Short-Term Rentals Reach $201.6B, Face Slower Growth Ahead
The global short-term rental (STR) market hit $201.6 billion in gross bookings in 2024, according to Phocuswright’s Global Short-Term Rentals 2025 report. After years of pandemic-fueled expansion, growth is expected to ease to single digits in 2025, signaling a shift into a more mature, yet strategically vital, phase for the sector—especially in digital and leisure-focused travel.
While North America and Europe still lead in global bookings, their growth curves are flattening, pointing to increasing market maturity. Meanwhile, the next wave of STR expansion is gaining ground in emerging regions. Asia Pacific is recovering strongly after China’s reopening, while Latin America is experiencing accelerated gains. The Middle East and Africa also show signs of growing activity, indicating more regional fragmentation and opportunity.
Online bookings continue to dominate the STR ecosystem, accounting for 87% of total gross bookings in 2024. That figure is expected to grow modestly through 2028, reinforcing the importance of digital channels in how travelers search, select and reserve accommodations.
Despite this strong digital foundation, STR operators face mounting challenges. Urban markets are under increasing regulatory pressure, and hotel chains are now aggressively entering the short-term rental space. Initiatives such as Apartments by Marriott Bonvoy are evolving from pilot programs to full-scale growth strategies, creating new forms of competition that blur traditional category lines.
Changing traveler preferences are also reshaping the STR landscape. Guests are still gravitating toward regional trips, longer stays and unique, lifestyle-oriented lodging. However, long-haul international travel is still hampered by economic uncertainty and operational issues, including delays in visa processing.
As mature markets stabilize and growth shifts to new geographies, the STR sector is entering a more fragmented and competitive era. Success now hinges on strategic clarity and the ability to adapt to a rapidly evolving global landscape.
Related news: https://airguide.info/category/air-travel-business/artificial-intelligence/, https://airguide.info/category/air-travel-business/travel-business/