Vacation Rentals - South America

South America

Highlights

South America is expected to see a significant growth in the Vacation Rentals market.
The projected revenue for this market is estimated to reach US$6.50bn by 2024, with an annual growth rate (CAGR 2024-2029) of 9.35%.
This will result in a projected market volume of US$10.16bn by 2029.
The number of users in this market is also expected to increase, with a projected amount of 90.99m users by 2029.
The user penetration rate is expected to slightly decrease from 18.0% in 2024 to 21.4% by 2029.
However, the average revenue per user (ARPU) is expected to remain steady at US$87.56.
In terms of online sales, it is expected that 77% of the total revenue in this market will be generated through online sales by 2029.
When compared globally, it is noteworthy that United States is expected to generate the most revenue in the Vacation Rentals market, with a projected revenue of US$20bn in 2024.
In Argentina, the Vacation Rentals market is booming thanks to the country's diverse tourism offerings and affordable prices.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Vacation Rentals market in South America is experiencing significant growth and evolution driven by various factors.

Customer preferences: Travelers in South America are increasingly seeking unique and authentic experiences, leading to a rise in demand for vacation rentals over traditional hotel accommodations. The flexibility, privacy, and often lower cost of vacation rentals appeal to a wide range of customers, from budget-conscious travelers to luxury seekers.

Trends in the market: In Brazil, the largest country in South America, the vacation rental market is booming due to a combination of factors. The country's diverse landscapes, from vibrant cities to pristine beaches and lush rainforests, attract a large number of domestic and international tourists. This has led to a growing supply of vacation rental properties, ranging from cozy apartments in urban centers to luxurious villas in coastal areas.

Local special circumstances: Argentina, known for its rich cultural heritage and stunning natural beauty, is also experiencing a surge in vacation rentals. The popularity of destinations like Buenos Aires, Mendoza, and Bariloche has driven the growth of the market, with travelers opting for vacation rentals to immerse themselves in the local culture and lifestyle. Additionally, the economic situation in Argentina has made vacation rentals an attractive option for budget-conscious travelers looking for affordable yet comfortable accommodations.

Underlying macroeconomic factors: The overall economic stability and growth in South America have played a significant role in the development of the vacation rentals market. As disposable incomes rise and travel becomes more accessible to a larger segment of the population, the demand for alternative accommodation options like vacation rentals is expected to continue increasing. Additionally, the region's growing reputation as a tourist hotspot on the global stage is attracting more visitors, further fueling the expansion of the vacation rentals market in South America.

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.