Vacation Rental Market Outlook:
Vacation Rental Market size was over USD 95.78 billion in 2025 and is projected to reach USD 136.42 billion by 2035, witnessing around 3.6% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of vacation rental is assessed at USD 98.88 billion.
The global market is expected to rise owing to an increasing consumer shift towards customized experiences that feel like home while traveling. This is also where the concept of vacation rentals started gaining traction among travelers interested in unique and tailored stays. Companies in the market are observing increased demand from the regions that are promoting sustainable tourism. In August 2022, Bornholmske Feriehuse was acquired by Oravel Stays Private Limited. The acquisition has been aimed at expanding Oyo's presence within Europe to meet the rising demand for vacation rentals in Denmark. This development underlines the growing consolidation within the industry.
Governments are also increasingly supporting the vacation rental sector by introducing policies to enhance tourism infrastructure and diversify accommodation options. A notable development is England's announcement of new regulations for short-term rentals, set to take effect in the summer of 2024. These regulations will require property owners to obtain permission from local councils before converting their properties into short-term rentals and will establish a mandatory national registration scheme.
