Vacation Rental Statistics By Demographics, Region and Facts
Updated · Oct 08, 2024
WHAT WE HAVE ON THIS PAGE
- Introduction
- Editor’s Choice
- General Vacation Rental Statistics
- Vacation Rental Statistics By Demographics
- Vacation Rental Statistics By Region
- Most Used Accommodation Type By Gen Z And Millennial Travelers
- Number Of Vacation Apartments Or Houses Online Bookers By Country
- Travel And Tourism Revenue Worldwide
- Number Of Users In The Vacation Rentals By Countries
- Vacation Rental Market Trends
- Conclusion
Introduction
Vacation Rental Statistics: The way people choose to stay during vacations has changed over the years. Instead of opting for traditional hotel stays, many travelers now prefer to rent separate properties. This allows them to cook their own meals and enjoy more privacy. While hotels offer more amenities, privacy is a top priority for most travelers.
Renting out properties can also be very lucrative for owners, especially with the right amenities. Vacation rental trends are expected to be more significant in 2024, as seen in recent vacation rental statistics.
Editor’s Choice
- According to Hotel Tech Report 2023, travelers choose vacation rentals because of privacy concerns.
- 45% of the property owners said they purchased a second property only to generate income by renting it.
- Vacation Rental Statistics show that 24% of the average owner’s income is generated from vacation rentals.
- Men are more likely to choose vacation rentals than women, resulting in 55% and 45%, respectively.
- As of today, the Asian market is projected to generate a revenue of $31.40 billion, while it is expected to reach $39.46 billion with an annual growth rate of 5.88%.
- According to the Grand View Research report, condominiums or resorts are estimated to be the fastest-growing property types between 2023 and 2030, with a growth rate of 5%.
- A survey conducted by Statista showed that the top 3 most used accommodation types by Gen Z in 2023 worldwide were Hotels (57%), Vacation rentals (13%), and B&Bs or inns.
- 30% of vacation renters are between 25 and 34, 27% belong to the 35 to 44 age group, and 11.5% are 55 to 64.
- Millennials are the largest demographic group of travelers, spending more than $180 billion annually.
- In 2023, around 207 million nights were spent at vacation rentals in the USA by travellers.
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General Vacation Rental Statistics
- According to Hostfull, 25 to 35% of 9 million second homes owned by Americans in the USA are rented out.
- 45% of the property owners said they purchased a second property only to generate income by renting it.
- 49% of vacation homeowners use their own property during vacation or as a family retreat.
- Vacation Rental Statistics show that 24% of the average owner’s income is generated from vacation rentals.
- According to the Grand View Research report, between 2023 and 2030, condominiums or resorts are estimated to be the fastest-growing property types with a growth rate of 5.%.
- Vacation Rental Statistics estimated that 62 million people will choose to stay at vacation rentals in the USA in 2024.
- Furthermore, in 2023, around 207 million nights were spent at vacation rentals in the USA by travellers.
- The average rate per night for such rentals in 2023 was $308.
- As of 2023, at least one in six travelers have stayed at vacation rentals.
- According to Hotel Tech Report 2023, travelers choose vacation rentals because of privacy concerns.
- Vacation Rental Statistics show that most guests book such properties at the last minute, giving only 14 days notice of arrival.
- 50% of the parents let their children decide vacation destinations.
Vacation Rental Statistics By Demographics
- Vacation Rental Statistics show that 30% of vacation renters are aged between 25 and 34, while 27% belong to the 35 to 44 age group. There are 11.5% renters from the 55 to 64 age group.
- Men are more likely to choose vacation rentals than women, resulting in 55% and 45%, respectively.
- It is reported that millennials are more likely to book condo units.
- Millennials are the largest demographic group of travelers, spending more than $180 billion annually.
Vacation Rental Statistics By Region
Worldwide
- According to Vacation Rental Statistics 2024, the worldwide market is expected to generate a revenue of $100.30 billion.
- It is estimated that it will grow at a CAGR of 3.14% between 2024 and 2028, reaching $113.50 billion by the forecast period.
- The number of users is expected to reach 0.94 billion by 2028. Therefore, the projected user penetration rate will rise to 11.8% by the forecast period from 11.1% currently.
- In relation to worldwide comparison, the United States of America is projected to generate the highest revenue, resulting in $19,770 million in 2024.
- Furthermore, by 2028, 76% of the total revenue will be generated from online sales.
Americas
- According to Vacation Rentals Statistics, the American market is expected to generate revenue of $29.20 billion in the current year.
- Furthermore, it will grow at a CAGR of 2.07%, reaching $31.70 billion by the forecast period.
- The average revenue is estimated to amount to $172.30, whereas the user penetration is projected to be 17% by 2027.
- The number of users by the forecast period is expected to reach 176.80 million.
- Most of the revenue will be generated from online sales contributing 81%.
Asia
- As of today, the Asian market is projected to generate a revenue of $31.40 billion, while it is expected to reach $39.46 billion with an annual growth rate of 5.88%.
- The projected average revenue per user is $83.45.
- In addition, the number of users is estimated to reach 430.20 million by 2028.
- By 2028, 70% of the revenue is projected to be generated through online sales.
- The user penetration rate is expected to increase to 9.2% by the forecast period, which is currently 8.3%.
Africa
- The African Vacation Rentals market is projected to reach $4.39 billion in the current year.
- By 2028, the market will grow at a CAGR of 5.17%, reaching %5.37 billion.
- 71% of the total revenue will be contributed by online sales by 2028.
- As of today, the user penetration rate is 7.8%, which is estimated to increase to 8.2% by the forecast period.
- Moreover, the average revenue per user is expected to amount to $43.35.
Australia And Oceania
- In 2024, the Australia and Oceania market is projected to amount to $1.81 billion.
- Furthermore, by the forecast period, the market’s revenue is forecasted to reach $1.89 billion, growing at a CAGR of 1.09%.
- The total number of users is expected to reach 8.43 million by the projected period.
- In addition, 89% of the total revenue is projected to be generated through online sales by 2028.
- The average revenue per user is projected to amount to $255.
Europe
- According to European Vacation Rental Statistics 2024, the market is currently estimated to be valued at $33.49 billion.
- The number of users is expected to reach 210.40 million by 2028, with a user penetration rate of 25%, compared to 24.1% currently.
- Furthermore, it is estimated that 79% of the sales will be made through online sources by the forecast period.
- The average revenue per user is estimated to amount to $164.70.
Most Used Accommodation Type By Gen Z And Millennial Travelers
(Reference: statista.com)
A survey conducted by Statista showed that the top 3 most used accommodation types by Gen Z in 2023 worldwide were Hotels (57%), Vacation rentals (13%), and B&Bs or inns. For millennials, it is Hotels (63%), B&Bs or Inns, and someone else’s private residency (6%).
Number Of Vacation Apartments Or Houses Online Bookers By Country
Vacation Rental Statistics based on Statista survey show the following Number of vacation apartments or houses online bookers by country globally in 2024.
| Country | Number of online bookers |
| Poland | 31% |
| Serbia | 30% |
| Portugal | 27% |
| Netherlands | 27% |
| Italy | 27% |
| Spain | 27% |
| Chile | 25% |
| South Africa | 24% |
| Argentina | 24% |
| France | 23% |
| Germany | 23% |
| Malaysia | 22% |
| Morocco | 21% |
| Switzerland | 21% |
| China | 20% |
| Belgium | 20% |
| Romania | 20% |
| United Kingdom | 19% |
| New Zealand | 19% |
| Brazil | 19% |
| Denmark | 18% |
| Saudi Arabia | 18% |
| South Korea | 17% |
| Colombia | 17% |
| Australia | 17% |
| Vietnam | 17% |
| Egypt | 16% |
| Mexico | 16% |
| Thailand | 15% |
| Ireland | 15% |
| Finland | 15% |
| Austria | 15% |
| Greece | 15% |
| Dominican Republic | 15% |
| Singapore | 15% |
| United Arab Emirates | 14% |
| Israel | 14% |
| Turkey | 13% |
| United States | 13% |
| Hungary | 13% |
| India | 13% |
| Czechia | 13% |
| Hong Kong | 13% |
| Canada | 12% |
| Norway | 12% |
| Philippines | 12% |
| Indonesia | 12% |
| Sweden | 11% |
| Peru | 11% |
| Russia | 11% |
| Kenya | 10% |
| Taiwan | 9% |
| Nigeria | 6% |
| Pakistan | 5% |
| Japan | 1% |
(Source: statista.com)
Travel And Tourism Revenue Worldwide
(Reference: statista.com)
Considering the selected countries, the United States led the travel and tourism market with $190.39 billion in revenue in 2023. Other countries in the top 10 list include China, Germany, Japan, the United Kingdom, Spain, Italy, India, France, and Canada, all of which generated $402.84 billion collectively.
Number Of Users In The Vacation Rentals By Countries
(Reference: statista.com)
Vacation Rental Statistics by number of users show that China leads the list with 124.94 million users in the market. With major differences, the United States, Germany, and France followed with $62.31 billion, $25.75 billion, and $24.59 billion, respectively.
Vacation Rental Market Trends
The vacation rental market in 2024 is undergoing a period of adjustment after the post-pandemic boom. Here’s a breakdown of key trends to watch:
- Settling After the Boom: While the industry remains strong, occupancy rates are returning to pre-pandemic levels. This means less inflated prices and potentially more competition for rentals.
- Rise of Luxury and Unique Stays: Travelers are seeking out special experiences. Luxury rentals with high-end amenities and unique properties like treehouses or glamping setups are in high demand.
- Embrace Technology: AI is playing a bigger role, from smart home features to chatbots that answer guest queries 24/7. Virtual tours with 360° views allow potential renters to experience the property before booking.
- Focus on Guest Experience: Professional property management is becoming the norm. Think spotless cleaning, personalized touches, and excellent communication to ensure happy guests who leave positive reviews.
- Data-Driven Decisions: Use analytics to understand your target audience, pricing trends, and competitor strategies. This helps you optimize pricing, highlight your unique selling points, and cater to specific traveler preferences.
- Shorter Stays, More Competition: The average stay length is dipping slightly. This means more frequent turnover, requiring efficient management and potentially filling calendar gaps with shorter bookings.
Earning Big: Cracking The $100,000/Month Code (It’s Not Easy!)
While exceeding $100,000 per month is certainly possible in vacation rentals, it requires significant investment, strategic planning, and a bit of luck. Here are some factors to consider:
- Location, Location, Location: Popular tourist destinations, coastal areas, or ski resorts naturally see higher demand. However, competition will also be fierce. Consider niche markets like proximity to national parks or unique events.
- High-End Property: Luxury rentals with high nightly rates can generate significant income. However, the initial investment and ongoing maintenance costs will be substantial.
- Multiple Properties: Owning a portfolio of vacation rentals allows you to spread risk and potentially maximize income. This requires significant capital and strong property management systems.
- Optimizing Occupancy: Minimize vacancy periods by using dynamic pricing strategies that adjust rates based on seasonality and demand. Consider offering last-minute discounts or weekend specials.
- Premium Services: Catering to a high-end clientele by offering additional services like airport transfers, chef-prepared meals, or curated experiences. These services come at a cost and can increase your nightly rate.
Remember: There are no guaranteed shortcuts to a six-figure vacation rental income. Building a successful business requires hard work, market research, and a commitment to providing exceptional guest experiences.
Amenities To Book Rentals Faster: Stand Out From The Crowd
In an increasingly competitive market, offering the right amenities can make your rental irresistible. Here’s a mix of essentials and unique features to consider:
Essentials for Every Rental:
- High-Speed Wi-Fi: Reliable internet access is non-negotiable for most travelers.
- Smart Home Features: Smart locks for easy check-in, thermostats for guest comfort, and smart TVs for entertainment can add a touch of luxury.
- Fully-Equipped Kitchen: Guests often appreciate the ability to cook meals “at home.” Provide basic cookware, utensils, appliances, and dishware.
- Comfortable Bedding and Linens: Invest in high-quality mattresses, pillows, and fresh, clean linens for a good night’s sleep.
- Laundry Facilities: In-unit washers and dryers offer a major convenience, especially for longer stays.
Unique Amenities to Attract Specific Guests:
- Family-Friendly: Offer cribs, high chairs, toys, and child-proof amenities to attract families with young children.
- Pet-Friendly: Consider allowing well-behaved pets with additional fees and clear pet policies.
- Workation-Ready: Provide a dedicated workspace with a comfortable desk, good lighting, and a printer for remote workers.
- Outdoor Oasis: A private patio, balcony, or fire pit creates an inviting space for guests to relax and enjoy the outdoors.
- Experiences: Partner with local businesses to offer guests add-on experiences like cooking classes, wine tastings, or adventure tours.
Remember: Don’t overwhelm your listing with too many amenities. Focus on those that cater to your target audience and highlight the unique features that make your rental stand out.
By understanding market trends, offering a high-quality rental experience, and providing the right amenities, you can increase your chances of success in the vacation rental market. While exceeding $100,000 per month might be a stretch, there’s definitely room to grow your income and establish a thriving vacation rental business. Here are some additional tips:
- Become a Superhost (or Premier Host): Many rental platforms have programs that recognize exceptional hosts. These programs often come with benefits like increased visibility in search results and access to exclusive tools and resources.
- Build a Strong Online Presence: Invest in high-quality photos that showcase your rental’s best features. Utilize professional copywriting to highlight your amenities and unique selling points. Leverage social media platforms like Instagram and Facebook to connect with potential guests.
- Target the Right Audience: Identify your ideal guest persona. Are you targeting families, couples, adventure seekers, or remote workers? Tailor your amenities, marketing message, and pricing strategy to resonate with their specific needs.
- Embrace Guest Reviews: Encourage guests to leave honest reviews. Positive reviews build trust and attract future bookings. Respond promptly and professionally to any negative feedback, demonstrating your commitment to guest satisfaction.
- Network with Other Hosts: Connect with other successful vacation rental owners in your area. Share best practices, learn from each other’s experiences, and potentially explore partnerships.
- Stay Up-to-Date: The vacation rental industry is constantly evolving. Stay informed about new trends, regulations, and competitor strategies. This will allow you to adapt your approach and stay ahead of the curve.
Remember: Success in the vacation rental market takes time and dedication. Focus on providing exceptional guest experiences, consistently improve your offerings, and stay adaptable in a dynamic market. By following these tips and staying informed about trends, you can build a profitable vacation rental business that offers a steady income stream and the satisfaction of creating memorable experiences for your guests.
Conclusion
As mentioned above in the Vacation Rental Statistics, renting a property takes time and dedication. If you are a new owner, renting a property out in the market requires people’s awareness. Moreover, the competition has increased. Therefore, mouth publicity and other means of advertising, such as social media advertising and listing the property on travel apps, are important.
Earning more than $1,00,000 a month by renting a vacation property will take years, but it will be a great source of income. Thus, instead of selling it out, rent it out.
Tajammul Pangarkar is the co-founder of a PR firm and the Chief Technology Officer at Prudour Research Firm. With a Bachelor of Engineering in Information Technology from Shivaji University, Tajammul brings over ten years of expertise in digital marketing to his roles. He excels at gathering and analyzing data, producing detailed statistics on various trending topics that help shape industry perspectives. Tajammul's deep-seated experience in mobile technology and industry research often shines through in his insightful analyses. He is keen on decoding tech trends, examining mobile applications, and enhancing general tech awareness. His writings frequently appear in numerous industry-specific magazines and forums, where he shares his knowledge and insights. When he's not immersed in technology, Tajammul enjoys playing table tennis. This hobby provides him with a refreshing break and allows him to engage in something he loves outside of his professional life. Whether he's analyzing data or serving a fast ball, Tajammul demonstrates dedication and passion in every endeavor.
