Short-Term Rental Management Market Size and Share Analysis - Growth Trends and Forecasts (2025-2032)

Market Size and Trends

The Short-Term Rental Management market is estimated to be valued at USD 11.0 billion in 2024 and is expected to reach USD 26.9 billion by 2031, growing at a compound annual growth rate (CAGR) of 11.8% from 2024 to 2031. This growth reflects increasing demand for efficient property management solutions driven by the rising popularity of short-term rentals among travelers and hosts worldwide. The market's expansion is supported by technological advancements and the growing preference for flexible accommodation options.

Trending upward, the Short-Term Rental Management market is experiencing significant innovation, with platforms integrating AI-driven analytics, automated booking systems, and enhanced guest communication tools to improve operational efficiency and customer satisfaction. Moreover, the increasing adoption of sustainable and contactless services post-pandemic is reshaping the market landscape. Expansion into emerging markets and diversification of service offerings further contribute to the momentum, positioning this sector for robust growth as both supply and demand within the short-term rental ecosystem continue to evolve.

Segmental Analysis:

By Property Type: Dominance of Entire Homes and Apartments Driven by Privacy and Flexibility

In terms of By Property Type, Entire Home/Apartments contributes the highest share of the market owing to the increasing preference for private, fully-equipped living spaces that cater to families, groups, and long-stay travelers. This segment's growth is fueled by changing traveler behavior where privacy, convenience, and a home-like environment are prioritized over traditional hotel stays or shared accommodations. Entire homes and apartments allow guests to enjoy independent access to all amenities, including kitchens and private entrances, appealing to customers who seek comfort and autonomy during their stay. Furthermore, the rise of digital nomads and remote workers has accelerated demand for properties that support longer stays, offering space for work and leisure which entire homes readily provide.

Additionally, the flexibility in location options—from urban apartments close to business hubs to suburban homes near recreational areas—supports diverse traveler profiles. Property owners favor managing entire homes and apartments for short-term rental due to the comparatively higher rental yields and stronger booking appeal, which justify investment in professional management services. Villas also contribute to premium segments but remain niche compared to the broad appeal of entire homes and apartments. Shared rooms and private rooms, although popular for budget-conscious travelers, account for smaller shares as concerns over privacy and cleanliness remain prevalent, especially post-pandemic. The trend toward more personalized and exclusive experiences ensures that management efforts and technological innovations focus predominantly on entire homes and apartments, solidifying their leadership in the market.

By Service Type: Booking Management as the Cornerstone of Efficient Short-Term Rental Operations

In terms of By Service Type, Booking Management contributes the highest share of the market because it is the foundational service that directly impacts occupancy, revenue, and guest satisfaction. Efficient booking management platforms and services enable property owners and managers to streamline reservations, calendar synchronization across multiple distribution channels, and real-time updates, minimizing double bookings and vacancy periods. The growth in this segment is underpinned by increased digitization and the proliferation of online travel agencies (OTAs), which necessitate robust tools for seamless booking flows and integration.

Moreover, booking management services often incorporate automated communication with guests for confirmations, reminders, and check-in instructions, improving overall operational efficiency and guest experience. This automation reduces the workload for property managers and individual owners alike, enabling them to handle larger portfolios without proportional increases in staffing or overheads. Alongside, dynamic availability updates and ease of price adjustments within booking platforms further intersect with pricing optimization services to maximize revenue streams.

While complementary services such as maintenance & housekeeping, and guest communication are critical for operational success, booking management remains the linchpin for driving market participation. This centrality has encouraged continuous innovation in user-friendly interfaces, AI-powered demand forecasting, and integration with contactless technologies, all of which heighten the competitiveness and scalability of short-term rental operations.

By End-User: Individual Owners Drive Market Expansion Through Personalized and Flexible Rentals

In terms of By End-User, Individual Owners contribute the highest share of the market, a trend that reflects the democratization and decentralization of property rental ownership. Increasingly, individual homeowners recognize the income potential of listing properties on short-term rental platforms and seek professional management solutions to optimize profitability without the time-intensive demands of self-management. The growth in this segment is driven by technological advancements that simplify property listing, booking management, and guest interaction, lowering entry barriers for non-professional owners.

Individual owners benefit from the flexibility to control terms such as availability, pricing, and guest criteria, while professional short-term rental management services offer expertise in maximizing occupancy and maintaining property standards. This partnership model aligns well with the owners' goals of passive income generation, asset preservation, and leveraging market trends such as peak travel seasons or event-driven demand surges.

Contrasting with larger entities like property management companies or hospitality chains, individual owners typically manage smaller portfolios and seek tailored services to suit unique property characteristics and localized market dynamics. The rise in individual ownership also reflects broader shifts such as urbanization, increased mobility, and the desire for diversified income streams among middle-class investors, all of which boost short-term rental inventory. The personalized nature of individual owner properties often appeals to travelers looking for authentic, unique stays, further reinforcing this segment's dominance in the market.

Regional Insights:

Dominating Region: North America

In North America, the dominance in the Short-Term Rental Management market is driven by a mature market ecosystem, advanced technological infrastructure, and a well-established sharing economy culture. The region's extensive adoption of digital platforms and mobile applications facilitates seamless property management and guest interaction. Favorable government policies, particularly in the United States and Canada, such as streamlined short-term rental regulations and tax frameworks, encourage professional management services. The presence of key industry players like Vacasa, Sonder, and Evolve Vacation Rental, who focus on innovative property management solutions and comprehensive customer service, further strengthens the market leadership. Additionally, high tourism volumes, strong domestic travel trends, and investor familiarity with real estate asset optimization contribute to North America's dominant position. Trade dynamics including cross-border travel and ease of international payment systems also support market scalability.

Fastest-Growing Region: Asia Pacific

Meanwhile, the Asia Pacific region exhibits the fastest growth in the Short-Term Rental Management market due to rapidly expanding tourism sectors, increasing urbanization, and a rising middle class with higher disposable incomes. Government initiatives promoting tourism infrastructure and digital economy innovation have played a critical role in market expansion. Countries such as China, Japan, and Southeast Asian nations are progressively liberalizing regulatory environments to accommodate short-term rentals, while also investing in smart city projects that incorporate technological solutions for property management. The regional market benefits from a diverse industry presence ranging from global players like Airbnb and OYO Rooms to local companies such as Tujia in China and RedAwning in Southeast Asia. These companies leverage localized marketing strategies and technology-enabled management to tap into domestic and international travel demand. Furthermore, the growth in smartphone penetration and cashless payment adoption fuels market accessibility and operational efficiency.

Short-Term Rental Management Market Outlook for Key Countries

United States

The United States' market is marked by a highly competitive environment dominated by leading companies such as Vacasa, Sonder, and Evolve Vacation Rental, who collectively emphasize technology-driven management platforms and customer-centric services. The regulatory landscape varies by state and city, with many urban centers embracing short-term rentals while imposing guidelines to ensure sustainable operations. Strong tourism infrastructure and wide adoption of vacation rental habits maintain a consistent demand for professional management services.

Canada

Canada's market is characterized by supportive government frameworks that balance tourism promotion with housing market concerns. Companies like CanadaStays and FlipKey have tailored their services to regional preferences and regulatory compliance, enhancing host-guest experiences. Growth is fueled by increasing domestic tourism and rising interest from international travelers, particularly in urban hubs such as Toronto and Vancouver.

China

China continues to lead with significant investments in the short-term rental sector, supported by robust tourism policies and smart city technology integration. Local giants like Tujia benefit from government backing and close partnerships with municipal authorities, enabling efficient property verification and management processes. The landscape is further enriched by collaborations with global platforms, adapting to unique consumer behaviors and regional market nuances.

Japan

Japan's market shows strong evolution, driven by inbound tourism growth and government initiatives such as the Minpaku Law to regulate short-term rentals. Domestic and international companies, including Airbnb Japan and Rakuten STAY, focus on compliance and safety standards while leveraging hospitality industry expertise. The integration of multilingual support and local cultural experiences reinforces market appeal.

Brazil

Brazil's market is increasingly influenced by expanding tourism, particularly in major cities and beach destinations. Platforms like Airbnb Brazil and local agency VivaReal play vital roles in managing diversified portfolios of properties. However, regulatory challenges and infrastructural limitations require companies to innovate, often emphasizing operational efficiency and community engagement to build trust with hosts and guests alike.

Market Report Scope

Market Segmentation

Property Type Insights (Revenue, USD, 2020 - 2032)

• Entire Home/Apartments
• Private Rooms
• Shared Rooms
• Villas
• Others

Service Type Insights (Revenue, USD, 2020 - 2032)

• Booking Management
• Pricing Optimization
• Maintenance & Housekeeping
• Guest Communication
• Others

End-user Insights (Revenue, USD, 2020 - 2032)

• Individual Owners
• Property Management Companies
• Real Estate Investors
• Hospitality Chains
• Others

Regional Insights (Revenue, USD, 2020 - 2032)

• North America
• U.S.
• Canada
• Latin America
• Brazil
• Argentina
• Mexico
• Rest of Latin America
• Europe
• Germany
• U.K.
• Spain
• France
• Italy
• Russia
• Rest of Europe
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• ASEAN
• Rest of Asia Pacific
• Middle East
• GCC Countries
• Israel
• Rest of Middle East
• Africa
• South Africa
• North Africa
• Central Africa

Key Players Insights

• Vacasa
• Evolve Vacation Rental
• Hostmaker
• Sonder
• TurnKey Vacation Rentals
• Guesty
• Stay Alfred
• BnbLord
• RedAwning
• Pillow Homes
• OYO Vacation Homes
• Wyndham Vacation Rentals
• Blueground
• Vacaleo
• AvantStay
• Lyric Hospitality
• Airsorted
• Belvilla
• City Relay
• Friendly Rentals