Holiday rentals to exceed 1 billion bookings by 2029

29-08-24

The vacation rental market is experiencing unprecedented growth, with projections indicating that more than 1 billion people will opt for this type of accommodation by 2029, according to research by Stocklytics, and will generate around €89.6 billion.

This trend is driven by a combination of key factors, including changes in traveller preferences, the rise of digital technology and a shift in the perception of conventional tourism.

One of the key drivers of this growth is the evolution in traveller preferences, especially among younger generations such as millennials and Generation Z, who value authenticity, personalisation and flexibility over traditional accommodation experiences. These generations are looking not just for a place to sleep, but for cultural immersion that allows them to live like locals. Vacation home rentals, whether it's a country house in Tuscany or a flat in downtown Tokyo, offer the opportunity to experience a destination in a more intimate and personalised way.

In addition, the COVID-19 pandemic has radically changed the way people travel. The need for social distance and mobility restrictions have led many to seek alternatives to traditional hotels and resorts, where proximity to other guests is unavoidable. Vacation rentals offer a level of privacy and control that suits the new demands of travellers, who are looking for less crowded destinations and safer experiences.

Technology has played a key role in the expansion of the vacation rental market. Platforms such as Airbnb, Vrbo and Booking.com have democratised access to this type of accommodation, facilitating the search, booking and management of properties anywhere in the world. These platforms have not only made it easier for travellers to find the perfect accommodation, but have also allowed owners to monetise their properties easily and efficiently.

In economic terms, the sector is expected to generate global revenues of around €89.6 billion by 2024, with Europe leading the market, followed by Asia and the United States. This revenue represents 10% of the total tourism sector, underlining the growing importance of holiday rentals in the global economy.

However, this boom has also brought with it challenges and controversies. In many tourist cities, the increase in holiday rental properties has generated tensions with local residents and has led to the implementation of stricter regulations.

Despite these challenges, the future of vacation rentals looks bright. The market is expected to continue to expand, driven by the growing demand for more authentic and personalised travel experiences. Furthermore, with continued technological innovation, we are likely to see the emergence of new platforms and services that will make vacation rentals even more accessible and attractive to travellers around the world.

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