Vacation Rentals - Spain

Spain

Highlights

Spain's Vacation Rentals market is anticipated to experience a rise in revenue, with a projection of US$3.42bn by 2024.
The expected annual growth rate (CAGR 2024-2029) of 1.95% indicates a promising future, with a projected market volume of US$3.76bn by 2029.
The number of users is also expected to increase, with an estimation of 21.49m users by 2029.
In 2024, user penetration is calculated at 41.8%, which is expected to rise to 45.6% by 2029.
The average revenue per user (ARPU) is expected to be US$172.10.
It is predicted that 85% of the total revenue in the Vacation Rentals market will come from online sales by 2029.
In contrast, United States is expected to generate the most revenue globally, with US$20bn in 2024.
Spain's Vacation Rentals market is seeing a rise in demand for luxury villas with private pools and outdoor spaces due to COVID-19 safety concerns.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

Spain's Vacation Rentals market has been experiencing a significant surge in recent years, attracting both domestic and international travelers seeking unique and personalized accommodation options.

Customer preferences: Travelers in Spain are increasingly opting for vacation rentals over traditional hotels due to the flexibility, authenticity, and cost-effectiveness they offer. The desire for more space, privacy, and amenities, combined with a growing interest in living like a local, has driven the demand for vacation rental properties across the country.

Trends in the market: One notable trend in the Spanish vacation rental market is the rise of online platforms and digital booking services, making it easier for property owners to list their homes and for travelers to find and book accommodations. This digital transformation has expanded the market reach and increased the overall visibility of vacation rental options in Spain. Another trend shaping the market is the diversification of vacation rental offerings, with a wide range of properties available including cozy apartments in bustling cities, charming villas in the countryside, and beachfront cottages along the coast. This variety caters to different preferences and budgets, further fueling the growth of the market.

Local special circumstances: Spain's rich cultural heritage, diverse landscapes, and favorable climate make it a popular destination for tourists from around the world. The country's vibrant cities, stunning beaches, and picturesque countryside provide a diverse range of vacation experiences, attracting travelers seeking both relaxation and adventure. The popularity of vacation rentals in Spain is also influenced by the country's strong tourism industry, well-developed infrastructure, and welcoming hospitality culture. Property owners have capitalized on these factors by offering unique and personalized accommodations that showcase the local culture and lifestyle, creating memorable experiences for guests.

Underlying macroeconomic factors: The growth of the vacation rental market in Spain is supported by favorable macroeconomic conditions, including steady economic growth, low unemployment rates, and increasing disposable incomes. As more people have the means to travel and explore new destinations, the demand for alternative accommodation options like vacation rentals continues to rise. Additionally, Spain's status as one of the top tourist destinations in Europe, coupled with initiatives to promote sustainable tourism and responsible travel, has further boosted the popularity of vacation rentals among environmentally conscious travelers. This focus on sustainability aligns with the growing global trend towards eco-friendly and socially responsible tourism practices.

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.