Vacation Rentals - Italy

Italy

Highlights

Italy is projected to witness a significant growth in the Vacation Rentals market, with the revenue expected to reach US$3.65bn by 2024.
Moreover, the revenue is projected to exhibit an annual growth rate (CAGR 2024-2029) of 2.97%, resulting in a projected market volume of US$4.23bn by 2029.
The number of users in this market is expected to reach 23.10m users by 2029, with user penetration expected to grow from 37.9% in 2024 to 40.0% by 2029.
The average revenue per user (ARPU) is expected to be US$164.40.
Furthermore, it is projected that 84% of the total revenue in this market will be generated through online sales by 2029.
In terms of global comparison, United States is expected to generate the most revenue, with a projected revenue of US$20bn in 2024.
Italy's Vacation Rentals market is experiencing a rise in demand for villas and apartments in secluded locations, offering privacy and stunning views.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

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

Customer preferences: Travelers in Italy have shown a growing preference for unique and authentic experiences, seeking out vacation rentals that offer a more local and personalized touch compared to traditional hotels. This shift in consumer behavior has led to an increase in demand for vacation rental properties across the country.

Trends in the market: One prominent trend in the Italian Vacation Rentals market is the rise of agritourism, where tourists stay in farmhouses or rural properties to experience the local culture and countryside. This trend aligns with the overall preference for authentic experiences and has contributed to the diversification of vacation rental offerings in Italy. Additionally, the increasing popularity of coastal regions and historic cities as vacation destinations has driven the growth of vacation rental properties in these areas.

Local special circumstances: Italy's rich cultural heritage, diverse landscapes, and world-renowned cuisine make it a highly attractive destination for tourists seeking a unique and immersive experience. The country's popularity as a vacation destination, combined with the preference for experiential travel, has created a favorable environment for the growth of the Vacation Rentals market. Furthermore, the presence of strict regulations on short-term rentals in popular cities like Venice and Florence has led to a shift towards vacation rental properties in less restrictive areas, driving growth in emerging markets.

Underlying macroeconomic factors: The steady growth of Italy's tourism industry, coupled with the increasing number of international visitors, has provided a strong foundation for the expansion of the Vacation Rentals market. Economic factors such as disposable income levels and exchange rates also play a role in shaping the market dynamics, influencing both domestic and international travel trends within the country. Additionally, advancements in technology and the widespread use of online booking platforms have made it easier for property owners to list their rentals and for travelers to discover and book vacation rental accommodations, further fueling the market growth.

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.