Vacation Rental Market Share

Vacation Rental Market Share

• Top 7 companies of vacation rental industry are Airbnb, Booking Holdings, Expedia, OYO Vacation Homes, RedAwning, TripAdvisor, Vacasa, hold around 48% of the market in 2023.
   
• Airbnb is focusing to grow its long term rental product with a performer occupancy of 30 to 90 days which has grown from 1314% pre covid times to 1718% currently. This change seeks to reduce issues with regulatory measures concerning short-term rentals and support travelers looking for long term visits.
   
• Booking Holdings is broadening its vacation rental business by adding additional types of accommodation into their website. This business model utilizes their competitive advantage of a strong brand image to draw a wide allocation of listings from which travelers will benefit greatly expanding their choice of available accommodation.
   
• Expedia is deploying resources towards advancing technology used by its clients within its ecosystem including for Vrbo. With the use of AI generated recommendation and personalized search results, Expedia aims to increase their booking conversion rate and customer satisfaction in the vacation rental industry.
   
• OYO is increasing its share in the European vacation rental sector by buying local property management firms. This model enables OYO to broaden their property portfolio and cater for a large number of travelers with special accommodation needs.
   
• RedAwning is expanding its range of services through the provision of effective marketing and reservation management strategies. The company's goal is to support client hotels by promoting them on various booking platforms to increase their visibility and bookings. For instance, in December 2024, RedAwning announced its plans to buy Awning.com. After the acquisition, all Awning.com clients will benefit from improved marketing and rental property distribution as part of RedAwing.
   
• Tripadvisor is making improvement to its vacation rental listing by leveraging user-generated content. People’s reviews/categories of the users’ and guests’ photos assist in the decision-making for potential users.
• Vacasa’s booking performance is enhanced by AI driven pricing and management tools. For example, Vacasa’s revenue optimization tool, targets and capture demand changes over time. The tool additionally allows hosts to have flexible pricing which benefits occupancy and earnings.
   

Vacation Rental Market Companies

Major players operating in the vacation rental industry include:

• Airbnb
• Booking Holdings
• Expedia
• OYO Vacation Homes
• RedAwning
• Sonder
• Stayz
• TripAdvisor
• TurnKey Vacation Rentals
• Vacasa
   

Digital booking advancements, along with traveler demand for unique, home-like vacation accommodations, are robustly growing, thus propelling the growth of the vacation rental market. The remote work revolution has already enabled market growth through extended-stay rentals and is now expected to further sustain it. In addition, the use of smart home technologies in vacation rental properties increases guest security, convenience and comfort that makes these properties more attractive compared to traditional hotels.
 

Regulatory compliance will continue to play an important role in market activities, but local governments and market participants are likely to find a middle ground to maximize the benefits of vacation rentals while mitigating any adverse consequences. There is a clear identification of the direction towards which innovation is headed in the sphere of vacation rentals; the direct booking AI, blockchain, and eco-friendly investments will mark the evolution of its industry. For instance, as per the new guidelines released by the French Government, the country’s 2024 regulations on tax breaks and cap on rentals will be revised to 90 days per annum and compulsory registration of the property with strict penalties for non-compliance.