The vacation rental industry has been growing rapidly in recent years. With the rise of online rental platforms like Airbnb and HomeAway, more and more people are choosing to rent vacation homes instead of staying in hotels.
But just how big is this industry? Let’s take a closer look.
What is the vacation rental industry?
The vacation rental industry refers to the business of renting out homes, apartments, or other types of properties to travelers for short-term stays. These rentals can be found in a variety of locations, from urban centers to rural areas and everything in between.
How much is the vacation rental industry worth?
According to a report by Statista, the global vacation rental market was valued at $87.09 billion USD in 2019. This figure is expected to grow to $97.37 billion USD by 2023.
The growth of online rental platforms
One major factor contributing to the growth of the vacation rental industry is the rise of online rental platforms like Airbnb and HomeAway. These platforms allow property owners to list their homes for rent and connect with travelers looking for a place to stay.
In recent years, these platforms have become increasingly popular among travelers due to their convenience and affordability. According to Airbnb’s 2020 IPO filing, the platform had over 4 million hosts who have welcomed over 800 million guests since its launch in 2008.
The impact of COVID-19
The COVID-19 pandemic has had a significant impact on the travel industry as a whole, including vacation rentals. However, some experts believe that the pandemic may actually lead to increased demand for private rentals as travelers seek out safer alternatives to hotels.
According to a report by AirDNA, which tracks data on Airbnb and other short-term rental platforms, bookings for entire home rentals increased by 22% compared to pre-pandemic levels in the summer of 2020.
The future of the vacation rental industry
Despite the challenges posed by the pandemic, the vacation rental industry is expected to continue growing in the coming years. Factors like increased consumer demand, continued innovation in online rental platforms, and a shift towards more sustainable travel options are likely to contribute to this growth.
As travelers continue to seek out unique and authentic travel experiences, vacation rentals are poised to remain a popular choice for lodging. With a global market worth nearly $100 billion USD, it’s clear that this industry is here to stay.