DUBLIN–(BUSINESS WIRE)–The “The U.S. Vacation Rental Market: Analysis by Lodging Type (House, Resort/Condominium, Apartment, and Others), Booking Mode (Online and Offline), Size, and Trends with COVID Impact Analysis -19 and forecast until 2026” report has been added to from ResearchAndMarkets.com offer.
The US vacation rental market was valued at US$14.32 billion in 2021 and is projected to reach US$21.53 billion in 2026
The vacation rental market describes a house, apartment, condo, villa or resort that is rented from time to time by the property manager to local and/or international tourists. The popularity of vacation rentals has grown tremendously over the years due to their advantages such as low cost, comfort, children and pet-friendly accommodations. Vacation rental in the United States is expected to grow at a CAGR of 8.49% over the forecast period 2022-2026.
Vacation rentals have become increasingly popular. According to global travel market research firm Phocuswright, the percentage of travelers who stayed in a vacation rental more than tripled between 2011 and 2019, from 10% to 34%. This trend has been accelerated by COVID-19, as many travelers have preferred vacation rentals to hotels for safety reasons.
The dynamics of the American vacation rental market:
Growth Drivers: Rise in the travel and tourism factor is having a major impact on the market and providing multiple opportunities for growth in the vacation rental market. Vacation rental has made many destinations attractive for tourists which not only promotes market growth but also creates jobs in the country. Additionally, other factors such as the sharing economy, increase in internet users, increase in business travel, influence of millennials in the market, and rental cost savings vacation rentals are also driving the growth of the market.
Challenges: The market also faces some of the challenges such as concerns about fraudulent listings, neighborhood changes, and competition for inventory. These challenges are somewhat hampering the growth of the market in the coming years. Customers booking their accommodation also have to go through cyber risk and have suffered cyber crimes against them.
Trends: The growth of the vacation rental market over the coming year is attributed to the meta search engine factor for vacation rentals. The metasearch engine platform introduces property managers to a wider audience and helps them find guests early in the booking process.
In addition, other notable trends such as the growing popularity of country and coastal holidays, quality as a marketing tool, increased flexibility, contactless solutions, use of vacation rental tools and software and solo travel are contributing to the growth of the market. In the years to come.
Market Segmentation Analysis:
In 2021, the home segment dominated the market by absorbing almost half of the market, it is attributed to its large presence in vacation rental space and access to amenities. On the other hand, Resort/Condominium is expected to register the highest CAGR of 8.67% in the coming years, due to its growing demand from millennials.
In 2021, the online segment held the highest share and it is also expected to be the fastest growing segment. Vacation rentals offered online are expected to continue to grow due to increasing digitalization and better options for monetizing rental assets.
COVID-19 impact analysis and way forward:
The U.S. vacation rental market also absorbed a slowdown due to domestic and international travel restrictions. Property managers increased their average overnight rate to cover their losses due to lower average daily rate prices. But when the country launched the vaccination campaign and started to reopen the country, the demand for vacation rentals increased.
The cleanliness trend is more likely to emerge as, due to the pandemic, people have become more cautious about the hygiene situation of the place where they are staying. In fact, the trend of staying in hotels/motels to stay in vacation rentals has also accelerated. since the COVID-19 crisis, with many travelers preferring vacation rentals to traditional accommodations for safety reasons.
The US vacation rental market is fragmented due to low barriers to entry. This feature ended up increasing competition in the market and also increased the bargaining power of buyers.
The TripAdvisor, Inc./Flipkey family and Airbnb, Inc. are the biggest competitors, although their style of approaching the market is different from each other. The top three accommodation providers – Booking.com, Expedia/Vrbo and Airbnb – have a combined market share of just 8%. Airbnb, Inc.’s business model operates on the principle of not acquiring property, although it mediates between property managers and guests.
TripAdvisor, Inc.’s business model based on matching customer demand with the supply of accommodations and other travel experiences by travel partners. TripAdvisor, Inc.’s revenue model is managed by Flipkey which uses the same revenue model as Airbnb, Inc.
The main players in the vacation rental market in the United States are:
Expedia Group, Inc.
Marriott International, Inc.
Reservations Holdings, Inc.
Main topics covered:
2.1 Holiday rental: an overview
2.1.1 Characteristics of vacation rentals
2.1.2 Vacation Rental History
2.1.3 Common Types of Vacation Rentals
2.1.4 Difference between vacation rental and hotel
2.2 Vacation Rental Segmentation: An Overview
2.2.1 Segmentation of vacation rentals
3. Analysis of the American market
3.1 The US Vacation Rental Market: An Analysis
3.1.1 The US vacation rental market by value
3.1.2 The US vacation rental market by user and penetration rate
3.1.3 The US Vacation Market by Accommodation Type (House, Resort/Condominium, Apartment and Other)
3.1.4 The US vacation market by booking method (online and offline)
3.2 The U.S. Vacation Rental Market: Accommodation Type Analysis
3.2.1 The US vacation rental market by value
3.2.2 US Vacation Rental Resort/Condominium Market by Value
3.2.3 The US seasonal apartment rental market by value
3.2.4 The US Other vacation rental market by value
3.3 The US vacation rental market: analysis of the method of booking
3.3.1 The US online vacation rental market by value
3.3.2 The US offline vacation rental market by value
4. Impact of COVID-19
4.1 Impact of COVID-19
4.1.1 Impact of COVID-19 on the US vacation rental market
4.1.2 Decline in Airbnb occupancy rate in major cities
4.1.3 Trends emerging due to COVID-19
4.1.4 Post-COVID scenario
5. Market dynamics
5.1 Drivers of growth
5.1.1 Increase in travel and tourism activity
5.1.2 Increase in internet users
5.1.3 Business and leisure travel growth
5.1.4 Ways Millennials Impact the Market
5.1.5 Sharing economy
5.1.6 Cost-benefits of staying in a hotel
5.2.1 Fraudulent Registration Concerns
5.2.2 Competition for inventory
5.2.3 Ward changes
5.3 Market trends
5.3.1 Rise in popularity of country and coastal holidays
5.3.2 Quality as a marketing tool
5.3.3 Flex-cation rise
5.3.4 Contactless solutions
5.3.5 Use of vacation rental tools and software
5.3.6 Meta search engine for vacation rentals
5.3.7 Traveling alone
6. Competitive Landscape
6.1 U.S. Vacation Rental Market Players: Competitive Landscape
6.1.1 Highly fragmented market
6.2 Players in the US vacation rental market: a financial comparison
6.3 USA Vacation Rental Market Players by Number of Visits
6.4 USA Vacation Rental Market Players by Internet Presence Comparison
7. Company Profiles
7.1 Company Overview
7.2 Operating segments
7.3 Business Strategy
Reservations Holdings, Inc.
Expedia Group, Inc.
Marriott International, Inc.
For more information on this report, visit https://www.researchandmarkets.com/r/xyprzb