Vacation Rentals - LATAM

LATAM

Highlights

Revenue in the Vacation Rentals market is projected to reach US$8.94bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 8.21%, resulting in a projected market volume of US$13.26bn by 2029.
In the Vacation Rentals market, the number of users is expected to amount to 127.80m users by 2029.
User penetration is projected to be 16.4% in 2024 and 19.4% by 2029.
The average revenue per user (ARPU) is expected to amount to US$85.52.
In the Vacation Rentals market, 75% of total revenue will be generated through online sales by 2029.
In global comparison, most revenue will be generated United States (US$20bn in 2024).

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Vacation Rentals market in LATAM has been experiencing significant growth in recent years, driven by changing customer preferences, evolving market trends, and unique local circumstances.

Customer preferences: Travelers in LATAM are increasingly seeking unique and personalized accommodation options, moving away from traditional hotels to embrace the flexibility and authenticity offered by vacation rentals. The desire for more space, privacy, and local experiences has fueled the demand for vacation rental properties across the region.

Trends in the market: In Brazil, one of the largest markets for vacation rentals in LATAM, there has been a noticeable shift towards beachfront properties and eco-friendly accommodations. Travelers are looking for sustainable and nature-immersed experiences, driving the development of eco-friendly vacation rentals along the country's stunning coastline.

Local special circumstances: Mexico, another key player in the LATAM vacation rentals market, is witnessing a surge in demand for luxury villas and haciendas. The country's rich cultural heritage and diverse landscapes attract high-end travelers looking for exclusive and upscale accommodation options. This trend has led to the rise of luxury vacation rentals in Mexico, catering to the discerning tastes of affluent tourists.

Underlying macroeconomic factors: The overall economic growth in LATAM, coupled with increasing internet penetration and smartphone usage, has made it easier for travelers to discover and book vacation rental properties. The expanding middle class in countries like Argentina and Colombia has also contributed to the growth of the vacation rentals market, as more people have the disposable income to travel and explore alternative accommodation options. Additionally, government initiatives to promote tourism and improve infrastructure have further boosted the vacation rentals sector in LATAM.

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.