| Study Period | 2020 - 2030 |
| Market Size (2025) | USD 18.01 Billion |
| Market Size (2030) | USD 34.00 Billion |
| CAGR (2025 - 2030) | 13.55 % |
| Fastest Growing Market | North America |
| Largest Market | Europe |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Short Term Vacation Rental Market Analysis
The Short Term Vacation Rental Market size is estimated at USD 18.01 billion in 2025, and is expected to reach USD 34.00 billion by 2030, at a CAGR of 13.55% during the forecast period (2025-2030).
In recent years, the short-term vacation rental market has seen significant expansion, driven by a rising demand for flexible and personalized lodging. These rentals provide travelers with a homier atmosphere, often boasting more space, privacy, and amenities than traditional hotels. The sector attracts a diverse clientele, from tourists and business travelers to remote workers, all seeking both short and extended stays.
Key drivers of this growth include a surge in global travel, a consumer shift towards unique and immersive experiences, and the emergence of digital platforms that streamline the booking and management of rentals. With the rising demand for alternative accommodations, property management has become increasingly professionalized, ensuring guests enjoy reliable, high-quality service.
However, the market grapples with challenges, notably regulatory restrictions in numerous cities. These regulations often aim to tackle concerns about housing availability and the influence of short-term rentals on local neighborhoods. Additionally, economic fluctuations and changing travel trends can sway demand, rendering the market sensitive to broader financial shifts.
Yet, despite these hurdles, the short-term vacation rental market is set for continued growth, buoyed by evolving traveler preferences, technological advancements, and an increasing allure for flexible, experience-centric travel options.
Short Term Vacation Rental Market Trends
Rising Demand for Personalized Stays Fuels Growth in Vacation Rentals Market
The vacation rentals market has seen steady growth in recent years, largely driven by changing traveler preferences and advancements in technology. The shift toward online booking platforms has made it easier for consumers to find and book a broad variety of accommodations, from budget-friendly options to luxury properties. This convenience, mixed with the flexibility of choosing short-term or extended stays, has attracted more travelers to vacation rentals over traditional hotel options.
Another key driver has been the increasing demand for private, comfortable, and personalized lodging experiences. In the wake of the pandemic, many travelers sought safer alternatives to crowded hotels, leading to a steady rise in demand for vacation rentals that offer more privacy and home-like environments. This preference has persisted, even as global travel resumed.
As more people prioritize unique and flexible travel experiences, the vacation rental market continues to expand. Its growing popularity reflects the changing dynamics of the travel industry, where consumers seek accommodations that offer more freedom, comfort, and individuality. This trend is expected to fuel further growth in the coming years, solidifying vacation rentals as a major segment in the lodging market.
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Global Trends and Regional Growth in the Short-Term Vacation Rental Market
The short-term vacation rental market shows varying levels of growth and market share across different regions. North America and Europe lead with a high market share, driven by the popularity of flexible, short-term stays and widespread use of online booking platforms. In these regions, travelers prefer private accommodations for both leisure and business trips, making short-term vacation rentals a strong alternative to hotels.
Oceania, Asia, and Western Asia hold a medium market share in the short-term vacation rental market. In Oceania, outdoor tourism, particularly in Australia and New Zealand, drives demand for short-term rentals. Asia is witnessing moderate growth, with destinations like Japan and Thailand gaining traction, though cultural preferences for hotels limit the market’s expansion. Western Asia, including countries like the UAE and Turkey, is also seeing an increase in short-term vacation rentals, particularly in urban centers and tourist hotspots.
South America, Africa, Russia, and Greenland maintain a low market share in the short-term vacation rental market. South America’s growth is slow due to economic and infrastructure challenges, although demand is rising in countries like Brazil. Africa’s market is still emerging, with limited adoption outside of tourist-heavy regions. Russia and Greenland have minimal short-term rental activity, as traditional accommodations remain the preferred option.
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Short Term Vacation Rental Industry Overview
The short-term vacation rental market is highly fragmented, with many players competing for market share.
Leading this competitive landscape is 9flats.com PTE Ltd., which offers a wide range of unique rental properties across various destinations. Following closely is Airbnb, Inc., which dominates the market with its extensive listings and strong brand recognition. Booking Holdings Inc. utilizes its broad hotel network to provide a diverse range of selection of vacation rentals, appealing to various traveler preferences. Expedia Group, Inc. integrates vacation rentals into its wider travel offerings, attracting a broad audience. Lastly, Hotelplan Management AG is known for its curated varieties of vacation rentals that cater to family and group travelers.
Short Term Vacation Rental Market Leaders
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9flats.com PTE Ltd
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Airbnb, Inc
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Booking Holdings Inc
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Expedia Group, Inc
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Hotelplan Management AG
- *Disclaimer: Major Players sorted in no particular order
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Short Term Vacation Rental Market News
- May 2024: Airbnb partnered with ChargePoint to meet the growing demand for EV chargers among guests, offering US hosts discounts on chargers and installation services. This initiative comes as searches for EV chargers increased by over 80% from 2022 to 2023, reflecting the rising popularity of electric vehicles.
- May 2024: Airbnb partnered with the United Spinal Association to launch the Airbnb Entrepreneurship Academy, aimed at empowering individuals with mobility needs to host on the platform. This initiative comes as global searches for accessible accommodations have increased by 40%. The Academy will provide tailored guidance, fostering economic opportunities for the mobility community.
Short Term Vacation Rental Industry Segmentation
The short-term vacation rental market is defined as a segment of the hospitality industry where private residences, such as homes, apartments, or individual rooms, are rented to travelers for brief periods, typically less than 30 days.
The Short-Term Vacation Rental Market is segmented by accommodation type, price range, booking channel, and region. By accommodation type, the market is segmented into apartments, villas, cottages, houses, cabins, and condos. By price range, the market is segmented into budget, mid-range, and luxury. By booking channel, the market is segmented into online travel agencies, direct bookings (via host websites), and offline channels. By region, the market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. The report offers market size and forecasts in terms of value (USD) for all the above segments.
| By Accommodation Type | Apartments |
| Villas | |
| Cottages | |
| Houses | |
| Cabins | |
| Condos | |
| By Price Range | Budget |
| Mid-Range | |
| Luxury | |
| By Booking Channel | Online Travel Agencies |
| Direct Bookings ( Via Host Websites) | |
| Offline Channels | |
| By Region | North America |
| Europe | |
| Asia-Pacific | |
| Latin America | |
| Middle East & Africa |
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Short Term Vacation Rental Market Research FAQs
How big is the Short Term Vacation Rental Market?
The Short Term Vacation Rental Market size is expected to reach USD 18.01 billion in 2025 and grow at a CAGR of 13.55% to reach USD 34.00 billion by 2030.
What is the current Short Term Vacation Rental Market size?
In 2025, the Short Term Vacation Rental Market size is expected to reach USD 18.01 billion.
Who are the key players in Short Term Vacation Rental Market?
9flats.com PTE Ltd, Airbnb, Inc, Booking Holdings Inc, Expedia Group, Inc and Hotelplan Management AG are the major companies operating in the Short Term Vacation Rental Market.
Which is the fastest growing region in Short Term Vacation Rental Market?
North America is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Short Term Vacation Rental Market?
In 2025, the Europe accounts for the largest market share in Short Term Vacation Rental Market.
What years does this Short Term Vacation Rental Market cover, and what was the market size in 2024?
In 2024, the Short Term Vacation Rental Market size was estimated at USD 15.57 billion. The report covers the Short Term Vacation Rental Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Short Term Vacation Rental Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Short Term Vacation Rental Industry Report
Statistics for the 2025 Short Term Vacation Rental market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Short Term Vacation Rental analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
