Market Insights Mobility Travel & Tourism

Vacation Rentals - BRICS

BRICS

The Vacation Rentals market is expected to experience a significant revenue growth in the BRICS countries by 2024, with the projected revenue reaching US$18.13bn.
This growth is anticipated to continue, and by 2029, the market volume is projected to reach US$21.62bn, with an annual growth rate of 3.58%.
It is also expected that the number of users in this market will amount to 325.30m users by 2029, with a user penetration rate of 9.7%, up from 7.7% in 2024.
The average revenue per user (ARPU) in the Vacation Rentals market is expected to be US$71.34.
Furthermore, it is projected that 68% of the total revenue generated in this market will be through online sales by 2029.
In terms of global revenue comparison, United States is expected to generate the most revenue in the Vacation Rentals market, with projected revenue of US$20,270m in 2024.
In Brazil, the Vacation Rentals market is booming due to the country's natural beauty and rich cultural heritage.

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

Market

Region

Region comparison

Currency

Analyst Opinion

The Vacation Rentals market in BRICS countries is experiencing significant growth and evolution.

Customer preferences: Customers in BRICS countries are increasingly opting for vacation rentals over traditional hotels due to the flexibility, cost-effectiveness, and unique experiences they offer. Travelers are seeking accommodation options that provide a more personalized touch and a homely environment, driving the demand for vacation rentals.

Trends in the market: In Brazil, the vacation rental market is witnessing a surge in popularity, especially in coastal cities and tourist hotspots. The country's diverse landscapes and vibrant culture attract a large number of domestic and international tourists, leading to a growing demand for vacation rental properties. Property owners are capitalizing on this trend by offering unique and well-equipped accommodations to cater to different traveler preferences. In Russia, the vacation rental market is expanding rapidly, driven by the increasing popularity of short-term rentals among tourists. The country's rich history, architectural landmarks, and natural beauty make it an attractive destination for travelers seeking immersive experiences. Property owners are leveraging online platforms to market their vacation rentals effectively and reach a broader audience. In India, the vacation rental market is growing steadily, supported by the rise of digital platforms that connect property owners with travelers. The country's diverse cultural heritage, culinary delights, and picturesque landscapes appeal to a wide range of tourists looking for authentic experiences. Vacation rental properties in popular tourist destinations are in high demand, prompting investors to enter the market and diversify their portfolios. In China, the vacation rental market is booming, with a growing number of travelers opting for alternative accommodation options. The country's rapid urbanization, economic growth, and increasing disposable income have fueled the demand for vacation rentals among domestic and international tourists. Property management companies are streamlining operations and enhancing customer experiences to stay competitive in this dynamic market.

Local special circumstances: Each BRICS country has its unique cultural, economic, and regulatory environment that influences the vacation rental market. Brazil's lenient regulations and diverse tourism offerings contribute to the market's growth. Russia's seasonal tourism patterns and government initiatives impact the demand for vacation rentals. India's hospitality sector dynamics and changing traveler preferences shape the vacation rental market. China's tech-savvy population and evolving travel trends drive innovation in the vacation rental industry.

Underlying macroeconomic factors: The growth of the Vacation Rentals market in BRICS countries is also influenced by macroeconomic factors such as GDP growth, disposable income levels, exchange rates, and government policies. Economic stability, infrastructure development, and investment opportunities play a crucial role in shaping the market dynamics and attracting both property owners and travelers to the vacation rental sector.

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.