Vacation Rentals - NAFTA

NAFTA

Highlights

It is projected that by 2024, NAFTA's Vacation Rentals market will experience a revenue of US$23.98bn.
Furthermore, this market is expected to show an annual growth rate (CAGR 2024-2029) of 4.03%, resulting in a projected market volume of US$29.20bn by 2029.
In this market, the number of users is anticipated to reach 104.90m users by 2029, with a user penetration of 18.0% in 2024 and an expected decrease to 20.0% by 2029.
The average revenue per user (ARPU) is projected to amount to US$260.60.
Moreover, 84% of the total revenue in the Vacation Rentals market is expected to be generated through online sales by 2029.
It is worth noting that, in comparison to other countries, United States is predicted to generate the most revenue (US$20bn in 2024) in the Vacation Rentals market.
The Vacation Rentals market in the US, as a NAFTA country, is experiencing increased demand for unique and personalized rental experiences.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Vacation Rentals market in NAFTA has been experiencing significant growth and evolution in recent years.

Customer preferences: Travelers in the NAFTA region are increasingly looking for unique and personalized vacation experiences, driving the demand for vacation rentals over traditional accommodations. Customers prefer the flexibility, space, and amenities that vacation rentals offer, allowing them to tailor their stay to their specific needs and preferences.

Trends in the market: In the United States, the Vacation Rentals market is witnessing a surge in popularity, with a growing number of property owners opting to list their homes on online platforms. This trend is fueled by the desire for extra income and the ease of use of these platforms. In Mexico, the market is seeing a rise in eco-friendly and sustainable vacation rentals, catering to environmentally conscious travelers seeking responsible tourism options. Canada, on the other hand, is experiencing a trend towards luxury vacation rentals, with high-end properties becoming increasingly popular among affluent travelers.

Local special circumstances: In the United States, the Vacation Rentals market is influenced by the diverse range of destinations available, from bustling cities to serene countryside retreats. This variety caters to different traveler preferences and contributes to the overall growth of the market. In Mexico, the market is shaped by the country's rich cultural heritage and natural beauty, with vacation rentals often reflecting traditional architecture and design elements. Canada's Vacation Rentals market is characterized by its seasonal nature, with demand peaking during the winter months in popular ski destinations.

Underlying macroeconomic factors: The growth of the Vacation Rentals market in the NAFTA region can be attributed to several macroeconomic factors, including the increasing trend of remote work and digital nomadism, which has led to more flexible travel schedules and longer stays in vacation rentals. Additionally, the rise of online booking platforms and the sharing economy has made it easier for property owners to list their accommodations and for travelers to find and book vacation rentals, driving market expansion across the region.

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.