Vacation Rentals - Armenia

Armenia

Highlights

Armenia is expected to witness a rise in revenue in the Vacation Rentals market, projected to reach US$36.32m by 2024.
As per the estimates, the revenue is anticipated to grow at an annual rate of 7.74% (CAGR 2024-2029), expanding the projected market volume to US$52.73m by 2029.
It is expected that the number of users for Vacation Rentals market in Armenia will reach 828.70k users by 2029.
The user penetration, which is 25.9% in 2024, is expected to increase to 30.0% by 2029.
The average revenue per user (ARPU) is expected to stabilize at US$50.55.
Moreover, it is estimated that 92% of the total revenue in the Vacation Rentals market in Armenia will be generated through online sales by 2029.
In the global comparison, United States is expected to generate the most revenue, with an expected revenue of US$20bn in 2024.
Armenia's Vacation Rentals market is growing, with an increasing number of tourists seeking unique accommodations in historic locations.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

Armenia, a country known for its rich history and stunning landscapes, has seen a notable development in the Vacation Rentals market.

Customer preferences: Travelers in Armenia are increasingly leaning towards unique and authentic experiences, opting for vacation rentals over traditional hotels. This shift is driven by a desire for a more personalized and immersive stay, allowing visitors to truly immerse themselves in the local culture and lifestyle.

Trends in the market: One emerging trend in the Armenian Vacation Rentals market is the renovation of historic buildings into charming rental properties. This trend not only adds to the authenticity of the accommodation but also contributes to the preservation of Armenia's cultural heritage. Additionally, the rise of online platforms connecting travelers directly with hosts has made it easier for property owners to list their spaces, leading to a wider variety of options for visitors.

Local special circumstances: Armenia's strategic location at the crossroads of Europe and Asia has made it a popular destination for tourists looking to explore both regions. This unique positioning has contributed to the growth of the Vacation Rentals market as more travelers seek accommodation options that cater to their specific needs and preferences. Furthermore, the country's relatively affordable cost of living compared to other European destinations has made it an attractive choice for budget-conscious travelers.

Underlying macroeconomic factors: The overall growth of the tourism industry in Armenia, supported by government initiatives to promote the country as a travel destination, has had a positive impact on the Vacation Rentals market. As more tourists flock to Armenia to experience its cultural sites, natural beauty, and warm hospitality, the demand for vacation rental properties continues to rise. Additionally, the increasing number of international flights to and from Armenia has made the country more accessible to travelers from around the world, further fueling the growth of the Vacation Rentals market.

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.