelona help the growth of the market. The growing consumer preference for vacation rentals and the rise in online booking platforms drive the market growth. The presence of a larger pool of potential travelers and a focus on sustainable tourism increases demand for vacation rentals. The rising disposable income and growing exploration of new destinations support the overall growth of the market.
What Makes Asia Pacific the Most Opportunistic Region in the Market?
Asia Pacific is estimated to be the most opportunistic market during the forecast period. Asia Pacific is among the most popular destinations for the travelers. The growing dependency of several economies on tourism and the rising government investments on the development of sophisticated infrastructure for attracting tourists is a major driver of the market. Moreover, the government of countries such as India, Indonesia, China, Vietnam, Australia, and Thailand are focusing on developing tourism sector in order to generate revenues, employment, and to boost the overall development of the region through tourism. Furthermore, the increasing awareness among the travelers regarding the availability of the vacation rentals is fueling the demand. Hence, the Asia Pacific is anticipated to be the fastest-growing market.
China is a key contributor to the vacation rental market. The rising disposable incomes and large population increase demand for domestic tourism, fueling the adoption of vacation rental services. The growth in vacation rental platforms and the high availability of online travel agencies help in the market growth. The growing cultural preference, group accommodations, and family travel fuel demand for vacation rentals. Some companies offer various services like high-quality accommodation and personalised services drive the overall growth of the market.
India is growing in the vacation rentals market. The rise in disposable incomes and the growing middle class increases demand for international & domestic travel increases demand for vacation rentals. The presence of major tourist destinations like Kerala, Himachal Pradesh, Goa, and Rajasthan helps in the market growth. The presence of a limited number of hotels increases demand for vacation rentals like guest houses, homestays, and villas. The presence of online platforms like Brikitt and Airbnb drives the overall market growth.
What Potentiates the Vacation Rental Market in North America?
The market in North America is potentiated mainly due to the high travel frequency, high disposable incomes, and the widespread adoption of online rental platforms in the region. A mature tourism ecosystem and a well-established short-term rental infrastructure are the major factors driving the market in North America. Additionally, the expansion of family vacations and travel to popular destinations further fuels market growth.
The U.S. is the major contributor to the market in North America. This is mainly due to strong domestic tourism, popular destinations like Florida, California, New York, and Hawaii, and the availability of major platforms like Airbnb and Vrbo. Rising demand for family vacations, remote work stays, and experiential travel continues to drive market growth.
How is the Opportunistic Rise of the Middle East & Africa in the Market?
The Middle East & Africa (MEA) offers significant opportunities in the vacation rental market due to increasing investments in tourism infrastructure, growing adoption of digital booking platforms, and rising domestic and international travel. Additionally, expanding hospitality services, government initiatives to boost travel, and the growing demand for experiential and luxury stays are creating new avenues for market growth in the region.
The UAE dominates the Middle East & Africa vacation rental market, driven by high tourist inflows to cities like Dubai and Abu Dhabi, supported by strong regulatory frameworks and premium luxury rental offerings. Countries like Morocco and Egypt are major players in the market, owing to the growth of vacation rentals due to the rise in international tourism and travel.
What Drives the Market in Latin America?
The vacation rental market in Latin America is driven by the rise in international tourism and the increasing penetration of digital booking platforms. Increasing adoption of short-term rental platforms and rising demand for affordable and flexible accommodation also contribute to the market. Brazil is the major contributor to the Latin American market, driven by strong domestic tourism and international travel to destinations like Rio de Janeiro, São Paulo, and coastal regions.
Vacation Rental Market Companies
- 9flats
- Airbnb
- Booking.com
- Expedia
- Hotelplan Management AG
- MAKEMYTRIP PVT. LTD.
- NOVASOL
- OYO Hotels & Homes
- TripAdvisor LLC
- Wyndham Destinations
- Trivago
- Agoda Company Pte. Ltd.
- Yatra Online Private Limited
- Hotwire, Inc.
- HotelsCombined
- Hotels.com
- BookingBuddy.com, Inc.
- priceline.com LLC
- KAYAK
Recent Developments
- In April 2025, Garnett Station launched Stayterra to scale luxury vacation rentals in the United States. The company's focus is on combining premium service with local expertise, long-standing community relationships, exceptional service, and memorable guest experience.
(Source: shorttermrentalz.com) - In September 2024, Stayflexi announced their integration with Google. This will enable Stayflexi to get direct bookings for vacation rentals through Google.
- In October 2024, an Indian vacation rental startup, Elivaas secured a funding of $5 million. This funding will help the company in their expansion plans.
Segments Covered in the Report
By Accommodation
- Apartments
- Homes
- Resorts
- Others
By Booking Mode
- Offline
- Online
By Region
- North America
- Latin America
- Europe
- Asia-pacific
- Middle and East Africa