Short-term Rental Apps Market Size

Report Overview

The Global Short-term Rental Apps Market size is expected to be worth around USD 47.2 Billion By 2034, from USD 13.42 Billion in 2024, growing at a CAGR of 13.40% during the forecast period from 2025 to 2034. North America held a leading position in the short-term rental apps market in 2024, capturing more than 37.5% of the market share, amounting to USD 5.0 billion in revenue.

Short-term rental apps are mobile platforms that allow property owners to list their residences for temporary rental, and travelers to book accommodations for short stays, typically ranging from a few days to several weeks. These apps act as intermediaries, offering users an easy way to explore various lodging options, from apartments and houses to unique stays like treehouses and yurts.

The growth of the short-term rental app market is driven by increased internet and smartphone usage, making rentals more accessible. Additionally, rising domestic and international travel, fueled by a growing middle class and demand for authentic, personalized experiences, further boosts market expansion.

Short-term rentals offer flexible, cost-effective alternatives to traditional hotels, appealing to budget-conscious travelers. Technological advancements have simplified booking and management, improving user experience and host efficiency. Additionally, the growing cultural shift toward sharing economy models has fostered a community-driven approach to travel, emphasizing access over ownership.

Social media and influencer marketing have also boosted their appeal, particularly among tech-savvy, younger travelers who value spontaneity and digital convenience. In 2023, short-term rentals (STRs) delivered a significant economic boost to the European Union, generating €149 billion in benefits and creating 2.1 million jobs, according to a new report by Oxford Economics, commissioned by Airbnb.

There are several opportunities in the short-term rental app market, particularly in enhancing user trust and safety. Innovations like AI-driven recommendations and improved security measures can set platforms apart. Additionally, expanding into less saturated markets or offering niche accommodations, such as eco-tourism, can tap into unmet demand.

The short-term rental sector has significant market expansion potential. As travel restrictions ease and tourism rebounds, the sector is set to grow rapidly. Apps that can scale globally while staying locally relevant and compliant with regional regulations will be poised to benefit, fostering economic growth and cultural exchanges through tourism.

Key Takeaways

• The Global Short-term Rental Apps Market is expected to reach USD 47.2 Billion by 2034, growing from USD 13.42 Billion in 2024, with a CAGR of 13.40% during the forecast period from 2025 to 2034.
• In 2024, the Property Rental segment within the short-term rental apps market captured more than 61.8% of the market share, holding a dominant position.
• The Mobile Apps segment dominated the short-term rental app market in 2024, with more than 74.9% of the total market share.
• The Individual Consumers segment in the short-term rental apps market accounted for more than 78.3% of the market share in 2024, marking its dominant position.
• North America held a leading position in the short-term rental apps market in 2024, capturing more than 37.5% of the market share, amounting to USD 5.0 billion in revenue.
• In 2024, the market for short-term rental apps in the United States was valued at USD 4.53 billion, and it is projected to grow at a CAGR of 12.7%.

Business Benefits

Hosts have the autonomy to adjust rental rates based on demand, maximizing income during peak seasons and adjusting for slower periods. Short-term rentals can generate significantly higher income compared to traditional long-term leases. For example, according to The Financial Express, in tourist-heavy areas like Goa, hosts can earn up to ₹2 lakh per flat during peak months, whereas long-term leases would yield significantly less.

Approximately 45% of hosts report that income from short-term rentals is crucial for meeting their financial needs. Furthermore, as per DoorLoop report, over 20% stated that rental income has helped them avoid foreclosure or eviction. These rentals let owners fix issues and make improvements quickly, without the restrictions of long-term leases.

Short-term rental apps provide travelers with unique, personalized accommodations that hotels often can’t match. Features like user-friendly booking platforms and timely communication contribute to a positive guest experience, encouraging repeat business and positive reviews.

AI In Short-term Rental Apps

• Dynamic Pricing Optimization: AI-powered tools analyze factors like booking patterns, local events, and competitor rates to recommend optimal pricing. This ensures competitive rates and maximizes revenue for property owners.
• Enhanced Guest Communication: AI-driven chatbots handle routine inquiries, providing instant, 24/7 responses. This improves guest satisfaction and allows property managers to focus on complex tasks.
• Personalized Guest Experiences: By analyzing guest preferences and behavior, AI offers tailored recommendations for services and local attractions. This personalization enhances guest engagement and encourages repeat bookings.
• Operational Efficiency: AI automates tasks such as photo organization and scheduling, streamlining workflows. This reduces manual effort and allows property managers to focus on strategic activities.
• Improved Direct Booking Platforms: AI enhances direct booking websites by generating compelling content and optimizing search engine visibility. This leads to increased bookings and reduces reliance on third-party platforms.

U.S. Short-term Rental Apps Market

In 2024, the market for short-term rental apps in the United States was valued at $4.53 billion. It is projected to grow at a compound annual growth rate (CAGR) of 12.7%.

The substantial growth of this market can be attributed to increasing consumer preference for short-term housing solutions and the burgeoning appeal of personalized travel experiences. This trend is supported by the rising number of users who favor the convenience, affordability, and unique accommodations offered by these apps over traditional hotel stays.

Investment in technology and strategic partnerships are key drivers propelling this market forward. As more consumers opt for travel experiences that offer a sense of local immersion, short-term rental apps are expanding their services to include more than just accommodations. Features such as virtual tours, local experience bookings, and customized recommendations are becoming common.

In 2024, North America held a dominant market position in the short-term rental apps market, capturing more than a 37.5% share with revenues amounting to USD 5.0 billion. This leading position can primarily be attributed to a combination of technological advancement, high levels of disposable income, and a strong culture of domestic and international travel.

North America’s tech-savvy population, characterized by widespread smartphone usage and openness to new technologies, plays a key role in the region’s leadership in digital travel accommodations. Additionally, evolving regulations across various jurisdictions have helped create a stable environment, supporting the growth of short-term rental businesses.

Economic factors are vital, with the U.S. and Canada benefiting from robust tourism industries fueled by geographic and cultural diversity. This attracts both international and domestic travelers, driving demand for a wide range of accommodations, from urban apartments to secluded homes, all facilitated through short-term rental apps.

Furthermore, strategic partnerships between short-term rental app companies and local businesses, as well as tourism boards, have enhanced market penetration and user engagement. These collaborations often include bundled offers that combine accommodations with unique local experiences, thereby enhancing the overall attractiveness of short-term rentals.

Rental Type Analysis

In 2024, the Property Rental segment within the short-term rental apps market held a dominant position, capturing more than a 61.8% share. This segment primarily includes the rental of residential spaces such as apartments, homes, and unique lodgings.

The predominant market share can be attributed to the increasing consumer preference for authentic travel experiences, offering a home-like environment and the opportunity to live like a local. These factors resonate particularly well with millennial and Gen Z travelers, who prioritize unique and experiential travel over traditional tourist experiences.

The leading position of the Property Rental segment is also bolstered by the widespread adoption of remote work policies post-pandemic. As professionals seek more flexible living arrangements that accommodate both work and leisure, the demand for short-term residential rentals has surged. This trend has encouraged property owners to diversify their offerings, leading to an increase in available listings on platforms like Airbnb and Vrbo, further fueling segment growth.

Moreover, the Property Rental segment benefits from the high visibility and extensive user base of major platform providers. Platforms such as Airbnb have invested heavily in marketing and technology, enhancing user experience through streamlined booking processes and improved security measures, which have significantly increased consumer trust and reliability perceptions.

Platform Analysis

In 2024, the Mobile Apps segment held a dominant market position, capturing more than a 74.9% share of the short-term rental app market. This segment’s leadership can primarily be attributed to the pervasive adoption of smartphones and the growing trend of mobile-first approaches among tech-savvy consumers.

Mobile apps are preferred over web platforms due to features like personalized notifications, real-time updates, and location-based services. These enhance user experience by providing instant booking confirmations, check-in instructions, and promotional offers, boosting engagement and satisfaction.

They provide a more streamlined and intuitive user interface than web platforms, which is key to attracting and retaining users. Their design and usability cater to those who value ease and efficiency, and the ability to access the platform quickly from an always-available device has made them the preferred choice for both hosts and guests.

Mobile apps enhance communication and security in the short-term rental market, with features like in-app messaging and secure payment gateways fostering trust. These elements contribute to the strong growth of the mobile app segment, positioning it for continued success as mobile technology advances.

End-Use Analysis

In 2024, the Individual Consumers segment held a dominant market position in the short-term rental apps market, capturing more than a 78.3% share. This segment’s leadership can largely be attributed to the growing preference among travelers for unique and personalized accommodation experiences over traditional hotel stays.

The rise of digital platforms and social media has significantly influenced consumer behavior, with more individuals relying on online reviews and app-based services for travel planning. The convenience of booking accommodations through apps, often with just a few clicks, appeals to tech-savvy consumers looking for efficiency and reliability in their travel arrangements.

Economic factors also support the dominance of this segment. Many consumers find short-term rentals to be a cost-effective alternative to hotels, especially for longer stays, allowing them to allocate more of their budget towards activities and experiences during their travels. This perceived value is crucial in driving the preference for app-based short-term rentals among individual consumers.

The trend towards experiential travel, where travelers seek authentic local experiences, aligns perfectly with the short-term rental market. Platforms now offer not only accommodations but also unique experiences, enhancing the overall travel experience. This focus on consumer preferences ensures the dominance of the Individual Consumers segment in the market.

Key Market Segments

By Rental Type

• Property Rental
• Vehicle Rental
• Tools & Machinery
• Others

By Platform

• Mobile Apps
• Web-based Platform

By End-Use

• Individual Consumers
• Businesses & Organizations

Key Regions and Countries

• North America
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Singapore
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Driver

The rise of authentic, immersive travel experiences.

The increasing consumer preference for authentic and immersive travel experiences has significantly propelled the growth of short-term rental applications. Travelers are increasingly seeking accommodations that offer a genuine connection to local cultures, a demand that traditional hotels often struggle to meet. Short-term rentals via platforms like Airbnb and Vrbo provide diverse lodging options, allowing guests to experience destinations like locals.

This shift toward experiential travel is especially noticeable among Millennials and Gen Z, who value unique, personalized experiences over standardized services. The flexibility and variety offered by short-term rentals cater to these preferences, enabling travelers to select accommodations that align with their desired experiences. In addition, the economic benefits play a role in the growing popularity of short-term rentals.

Restraint

Regulatory Challenges and Compliance

The expansion of short-term rental platforms has encountered significant obstacles due to varying regulatory environments across different jurisdictions. Local governments have implemented diverse regulations to address concerns related to housing affordability, community character, and tax compliance, creating a complex landscape for short-term rental operators.​

In many urban areas, authorities have introduced stringent measures to mitigate the impact of short-term rentals on local housing markets. These measures aim to prevent the conversion of long-term housing into tourist accommodations, which can exacerbate housing shortages and drive up rental prices. Also, these regulations are designed to balance the economic benefits of tourism with the preservation of community integrity and housing availability for residents. ​

Opportunity

Integration of Technological Innovations

The integration of advanced technological innovations presents a significant opportunity for the enhancement and growth of short-term rental platforms. By adopting cutting-edge technologies, these platforms can improve operational efficiency, enhance user experiences, and differentiate themselves in a competitive market.​

A key advancement is the use of AI and machine learning to personalize user experiences. By analyzing behavior and preferences, platforms can offer tailored recommendations, optimize pricing, and predict demand trends, boosting guest satisfaction and booking rates.

Smart home technologies, like keyless entry, smart thermostats, and voice assistants, enhance the convenience and appeal of short-term rentals. These features improve the guest experience while helping hosts manage properties more efficiently, leading to cost savings and increased profitability.

Challenge

Rising Operational Costs

Short-term rental operators are increasingly confronted with escalating operational expenses, which pose challenges to profitability and sustainability. The implementation of cost technologies, like automated monitoring and data reporting tools, requires investment from both platforms and hosts. While these technologies help with regulatory compliance, they can also create operational challenges and high costs, which may be burdensome for smaller operators.

Factors contributing to these rising costs include increased labor wages, elevated utility prices, and the necessity for continual property upgrades to meet guest expectations. Unexpected expenditures, like emergency repairs or compliance-related investments, can strain financial resources. Managing these costs effectively is essential for operators to sustain competitive pricing and ensure long-term viability in the short-term rental market.

Emerging Trends

One notable trend is the rise of ‘bleisure’ travel, where individuals blend business and leisure during their trips. This shift has led to increased demand for accommodations that cater to both work and relaxation, prompting rental platforms to feature properties equipped with dedicated workspaces and high-speed internet. ​

Another emerging trend is the growing interest in unique and personalized experiences. Travelers are increasingly seeking accommodations that offer distinct character or cultural significance, such as themed properties or those with historical value. This demand has prompted hosts to diversify their offerings, moving beyond traditional lodging to provide more customized stays. ​

Technological integration continues to transform the short-term rental landscape. AI tools improve guest communication through sentiment analysis and smart templates for personalized interactions. They also optimize cleaning and maintenance services, streamlining operations and ensuring efficient property management.

Key Player Analysis

Airbnb has been a dominant player in the short-term rental market since its inception in 2008. Known for revolutionizing the way people book accommodations, Airbnb offers a wide variety of properties, from single rooms to entire homes, across the globe. Its user-friendly platform and trusted review system have made it a go-to choice for travelers seeking unique and often more affordable options compared to traditional hotels.

Zillow Group, Inc. is primarily known for its real estate listings and tools for buying and selling homes, it has also made significant inroads into the short-term rental space. Zillow offers a platform for property owners to list homes and apartments that can be rented short-term, often for business or vacation purposes.

Move, Inc., which owns Realtor.com, also plays a role in the short-term rental market. While its primary focus is on real estate listings and home buying, Move, Inc. offers short-term rental options through its platform. The company’s unique advantage lies in its extensive database and user-friendly tools that allow individuals to easily find short-term rental properties in various regions.

Top Key Players in the Market

• Airbnb, Inc.
• Zillow Group, Inc.
• Move, Inc.
• Trulia, Inc.
• Redfin Corporation
• Apartment Finder, LLC
• RentPath, LLC
• Homesnap, Inc.
• Zumper, Inc.
• Apartments.com LLC
• Roomster Corporation
• Home Depot Tool Rental
• Lowe’s Tool Rental
• United Rentals
• Herc Rentals
• Sunbelt Rentals
• Acme Tools
• Bunnings
• RentHop, Inc.
• Nestpick GmbH
• Others

Top Opportunities for Players

The short-term rental (STR) app market is poised for significant transformation, presenting a number of key opportunities for industry players.

• Exploiting Emerging Markets: As travel habits evolve, so do the destinations of interest. Travelers are increasingly seeking out unique, less conventional locations beyond major tourist hubs. This shift opens up new opportunities for STR apps to cater to under-the-radar destinations by offering localized experiences and properties in places that are just beginning to gain popularity among international travelers​.
• Enhancing Guest Experience with Premium Offerings: There’s a growing demand for premium experiences tailored to specific guest personas. STR apps can capitalize on this by facilitating more sophisticated listings that offer exclusive amenities or customized experiences. This not only attracts a higher-paying clientele but also helps properties stand out in a competitive market​.
• Integrating Advanced Pricing Tools: The use of dynamic pricing tools is critical in today’s fluctuating market conditions. These tools help property managers adjust prices in real-time based on demand, competition, and other market dynamics, maximizing revenue potential. STR apps that can integrate or offer advanced pricing capabilities will likely attract more property managers looking for ways to optimize their earnings​.
• Focusing on Quality and Transparency: In light of the growing importance of trust and authenticity, STR platforms need to prioritize accurate listings and quality control. Travelers are increasingly basing their accommodation choices on reliable reviews and transparent descriptions. Platforms that enforce high standards for listings and encourage honest reviews will build trust and attract more users​.
• Adopting Flexible and Responsive Operations: The ability to respond quickly to market changes is more crucial than ever. This includes adjusting to shorter booking windows and varying guest requirements. STR apps that offer features to support operational flexibility, such as easy modifications to bookings and fast communication channels between hosts and guests, will be better positioned to thrive in a dynamic market environment.

Industry News

• In January 2025, United Rentals announced the acquisition of H&E Equipment Services for $4.8 billion. This strategic move aims to expand United Rentals’ fleet by nearly 64,000 units and enhance service capabilities in key markets.
• In February 2025, Zillow reported a 25% increase in revenue for its rentals segment, reaching $116 million in the latest quarter. The company also announced an exclusive partnership with Redfin to syndicate multifamily rental listings, aiming to expand market share in the rentals business. ​
• In Early 2025, HomeToGo, the Berlin-based vacation rental platform, has completed its acquisition of Interhome, a leading rental provider. This strategic move aims to streamline HomeToGo’s control over the entire vacation rental process, from search to guest stays.

Report Scope