Market Insights Mobility Travel & Tourism

Vacation Rentals - Europe

Europe

Europe is projected to generate a revenue of €30.61bn in the Vacation Rentals market by 2024.
The market is expected to grow annually with a rate of 1.27% until 2028, resulting in a projected market volume of €32.20bn.
The number of users in this market is expected to reach 210.40m users by 2028, with a user penetration of 24.1% in 2024, which is likely to increase to 25.0% by 2028.
The average revenue per user (ARPU) is expected to amount to €150.60.
In 2028, 79% of the total revenue in the Vacation Rentals market will be generated through online sales.
In comparison to other countries, United States is projected to generate the highest revenue of €18,070m in 2024.
In Spain, vacation rental demand remains high due to the popularity of coastal destinations like Costa del Sol and the Balearic Islands.

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

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Región

Comparación de regiones

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Analyst Opinion

The Vacation Rentals market in Europe has been experiencing significant growth and transformation in recent years.

Customer preferences: Travelers in Europe are increasingly looking for unique and authentic experiences, which has boosted the demand for vacation rentals over traditional hotels. Customers are seeking more space, privacy, and flexibility during their stays, leading to a rise in bookings for vacation rental properties.

Trends in the market: In popular tourist destinations like Spain and Italy, there has been a surge in the number of vacation rental properties as homeowners capitalize on the growing demand from tourists. Additionally, the rise of online booking platforms has made it easier for property owners to list their rentals and for travelers to find accommodation that suits their preferences.

Local special circumstances: Countries like France and Greece have implemented regulations to control the growth of vacation rentals and protect the local housing market. In cities such as Paris and Amsterdam, restrictions have been put in place to limit the number of days a property can be rented out to tourists, aiming to preserve affordable housing for residents.

Underlying macroeconomic factors: The strong performance of the tourism industry in Europe has had a positive impact on the vacation rentals market, with more travelers choosing to stay in rental properties for a more personalized experience. Additionally, the increasing popularity of remote work has allowed people to travel for longer periods, leading to a higher demand for vacation rentals as temporary homes.

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.