Europe - Vacation Rental Market by Mode Of Booking, Management and Geography - Forecast and Analysis 2023-2027

Published: Oct 2023

Pages: 143

SKU: IRTNTR73111

Snapshot

Europe Vacation Rental Market Forecast 2023-2027

The Europe vacation rental market size is projected to reach a value of USD 60.18 billion with a CAGR of 12.73% between 2022 and 2027. The growth of the market depends on several factors such as the increase in the number of tourists in Europe, the rapid growth of online booking for short term rental properties, and the technological advancements in property booking. This Europe Vcaction Rental Market report includes key market growth drivers, trends, and challenges during the forecasted period.

What will be the Size of the Market During the Forecast Period?

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Market Dynamics

Key Driver

One of the significant driving factors behind the growth of the market is the technological advancements in property booking. There is a noticeable surge in investment by property owners in smart home devices aimed at simplifying and securing the short-term rentals and vacation rental process. For instance, nearly 70% of managers have already installed a Wi-Fi/ electronic lock on their properties, enhancing the experience for guests seeking luxury vacation homes and short-term rentals. The incorporation of advanced technology not only elevates security but also enhances convenience for guests in luxury within the European market.

This utilization of data analytics further augments the quality of services offered in luxury vacation homes and short-term rentals, catering to the evolving needs and preferences of customers. Luxury vacation rentals epitomize exclusivity, offering a level of opulence and sophistication that goes beyond typical accommodation options.

Emerging Trends

A key factor shaping the market growth in Europe is the improved booking process. One of the primary trends in the market is instant bookings. In addition, there has been significant upgradation in the technology of online booking sites to enable customers to book properties in real-time without having to wait for confirmation. As a result, it will make booking easier and more convenient and thereby enhance

One of the significant players in the market, Airbnb rentals, has implemented various initiatives aimed at enhancing the booking experience and addressing issues like discrimination on its online platform. The introduction of instant bookings by Airbnb rentals is a proactive measure intended to combat discrimination during the booking process. Moreover, within the European market, mountainaire luxury cabins hold a distinctive appeal. These cabins, nestled in picturesque mountain settings, offer guests an immersive experience in nature coupled with luxurious amenities. The mountainaire luxury cabins demand for such unique and upscale accommodations has contributed to the overall growth of this sector in Europe.

Major Challenge

Stringent regulation from various governments is one of the key challenges hindering market growth. There are several stringent regulations on homes enforced by various governments which are significantly impacting the market. For instance, in 2016, the city council of Dublin ruled that the owners need to apply for permission for commercial use if they want to rent out the flat on a short-term basis. Luxury vacation rentals in Europe encounter several challenges with stringent regulations governing vacation rentals. Adhering to diverse legal frameworks, such as occupancy limits, tax laws, and zoning regulations, poses challenges for rental property owners. It faces stiff competition from established hotels offering premium services and amenities.

Moreover, the Iceland government has introduced a new law in which 1,600 Airbnb rentals will operate under stringent rules. Thus, such kinds of regulations enforced by the various governments in Europe are negatively impacting the market. Hence, it is expected to hinder the Europe market growth during the forecast period.

Market Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.

Europe Vacation Rental Market Customer Landscape

Who are the Major Europe Vacation Rental Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

9flats.com PTE Ltd: The company offers vacation rental that includes lease and rent short-term lodging.

The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Segmentation

The offline segment is estimated to witness significant growth during the forecast period. The traditional way of booking is the offline segment. There was a high popularity for the offline segment when Internet penetration was low. Even in today's era, there is an increasing preference for offline booking as some consumers lack faith in online reservations. In addition, the preference for offline booking is fuelled by the perception that the consumers get the best rate.

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The offline segment was the largest segment and was valued at USD 30.13 billion in 2017. There is a growing perception that customers are able to negotiate with the staff to get the best discounts if the mode of booking is offline. Even though the offline segment dominates the Europe market, there is a decline in preference for this mode of booking after the trend of online booking post-pandemic. As a result, the offline segment of the market is expected to grow moderately during the forecast period.

The management of vacation properties across Europe has seen significant evolution due to technological advancements and increased demand. Europe vacation property management services have adapted to leverage technology, data analytics, and customer-centric approaches to enhance the guest experience, optimize property performance, and ensure seamless operations.

Therefore, the initiatives undertaken by platforms like Airbnb, the allure of mountainaire luxury cabins, and the evolution of Europe vacation property management collectively contribute to driving the growth of the market in Europe.

Market Analyst Overview

Within the broader hospitality and tourism industry, the global vacation rental market offers diverse accommodations tailored to modern travelers. Alongside hotels and resort/condominium, vacation rentals provide fully furnished spaces with amenities, appealing to leisure and business travelers alike. Managed by owners or professional companies, these properties offer a tranquil escape, allowing visitors to rejuvenate. With options from budget-friendly to luxurious, vacation rentals offer privacy and quality time. Additional amenities like pick-up services enhance convenience. Booking methods include online booking mode and offline booking mode modes, catering to various age groups seeking experiences across Europe.

Tech integration for online booking gains momentum in European vacation homes. Rentals adapt to digital nomads, offering workspaces and high-speed internet. These facilities cater to emerging markets. Some key players like TurnKey Vacation Rentals, iProperty Management, and Expedia Partner Solutions offer various accommodations. Social media aids marketing, targeting Baby Boomers, Gen X, and others. Startups and third-party booking companies contribute to revenue, focusing on rural and travel destinations.

Segment Overview

The market report forecasts market growth and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.

Mode of Booking Outlook (USD Billion, 2017 - 2027)
- Offline
- Online
Management Outlook (USD Billion, 2017 - 2027)
- Managed by owners
- Professionally managed
Geography Outlook (USD Billion, 2017 - 2027)
- Europe
  - U.K.
  - Germany
  - France
  - Spain
  - Rest of Europe

Europe Vacation Rental Market Scope
Report Coverage	Details
Page number	143
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 12.73%
Market growth 2023-2027	USD 60.18 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	17.41
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	9flats.com PTE Ltd., Airbnb Inc., atraveo GmbH, Bennington Properties LLC, Bluefish Vacation Rentals, Booking Holdings Inc., Clickstay Ltd., Elite Destination Homes, Expedia Group Inc., Holiday Lettings, HomeToGo GmbH, Mi Kasa Tu Kasa Bacalar, Platinum Equity Advisors LLC, RedAwning.com Inc., Rental Escapes, Sonder Holdings Inc., TripAdvisor LLC, Vacasa Inc., World Travel Holdings, and Wyndham Destinations Inc.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period.
Customization purview	If our market growth analysis report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in the Market Research and Growth Report?

CAGR of the market during the forecast period
Detailed information on factors that will drive the market growth and trends between 2023 and 2027
Precise estimation of the size of the market size and its contribution to the market in focus on the parent market
Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
Growth of the market industry across Europe
Market analysis and report of the market’s competitive landscape and detailed information about companies
Comprehensive analysis of factors that will challenge the growth of market companies

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Table of Contents

1 Executive Summary

1.1 Market overview
- Exhibit 01: Executive Summary – Chart on Market Overview
- Exhibit 02: Executive Summary – Data Table on Market Overview
- Exhibit 03: Executive Summary – Chart on Country Market Characteristics
- Exhibit 04: Executive Summary – Chart on Market by Geography
- Exhibit 05: Executive Summary – Chart on Market Segmentation by Mode of Booking
- Exhibit 06: Executive Summary – Chart on Market Segmentation by Management
- Exhibit 07: Executive Summary – Chart on Incremental Growth
- Exhibit 08: Executive Summary – Data Table on Incremental Growth
- Exhibit 09: Executive Summary – Chart on Vendor Market Positioning

2 Market Landscape

2.1 Market ecosystem
- Exhibit 10: Parent market
- Exhibit 11: Market Characteristics

3 Market Sizing

3.1 Market definition
- Exhibit 12: Offerings of vendors included in the market definition

3.2 Market segment analysis
- Exhibit 13: Market segments

3.3 Market size 2022

3.4 Market outlook: Forecast for 2022-2027
- Exhibit 14: Chart on Europe - Market size and forecast 2022-2027 ($ billion)
- Exhibit 15: Data Table on Regional - Market size and forecast 2022-2027 ($ billion)
- Exhibit 16: Chart on Europe: Year-over-year growth 2022-2027 (%)
- Exhibit 17: Data Table on Regional - Market size and forecast 2022-2027 ($ billion)

4 Historic Market Size

4.1 Vacation rental market in Europe 2017 - 2021
- Exhibit 18: Historic Market Size – Data Table on vacation rental market in Europe 2017 - 2021 ($ billion)

4.2 Booking mode Segment Analysis 2017 - 2021
- Exhibit 19: Historic Market Size – Booking mode Segment 2017 - 2021 ($ billion)

4.3 Management Segment Analysis 2017 - 2021
- Exhibit 20: Historic Market Size – Management Segment 2017 - 2021 ($ billion)

4.4 Geography Segment Analysis 2017 - 2021
- Exhibit 21: Historic Market Size – Geography Segment 2017 - 2021 ($ billion)

5 Five Forces Analysis

5.1 Five forces summary
- Exhibit 22: Five forces analysis - Comparison between 2022 and 2027

5.2 Bargaining power of buyers
- Exhibit 23: Chart on Bargaining power of buyers – Impact of key factors 2022 and 2027

5.3 Bargaining power of suppliers
- Exhibit 24: Bargaining power of suppliers – Impact of key factors in 2022 and 2027

5.4 Threat of new entrants
- Exhibit 25: Threat of new entrants – Impact of key factors in 2022 and 2027

5.5 Threat of substitutes
- Exhibit 26: Threat of substitutes – Impact of key factors in 2022 and 2027

5.6 Threat of rivalry
- Exhibit 27: Threat of rivalry – Impact of key factors in 2022 and 2027

5.7 Market condition
- Exhibit 28: Chart on Market condition - Five forces 2022 and 2027

6 Market Segmentation by Mode of Booking

6.1 Market segments
- Exhibit 29: Chart on Mode of Booking - Market share 2022-2027 (%)
- Exhibit 30: Data Table on Mode of Booking - Market share 2022-2027 (%)

6.2 Comparison by Mode of Booking
- Exhibit 31: Chart on Comparison by Mode of Booking
- Exhibit 32: Data Table on Comparison by Mode of Booking

6.3 Offline - Market size and forecast 2022-2027
- Exhibit 33: Chart on Offline - Market size and forecast 2022-2027 ($ billion)
- Exhibit 34: Data Table on Offline - Market size and forecast 2022-2027 ($ billion)
- Exhibit 35: Chart on Offline - Year-over-year growth 2022-2027 (%)
- Exhibit 36: Data Table on Offline - Year-over-year growth 2022-2027 (%)

6.4 Online - Market size and forecast 2022-2027
- Exhibit 37: Chart on Online - Market size and forecast 2022-2027 ($ billion)
- Exhibit 38: Data Table on Online - Market size and forecast 2022-2027 ($ billion)
- Exhibit 39: Chart on Online - Year-over-year growth 2022-2027 (%)
- Exhibit 40: Data Table on Online - Year-over-year growth 2022-2027 (%)

6.5 Market opportunity by Mode of Booking
- Exhibit 41: Market opportunity by Mode of Booking ($ billion)
- Exhibit 42: Data Table on Market opportunity by Mode of Booking ($ billion)

7 Market Segmentation by Management

7.1 Market segments
- Exhibit 43: Chart on Management - Market share 2022-2027 (%)
- Exhibit 44: Data Table on Management - Market share 2022-2027 (%)

7.2 Comparison by Management
- Exhibit 45: Chart on Comparison by Management
- Exhibit 46: Data Table on Comparison by Management

7.3 Managed by owners - Market size and forecast 2022-2027
- Exhibit 47: Chart on Managed by owners - Market size and forecast 2022-2027 ($ billion)
- Exhibit 48: Data Table on Managed by owners - Market size and forecast 2022-2027 ($ billion)
- Exhibit 49: Chart on Managed by owners - Year-over-year growth 2022-2027 (%)
- Exhibit 50: Data Table on Managed by owners - Year-over-year growth 2022-2027 (%)

7.4 Professionally managed - Market size and forecast 2022-2027
- Exhibit 51: Chart on Professionally managed - Market size and forecast 2022-2027 ($ billion)
- Exhibit 52: Data Table on Professionally managed - Market size and forecast 2022-2027 ($ billion)
- Exhibit 53: Chart on Professionally managed - Year-over-year growth 2022-2027 (%)
- Exhibit 54: Data Table on Professionally managed - Year-over-year growth 2022-2027 (%)

7.5 Market opportunity by Management
- Exhibit 55: Market opportunity by Management ($ billion)
- Exhibit 56: Data Table on Market opportunity by Management ($ billion)

8 Customer Landscape

8.1 Customer landscape overview
- Exhibit 57: Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria

9 Geographic Landscape

9.1 Geographic segmentation
- Exhibit 58: Chart on Market share by geography - 2022-2027 (%)
- Exhibit 59: Data Table on Market share by geography - 2022-2027 (%)

9.2 Geographic comparison
- Exhibit 60: Chart on Geographic comparison
- Exhibit 61: Data Table on Geographic comparison

9.3 UK - Market size and forecast 2022-2027
- Exhibit 62: Chart on UK - Market size and forecast 2022-2027 ($ billion)
- Exhibit 63: Data Table on UK - Market size and forecast 2022-2027 ($ billion)
- Exhibit 64: Chart on UK - Year-over-year growth 2022-2027 (%)
- Exhibit 65: Data Table on UK - Year-over-year growth 2022-2027 (%)

9.4 France - Market size and forecast 2022-2027
- Exhibit 66: Chart on France - Market size and forecast 2022-2027 ($ billion)
- Exhibit 67: Data Table on France - Market size and forecast 2022-2027 ($ billion)
- Exhibit 68: Chart on France - Year-over-year growth 2022-2027 (%)
- Exhibit 69: Data Table on France - Year-over-year growth 2022-2027 (%)

9.5 Italy - Market size and forecast 2022-2027
- Exhibit 70: Chart on Italy - Market size and forecast 2022-2027 ($ billion)
- Exhibit 71: Data Table on Italy - Market size and forecast 2022-2027 ($ billion)
- Exhibit 72: Chart on Italy - Year-over-year growth 2022-2027 (%)
- Exhibit 73: Data Table on Italy - Year-over-year growth 2022-2027 (%)

9.6 Spain - Market size and forecast 2022-2027
- Exhibit 74: Chart on Spain - Market size and forecast 2022-2027 ($ billion)
- Exhibit 75: Data Table on Spain - Market size and forecast 2022-2027 ($ billion)
- Exhibit 76: Chart on Spain - Year-over-year growth 2022-2027 (%)
- Exhibit 77: Data Table on Spain - Year-over-year growth 2022-2027 (%)

9.7 Rest of Europe - Market size and forecast 2022-2027
- Exhibit 78: Chart on Rest of Europe - Market size and forecast 2022-2027 ($ billion)
- Exhibit 79: Data Table on Rest of Europe - Market size and forecast 2022-2027 ($ billion)
- Exhibit 80: Chart on Rest of Europe - Year-over-year growth 2022-2027 (%)
- Exhibit 81: Data Table on Rest of Europe - Year-over-year growth 2022-2027 (%)

9.8 Market opportunity by geography
- Exhibit 82: Market opportunity by geography ($ billion)
- Exhibit 83: Data Table on Market opportunity by geography ($ billion)

10 Drivers, Challenges, and Trends

10.1 Market drivers

10.2 Market challenges

10.3 Impact of drivers and challenges
- Exhibit 84: Impact of drivers and challenges in 2022 and 2027

10.4 Market trends

11 Vendor Landscape

11.1 Overview

11.2 Vendor landscape
- Exhibit 85: Overview on Criticality of inputs and Factors of differentiation

11.3 Landscape disruption
- Exhibit 86: Overview on factors of disruption

11.4 Industry risks
- Exhibit 87: Impact of key risks on business

12 Vendor Analysis

12.1 Vendors covered
- Exhibit 88: Vendors covered

12.2 Market positioning of vendors
- Exhibit 89: Matrix on vendor position and classification

12.3 9flats.com PTE Ltd.
- Exhibit 90: 9flats.com PTE Ltd. - Overview
- Exhibit 91: 9flats.com PTE Ltd. - Product / Service
- Exhibit 92: 9flats.com PTE Ltd. - Key offerings

12.4 Airbnb Inc.
- Exhibit 93: Airbnb Inc. - Overview
- Exhibit 94: Airbnb Inc. - Product / Service
- Exhibit 95: Airbnb Inc. - Key offerings

12.5 Bennington Properties LLC
- Exhibit 96: Bennington Properties LLC - Overview
- Exhibit 97: Bennington Properties LLC - Product / Service
- Exhibit 98: Bennington Properties LLC - Key offerings

12.6 Bluefish Vacation Rentals
- Exhibit 99: Bluefish Vacation Rentals - Overview
- Exhibit 100: Bluefish Vacation Rentals - Product / Service
- Exhibit 101: Bluefish Vacation Rentals - Key offerings

12.7 Booking Holdings Inc.
- Exhibit 102: Booking Holdings Inc. - Overview
- Exhibit 103: Booking Holdings Inc. - Product / Service
- Exhibit 104: Booking Holdings Inc. - Key offerings

12.8 Clickstay Ltd.
- Exhibit 105: Clickstay Ltd. - Overview
- Exhibit 106: Clickstay Ltd. - Product / Service
- Exhibit 107: Clickstay Ltd. - Key offerings

12.9 Elite Destination Homes
- Exhibit 108: Elite Destination Homes - Overview
- Exhibit 109: Elite Destination Homes - Product / Service
- Exhibit 110: Elite Destination Homes - Key offerings

12.10 Expedia Group Inc.
- Exhibit 111: Expedia Group Inc. - Overview
- Exhibit 112: Expedia Group Inc. - Business segments
- Exhibit 113: Expedia Group Inc. - Key offerings
- Exhibit 114: Expedia Group Inc. - Segment focus

12.11 Holiday Lettings
- Exhibit 115: Holiday Lettings - Overview
- Exhibit 116: Holiday Lettings - Product / Service
- Exhibit 117: Holiday Lettings - Key offerings

12.12 HomeToGo GmbH
- Exhibit 118: HomeToGo GmbH - Overview
- Exhibit 119: HomeToGo GmbH - Product / Service
- Exhibit 120: HomeToGo GmbH - Key offerings

12.13 Platinum Equity Advisors LLC
- Exhibit 121: Platinum Equity Advisors LLC - Overview
- Exhibit 122: Platinum Equity Advisors LLC - Product / Service
- Exhibit 123: Platinum Equity Advisors LLC - Key offerings

12.14 TripAdvisor LLC
- Exhibit 124: TripAdvisor LLC - Overview
- Exhibit 125: TripAdvisor LLC - Product / Service
- Exhibit 126: TripAdvisor LLC - Key offerings

12.15 Vacasa Inc.
- Exhibit 127: Vacasa Inc. - Overview
- Exhibit 128: Vacasa Inc. - Product / Service
- Exhibit 129: Vacasa Inc. - Key offerings

12.16 World Travel Holdings
- Exhibit 130: World Travel Holdings - Overview
- Exhibit 131: World Travel Holdings - Product / Service
- Exhibit 132: World Travel Holdings - Key offerings

12.17 Wyndham Destinations Inc.
- Exhibit 133: Wyndham Destinations Inc. - Overview
- Exhibit 134: Wyndham Destinations Inc. - Product / Service
- Exhibit 135: Wyndham Destinations Inc. - Key offerings

13 Appendix

13.1 Scope of the report

13.2 Inclusions and exclusions checklist
- Exhibit 136: Inclusions checklist
- Exhibit 137: Exclusions checklist

13.3 Currency conversion rates for US$
- Exhibit 138: Currency conversion rates for US$

13.4 Research methodology
- Exhibit 139: Research methodology
- Exhibit 140: Validation techniques employed for market sizing
- Exhibit 141: Information sources

13.5 List of abbreviations
- Exhibit 142: List of abbreviations

Methodology

Research Framework

Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.

INFORMATION SOURCES

Primary sources

Manufacturers and suppliers
Channel partners
Industry experts
Strategic decision makers

Secondary sources

Industry journals and periodicals
Government data
Financial reports of key industry players
Historical data
Press releases

DATA ANALYSIS

Data Synthesis

Collation of data
Estimation of key figures
Analysis of derived insights

Data Validation

Triangulation with data models
Reference against proprietary databases
Corroboration with industry experts

REPORT WRITING

Qualitative

Market drivers
Market challenges
Market trends
Five forces analysis

Quantitative

Market size and forecast
Market segmentation
Geographical insights
Competitive landscape

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Key Questions Answered

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What are the revenue-generating key market segments?
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Who are the key market vendors and their growth strategies?
What are the latest trends influencing the growth of this market?
What are the variables influencing the market growth in the primary regions?
What are the factors influencing the growth of the parent market?

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