The online home rental market allows property owners to list, rent, and manage their rental properties online. Online home rental platforms provide various advantages such as enabling property owners to remotely list and rent their properties with minimal effort. The platforms also provide an easy way for travelers and tenants to search and book an accommodation online as per their requirements and budget. The growing adoption of digital services among property owners and tenants is driving the demand for online home rental platforms.
The global online home rental market is estimated to be valued at US$ 80 Billion in 2024 and is expected to exhibit a CAGR of 13% over the forecast period 2024-2029.
With the growing preference for online bookings and increasing penetration of smartphones and internet globally, more property owners are opting for online platforms to list and rent their properties.
Key Takeaways
Key players: Key players operating in the Online Home Rental Market Share are Airbnb, Booking.com, copyright Group, TripAdvisor, and Trip.com. Airbnb dominates the market with the largest inventory of listings.
Key opportunities: The increased adoption of technologies such as virtual reality, AI, and IoT provides an opportunity for platforms to offer enhanced features to users. For example, platforms can develop AR and VR based virtual tours of listings.
Global expansion: Major players are expanding their footprint globally by partnering with local property managers and owners. The growing tourism and business travel globally also promotes the growth of online home rentals in international markets.
Market Drivers
A key driver for the growth of the online home rental market is the increased adoption of digital services. More travelers today prefer booking their accommodation online using their smartphones. Similarly, property owners also find online listing and management convenient as compared to traditional methods. This rising popularity of online travel and property services is driving the demand for online home rental platforms globally. The other major drivers include high penetration of smartphones and internet globally and growing trend of extended or permanent remote working.
PEST Analysis
Political: Governments in various countries are releasing regulations regarding online home rentals and tax collected from the platforms. Certain areas have strict laws while others have lenient policies.
Economic: The growth of the sharing economy and rise of digital nomads has fuelled demand for short stay and long stay rentals through online platforms. People are preferring rentals over buying properties.
Social: Younger generations are more comfortable with the idea of sharing space and finding temporary accommodation through online marketplaces. They form a sizeable customer base for home rentals.
Technological: Advanced search filters, reviews and ratings systems on apps and websites have made it convenient for guests to find suitable homes as per their requirements. Online payment options provide a seamless check-in experience.
Geographical regions with high market value
North America accounts for the largest share of the global Online Home Rental Market Regional Analysis value due to high smartphone and internet penetration coupled with busy lifestyle of people. The United States generates most of the revenue within the region due to widespread adoption of homesharing.
Fastest growing region
Asia Pacific region is expected to witness the highest growth rate in the online home rental market over the forecast period. This can be attributed to rising incomes, evolving travel patterns, increasing tourism and business activities across nations like India, China, Indonesia, Thailand and Malaysia. Furthermore, low-cost accommodation alternatives are gaining preference against expensive hotel stays.
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