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