Vacation rentals market seen tripling to $315 billion by 2031

By AI, Created 1:40 PM UTC, May 22, 2026, /AGP/ – Allied Market Research says the global vacation rentals market is on track to nearly triple by 2031 as travelers shift more spending toward experiences, digital booking and alternative lodging. Europe led revenue in 2021, while Asia-Pacific is projected to grow fastest through the forecast period.

Why it matters: - The global vacation rentals market could expand from $91.2 billion in 2021 to $315.0 billion by 2031. - The forecast implies a 12.4% compound annual growth rate from 2022 to 2031. - Vacation rentals are gaining share as travelers look for more flexible, experience-driven lodging than traditional hotels. - The market’s growth is tied to broader travel demand, digital booking habits and changing consumer spending.

What happened: - Allied Market Research published a report on the global vacation rentals market on May 22, 2026. - The report projects steady growth over the next decade, supported by travel expansion and rising demand for alternative accommodations. - The market includes short-stay furnished apartments, professionally managed resorts and houses rented to tourists. - Major market names include Airbnb, Expedia, HomeAway, VRBO, Booking.com, Hotels.com and HomeToGo.

The details: - Consumers are shifting spending from durable goods toward recreation and travel. - Solo travel is emerging as a major demand driver. - Hostelworld data cited in the report show solo-traveler bookings rose 42% between 2015 and 2020. - Digital channels are becoming the preferred way to book accommodations because they offer more convenience and flexibility. - Artificial intelligence is reshaping the sector through voice commands, chatbots and more personalized room experiences. - The report highlights hyper-personalized hotel rooms, smart rooms and AI-based in-room experiences as key trends. - The market is segmented by accommodation type, price point, booking mode, location type, end-user generation and region. - Accommodation categories in the study include homes, condos, hometown and villas. - Price points are split into economy, mid-range and luxury. - Booking channels include online travel agencies, hotel websites and others. - Location types include resort areas, rural areas and small towns.

Between the lines: - Political unrest and terrorist attacks remain a drag on travel demand and destination choice. - Fraud and booking scams are also rising as more travelers book online. - The report frames security, trust and personalization as the main battlegrounds for vacation rental providers. - Europe held more than one-third of global revenue in 2021 and is expected to remain the largest regional market. - Asia-Pacific is expected to post the fastest CAGR at 13.4% from 2022 to 2031. - The report points to stronger air connectivity, intraregional travel, affordable lodging and digital platform adoption as drivers in Europe. - In Asia-Pacific, middle-class growth and new road and rail networks are supporting mid-range accommodations. - Sri Lanka saw a prolonged tourism slump after terror attacks, and France lost more than $787 million after the Paris attacks, according to the report.

What’s next: - Vacation rental operators are likely to keep investing in digital booking tools and AI-powered service features. - The fastest growth should continue to come from regions and products aimed at mid-range and flexible travel demand. - Travelers are expected to keep favoring accommodations that combine convenience, affordability and personalized service. - The report also includes sample, purchase and analyst-contact links for buyers evaluating the market.

The bottom line: - Vacation rentals are moving from a niche alternative to a mainstream part of global travel, with digital convenience and experience-seeking consumers doing much of the work.