A vacation rental is a decorated condo, house, or actively managed luxury complexes that are leased out on a periodic basis to visitors as a substitute to lodging in a hotel.
The global Vacation Rental Software market is anticipated to increase at a 5.3% CAGR to reach value USD 119.0 billion in 2030
Covid-19 Impact & Market Status
Covid-19 has had a big impact on a lot of different businesses. As countries control travel, the vacation rental business has been particularly severely hit. The number of people crossing borders has substantially decreased. Countries including as France and Germany have lifted travel restrictions, but have since tightened them again as the number of persons affected has risen dramatically.
The good news is that tremendous progress has been made in researching and delivering a vaccine, but the upheaval is likely to last for some time. Travel has been hampered due of the Covid-19 pandemic. The vacation rental markets are facing a downturn as a result of global lockdown for a variety of time periods. According to AirDNA, weekly bookings dropped by 96 percent in Beijing, 71 percent in Shanghai, 46 percent in Seoul, and 41 percent in Rome between January and March.
The concept of vacation homes, as well as the costs associated with them, is out of reach for the bulk of the people, stifling the expansion of the vacation rental sector. Due to the rapid spread of the COVID-19 sickness over the world, tight travel restrictions were imposed, forcing people to stay at home for an indeterminate period of time. The vacation rental business suffered significant income losses as a result of this.
Tourism activities are expected to drop by more than 70% in 2020, according to the World Tourism Organization. From 2021, the quick speed of immunisation drives around the world is expected to accelerate the expansion of the vacation rental business. Furthermore, vengeance tourism is a popular issue that analysts predict will contribute considerably to the growth of the vacation rental sector in the coming years.
Due to the rapid spread of the COVID-19 sickness over the world, tight travel restrictions were imposed, forcing people to stay at home for an indeterminate period of time. The vacation rental business suffered significant income losses as a result of this. Tourism activities are expected to drop by more than 70% in 2020, according to the World Tourism Organization. From 2021, the quick speed of immunisation drives around the world is expected to accelerate the expansion of the vacation rental business. Furthermore, researchers anticipate that vengeance tourism would considerably drive the expansion of the vacation rental sector in the first few years following the COVID-19 epidemic.
The use of online and fast booking systems is becoming more common
The market is likely to be driven by the rising popularity and increasing presence of several online booking platforms that enable fast booking for locations. Instant ticket, hotel, restaurant, and travel ticket booking are among the primary policies that are predicted to drive the expansion of the vacation rental industry during the projection period, as are conveniences and zero cancellation fees.
Involved in the online booking system are the risks of fraud
There are a number of security vulnerabilities with online ticket buying that can result in financial losses for both customers and sellers. Unethical websites, bought reviews and fake websites may stifle the global vacation rental market's growth.
Market companies have employed a variety of growth tactics
Due to the presence of multiple large competitors, the global vacation rental market is highly fragmented. Furthermore, the diverse development techniques they employ have a significant impact on market growth. Marriott International, for example, launched Homes & Villas in April 2019, which provides 2,000 luxury homes across North America, Europe, and Latin America.
Analyses by Region
In 2019, Europe dominated the holiday rental industry, accounting for 35.9% of the total. This might be attributable to major tour operators and online tour operators catching up with the growing trend of glamping and rising expenditure on resort and condominium reservations. Over the projection period, Germany and the United Kingdom are expected to lead the market. The United Kingdom is expected to be the region's fastest-growing market.
In the United States, the term "vacation rental" is most widely used. For rentals of detached properties in warm climates in Europe, the terms villa rental or villa holiday are favored. Vacation rentals have long been a popular travel option in Europe and Canada, and they are growing in popularity worldwide.
Short-term rental farm stays, apartments, cabins, private homes, villas, beach houses, chalets, and cottages are examples of vacation rentals. Strategic collaborations are projected to be major drivers of growth in the vacation rental market over the forecast period.
Furthermore, the growing preference of clients for rapid bookings is expected to boost the vacation rental market's growth. Furthermore, the expansion of the tourism industry and the rise in the popularity of short-term rental homes are expected to slow the growth of the vacation rental market.
The severe government guidelines, on the other hand, are expected to stifle the expansion of the vacation rental business in the timeframe period. Furthermore, the growing acceptability of effective promotional tactics will create further potential prospects for the vacation rental sector to expand. Nevertheless, the rise in the corona virus pandemic epidemic, as well as the fake listing of flats, condos, and homes, may pose additional challenges to the vacation rental market's expansion in the near future.
This vacation rental market report details recent developments, trade regulations, import export analysis, production analysis, value chain optimization, market share, impact of domestic and localised market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geograpahy, and more.
9flats., Airbnb, Inc., Booking.com, Expedia, Inc., 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, K Global, North America, Europe, Asia-Pacific (APAC), Middle East and Africa (MEA), and South America market share data are all accessible separately. DBMR analysts are familiar with competitive advantages and give competitive analysis for each rival individually.
Latest Innovations in the Vacation Rental Market: a Snapshot
- Vacasa has seen a lot of dramatic and fast-paced changes. Cliff Johnson, Vacasa's co-founder, left the company in February 2018, shocking the vacation rental market. Vacasa stated in October 2018 that it has raised a $64 million Series B-2 round from current investors, increasing the company's total capital to $207.5 million (almost four times the amount raised in ResortQuest's IPO).
- With the changes at Expedia's network (which includes HomeAway and VRBO), Airbnb, Booking.com, and TripAdvisor, dozens of significant, market-leading property management firms have elected not to offer their inventory on these massive marketplaces. The decision is based on their companies' inability to effectively connect with consumers, set expectations, and manage the end-to-end guest experience for bookings made through these channels, not only on cost.
- In 2018, the world of short-term rentals in multi-family housing developments in cities became a power-play battleground. The figures are staggering: $135 million for Sonder, $62 million for Stay Alfred, rumours of a $75 million Airbnb investment in Lyric, Vacasa's purchase of Oasis, Expedia's purchase of Pillow and ApartmentJet, and Airbnb's purchase of urban PM Luckey Homes.
- Wyndham stated in February 2018 that it had sold its market-leading European vacation rental businesses to a subsidiary of private equity company Platinum Equity for $1.3 billion. Wyndham Worldwide was recently split into two publicly traded companies: Wyndham Hotel and Resorts (NYSE: WH) and Wyndham Destinations (NYSE: WYND), which encompasses timeshare and vacation rentals in North America.
Vacation Rental Software Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2030||USD 119.0 billion|
|Growth Rate||CAGR of 5.3 % during 2020-2030|
|Segment Covered||Accommodation Type, Booking Mode, Region.|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East and Africa|
|Key Players Profiled||9flats.com Pte Ltd., Airbnb Inc., Booking Holdings Inc., Expedia Group Inc., Hotelplan Holding AG, MakeMyTrip Pvt. Ltd., NOVASOL AS, Oravel Stays Pvt. Ltd., TripAdvisor Inc., Wyndham Destinations Inc.|
Key Segments of the Vacation Rental Market
- By Type:
- On Premises
- By Application:
- Large Companies
- Small and Medium Sized Companies
- By Region
- North America
- Latin America
- Asia Pacific
- Middle East & Africa