The Europe vacation rental market was valued at USD 30.70 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 3.0% from 2024 to 2030. This growth is largely driven by millennial travelers, whose increasing expenditure on leisure activities such as travel, holidays, and accommodations has significantly boosted demand. Vacation rental properties are gaining popularity over traditional hotels as they tend to be more cost-effective, offer greater privacy and comfort, and are more suitable for families traveling with children or pets.

In 2023, the European vacation rental market accounted for 34.4% of the total global vacation rental market revenue. Although the market experienced a decline during the COVID-19 pandemic due to widespread lockdowns and travel bans, it had witnessed robust growth in the years leading up to the outbreak. During that pre-pandemic period, a surge in international travel, combined with a growing consumer preference for luxurious and home-like accommodations, fueled a strong rise in demand for vacation rentals. Travelers increasingly sought longer stays, spent more on travel experiences, and were willing to journey to more distant and unique destinations to match their personal preferences.

The development of transport infrastructure and the widespread adoption of high-speed internet have played a critical role in enabling access to remote and previously hard-to-reach destinations across Europe. These advancements are expected to continue encouraging travelers to explore new, exciting, and less conventional locations, thereby contributing to market growth over the forecast period.

The largest vacation rental markets in Europe include Germany, France, the UK, Italy, and Spain. Major urban centers such as London, Paris, Rome, Moscow, Madrid, Saint Petersburg, Barcelona, Lisbon, Milano, and Batumi feature the highest concentration of vacation rental properties. According to STR, Europe experienced a 54% drop in new reservations in 2020 compared to 2019, largely as a result of pandemic-related disruptions.

Key Market Trends & Insights:

• In 2023, the vacation rental market in the United Kingdom emerged as a significant contributor to the overall European market, accounting for 15.06% of the region’s total revenue share. This indicates the UK's strong position as a preferred travel destination within Europe, driven by its diverse tourist offerings, rich cultural heritage, and well-established hospitality infrastructure.

• When segmented by accommodation type, home accommodations were the most preferred choice among travelers, capturing a 48.9% share in the same year. This trend reflects travelers’ increasing inclination toward private, spacious, and family-friendly lodging options that offer the comfort and familiarity of home while traveling.

• In terms of booking mode, the offline segment dominated the market by revenue, holding a 71.2% share in 2023. This suggests that despite the rise of digital platforms, a substantial number of consumers still rely on traditional booking methods—such as travel agents or direct bookings through property owners—especially for personalized service or familiarity with established providers.

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Market Size & Forecast:

• 2023 Market Size: USD 30.70 Billion

• 2030 Projected Market Size: USD 38.87 Billion

• CAGR (2024-2030): 3.0%

Key Companies & Market Share Insights:

The Europe vacation rental market features a dynamic mix of new entrants and a limited number of established players. Many prominent companies are increasingly focusing on the growing vacation rental segment, recognizing its potential for long-term profitability. In order to maintain or expand their market share, companies are diversifying their service offerings and enhancing customer experiences to stay competitive.

Key players operating in this market include Airbnb Inc., 9flats.com Pte Ltd., and Booking Holdings Inc., which continue to shape the competitive landscape through innovation and market presence.

Emerging companies such as NOVASOL A/S and 9flats.com Pte Ltd. are also making significant inroads, adding competitive pressure and contributing to the evolution of the industry.

To strengthen their positions, leading companies are launching new initiatives. For example, in May 2023, Airbnb, Inc. announced that its teams had verified the accuracy of around 300,000 accessibility features in homes worldwide as part of Global Accessibility Awareness Day. These verified features included step-free entrances, fixed grab bars, and bath or shower chairs, making properties more inclusive and accessible for all travelers.

In another strategic move, Oravel Stays Private Limited (operating as Oyo) acquired Bornholmske Feriehuse in August 2022 to expand its footprint in Europe. The acquisition aimed to bolster Oyo’s presence in Croatia, where it already listed more than 7,000 homes through its Traum Ferienwohnungen platform and close to 1,800 vacation homes on its Belvilla channel.

Key Players

• Airbnb Inc.

• 9flats.com Pte Ltd.

• Booking Holdings Inc.

• Expedia Group Inc.

• Hotelplan Holding AG

• Vrbo

• NOVASOL A/S

• Wimdu

• TripAdvisor Inc.

• Wyndham Destinations Inc.

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Conclusion:

The Europe vacation rental market is witnessing steady growth, driven by rising travel among millennials, demand for affordable and family-friendly lodging, and the appeal of private, home-like experiences. Increased internet connectivity and the popularity of digital booking platforms have made it easier for travelers to access diverse destinations. Urban hubs and tourist hotspots across the UK, France, Germany, and Spain lead the market. Meanwhile, offline bookings remain significant, and players are expanding service offerings to stay competitive. A mix of established brands and emerging players, supported by strategic acquisitions and technology integration, continues to shape the market’s dynamic landscape.