Vacation Rentals - Puerto Rico

Puerto Rico

Highlights

Puerto Rico is expected to witness significant growth in the Vacation Rentals market.
By 2024, the projected revenue for this market is US$10.19m and this market is expected to grow at an annual rate of 2.98%, resulting in a market volume of US$11.80m by 2029.
The number of users in this market is forecasted to reach 259.60k users by 2029, with user penetration expected to increase from 7.2% in 2024 to 7.9% by 2029.
The average revenue per user (ARPU) is expected to be US$43.26.
It is projected that 66% of the total revenue in the Vacation Rentals market will be generated through online sales by 2029.
It is interesting to note that United States is expected to generate the most revenue in this market, with a projected revenue of US$20bn in 2024 when compared globally.
Puerto Rico's Vacation Rentals market is on the rise, offering unique accommodation options in charming colonial cities and stunning beachfront locations.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Vacation Rentals market in Puerto Rico is experiencing a significant growth trajectory, driven by a combination of unique customer preferences, evolving trends in the market, and local special circumstances.

Customer preferences: Travelers in Puerto Rico are increasingly seeking authentic and immersive experiences, driving the demand for vacation rentals over traditional accommodation options. Visitors are drawn to the flexibility, privacy, and local charm offered by vacation rentals, allowing them to truly experience the culture and lifestyle of the island.

Trends in the market: One notable trend in the Puerto Rican vacation rental market is the rise of eco-friendly and sustainable properties. Travelers are becoming more environmentally conscious and are actively seeking accommodations that align with their values. This trend has led to an increase in eco-friendly vacation rentals that promote sustainability and responsible tourism practices.

Local special circumstances: Puerto Rico's unique status as a U. S. territory makes it an attractive destination for American travelers looking for a tropical getaway without the need for a passport. This special circumstance has contributed to the steady influx of tourists to the island, driving the demand for vacation rentals as visitors seek a home away from home during their stay.

Underlying macroeconomic factors: The economic recovery and infrastructure development efforts in Puerto Rico following the impact of natural disasters have also played a role in the growth of the vacation rental market. As the island rebuilds and reinvigorates its tourism industry, vacation rentals have emerged as a popular and lucrative accommodation option for both tourists and property owners alike.

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.