Valued at USD 98.35 billion in 2025, the global vacation rental market is projected to reach USD 101.78 billion in 2026 and USD 138.77 billion by 2034, growing at a CAGR of 3.9% during the forecast period 2026–2034. Demand reflects growing consumer preference for personalized travel experiences, digital booking platform expansion, and rising global tourism activity. The competitive field is fragmented and includes 9flats.com, Airbnb, Booking Holdings, Expedia Group, Hotelplan Holding, MakeMyTrip, NOVASOL, Oravel Stays, TripAdvisor, and Wyndham Destinations.

What Defines the Vacation Rental Market

A vacation rental is a fully furnished property rented to travelers for short stays, typically ranging from a few days to a few weeks. Travelers choose homes, apartments, and villas over traditional lodging for a more private, home-like experience. The vacation rental market is segmented by accommodation type into home, apartments, resort/condominium, and others, and by booking mode into online and offline. Compared with hotels, vacation rentals offer high privacy and flexibility, though services are typically limited or self-service. Examples cited in the report include Airbnb and Vrbo for vacation rentals and Marriott International and Hilton Worldwide for hotels.

Home Accommodation Leads on Space and Value

Home accommodation accounted for a 40.0% share in 2025, driven by ample space, enhanced safety, access to amenities, and a cost advantage in rural and travel destinations. Survey data cited in the report underlines the preference: a 2019 TurnKey Vacation Rentals survey found that 64% of travelers favor vacation rentals over hotels, while a 2021 iProperty Management report found that 71% of families traveling with children prefer them because they can prepare their own meals.

Resort/Condominium Segment Targets Millennial Demand

The resort/condominium segment is likely to register the highest CAGR of 4.7%, shaped by millennials' inclination to spend on amenities such as barbecue pits, games, swimming pools, clubhouses, and tennis facilities. According to iProperty Management's 2021 report, 12% of millennials plan to stay in a villa or estate, compared with 9% of Gen Xers and 6% of Boomers, signaling a stronger appetite for resort-style stays among younger travelers in the vacation rental market.

Browse Full Insights:

https://www.polarismarketresearch.com/industry-analysis/vacation-rental-market

Online Booking and Offline Booking Channel Shifts

The offline segment is projected to hold a 33.0% share, reflecting the large base of Baby Boomers and Gen X travelers who prefer traditional reservation methods. However, rising internet and smartphone penetration is expected to shift preferences toward digital channels. Online booking is growing at a 4.5% CAGR as consumers value detailed access to accommodations and amenities, value for money, and convenience, while startups and third-party companies offer services exclusively through apps and websites. The enduring role of offline booking suggests operators should maintain both channels.

Online Travel Agencies and Distribution Strategy

Integrating listings with distribution channels such as online travel agencies and meta-search engines presents a promising opportunity to reach wider audiences. By partnering with platforms such as Expedia Partner Solutions, HomeToGo, and TripAdvisor, operators can enhance visibility, expand reach, and drive higher booking rates, increased occupancy, and revenue growth. Social media and the internet are also raising consumer awareness of available options, supporting demand for unique and personalized stays. Companies such as SabbaticalHomes, which broadened from temporary housing for visiting scholars to short- and medium-term rentals and exchanges in 57 countries, are adapting offerings alongside Plum Guide, BoutiqueHomes, and Homestay.

Regional Outlook and Recent Developments

North America held about 33.0% of global revenue, led by the United States, supported by a mature tourism industry and strong digital infrastructure. Europe is growing at a 3.4% CAGR, while Asia Pacific leads growth at 4.9%, with China accounting for about 30% of the regional market. In May 2025, Vrbo launched a new promotions suite designed to let hosts create tailored promotions for varied traveler segments. Growth is also fueled by rising millennial spending on travel, vacations, and accommodation.

Outlook for the Vacation Rental Market

Vacation Rental As digital channels mature and millennial preferences reshape demand, operators with diversified accommodation portfolios and balanced distribution strategies are well placed to capture growth through 2034.

More Trending Latest Reports By Polaris Market Research:

Gynecological Examination Chairs Market

Fluoropolymers Market

Safari Tourism Market

Enterprise Content Management Market

Automotive Ceramics Market

Mass Flow Controller Market

Hemophilia A Treatment Market

AI Trust, Risk and Security Management Market