Vacation Rental Market Share

Europe Market Analysis

Europe in vacation rental market is projected to account for around 42% revenue share by 2037. High focus on sustainable tourism and cultural heritage in Europe are some of the major drivers behind this dominance. On the other hand, the rise in the number of eco-conscious travelers has motivated more property owners towards green practices, thereby further fueling the vacation rental market growth. Additionally, several historical sites, cultural diversity, and an authenticity-seeking mindset among travelers make Europe a desirable destination. This strong appeal is likely to continue to keep Europe at the forefront of the global vacation rental industry.

Germany benefits from a robust infrastructure and cultural tourism appeal. In April 2023, Evolve introduced a seasonal analysis of vacation rental trends that would inform and support property owners through changing demands and make vacation rentals in Germany even more appealing to those coming for cultural experiences. These insights also provide property hosts with opportunities to shape their offerings and meet the growing number of travelers showing interest in local festivals and historical hotspots. Its strong infrastructure for public transportation further allows anyone who wishes to gain easy access to any region, thus turning vacation rentals into an attractive option when touring the country.

The vacation rental market in France is supported by its vast cultural attractions and evolving traveler preferences.  France is turning into a popular vacation rental market due to its art, food, and landmarks for which it is well-known, and continues to receive millions of visitors every year. This factor helps companies diversify the different types of accommodations available to visitors and further cement their position within the vacation rental sector. In addition, promoting lesser-known regions, such as the countryside and small towns of France, helps extend the supply of vacation rentals beyond more traditionally popular destinations. Such strategic growth is key to keeping competition healthy in the vacation rental market.

North America Market Analysis

By 2037, North America vacation rental market is anticipated to account for around 28.5% share. North America is a prominent market, with major players like Airbnb and newcomers. In addition, favorable government policies encourage domestic tourism, which is likely to boost industry growth. The demand is further driven by the emphasis on experiences such as cabin stays, beach houses, and other alternative types of accommodations. Another catalyst in driving a positive outlook for the North America vacation rental sector is the trend for combining work with leisure travel.

The U.S. remains a significant vacation rental market, driven by an increasingly higher interest in unique and flexible accommodation options among domestic travelers. In January 2023, The Interhome Group partnered with Sol og Strand to extend the companies' service offerings into Denmark. Such a development illustrates how international collaborations are anticipated to drive growth in the U.S. market. Also, vacation rentals are flexible, serving the needs of families and digital nomads for more personalized experiences in trips. Regular investment in property management technology is further improving the customer experience, making the U.S. market more appealing to both renters and owners.

Canada vacation rental market is bolstered by a surge in outdoor and nature-based tourism, with many travelers opting for secluded cabins and homes to enjoy the vast natural landscapes of the country. In September 2022, Arrived Homes extended its platform through investments in short-term vacation rentals, developing unique properties, and contributing to the growth of the vacation rental sector in Canada. The popularity of national parks and lakeside communities remains a strong appeal to tourists who want to get away from the metropolis. Also, Canada focuses on sustainable tourism, for which more eco-friendly vacation rental properties are being developed, which in turn is one of the major reasons for vacation rental market growth.