Vacation Rentals - New Zealand

New Zealand

Highlights

The Vacation Rentals market in New Zealand is predicted to experience substantial growth in the coming years.
Revenue is projected to reach US$336.50m by 2024, with an expected annual growth rate (CAGR 2024-2029) of 3.73%.
This growth is anticipated to result in a projected market volume of US$404.20m by 2029.
By 2029, the number of users in the Vacation Rentals market is expected to reach 1.40m users, while user penetration is predicted to decrease from 22.8% in 2024 to 25.7%.
The average revenue per user (ARPU) is expected to be US$279.60.
Additionally, it is projected that 85% of the total revenue will be generated through online sales by 2029.
Comparing globally, United States is expected to generate the most revenue in the Vacation Rentals market, with a projected revenue of US$20bn in 2024.
Despite this, New Zealand's Vacation Rentals market is expected to see significant growth in the coming years.
New Zealand's Vacation Rentals market is thriving, with a growing number of luxury properties catering to the country's stunning natural landscapes.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Vacation Rentals market in New Zealand has been experiencing a significant surge in recent years, attracting both domestic and international travelers seeking unique accommodation options.

Customer preferences: Travelers in New Zealand are increasingly seeking authentic and immersive experiences, driving the demand for vacation rentals. Many tourists prefer the flexibility and privacy that vacation rentals offer compared to traditional hotels. Additionally, the rise of remote work has led to an increase in long-term vacation rental bookings as individuals look to combine work and leisure in picturesque locations.

Trends in the market: One prominent trend in the New Zealand vacation rental market is the growing popularity of eco-friendly and sustainable properties. Travelers are actively seeking accommodations that align with their environmental values, leading to an increase in eco-conscious vacation rentals across the country. Moreover, the trend of "glamping" (glamorous camping) has gained traction in New Zealand, with many vacation rental providers offering luxury camping experiences in scenic locations.

Local special circumstances: New Zealand's unique natural landscapes, including stunning beaches, lush forests, and snow-capped mountains, make it a prime destination for vacation rentals. The country's Maori culture and rich heritage also play a significant role in shaping the vacation rental market, with many properties incorporating traditional Maori design elements and offering cultural experiences to guests.

Underlying macroeconomic factors: The strong tourism industry in New Zealand, coupled with government initiatives to promote sustainable tourism practices, has contributed to the growth of the vacation rental market. Additionally, the increasing popularity of online booking platforms has made it easier for property owners to list their rentals and for travelers to discover and book unique accommodations across the country.

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.