Vacation Rentals - Nigeria

Nigeria

Highlights

Nigeria is projected to generate a revenue of US$524.40m in the Vacation Rentals market by 2024.
The revenue is expected to grow annually at a rate of 10.99%, resulting in a projected market volume of US$883.20m by 2029.
By 2029, it is expected that the number of users Nigeria's Vacation Rentals market will reach 17.33m users.
The user penetration is projected to increase from 6.0% in 2024 to 6.7% by 2029.
The average revenue per user (ARPU) is expected to be US$38.19.
Moreover, it is expected that 70% of the total revenue Nigeria's Vacation Rentals market will be generated through online sales by 2029.
Notably, United States is the global leader in generating revenue in the Vacation Rentals market with a projected revenue of US$20bn in 2024.
Despite challenges related to infrastructure and security, Nigeria's Vacation Rentals market is poised for growth due to an increase in domestic tourism and interest from international investors.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

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

Customer preferences: Customers in Nigeria are increasingly looking for unique and authentic travel experiences, which has led to a rise in demand for vacation rentals. Tourists and locals alike prefer the flexibility and personalized touch that vacation rentals offer compared to traditional hotels. This shift in preferences is in line with global trends where travelers seek more immersive and local experiences during their trips.

Trends in the market: One noticeable trend in the Nigerian vacation rental market is the increasing popularity of short-term rentals in urban areas. As more people travel for business and leisure, there is a growing demand for conveniently located and well-equipped vacation rentals in major cities like Lagos and Abuja. Additionally, the rise of digital platforms and online booking services has made it easier for property owners to list their rentals and for travelers to find and book accommodations.

Local special circumstances: Nigeria's diverse culture and natural attractions make it a prime destination for both domestic and international tourists. This has contributed to the growth of the vacation rental market as property owners capitalize on the country's tourism potential. Additionally, the growing middle class in Nigeria has more disposable income to spend on travel, leading to an increase in domestic tourism and the demand for vacation rentals.

Underlying macroeconomic factors: The Nigerian economy has been experiencing steady growth, despite occasional fluctuations. This economic stability has boosted consumer confidence and spending power, driving the demand for travel accommodations including vacation rentals. Furthermore, government initiatives to promote tourism and improve infrastructure have made Nigeria a more attractive destination for travelers, supporting the growth of the vacation rental market.

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.