Vacation Rentals - Eastern Asia

Eastern Asia

Highlights

By 2024, the Vacation Rentals market in Eastern Asia is estimated to generate a revenue of US$18.07bn.
The projected annual growth rate (CAGR 2024-2029) of 3.00% is expected to increase the market volume to US$20.95bn by 2029.
The number of users in the Vacation Rentals market is expected to reach 216.40m users by 2029, while user penetration is estimated to be 11.1% in 2024 and is predicted to increase to 13.3% by 2029.
The average revenue per user (ARPU) is expected to reach US$99.91.
Furthermore, in the Vacation Rentals market, 73% of total revenue is predicted to be generated through online sales by 2029.
When compared globally, United States is expected to generate the most revenue in the Vacation Rentals market, with a projected revenue of US$20bn in 2024.
In Japan, traditional ryokans are facing competition from modern vacation rentals as travelers seek a mix of cultural immersion and contemporary comfort.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

Over the past few years, the Vacation Rentals market in Eastern Asia has been experiencing significant growth and transformation, influenced by various factors that have shaped the industry in this region.

Customer preferences: Customers in Eastern Asia have shown a strong inclination towards unique and culturally immersive travel experiences. This has led to a rise in demand for vacation rentals that offer authentic local accommodations, giving travelers a chance to live like a local during their stay. Additionally, there is a growing interest in eco-friendly and sustainable lodging options among travelers in the region.

Trends in the market: In Japan, the vacation rental market has been booming with the relaxation of regulations in recent years. This has led to a surge in the number of vacation rental properties available to tourists, offering a wide range of options from traditional ryokans to modern apartments. The increasing popularity of vacation rentals has also been driven by the upcoming Tokyo Olympics, with many travelers opting for rental properties over traditional hotels.

Local special circumstances: South Korea has seen a rise in vacation rental bookings, particularly in popular tourist destinations like Seoul and Jeju Island. The unique Hanok homestays in South Korea have gained popularity among both domestic and international travelers, offering a glimpse into the country's rich cultural heritage. The government's support for the sharing economy has further boosted the vacation rental market in South Korea.

Underlying macroeconomic factors: China, being a key player in the Eastern Asian region, has witnessed a growing middle class with higher disposable incomes, leading to an increase in domestic and outbound tourism. This has positively impacted the vacation rental market, with more Chinese travelers opting for vacation rental properties both domestically and internationally. The rise of online platforms and mobile apps for booking vacation rentals has also made it easier for Chinese travelers to find and book accommodation options that suit their preferences.

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.