Vacation Rentals - Southern Europe

Southern Europe

Highlights

The Vacation Rentals market in Southern Europe is expected to experience a significant revenue increase in the coming years.
It is projected that by 2024, the revenue in this market will reach US$9.39bn.
The annual growth rate is estimated to be 4.89% between 2024 and 2029, resulting in a projected market volume of US$11.92bn by 2029.
Along with this growth, the number of users in the Vacation Rentals market is expected to reach 76.68m users by 2029.
In 2024, user penetration is estimated to be 27.9%, and by 2029, it is expected to increase to 32.4%.
The average revenue per user (ARPU) is expected to be US$142.20.
Furthermore, it is anticipated that online sales will generate 80% of the total revenue by 2029.
It is also worth noting that United States is projected to generate the most revenue in the Vacation Rentals market, with an estimated revenue of US$20bn in 2024, when compared globally.
In Southern Europe, Spain remains the most popular destination for vacation rentals due to its diverse landscapes, rich culture, and affordable prices.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

Amidst the picturesque landscapes and rich cultural heritage of Southern Europe, the Vacation Rentals market is experiencing a significant surge in popularity.

Customer preferences: Travelers in Southern Europe are increasingly favoring vacation rentals over traditional hotel stays due to the desire for more authentic and immersive experiences. The flexibility, privacy, and cost-effectiveness of vacation rentals are appealing to a wide range of tourists, from families seeking spacious accommodations to solo travelers looking for unique stays.

Trends in the market: In Spain, the Vacation Rentals market is booming, especially in popular tourist destinations like Barcelona and Madrid. The rise of digital platforms has made it easier for property owners to list their spaces, leading to a diverse range of options for travelers. Additionally, the growing interest in sustainable tourism is driving the demand for eco-friendly vacation rentals in countries like Portugal and Italy.

Local special circumstances: Countries like Greece and Croatia are witnessing a resurgence in their Vacation Rentals market as they attract more international visitors seeking off-the-beaten-path experiences. The stunning coastlines and historic sites in these regions are luring travelers who prefer the charm of local homes and apartments over standard hotel rooms. Moreover, the relaxed regulations in some Southern European countries are encouraging property owners to invest in vacation rental properties, further expanding the market.

Underlying macroeconomic factors: The economic recovery in Southern Europe following the global financial crisis has boosted the tourism sector, leading to an increase in both domestic and international travel. As a result, the Vacation Rentals market is benefiting from this influx of tourists looking for unique and affordable accommodation options. Additionally, the region's favorable climate and diverse attractions make it a year-round destination, sustaining the demand for vacation rentals across Southern Europe.

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.