Market Insights Mobility Travel & Tourism

Vacation Rentals - APAC

APAC

Revenue in the Vacation Rentals market is projected to reach US$26.92bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.19%, resulting in a projected market volume of US$33.05bn by 2029.
In the Vacation Rentals market, the number of users is expected to amount to 426.60m users by 2029.
User penetration is projected to be 7.7% in 2024 and 9.7% by 2029.
The average revenue per user (ARPU) is expected to amount to US$81.28.
In the Vacation Rentals market, 72% of total revenue will be generated through online sales by 2029.
In global comparison, most revenue will be generated in the United States (US$20,270m in 2024).

Key regions: India, Vietnam, Saudi Arabia, Singapore, Germany

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Analyst Opinion

The Vacation Rentals market in APAC has been experiencing significant growth and development in recent years.

Customer preferences: Travelers in APAC are increasingly seeking unique and authentic experiences, driving the demand for vacation rentals over traditional hotels. They prefer the flexibility, space, and local charm that vacation rentals offer, especially for family trips or group getaways.

Trends in the market: In Japan, there is a rising trend of travelers opting for vacation rentals in rural areas to experience traditional Japanese culture and escape the hustle and bustle of city life. This shift has led to the revitalization of rural economies and the preservation of cultural heritage through tourism.

Local special circumstances: In Thailand, the vacation rental market is influenced by the growing popularity of eco-tourism and sustainable travel practices. Many travelers are choosing eco-friendly accommodations such as treehouses or beachfront villas, contributing to the preservation of Thailand's natural beauty and biodiversity.

Underlying macroeconomic factors: The rapid urbanization and increasing disposable income in countries like China and India have fueled the growth of the vacation rental market in APAC. As more people have the means to travel, they are looking for affordable yet comfortable accommodation options, driving the expansion of vacation rental platforms and services across the region.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of vacation rentals.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, the Global Consumer Survey, third-party studies and reports, data from industry associations (e.g., UNWTO), and price data of major players in respective markets. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as country-related GDP, demographic data (e.g., population), tourism spending, consumer spending, internet penetration, and device penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, and exponential trend smoothing methods are applied. A k-means cluster analysis allows for the estimation of similar countries. The main drivers are tourism GDP per capita and respective price indices.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.