The adoption of short-term rental platforms is expected to increase at a CAGR of 19.1% during the forecast period. The Short-Term Rental Platform market size is anticipated to rise from USD 4,503.2 million in 2022 to USD 25,829.9 million in 2032.
The short-term rental platform industry is extremely profitable and has been rapidly expanding in recent years, thanks to new integrated apps and software. Short-term rentals and their numerous benefits are becoming increasingly popular.
In response, the hotel industry has begun to innovate and adapt. Dozens, if not hundreds, of ancillary businesses, are springing up to provide hosts and guests with new services and ways to travel. The sector will continue to expand at a much faster rate than the traditional rental economy. Hotels and short-term accommodations will learn from one another as business models evolve. Ancillary industries will grow to fill the ecosystem, and employment will change as a result. Governments that plan ahead and adapt to these changes will reap significant economic benefits.
However, there are a number of security flaws in online ticket purchasing that can result in financial losses for both customers and sellers. Unethical websites purchased reviews, and fake websites may stifle the growth of the short-term rental platform market.
| Attribute | Details |
|---|---|
| Short-Term Rental Platform Market Estimated Size (2022) | USD 4,503.2 million |
| Short-Term Rental Platform Market CAGR (2022 to 2032) | 19.1% |
| Short-Term Rental Platform Market Forecasted Size (2032) | USD 25,829.9 million |
Third-party tools for streamlining hosting services are gaining popularity. The automation process includes dynamic pricing, chatbots, and smart home systems. The global short-term rental market is being transformed by new technology.
Despite the fact that millennials are the primary users of vacation rentals, Gen Z is quickly catching up. Gen Z is redefining modern travel, with the oldest members of this age group being 24.
Currently, the rate of growth in urban accommodations is altering the mix of short-term rental destinations. Cities around the world are quickly becoming hotspots for renters.
The influence of the internet and social media platforms is increasing consumer awareness of services and offerings. Key businesses are offering a variety of services, exotic destinations, and amenities, as well as services tailored specifically for female visitors, in order to gain market share. Short-term rental is becoming increasingly popular among the general public due to their low cost as well as a large amount of space and comfort they provide. The government's large investments in the development of connectivity and infrastructure, particularly in developing countries, are boosting the market growth in the short-term rental platform market.
The growing tourism industry and the increasing popularity of short-term rental properties are two key factors driving the global short-term rental platform market growth. The global increase in tourist numbers creates a high demand for vacation rental properties. Baby boomers have made significant contributions to the growth of the travel and tourism industry. The demand for short-term vacation rental properties is especially high. When properly marketed, these properties generate higher returns than long-term rental properties. Furthermore, the increased comfort and affordability offered by short-term rental properties will attract consumers to such spaces, which is expected to support market growth in the coming years.
Another important trend driving the growth of the global short-term rental platform market is the ability of online vacation rental sites and other channels to facilitate real-time bookings. This added value will make booking vacation rentals more convenient, resulting in higher customer satisfaction. The availability of instant booking options in the global vacation rental market has increased the degree of product or service differentiation.
Many current market vendors have invested in autoresponder technology to save time and money. This technology enables automated responses to inquiry emails and repetitive inquiries, resulting in a unique user experience that is expected to positively impact market growth during the forecast period.
With the advancement of technology, many rental providers have adopted an online mode of communication to reach out to customers. Furthermore, modern tech-savvy travelers can easily navigate through websites on online portals, compare prices and reviews, obtain information about vacation rentals, and choose vacation rental stay with additional offers.
According to the analysis, the hotel/hostel accommodation type accounts for more than 65.7% of the vacation rental market and is expected to remain high for the forecast tenure.
Travelers prefer home and hostel accommodations because they are more comfortable, private, convenient, and safe. Hotels are spacious and well-equipped, and they are available at reasonable prices in rural and remote areas. As a result, such features entice travelers to use vacation rentals in the tourism industry.
The number of individual visitors is expected to increase because the above traveler segment is mostly engaged in leisure, work, and study-related activities.
Middle and young-age travelers are enthusiastic travelers who travel frequently to explore and discover new places, both for leisure and for work. In addition, with rising tourism trends and an increase in resorts and amusement parks, there is an increase in participation from solo travelers. As a result, individual travelers will boost vacation rental market sales.
During the forecast period, North America is likely to hold a 24.6% share of the market. The USA is the leading country in rental services, and it is significantly contributing to the growth of North America's short-term rental platform share.
The short-term rental platform market in the USA has evolved through various stages and is now one of the leading markets in the hospitality industry. Aside from that, the USA is a developed market for resorts and condominiums. The rapid development of resorts and condominiums, such as spas, boats, private beaches, and yoga centers, and the inclusion of luxurious amenities, is enticing travelers to choose the short-term rental platform market.
Europe is distinguished by the presence of prominent tourism operators. Furthermore, growing tourism activities in Europe have significantly contributed to market expansion due to the high attractiveness of tourist destinations and the presence of sophisticated infrastructure. Germany, the United Kingdom, and Spain are expected to have significant market shares in Europe.
During the forecast period, Asia Pacific is expected to be a promising market. Asia Pacific is one of the world's most popular tourist destinations. The growing reliance of many economies on tourism, as well as rising government spending on sophisticated infrastructure to attract tourists, is a major driver of the market. Furthermore, governments in countries such as India, Indonesia, China, Vietnam, Australia, and Thailand are focusing on growing the tourist industry to generate revenue, create jobs, and promote the region's overall development. Furthermore, demand is expected to rise as travelers become more aware of the availability of vacation rentals. As a result, Asia Pacific is expected to be the region with the fastest growth.
Lodgify, a travel tech start-up, has just raised €30 million for its vacation rental software as the sector expands. The Barcelona-based team is now planning to expand globally, providing hosts with enhanced tools to help them grow their vacation rental business.
The travel industry has had a year of impressive and sustained growth, demonstrating how resilient travel tech innovators and start-ups have been in recent years. The market is currently undergoing an exciting period of growth and innovation, catering to a renewed appetite for travel, adventure, and exploration.
One of the most important trends in this space has been the rise in popularity of short-term rentals, which allow travelers to book local stays for their vacation, workcation, or even digital nomad life. It means that those who offer vacation rentals will have more customers to cater to, as well as more competition in the market.
The market is distinguished by the presence of a few established players as well as new entrants. Many major players are increasing their focus on the growing vacation rental trend. Market participants are diversifying their service offerings in order to maintain market share.
Latest Developments in the Short-Term Rental Platform Market
Meredith Lodging planned to expand into the Mount Hood region in June 2022 by acquiring Mt Hood Vacation Rentals.
Hotels in Latin America will band together in June 2022 to launch their own online booking platform and tools.
Booking Holdings Inc. purchased Getaroom from Court Square Capital Partners for USD 1.2 billion in December 2021. The brand hopes to increase the value of its pipeline through this acquisition.
Tripadvisor will launch two new hotel technology solutions, Spotlight and Reputation Pro, in October 2020. Both want to improve their hospitality businesses by increasing traveler trust, attracting new customers, and making data-driven decisions to increase profitability.
Adaptation is the key to success and thriving in the rental platform industry
The changes brought about by the sharing economy, like those brought about by globalization, are novel, complex, and frequently unpredictable. There will be winners and losers, and there will be a great deal of adjusting to do. Some of the transitions will be difficult. However, the changes we've seen in travel patterns, other aspects of real estate, and how space defines our lives are very real.
According to the World Travel & Tourism Council, the travel and tourism industries account for approximately 10% of global GDP and jobs, with the short-term accommodations segment representing a rapidly growing share of this market. These are vast economic domains undergoing significant transformations.
Individuals, businesses, and governments that adapt to them will reap significant benefits, improving economies and lives.
There is no denying that technology has made many aspects of our lives better. In fact, without the Internet, you would never be able to rent out short-term rental properties to strangers from all over the world.
As many as 94% of rental property owners admit they could do more to promote their vacation rental properties. While vacation rental platforms continue to be extremely effective, it is critical to go beyond these platforms in order to generate even more interest in your property listings.
Not only is the short-term rental market becoming saturated. In all business sectors, competition is heating up! Smaller e-commerce websites, for example, are closing. They simply cannot compete with Amazon, which accounts for nearly 40% of all US e-commerce sales.
| Attribute | Details |
|---|---|
| Growth Rate | CAGR of 19.1% from 2022 to 2032 |
| Base Year of Estimation | 2022 |
| Historical Data | 2017 to 2021 |
| Forecast Period | 2022 to 2032 |
| Quantitative Units | Revenue in USD million and Volume in Units and F-CAGR from 2022 to 2032 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, growth factors, Trends, and Pricing Analysis |
| Key Segments Covered | By Deployment, By Accommodation, By End User, By Region |
| Regions Covered | North America; Latin America; Europe; East Asia; South Asia; Middle East & Africa; Oceania |
| Key Countries Profiled | USA, Canada, Brazil, Mexico, Germany, Italy, France, United Kingdom, Spain, Russia, China, Japan, India, GCC Countries, Australia |
| Key Companies 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. |
| Customization & Pricing | Available upon Request |
The global Short-Term Rental Platform market is estimated to be valued at USD 4,503.2 million in 2022.
The Short-Term Rental Platform market is likely to grow at a CAGR of 19.1% from 2022 to 2032.
The Short-Term Rental Platform market is projected to reach a valuation of USD 25,829.9 million by 2032.
North America is projected to lead the global Short-Term Rental Platform market by 2032.
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Short-Term Rental Platform Market
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