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Global Vacation Rental Market 2017-2021

About Vacation Rental

A vacation rental is an alternative lodging option, which involves the short-term rental of myriad properties, such as apartments, farm stays, private homes, cabins, beach houses, villas, cottages, or chalets to travelers and tourists. These dwelling units are offered on a nightly, weekly, or a monthly basis although the dominant practice in the market is renting it out weekly. They are also commonly referred to as holiday lettings, tourist rentals, bed and breakfast, homestays, and gites, among others. An essential attribute attached to a vacation rental is that it provides an authentic travel experience as they are commonly located within the community and provide the opportunity to take in the local flair and culture. The patterns and trends in the market have changed over time, and vacation rentals are increasingly becoming a part of the global temporary accommodation market.

Technavio’s analysts forecast the global vacation rental market to grow at a CAGR of 7.07% during the period 2017-2021.

Covered in this report

The report covers the present scenario and the growth prospects of the global vacation rental market for 2017-2021. To calculate the market size, the report considers the revenue generated from vacation rentals.

The market is divided into the following segments based on geography:

  • APAC
  • Europe
  • MEA
  • Latin America
  • North America
Technavio's report, Global Vacation Rental Market 2017-2021, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.

Key vendors
  • Airbnb
  • HomeAway
  • TripAdvisor
  • Wimdu
  • Wyndham Worldwide
  • World Travel Holdings
Other prominent vendors
  • At Home Abroad
  • OnlineVacationRentals.com
  • priceline.com
  • Rentalo
  • Roomorama
  • Villas International
Market driver
  • Increased investment in vacation rental homes
  • For a full, detailed list, view our report
Market challenge
  • Low conversion rate of lead to transaction
  • For a full, detailed list, view our report
Market trend
  • Proliferation of vacation rental business services
  • For a full, detailed list, view our report
Key questions answered in this report
  • What will the market size be in 2021 and what will the growth rate be?
  • What are the key market trends?
  • What is driving this market?
  • What are the challenges to market growth?
  • Who are the key vendors in this market space?
  • What are the market opportunities and threats faced by the key vendors?
  • What are the strengths and weaknesses of the key vendors?


Press Release

Technavio Announces the Publication of its Research Report – Global Vacation Rental Market 2017-2021

Technavio recognizes the following companies as the key players in the global vacation rental market: Airbnb, HomeAway, TripAdvisor, Wimdu, 9flats, Wyndham Worldwide, and World Travel Holdings

Other Prominent Vendors in the market are: At Home Abroad, OnlineVacationRentals.com, priceline.com, Rentalo, Roomorama, and Villas International

Commenting on the report, an analyst from Technavio’s team said: “Instant bookings are a new norm in the market - a result of the developing need for instant gratification among consumers worldwide. Online vacation rental sites are upgrading their technology to enable customers to book properties in real time, without having to wait for confirmation. This value addition will improve the convenience of booking a vacation rental and improve customer satisfaction. Instant bookings have become a key differentiator among major vacation rental players. One of the major reasons for the major vacation rental player, Airbnb, to introduce instant bookings was the effort to combat discrimination while booking on its online platform. Instant bookings made it more difficult for the hosts to discriminate the guests based on gender identity, race, sex, disability, sexual orientation, religion, national origin, or age. This policy was in direct response to issues and incidents of discrimination that were reported on the online platform.”

According to the report, vacation rentals offer saving opportunities in terms of rent and cheaper food as most vacation rentals are equipped with a full kitchen. The average cost of a vacation rental is $1,500/week or $200/night for a 3BHK. In addition, they also provide more value in terms of space and privacy. Also, certain vacation rental businesses allow customers to leverage their business relationships with shops, activity providers, restaurants, and tour companies and benefit from the upgrades and coupons. The fact that hotel room rates are rising (in the US, hotel room tariffs recorded a growth of 5% in 2014, over 2013) has pushed the adoption of vacation rentals further, particularly among affluent travelers.

Further, the report states that the global vacation rental market is largely fragmented. It deals with diverse customers set across different geographies and thus, has to cater to various seasons and preferences. In addition, as the suppliers of vacation rentals are also equally diverse, there is a possibility of a high level of inconsistency in quality and service. The discrepancy in pictures and the actual vacation rental home, disregard for basic standards of living, and inefficient services are common complaints among vacation rental users. This not also puts vacation rental companies at risk, it can also result in a negative consumer confidence for vacation rentals. While companies, such as Airbnb, do have a system set up to fix such cases, it ruins the vacation experience of the guests and can affect the company's revenues in the future. Therefore, its competitive advantage over hotels is largely reduced. Owners must work on streamlining their operations while abiding by a set of standard rules. There is a need for more regulation and professionalism to create a satisfactory customer experience.

Companies Mentioned

Airbnb, HomeAway, TripAdvisor, Wimdu, 9flats, Wyndham Worldwide, World Travel Holdings, At Home Abroad, OnlineVacationRentals.com, priceline.com, Rentalo, Roomorama, Villas International.

  • Executive summary
  • Scope of the report
    • Table Standard conversion rates used in the report
  • Market research methodology
    • Research methodology
    • Economic indicators
  • Introduction
    • Key market highlights
      • Table Vacation rental market ecosystem
  • Market landscape
    • Global hotels and resorts market
    • Global vacation rental market
      • Table Reasons for choosing a vacation rental home 2016
      • Table Reasons that deter choosing a vacation rental home 2016
      • Table Insight into the vacation rental customer 2016
      • Table Activities preferred at vacation rentals by rank 2016
      • Table Global vacation rental market
      • Table Funding in various vacation rental companies
      • Table Acquisition of various vacation rental companies
      • Table Global vacation rental market 2016-2021 ($ billions)
    • Five forces analysis
      • Table Five forces analysis
  • Market segmentation by management
    • Global vacation rental market by management
      • Table Vacation rental market by management 2016
  • Geographical segmentation
    • Global vacation rental market by geography
      • Table International tourist arrivals 2014-2015
      • Table Global vacation rental market share by geography 2016 (%)
    • Vacation rental market in Europe
      • Table Growth in tourist arrivals in various parts of Europe 2015 (%)
      • Table Short-term rental market in Europe (millions)
      • Table Vacation rental market in Europe 2016-2021 ($ billions)
      • Table High and low rental price in few European countries for one guest per day
    • Vacation rental market in North America
      • Table Vacation rental facts in the US 2016
      • Table Vacation rental market in North America 2016-2021 ($ billions)
    • Vacation rental market in APAC
      • Table Vacation rental market in APAC 2016-2021 ($ billions)
    • Vacation rental market in Latin America
      • Table Vacation rental market in Latin America 2016-2021 ($ billions)
    • Vacation rental market in MEA
      • Table Vacation rental market in MEA 2015-2021 ($ billions)
      • Table Global vacation rental market by geography 2016-2021 ($ billions)
  • Market drivers
    • Rise of sharing economy
    • Expansion of online distribution
      • Table Global mode of booking vacation rental 2010-2013
      • Table Global online share of vacation rental booking 2007-2014
    • Increased investment in vacation rental homes
      • Table Use of vacation rental income
    • Substantial saving opportunities
      • Table Savings done by traveler during vacation rental
  • Impact of drivers
    • Table Impact of drivers
  • Market challenges
    • Lack of proper regulations
    • Low conversion rate of lead to transaction
      • Table Source of reservations in 2014
    • Inconsistency in quality
    • Increase in short-term rentals affecting the long-term rentals
      • Table Increasing share of host revenue from units booked as private short-term rentals 2010 and 2015
    • Fraudulent vacation rental homes
  • Impact of drivers and challenges
    • Table Impact of drivers and challenges
  • Market trends
    • Increased professionalism
    • Proliferation of vacation rental business services
    • New entrants from related industries
    • Improved booking process
    • Technological advancements
  • Vendor landscape
    • Competitive scenario
    • Market vendor analysis
      • Table Global vacation rental market by vendor segmentation 2016
    • Airbnb
    • HomeAway
    • TripAdvisor
    • Wimdu
    • 9flats
    • Wyndham Worldwide
    • World Travel Holdings
    • Other prominent vendors
  • Other prominent vendors
  • Appendix
    • List of abbreviations
  • Explore Technavio

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