Short-term Rental Market By Type (Vacation Rentals, Corporate Rentals, Student Rentals), By Property Type (Apartments, Houses, Villas, Cottages, Condominiums), By Platform (Online Travel Agencies, Property Management Companies, Peer-to-Peer Platforms), By End-User (Leisure Travelers, Business Travelers, Families, Solo Travelers); Global Insights & Forecast (2024 - 2030)

As per Intent Market Research, the Short-term Rental Market was valued at USD 107.8 Billion in 2024-e and will surpass USD 204.9 Billion by 2030; growing at a CAGR of 11.3% during 2025 - 2030.

The short-term rental market has witnessed robust growth, driven by the increasing demand for flexible, affordable, and unique lodging options. Short-term rentals cater to a variety of travelers, offering alternatives to traditional hotel stays, with a focus on providing more personalized, cost-effective, and home-like experiences. With the rise of platforms like Airbnb and Vrbo, this market has become a significant player in the global travel and hospitality industry. Factors such as changing consumer preferences, the rise of the sharing economy, and the desire for authentic travel experiences are all fueling the market's expansion.

As both leisure and business travelers seek diverse accommodation options, the short-term rental market is expanding beyond vacation homes and apartments to include specialized offerings such as corporate rentals and student accommodations. This diversification caters to the evolving needs of a wide range of consumers, from families on vacation to professionals needing temporary housing. Innovations in booking platforms and property management technologies also continue to shape the market, enhancing user experience and making short-term rentals more accessible than ever before.

Vacation Rentals Type Is Largest Owing to Popularity Among Leisure Travelers

Vacation rentals represent the largest segment in the short-term rental market, driven primarily by leisure travelers seeking unique, home-like accommodations during their holidays. This segment includes properties such as homes, villas, cottages, and apartments, often located in tourist-friendly destinations. The appeal of vacation rentals lies in their ability to offer more space, privacy, and local experiences compared to traditional hotels, making them a popular choice for families and groups.

Vacation rentals offer flexibility in terms of location, amenities, and pricing, providing a wide range of options for travelers of all budgets. As travelers seek more authentic and personalized experiences, vacation rentals continue to be the preferred accommodation choice. This segment is expected to maintain its dominance as consumers prioritize convenience, comfort, and local immersion during their travels.

Apartments Property Type Is Largest Owing to Affordability and Accessibility

Apartments are the largest property type in the short-term rental market, offering a balance of affordability, comfort, and accessibility for both leisure and business travelers. Apartments are commonly located in urban centers, providing easy access to local attractions, business hubs, and transportation networks. This makes them ideal for travelers who require central locations for short-term stays, whether for vacation or work-related purposes.

The demand for apartment rentals is fueled by their versatility, as they cater to both individual travelers and families seeking more space and privacy compared to hotel rooms. Additionally, apartments offer a cost-effective option for longer stays, which is particularly appealing to business travelers or digital nomads. As urban areas continue to be popular destinations for both leisure and corporate travel, apartments will remain the dominant property type in the short-term rental market.

Online Travel Agencies (OTAs) Platform Is Largest Owing to Wide Consumer Reach

Online Travel Agencies (OTAs) are the largest platform in the short-term rental market, primarily due to their wide consumer reach, ease of use, and trusted reputation. Platforms such as Booking.com, Expedia, and Airbnb have transformed the way travelers find and book short-term rentals. These platforms allow users to browse a wide variety of properties, compare prices, and read reviews, providing a seamless and transparent booking experience.

The convenience of OTAs, combined with their extensive global presence, makes them the preferred choice for consumers when booking short-term rentals. They offer a comprehensive search functionality, often incorporating vacation rentals, corporate rentals, and other property types, catering to diverse traveler needs. As OTAs continue to innovate with user-friendly interfaces and personalized recommendations, their dominance in the market will persist, further driving the expansion of short-term rentals worldwide.

Leisure Travelers End-User Is Largest Owing to Growing Tourism Demand

Leisure travelers form the largest end-user segment in the short-term rental market, driven by the increasing demand for travel and tourism experiences. As people seek more personalized and cost-effective lodging options, short-term rentals provide an appealing alternative to traditional hotels, offering a greater variety of accommodations, from apartments to villas, often in more desirable or unique locations. Vacation rentals cater to families, groups, and solo travelers who desire more flexibility and privacy during their trips.

The shift towards experiential travel, where consumers want to immerse themselves in local culture and environments, is another factor driving the growth of this segment. Leisure travelers tend to prioritize comfort, space, and authentic experiences, and short-term rentals offer these advantages. With global tourism continuing to recover, leisure travelers will remain the primary driver of demand for short-term rentals in the foreseeable future.

North America Region Leads the Market Owing to High Demand and Well-established Platforms

North America is the leading region in the short-term rental market, fueled by high demand for vacation rentals, corporate accommodations, and a well-established network of platforms such as Airbnb and Vrbo. The United States, in particular, has a large consumer base that values the flexibility, affordability, and unique experiences that short-term rentals offer. Major tourist destinations, urban centers, and business hubs across North America further contribute to the region's dominance in the market.

The strong presence of online platforms and their seamless integration with consumers' travel plans has positioned North America as the largest market for short-term rentals. Additionally, the growing trend of remote work and extended stays has further driven demand for rental properties in cities and popular vacation spots. North America’s leadership in the market is expected to continue as consumers increasingly turn to short-term rentals for both leisure and business trips.

Competitive Landscape: Leading Companies and Market Dynamics

The short-term rental market is highly competitive, with several key players and platforms shaping the industry. Leading companies such as Airbnb, Vrbo, Booking.com, and Expedia dominate the market, offering diverse rental options across different property types and catering to various consumer needs. These platforms have transformed the way travelers book accommodations, providing a vast selection of rental properties with detailed descriptions, photos, and user reviews.

Additionally, property management companies and peer-to-peer platforms are emerging as strong contenders, offering localized services and specialized accommodations. As competition intensifies, companies are focusing on enhancing the customer experience, investing in technology, and expanding their property listings to stay ahead. The market is also becoming more fragmented, with new players entering the space, offering niche services, such as luxury rentals or eco-friendly properties. With continuous innovation and a focus on convenience, the competitive dynamics of the short-term rental market will continue to evolve.

List of Leading Companies:

• Airbnb, Inc.
• Booking.com
• Vrbo (Expedia Group)
• TripAdvisor (Vacation Rentals)
• Agoda
• Tujia (Chinese equivalent of Airbnb)
• HomeAway (Expedia Group)
• OYO Rooms
• Sonder
• TurnKey Vacation Rentals
• Vacasa
• HometoGo
• Blueground
• 9flats
• Roomorama

Recent Developments:

• Airbnb, Inc. launched a new ‘Airbnb for Work’ program in February 2024 to cater specifically to business travelers.
• Booking.com introduced new eco-friendly short-term rental listings in January 2024, focusing on sustainable accommodations.
• Vrbo (Expedia Group) announced a strategic partnership with top vacation property managers in December 2023.
• Sonder expanded its operations into five new cities, with a focus on long-term stays, in November 2023.
• Vacasa acquired a local property management company to enhance its presence in the Southeast U.S. in October 2023.

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