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Vacation Rentals - South Korea

South Korea
  • South Korea is expected to generate a revenue of US$1.35bn in the Vacation Rentals market by 2024.
  • This is projected to grow at an annual growth rate (CAGR 2024-2029) of 4.68%, resulting in a market volume of US$1.70bn by 2029.
  • Additionally, by 2029, the number of users in this market is expected to reach 11.36m users.
  • The user penetration rate is projected to increase from 20.3% in 2024 to 22.1% by 2029.
  • The average revenue per user (ARPU) is expected to amount to US$129.00 in South Korea.
  • Furthermore, in the Vacation Rentals market, it is projected that 95% of total revenue will be generated through online sales by 2029.
  • It is worth mentioning that United States is the leading country in this market, with revenue of US$20bn in 2024.
  • South Korea's Vacation Rentals market is growing rapidly, driven by the increasing popularity of domestic travel and the desire for unique and authentic experiences.

Definition:

The Vacation Rentals market comprises of private accommodation bookings. This includes private holiday homes and houses, e.g., HomeAway, as well as short-term rental of private rooms or flats via portals such as Airbnb, in travel agencies or by telephone.

Additional Information:

The main performance indicators of the Vacation Rentals market are revenues, average revenue per user (ARPU), users and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues. Users represent the aggregated number of guests. Each user is only counted once per year.

The booking volume includes all booked travels made by users from the selected region, independent of the departure and arrival. The scope includes domestic and outbound travel.

For further information on the data displayed, refer to the info button right next to each box.

In-Scope

  • Short-term rental of private rooms or flats via portals such as Airbnb or telephone

Out-Of-Scope

  • Hotels and professionally-run accommodation such as guest houses
Vacation Rentals: market data & analysis - Cover

Market Insights report

Vacation Rentals: market data & analysis

Study Details

    Revenue

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Jul 2024

    Source: Statista Market Insights

    Most recent update: Jul 2024

    Source: Statista Market Insights

    Sales Channels

    Most recent update: Jul 2024

    Source: Statista Market Insights

    Analyst Opinion

    The Vacation Rentals market in South Korea is experiencing a significant surge in popularity, with a growing number of travelers opting for alternative accommodation options over traditional hotels.

    Customer preferences:
    Travelers in South Korea are increasingly seeking unique and personalized experiences during their vacations, leading to a rise in demand for vacation rentals. The flexibility, affordability, and authenticity offered by vacation rentals appeal to a wide range of travelers, from budget-conscious backpackers to luxury-seeking tourists.

    Trends in the market:
    One prominent trend in the South Korean vacation rentals market is the rapid expansion of online booking platforms and mobile apps, making it easier for travelers to discover and book rental properties. Additionally, there is a noticeable increase in the number of local hosts offering vacation rentals, providing visitors with a chance to immerse themselves in the local culture and lifestyle.

    Local special circumstances:
    South Korea's unique blend of traditional culture and modern amenities makes it an attractive destination for travelers looking for diverse experiences. The country's bustling cities, serene countryside, and picturesque coastal areas offer a wide variety of vacation rental options to suit different preferences and interests.

    Underlying macroeconomic factors:
    The steady growth of South Korea's economy and the increasing disposable income of its population have contributed to the expansion of the vacation rentals market. As more South Koreans choose to travel domestically and internationally, the demand for alternative accommodation options continues to rise. Additionally, government initiatives to promote tourism and improve infrastructure further support the development of the vacation rentals market in the country.

    Users

    Most recent update: Jul 2024

    Source: Statista Market Insights

    User Demographics

    Most recent update: Mar 2024

    Sources: Statista Market Insights, Statista Consumer Insights Global

    Global Comparison

    Most recent update: Jul 2024

    Source: Statista Market Insights

    Methodology

    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.

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    Vacation Rentals: market data & analysis - BackgroundVacation Rentals: market data & analysis - Cover

    Key Market Indicators

    Notes: Based on data from IMF, World Bank, UN and Eurostat

    Most recent update: Sep 2024

    Source: Statista Market Insights

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