Short-term Rental Market Size to Surpass USD 228.9 Billion by 2030

Global Short-term Rental Market

As stated in our extensive report, the Global Short-term Rental Market accounted for 100.8 Billion in 2022 and is projected to reach a value of USD 228.9 Billion by 2030.

The Short-term Rental market has seen significant growth in recent years, driven by the rise of online booking platforms such as Airbnb & HomeAway. These platforms have enabled homeowners to rent out their properties for short stays, providing travelers an alternative to hotels and traditional vacation rentals. The market has also been buoyed by the growth of the sharing economy and the growing trend of travelers seeking unique and authentic experiences. Despite challenges such as regulatory issues and competition from hotels, the Short-term Rental market is expected to continue growing. In response to the COVID-19 pandemic, the Short-term Rental market has shifted towards domestic travel and longer-term stays, with travelers seeking properties that offer privacy and safety. This trend is expected to continue even as travel restrictions begin to lift.

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Factors Influencing Global Short-term Rental Market Growth

The growth of the global Short-term Rental market can be attributable to the following:

1. Increasing popularity: Short-term Rental have become increasingly popular as more travelers seek unique and authentic travel experiences. The rise of platforms such as Airbnb and HomeAway has made Short-term Rental more accessible and affordable than traditional hotels.
2. Flexible accommodation: Short-term Rental offer more flexibility than traditional hotels regarding space, location, and amenities. This makes them particularly attractive to families & groups of friends who want to stay together in one place.
3. Local regulations: Local regulations can significantly impact the Short-term Rental market. Some cities have imposed strict regulations on Short-term Rental in response to concerns over housing affordability and community impacts.
4. Economic conditions: Economic conditions can influence the demand for Short-term Rental. In economic uncertainty, travelers may be more likely to choose lower-cost accommodation options like Short-term Rental.
5. Technological advancements: Technological advancements have made it easier for property owners to manage and promote Short-term Rental. This has led to a growth in the number of Short-term Rental properties available, increasing competition within the market.
6. Safety concerns: Safety concerns can significantly impact the Short-term Rental market. Travelers may be more hesitant to book Short-term Rental in areas perceived as unsafe or where there have been reports of crime or other safety issues.
7. Consumer preferences: Consumer preferences can also influence the Short-term Rental market. For example, travelers may be more likely to book Short-term Rental that offer unique experiences or are located in popular tourist destinations.

North America Region to Take Over the Market

The North America Short-term Rental market is a strong-growing industry that allows property owners to rent out their homes, apartments, and other accommodations on a short-term basis. This market is largely dominated by companies like Airbnb, VRBO, and HomeAway, which provide a platform for property owners to advertise their rentals and for travelers to find accommodations suited to their needs. The industry has faced some regulatory challenges in recent years, particularly in major cities where policymakers are concerned about the impact of Short-term Rental on the availability and affordability of housing. Nonetheless, the market continues growing as more travelers seek unique and affordable accommodations.

Conclusion

The Short-term Rental market is a growing sector in the tourism industry, offering travelers unique and affordable lodging options. With the rise of online platforms such as Airbnb and Vrbo, homeowners and property managers can easily list and rent their properties. At the same time, travelers can access a broader range of accommodations than traditional hotels.

The well-known players of the Global Short-term Rental market include 9flats.com Pte. Ltd. (Singapore), Airbnb Inc. (U.S.), Booking Holdings Inc. (U.S.), Expedia Group Inc. (U.S.), Hotelplan Management AG (Switzerland), MakeMyTrip Pvt. Ltd. (India), NOVASOL A/S (Denmark) and others.