DUBLIN, Oct. 12, 2023 /PRNewswire/ — The “The US Vacation Rental Market (by Accommodation Type & Booking Mode): Insights and Forecast with Potential Impact of COVID-19 (2022-2026)” report has been added to ResearchAndMarkets.com’s offering.
The US vacation rental market is anticipated to reach up to US$16.86 billion in 2023 registering a CAGR of 8.49% over the forecasted period.
The US vacation rental market is highly fragmented. While the four largest companies – Booking Holdings, Expedia, Airbnb and Trip.com – dominate the market, all other competitors generate very less revenue, as compared with the top competitors.
Vacation rentals have gained popularity among young people due to their offering of spacious multi-bedroom apartments or villas with numerous bedrooms and bathrooms, separate living spaces, full-sized kitchens, and other amenities. They are preferred for their flexibility, amenities, independence, and privacy, which surpass those of regular hotel rooms or resorts.
Vacation rentals have become increasingly popular due to their competitive pricing, often appearing more affordable than traditional hotels and resorts. This affordability provides travelers with greater negotiating power.
The key players of the US vacation rental market are TripAdvisor, Inc., Airbnb, Inc., Bookings Holdings, Inc., Expedia Group, Inc., Marriott International, Inc., Accor SA, Interhome Group, Evolve, HomeToGo and Vacasa.
Driver: Increased Travel and Tourism Activity
The growth in tourist activity has not only provided people with extra income but has also made less-frequented destinations more accessible to travelers. Travel and tourism generate employment opportunities and positively impact the economy by creating jobs in the vacation rental industry.
Short-term rentals and job creation are positively correlated, helping individuals generate income by renting out unused space on their properties. Travel and tourism contribute not only to the vacation rental industry but also to the overall economy of the United States.
Challenge: Concerns Regarding Fraudulent Listings
As the internet becomes increasingly integral to our lives, the associated risks also grow, making people more susceptible to online fraudulent practices. Travelers booking accommodations online face risks related to cybercrimes, such as fraudulent listings for houses, apartments, and homestays.
Travelers have fallen victim to fraudulent listings on online platforms like Airbnb, Vrbo, TripAdvisor, Marriott Homes & Villas, and others. Although online platforms take measures to minimize the risk of fraudulent listings, including identity and physical property inspections, and provide ratings and reviews, incidents of fraud and financial scams continue to occur, impacting the market’s revenue.
Trend: Rise in Popularity of Countryside and Coastal Vacations
In the coming years, there is expected to be a rise in demand for countryside and coastal vacations. This demand is driven by the desire to escape city life, especially in the wake of the pandemic, as people seek less crowded destinations with lower infection rates.
Remote working has been a major factor contributing to the demand for these locations, as guests look for ways to disconnect from the stress of their daily routines. Vacations in the countryside or by the coast offer a change of scenery and a much-needed break, leading to increased productivity and work satisfaction upon return.
People’s desire for a break and the opportunity to enjoy the great outdoors are expected to drive the demand for these vacation destinations, consequently boosting the vacation rental industry.
The COVID-19 Analysis
The vacation rental industry was severely affected by the COVID-19 pandemic, with governments canceling international and domestic flights and implementing movement restrictions. Companies in the industry faced negative cash flow as they had to provide refunds to guests for canceled bookings and, in some cases, close regional offices to contain the spread of the virus.
Disruptions caused by the pandemic resulted in a decrease in average daily rates and user penetration, creating uncertainties in the real estate space. However, the post-COVID scenario for the vacation rental industry appears promising, with economies reopening and people becoming more willing to travel once again.
Demand for vacation rentals has surged, indicating a significant rebound for the vacation rental industry in the United States.
- Increased Travel and Tourism Activity
- Rise in Internet Users
- Growing Business Leisure Travel
- Ways Millennial are impacting the market
- Sharing Economy
- Cost-Benefits in Staying over a Hotel
- Concerns regarding Fraudulent Listing
- Competition for Inventory
- Neighborhood Changes
- Rise in Popularity of Countryside and Coastal Vacation
- Quality as a Marketing Tool
- Rise in Flexcation
- Contactless Solutions
- Usage of Vacation Rental Tools & Software
- Metasearch Engine for Vacation Rentals
- Solo Travelling
- The US Vacation Rental Market Players: Competitive Landscape
- Highly Fragmented Market
- The US Vacation Rental Market Players: A Financial Comparison
- The US Vacation Rental Market Players by Share Visits
- The US Vacation Rental Market Players by Internet Presence Comparison
- Accor SA
- Airbnb, Inc.
- Bookings Holdings, Inc.
- Expedia Group, Inc.
- Interhome Group
- Marriott International, Inc.
- TripAdvisor, Inc.
For more information about this report visit https://www.researchandmarkets.com/r/j0nmbq
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SOURCE Research and Markets
Originally published at https://www.prnewswire.com/news-releases/united-states-vacation-rental-market-analysis-report-2023-2026—escape-from-city-life-drives-demand-for-remote-vacation-destinations-301955024.html
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