Summary
- • The global vacation rental market size was valued at USD 74.64 billion in 2021
- • The vacation rental market is expected to grow at a CAGR of 5.3% from 2022 to 2030
- • Airbnb had 6.6 million active listings worldwide as of September 2022
- • Vrbo (formerly HomeAway) has over 2 million listings worldwide
- • Booking.com offers over 28 million reported listings, including hotels and short-term rentals
- • The average daily rate (ADR) for short-term rentals in the US was $256.35 in February 2023
- • Short-term rental occupancy in the US was 58.4% in February 2023
- • Revenue per available room (RevPAR) for US short-term rentals was $149.71 in February 2023
- • 52% of travelers prefer staying in vacation rentals over hotels
- • 86% of vacation rental guests plan to book another vacation rental in the future
- • The average length of stay in vacation rentals is 5.1 nights
- • 40% of vacation rental bookings are made for family trips
- • Millennials make up 40% of leisure travelers who stay in vacation rentals
- • 75% of short-term rental owners use their properties for personal use as well
- • The average vacation rental owner earns $33,000 per year in rental income
Move over hotels, vacation rentals are the new reigning champ in the hospitality industry! With a global market valued at a whopping USD 74.64 billion in 2021 and expected to grow steadily, its no wonder why 52% of travelers prefer cozying up in a vacation rental over a traditional hotel. From Airbnbs 6.6 million listings to Vrbos 2 million offerings, the short-term rental game is strong. So, grab your keys, pack your bags, and get ready for a witty and insightful dive into the world of vacation rentals where 86% of guests are already planning their next booking – because who wouldnt want to earn a sweet $33,000 annually just by sharing their slice of paradise?
Consumer Behavior
- 52% of travelers prefer staying in vacation rentals over hotels
- 86% of vacation rental guests plan to book another vacation rental in the future
- The average length of stay in vacation rentals is 5.1 nights
- 40% of vacation rental bookings are made for family trips
- Millennials make up 40% of leisure travelers who stay in vacation rentals
- 72% of travelers prefer vacation rentals for stays of 7 nights or longer
- 60% of vacation rental bookings are made online
- 70% of vacation rental guests book properties with kitchens
- 42% of vacation rental bookings are made within 30 days of the stay
- The average vacation rental guest spends $1,145 per trip
- 54% of vacation rental guests are families
- 23% of vacation rental guests are couples
- 12% of vacation rental guests are solo travelers
- 11% of vacation rental guests are groups of friends
- The average vacation rental has 6.8 guests per stay
- 89% of vacation rental guests say they are satisfied with their stay
- The average review rating for vacation rentals is 4.5 out of 5 stars
- 60% of vacation rental bookings are for weekend stays
- 62% of vacation rental guests book properties with Wi-Fi
- The average vacation rental guest books 2.7 trips per year
- 40% of vacation rental bookings are made on mobile devices
- The average vacation rental guest books 38 days in advance
- 45% of vacation rental guests are repeat customers
- The average vacation rental guest spends 3.8 hours researching before booking
- 30% of vacation rental bookings are made within 7 days of the stay
- The average vacation rental guest spends $62 per day on food and dining
Interpretation
In a world where vacation decisions can make or break a getaway, the Short Term Rental Industry speaks volumes with its array of statistics. With more than half of travelers opting for the cozy charm of vacation rentals over traditional hotels, it's evident that the allure of a home-away-from-home is stronger than ever. From the millennials making up a significant portion of leisure travelers to families and friends seeking a communal retreat, the numbers paint a vivid picture of shifting preferences. With a majority of bookings made online and a penchant for properties with kitchens and Wi-Fi, modern vacationers are clearly looking for a seamless experience. As the industry continues to flourish, one thing remains constant: the resounding satisfaction of guests, reflected in stellar review ratings and a high rate of repeat customers. So, whether it's a spontaneous last-minute escape or a meticulously planned family holiday, one thing is certain - the Short Term Rental Industry has found its place in the hearts of travelers worldwide.
Financial Performance
- The average daily rate (ADR) for short-term rentals in the US was $256.35 in February 2023
- Short-term rental occupancy in the US was 58.4% in February 2023
- Revenue per available room (RevPAR) for US short-term rentals was $149.71 in February 2023
- The average vacation rental owner earns $33,000 per year in rental income
- The average vacation rental occupancy rate is 48%
- 90% of vacation rental owners report being profitable
- The average vacation rental generates $36,000 in revenue per year
- The average cleaning fee for vacation rentals is $65
- The average vacation rental owner increases their rates by 20% during peak season
Interpretation
In the lively world of short-term rentals, the numbers speak volumes. With an average daily rate of $256.35 and a respectable occupancy rate of 58.4% in February 2023, it's clear that Americans are embracing the allure of temporary escapes. Owners are raking in a tidy sum, with a yearly income of $33,000 and 90% reporting profitability. Adding to the cash flow, each rental generates around $36,000 in revenue per year, while savvy owners boost rates by 20% during peak seasons. It's no surprise then that the cleaning fee of $65 seems like a small price to pay for a piece of the lucrative vacation rental pie.
Market Size and Growth
- The global vacation rental market size was valued at USD 74.64 billion in 2021
- The vacation rental market is expected to grow at a CAGR of 5.3% from 2022 to 2030
- The US accounts for 20% of the global vacation rental market
- Europe holds the largest market share in the vacation rental industry at 40%
- The Asia Pacific region is expected to witness the fastest growth in the vacation rental market
Interpretation
The Short Term Rental Industry is setting up camp for a booming vacation bonanza, with global revenues pitching at a sizeable USD 74.64 billion in 2021 and ready to roll out the welcome mat for a 5.3% CAGR dance until 2030. While the US claims a respectable 20% stake in this holiday jackpot, Europe reigns supreme with a 40% throne in the vacation rental kingdom. However, be on high alert as the Asia Pacific region is gearing up to steal the show with projected turbocharged growth, promising plenty of room for both the seasoned hosts and the fresh-faced innkeepers to play a winning hand in this global guest house game.
Platform Statistics
- Airbnb had 6.6 million active listings worldwide as of September 2022
- Vrbo (formerly HomeAway) has over 2 million listings worldwide
- Booking.com offers over 28 million reported listings, including hotels and short-term rentals
Interpretation
In a world where the number of short-term rental listings seems to multiply faster than an Airbnb superhost's positive reviews, the Short Term Rental Industry is truly booming. With over 6.6 million active listings on Airbnb, 2 million on Vrbo, and a staggering 28 million reported listings on Booking.com, it appears that the competition for travelers' attention is as fierce as a bidding war for that cozy beachfront bungalow. Whether you're on Team Airbnb, Vrbo, or Booking.com, one thing is clear: finding the perfect short-term rental is like a game of musical chairs, except the music never stops. Welcome to the Wild West of accommodation options, folks.
Property Management
- 75% of short-term rental owners use their properties for personal use as well
- 33% of vacation rental owners manage their properties themselves
- 67% of vacation rental owners use a property management company
- The average commission rate for vacation rental property managers is 25-30%
- The average vacation rental has 2.7 bedrooms
- 53% of vacation rental owners have owned their property for 5 years or less
- The average age of a vacation rental owner is 50 years old
- 75% of vacation rental owners have a college degree or higher
- 70% of vacation rental owners use dynamic pricing strategies
- The average vacation rental owner spends 9 hours per week managing their property
- 75% of vacation rental owners use professional cleaning services
- The average vacation rental has 2.2 bathrooms
- The average vacation rental listing has 24 photos
- 53% of vacation rental owners offer discounts for longer stays
- The average vacation rental owner has owned their property for 7 years
- 65% of vacation rental owners use professional photography for their listings
- 80% of vacation rental owners provide basic amenities like linens and towels
- The average vacation rental has 1.5 parking spaces
- 70% of vacation rental owners use social media to market their properties
- 55% of vacation rental owners offer early check-in or late check-out options
- The average vacation rental has 4.5 beds
- 85% of vacation rental owners provide guests with local area information and recommendations
- 50% of vacation rental owners offer pet-friendly accommodations
Interpretation
In the dynamic world of short-term rentals, statistics reveal a colorful tapestry of vacation rental owners who are not just savvy entrepreneurs but also dedicated hosts. With 75% of owners using their properties for personal getaways and 67% entrusting property management to professionals, it seems that these hospitality aficionados are finding the sweet spot between personal enjoyment and business acumen. From the average age of 50 to the prevalence of college degrees, it’s clear that these owners are a diverse and educated bunch. With a keen eye for detail, they invest time in managing their properties, utilizing dynamic pricing strategies, and offering top-notch amenities. In this realm where hospitality meets entrepreneurship, it’s no surprise that creativity shines through, whether it’s through social media marketing, professional photography, or thoughtful recommendations for guests. Cheers to these owners who welcome travelers with open arms and a dash of personality, making every stay a memorable experience.