Dublin, April 21, 2022 (GLOBE NEWSWIRE) — The “The US Vacation Rental Market: Analysis by Accommodation Type (Home, Resort/Condominium, Apartment, & Others), by Booking Mode (Online & Offline), Size & Trends with Impact Analysis of COVID-19 and Forecast up to 2026” report has been added to ResearchAndMarkets.com’s offering.
The US Vacation rental market was valued at US$14.32 billion in 2021 and is expected to reach up to US$21.53 billion in 2026
The vacation rental market describes a home, apartment, condo, villa or resort which gets rented by the property manager from time to time to local and/or international tourists. The popularity for vacation rentals has grown significantly over the years because of their benefits such as low cost, comfort, kids and pet-friendly accommodation. The US vacation rental is expected to grow at a CAGR of 8.49% over the forecasted period of 2022-2026.
Vacation rentals have become more and more popular. According to global travel market research company Phocuswright, the percentage of travellers who stayed in a vacation rental more than tripled from 2011 to 2019, from 10% to 34%. This trend was accelerated by COVID-19, as many travellers preferred vacation rentals over hotels for safety reasons.
The US Vacation Rental Market Dynamics:
Growth Drivers: The increased travel & tourism factor is majorly impacting the market and serving multiple growth opportunities to the vacation rental market space. Vacation rental has made many destinations attractive for the tourists which is not only fostering the market growth but also bringing employment in the country. Moreover, other factors such as sharing economy, rise in internet users, growing business leisure travel, millennial influence in the market, and cost-savings of vacation rental are also fostering market growth.
Challenges: The market also have to deal with some of the challenges such as concerns regarding fraudulent listings, neighborhood changes, and competition for inventory. These challenges are somewhat hampering market growth in coming years. Guests booking their accommodation also have to go through the cyber risk and have suffered cyber crimes happened against them.
Trends: Vacation rental market growth in coming year is attributed to the factor of metasearch engine for vacation rentals. Metasearch engine platform are introducing property managers to a larger audience and helping them obtaining guests in the early process of booking.
Furthermore, other notable trends such as rise in popularity of countryside and coastal vacation, quality as a marketing tool, rise in flex-cation, contactless solutions, usage of vacation rental tools & software, and solo travelling are contributing to the growth of the market in the coming years.
Market Segmentation Analysis:
In 2021, home segment dominated the market by absorbing almost half of the market, it is attributed to its wide presence in vacation rental space and access to amenities. On the other hand, Resort/Condominium is expected to register the highest CAGR of 8.67% in coming years, because of its growing demand from the millennials.
In 2021, Online segment held the highest share and it is also expected to be the fastest growing segment. Vacation rentals offered online, is likely to continue to rise because of increasing digitisation and better options for monetarisation of rental assets.
Impact Analysis of COVID-19 and Way Forward:
The US vacation rental market has also absorbed a slowdown due to the restrictions imposed on domestic and international travel. Property managers increased their average nightly rate to cover up their losses from the fall in prices of the average daily rate. But when the country started the vaccination drive and started re-opening the country, the demand for vacation rentals grew up.
The trend of cleanliness is more likely to emerge as due to the pandemic people have become more cautious of the hygiene situation of the place they are staying in. In fact, the trend for staying in hotels/motels to staying in vacation rentals has also accelerated since the COVID-19 crisis, with many travellers preferring vacation rentals versus traditional accommodation for safety reasons.
The US Vacation Rental market is fragmented, because of low barriers to entry. This feature has ended up intensified competition in the market and also increased bargaining power of the buyers.
TripAdvisor, Inc./Flipkey family and Airbnb, Inc. are each other biggest competitor even though their style of addressing the market is different from each other. The three major accommodation providers – Booking.com, Expedia/Vrbo and Airbnb – only have a combined market share of 8%. Airbnb, Inc. business model works on the foundation of not acquiring any property even though serving as a mediator between property managers and guests.
TripAdvisor, Inc. business model based on matching the demand of guests with the supply of accommodations and other travel experiences by the travel partners. TripAdvisor, Inc. revenue model is managed by Flipkey which uses same revenue model as Airbnb, Inc.
The key players of the US vacation rental market are:
Key Topics Covered:
1. Executive Summary
2.1 Vacation Rental: An Overview
2.1.1 Features of Vacation Rentals
2.1.2 History of Vacation Rentals
2.1.3 Common Types of Vacation Rental
2.1.4 Difference between Vacation Rental and Hotel
2.2 Vacation Rentals Segmentation: An Overview
2.2.1 Vacation Rentals Segmentation
3. The US Market Analysis
3.1 The US Vacation Rental Market: An Analysis
3.1.1 The US Vacation Rental Market by Value
3.1.2 The US Vacation Rental Market By User & Penetration Rate
3.1.3 The US Vacation Market by Accommodation Type (Home, Resort/Condominium, Apartment & Others)
3.1.4 The US Vacation Market by Booking Mode (Online & Offline)
3.2 The US Vacation Rental Market: Accommodation Type Analysis
3.2.1 The US Home Vacation Rental Market by Value
3.2.2 The US Resort/Condominium Vacation Rental Market by Value
3.2.3 The US Apartment Vacation Rental Market by Value
3.2.4 The US Others Vacation Rental Market by Value
3.3 The US Vacation Rental Market: Booking Mode Analysis
3.3.1 The US Online Vacation Rental Market by Value
3.3.2 The US Offline Vacation Rental Market by Value
4. Impact of COVID-19
4.1 Impact of COVID-19
4.1.1 Impact of COVID-19 on the US Vacation Rental Market
4.1.2 Decline in Occupancy Rate of Airbnb in Major Cities
4.1.3 Trends Emerged Due to COVID-19
4.1.4 Post-COVID Scenario
5. Market Dynamics
5.1 Growth Drivers
5.1.1 Increased Travel and Tourism Activity
5.1.2 Rise in Internet Users
5.1.3 Growing Business Leisure Travel
5.1.4 Ways Millennial are impacting the market
5.1.5 Sharing Economy
5.1.6 Cost-Benefits in Staying over a Hotel
5.2.1 Concerns regarding Fraudulent Listing
5.2.2 Competition for Inventory
5.2.3 Neighborhood Changes
5.3 Market Trends
5.3.1 Rise in Popularity of Countryside and Coastal Vacation
5.3.2 Quality as a Marketing Tool
5.3.3 Rise in Flex-cation
5.3.4 Contactless Solutions
5.3.5 Usage of Vacation Rental Tools & Software
5.3.6 Metasearch Engine for Vacation Rentals
5.3.7 Solo Travelling
6. Competitive Landscape
6.1 The US Vacation Rental Market Players: Competitive Landscape
6.1.1 Highly Fragmented Market
6.2 The US Vacation Rental Market Players: A Financial Comparison
6.3 The US Vacation Rental Market Players by Share Visits
6.4 The US Vacation Rental Market Players by Internet Presence Comparison
7. Company Profiles
7.1 Business Overview
7.2 Operating Segments
7.3 Business Strategy
For more information about this report visit https://www.researchandmarkets.com/r/ilgcbu
CONTACT: CONTACT: ResearchAndMarkets.com Laura Wood, Senior Press Manager [email protected] For E.S.T Office Hours Call 1-917-300-0470 For U.S./CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900