Rob Käll, President of Bookt presented six industry trends that are impacting the Global Vacation Rental Industry.

Vacation rentals are one of the fastest growing segments of the global leisure travel industry; in the US alone, it’s an estimated $63b market already. This growth has been fuelled by substantive shifts in consumer purchasing behavior, technology and the marketing and distribution of individual vacation rental units. And in spite of current economic woes, this segment of the travel industry shows no signs of slowing anytime soon.

At Bookt, we recently identified and monitored six of the most prominent trends within the rapidly growing global vacation rentals market.

These trends, which we expect see continuing well into the next decade, will further push the industry into the lodging mainstream.

1. Increased ownership of second and vacation homes

This phenomenon, driven by the increase in affluence worldwide (and in the US, by the Baby Boom generation), has increased the global supply of vacation rental units. The economic expansions of the 90’s and mid 00’s contributed to the development of these properties, while the diversified real estate portfolios of US Boomers and the new global elite has yielded an unprecedented number of partially occupied dwellings in attractive and upscale locations. This trend, which continues as Boomers retire, is one of the most important demographical trends affecting the vacation rental industry.

2. Increasing need to generate income from vacation properties

While the flush years of 1991-2001 and 2003-2007 encouraged investment in second homes and vacation properties thereby increasing the supply of vacation rental units, the inevitable economic troughs and the current residential housing crisis has ordered that owners realize some immediate return on those investments. Put more simply – today’s vacation units need to become income-generating machines, not just static assets whose chief value is derived from appreciation. This shift in the use of existing units has also contributed to the increasing and diverse supply of vacation rental properties.

3. New tourism hubs with strong real estate components

Regions like Dubai, Southern Spain, and Costa Rica are all emerging tourist destinations, enjoying high rates of visitor growth over the past five to ten years (7.1%, 6%, and 9%, respectively¹). They also all have a high saturation of real estate investment, which has led to an increased proportion of vacation rental properties. These regions, although not unknown a decade ago, have burst onto the scene to command substantial attention from developers and tourists alike, with excellent rates of return.

4. Increased interest in family and small group travel

Small group travel is no small market, valued at $18.5 billion² and driven by the increase in empty nesters and retirees, online booking and shifting travel habits. This market segment, particularly, is perfectly suited to the vacation rental home for its affordability and value, spurring the demand side of the vacation rental property equation. Family travel is also on the rise, constituting a small group of its own.

5. The online BOOM in vacation rentals

Once the purview of travel agents and word-of-mouth promotion, vacation rental properties are increasingly marketed and sold online. In the past, management and ownership of vacation properties often lacked the corporate structure of hotel chains or other lodging options and thus lacked the centralization of resources to develop and execute a comprehensive web sales strategy. While ownership consolidation has not yet swept the industry, technology and third‐party service providers like Bookt have closed the gap, making it possible for both the single-unit proprietor and the 1000-unit corporations to develop an effective, comprehensive online presence that meets their strategic goals.

6. Transparency

Price transparency and categorization became commonplace in the larger lodging industry with the growth of travel review sites, social networks and photo and video enabled websites. This has aided the growth in vacation rental properties by removing any uncertainty associated with unique lodgings. With reviews, photos, accurate (and cross‐checked) descriptions and categorization, vacation rental units have became as reliable as a large hotel chain’s reputation.

If these trends continue, and we see no reason why they shouldn’t, the vacation rental industry will expand exponentially over the next few years to become the new watchword in leisure travel.

Facilitated by innovators, web architects and trusted strategy advisors, the vacation rental industry is indeed poised for great things!

For more information visit www.bookt.com or contact with Rob Käll at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

¹ New tourism hubs with strong real estate components