The global short-term vacation rental market was valued at USD 134.51 billion in 2024 and is projected to reach USD 256.31 billion by 2030, growing at a CAGR of 11.4% from 2025 to 2030. The market has witnessed significant growth in recent years, fueled by shifting consumer preferences, technological advancements, and changing travel behaviors.
A rising demand for personalized, flexible, and unique travel experiences has significantly increased the popularity of short-term rentals. These accommodations offer tailored options that appeal to a broad range of travelers. The expansion of digital booking platforms such as Airbnb, Vrbo, and Booking.com has made short-term rentals more accessible and user-friendly, further accelerating market growth. For example, Airbnb reported over 393 million guest arrivals in 2023, reflecting the surge in global consumer demand for vacation rentals.
Growing tourist traffic has also spurred innovation in marketing and distribution strategies. Leading platforms frequently collaborate with local tourism boards and governments to promote lesser-known destinations. A notable example includes Airbnb’s partnership with the Italian government, which led to a 25% increase in rural bookings in 2023, by promoting under-touristed areas. These efforts not only help disperse tourism beyond traditional hotspots but also expand the reach of the short-term rental market geographically.
Key Market Insights:
- North America led the global market with a 35.03% share in 2024, supported by strong domestic and international travel activity, especially in the post-pandemic era.
- By Accommodation Type, homes held the largest share at 41.78% in 2024, driven by demand for spacious and personalized lodging experiences.
- By Booking Mode, online/platform-based bookings accounted for 72.67% of the market in 2024, underlining a clear shift toward digital convenience and accessible travel planning.
Order a free sample PDF of the Short-term Vacation Rental Market Intelligence Study, published by Grand View Research.
Market Size & Forecast
- 2024 Market Size: USD 134.51 Billion
- 2030 Projected Market Size: USD 256.31 Billion
- CAGR (2025-2030): 11.4%
- North America: Largest market in 2024
Key Companies & Market Share Insights
The competitive landscape of the short-term vacation rental market is highly dynamic, featuring the strong presence of global leaders alongside a growing number of regional and niche players. Major platforms like Airbnb, Vrbo, and Booking.com maintain a dominant position by capitalizing on their extensive user bases, advanced technologies, and global networks. These companies offer a broad spectrum of properties—from budget-friendly stays to premium luxury homes—and use AI-driven algorithms to deliver personalized booking experiences. Their competitive advantage is further reinforced by significant marketing budgets, strategic partnerships, and the ability to scale rapidly across geographies.
At the same time, the market is witnessing intensifying competition from local and specialized platforms targeting specific customer segments. These include platforms focused on luxury rentals, sustainable stays, or extended accommodations, which attract travelers looking for unique, curated experiences. By offering tailored services and distinctive property selections, these niche platforms are carving out a space within the broader market.
Furthermore, the rise of property management companies and independent hosts marketing their listings directly has added to the market’s fragmentation. These players contribute to a more diverse ecosystem, offering travelers a wider range of options and driving competition through flexibility, local expertise, and personalized service offerings.
Key Players
- com PTE Ltd.
- Airbnb, Inc.
- Booking Holdings Inc.
- Expedia Group, Inc.
- Hotelplan Management AG
- MakeMyTrip Pvt. Ltd.
- NOVASOL A/S
- Oravel Stays Private Limited
- Tripadvisor, Inc.
- Wyndham Destinations, Inc.
Explore Horizon Databook – The world's most expansive market intelligence platform developed by Grand View Research.
Conclusion
Global short-term vacation rental market is experiencing substantial growth, driven by shifting consumer preferences toward more personalized and flexible travel options. The expansion is also fueled by the rise of remote work and the widespread use of digital booking platforms, which have made properties more accessible. The market is also influenced by increasing tourist arrivals and the implementation of new regulatory frameworks. Homes remain a significant type of accommodation, and a key regional market is North America.
