Vacation Rentals - Azerbaijan

Azerbaijan

Highlights

The Vacation Rentals market in Azerbaijan is expected to witness a significant growth in revenue, with a projected revenue of US$152.70m by 2024.
This growth is expected to continue with an annual growth rate of 3.29% (CAGR 2024-2029), which will result in a market volume projection of US$179.50m by 2029.
By 2029, the number of users in the Vacation Rentals market is expected to reach 2.27m users.
In 2024, the user penetration is expected to be 19.5% and is projected to increase to 21.3% by 2029.
The average revenue per user (ARPU) is expected to be US$74.97 in Azerbaijan.
By 2029, 76% of the total revenue in the Vacation Rentals market is expected to be generated through online sales.
It is worth noting that United States is expected to generate the most revenue globally, with a projected revenue of US$20bn in 2024, in the Vacation Rentals market.
The Vacation Rentals market in Azerbaijan is still in its infancy, with limited options available mainly in Baku and the surrounding areas.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

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

Customer preferences: Travelers in Azerbaijan are increasingly opting for vacation rentals over traditional hotel stays due to the flexibility, affordability, and unique experiences offered by rental properties. Many tourists prefer the convenience of having a home-like environment with amenities such as kitchens and living spaces, especially when traveling with family or in groups.

Trends in the market: One noticeable trend in the Azerbaijan Vacation Rentals market is the increasing popularity of rural and nature-based accommodations. Travelers are seeking peaceful retreats away from the bustling cities, driving the demand for vacation rentals in scenic locations such as mountainous regions or near the Caspian Sea. Additionally, there is a growing interest in eco-friendly and sustainable properties among environmentally conscious tourists.

Local special circumstances: Azerbaijan's rich cultural heritage and diverse landscapes make it an attractive destination for travelers looking to explore a mix of historical sites, natural beauty, and urban experiences. This variety in tourist attractions contributes to the demand for different types of vacation rental properties, from traditional homes in historic towns to modern apartments in cosmopolitan areas like Baku.

Underlying macroeconomic factors: The growth of the Vacation Rentals market in Azerbaijan can also be attributed to the country's efforts to promote tourism and improve infrastructure to support the hospitality industry. Government initiatives to boost tourism, investments in transportation networks, and the hosting of international events have all played a role in attracting more visitors to Azerbaijan and driving the demand for vacation rental accommodations. Additionally, the increasing number of direct flights to major cities in Azerbaijan has made the country more accessible to international tourists, 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.