Vacation Rentals - North America

  • North America
  • By 2024, the Vacation Rentals market in North America is projected to record a revenue of US$23.46bn.
  • The revenue is expected to grow annually by 1.89% resulting in a market volume projection of US$25.28bn by 2028.
  • Moreover, it is expected that the number of users in this market will reach 93.86m users by 2028.
  • In 2024, the user penetration is 17.6% and is expected to drop to 18.0% by 2028.
  • Additionally, the Average Revenue Per User (ARPU) is expected to be US$261.10.
  • By 2028, 83% of the total revenue will be generated through online sales.
  • It is interesting to note that in the Vacation Rentals market, the majority of the revenue is expected to be generated United States.
  • In 2024, the revenue generated United States is projected to be US$19,770m.
  • In the United States, vacation rental demand has surged in rural areas due to a desire for outdoor activities and social distancing.

Key regions: Vietnam, United States, United Kingdom, Indonesia, Malaysia

 
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Analyst Opinion

The Vacation Rentals market in North America is a dynamic and rapidly evolving sector with unique characteristics that set it apart from other regions.

Customer preferences:
Travelers in North America are increasingly seeking unique and personalized experiences during their vacations, leading to a growing demand for vacation rentals over traditional hotels. The flexibility, space, and amenities offered by vacation rentals appeal to a wide range of travelers, including families, groups of friends, and solo adventurers.

Trends in the market:
In the United States, the Vacation Rentals market is experiencing a surge in popularity, driven by the rise of online booking platforms and the increasing popularity of domestic travel. Coastal destinations such as Florida and California are particularly popular for vacation rentals, offering a wide range of options from beachfront cottages to luxury villas. Additionally, the trend of remote work is influencing longer stays in vacation rentals, with travelers opting for extended vacations in scenic locations.

Local special circumstances:
Canada, on the other hand, presents a unique market for vacation rentals, with its vast natural landscapes and outdoor activities attracting travelers year-round. The popularity of vacation rentals in Canada is also driven by the desire to experience authentic local culture and immerse oneself in the natural beauty of the country. Popular destinations such as Banff and Whistler offer a wide range of vacation rental options, from cozy cabins to modern chalets.

Underlying macroeconomic factors:
The Vacation Rentals market in North America is also influenced by macroeconomic factors such as exchange rates, economic stability, and government regulations. Fluctuations in exchange rates can impact international travel to North America, affecting the demand for vacation rentals from foreign tourists. Economic stability plays a key role in consumer confidence and spending on travel, while government regulations regarding short-term rentals can impact the supply of vacation rental properties in certain regions.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of vacation rentals.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, the Global Consumer Survey, third-party studies and reports, data from industry associations (e.g., UNWTO), and price data of major players in respective markets. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as country-related GDP, demographic data (e.g., population), tourism spending, consumer spending, internet penetration, and device penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, and exponential trend smoothing methods are applied. A k-means cluster analysis allows for the estimation of similar countries. The main drivers are tourism GDP per capita and respective price indices.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.

Overview

  • Revenue
  • Sales Channels
  • Analyst Opinion
  • Users
  • Global Comparison
  • Methodology
  • Key Market Indicators
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