The vacation rental business is a fast-growing sector of the hospitality industry, giving travelers an alternative to traditional hotels. Vacation rentals include private residences, villas, apartments, and other types of lodging that can be rented for short-term stays (usually less than 30 days). The industry has experienced significant growth in recent years, fueled by the increasing popularity of online rental platforms like Airbnb, Vrbo, HomeAway, and Booking.com.
One key advantage of vacation rentals is that they offer travelers more space and amenities than traditional hotel rooms — lending a more immersive and authentic travel experience. Vacation rentals can also be more cost-effective than hotels, especially for families or groups traveling together.
In this article, we’ll share our research on vacation rental and property management industry trends, property owner and guest demographics, and booking statistics.
Key Vacation Rental Industry Stats and Facts
- The vacation rental industry in the United States will experience a compound annual growth rate (CAGR) of 1.49% over approximately the next three years.1
- By 2027, nearly 63 million Americans will be using vacation home rentals, with average revenue per user of $311.1
- In the United States, vacation rentals are projected to generate revenue of $19.3 billion in 2023.1
- Most (70%) of vacation rental companies in the United States are considered to be small businesses.2
- Only 10% of U.S. vacation rental companies are considered larger businesses and manage 100 units or more.2
- About 450 million people worldwide use vacation rental properties.2
- There are 1,985,280 U.S. vacation rental properties considered to be managed by professionals.2
- Vacation rental management companies in the United States number 25,000.2
- Globally, luxury rentals are expected to have a growth rate of 13.1% from 2021 to 2031.3
- The 2023 forecast occupancy rate for U.S. vacation rentals is 56.4% — significantly higher than pre-pandemic levels.4
Global Vacation Rental Facts and Statistics
The global vacation rental market and industry have revolutionized how people travel, providing them with more options, flexibility with direct bookings, and personalized experiences. The industry is expected to continue to grow in the coming years, driven by changing consumer preferences and technological advances.
- In 2022, the global online travel market had a total size of $475 billion. This figure was predicted to exceed $521 billion in 2023 and grow to over $1 trillion by 2030.5
- Only 20% of global vacation rental properties are located in the United States.2
- Europe has close to twice as many vacation rental properties as the United States.2
- As of 2022, there were an estimated 2.9 million hosts on Airbnb worldwide.6
- As of December 31, 2022, Airbnb had 6.6 million active listings across the world.7
Vacation Rental Guest Traveling Facts and Statistics
Vacation rental guests have different needs and expectations when it comes to their accommodations. The convenience, flexibility of cancellations, and privacy a vacation property offers allow people to relax and enjoy their holidays on their terms.
- The average rental price at popular destinations for family-sized rentals is $978 per night.2
- A significant reason that 71% of travelers with children opt for vacation rentals is the ability to cook their own meals.2
- Compared to travelers under 40, individuals over 40 are five times more likely to schedule trips lasting more than two weeks.2
- Gen Z is more inclined to go on trips with friends rather than choosing to travel solo or with immediate family.2
- 53% of travelers plan their trips by using materials like brochures before they arrive.2
- 18% of travelers are interested in staying with locals when it comes to lodging.3
- Almost 75% of travelers prefer a sustainable and eco-friendly stay.3
Vacation Rental Booking Facts and Statistics
Vacation rental booking has become easier after the pandemic with the rise of online booking sites allowing travelers to search, filter, and compare occupancy features in homes all around the world.
- In terms of market capitalization, Booking.com was ranked as the top online travel company worldwide as of December 2022.8
- In 2022, Airbnb had a market capitalization of approximately $54.1 billion.8
- 600,000 Americans have used Airbnb and other online platforms to rent out homes to short-term guests.2
- 40% of leisure travelers who book online belong to the millennial age group.2
- Within the next three years, 83% of vacation rental revenue will be generated through online sales.1
- 67% of travelers believe it's easier and cheaper to book through a brand website rather than a third-party website.2
Sources (all sources accessed 5/6/23):
- Statista, Vacation Rentals - United States. Page last updated 7/14/22.
- iProperty Management, Vacation Rental Industry Statistics. Page last updated 7/14/22.
- https://www.alliedmarketresearch.com/vacation-rentals-market-A16943. Page last updated 8/22.
- Air DNA, 2023 Outlook Highlights. Page last updated 12/12/22.
- Statista, Online travel market size worldwide from 2020 to 2022, with a forecast for 2023 and 2030. Page last updated 3/3/23.
- Stratos Jet Charters Inc., 2022 Airbnb Statistics: Usage, Demographics, and Revenue Growth. Page last updated 1/4/22.
- Airbnb, About Us
- Statista, Market cap of leading online travel companies worldwide as of December 2022. Page last updated 1/26/23.