Stay ahead of the curve and future-proof your business with Mintel’s UK Holiday Rental Property Market Report 2023. Our full report is packed with consumer-led market intelligence, the latest holiday rental market trends and consumer behaviours affecting your business. Get a 360° view of the holiday rental market, including market size, share and forecasted growth to help you align your business strategy with the needs of your audience.
Below, we’ve handpicked the key insights analysed in the full report and summarised the core topics.
Topics Analysed in this Report
- How the rising cost of living will impact the recovery of the holiday rental property market.
- Participation and future interest in holiday rental property stays.
- Decisive factors when choosing a property.
- Main benefits of holiday rental properties versus hotels.
- Barriers to staying in holiday rental properties.
Holiday Rental Property Market Outlook
Although the income squeeze will have a dampening effect on growth rates, holiday rental properties are expected to outperform the overall domestic tourism market. The holiday rental market is benefitting from a larger consumer base after the relaxing of restrictions. In addition, its affordable image and self-catering facilities help it appeal amid the rising cost of living.
- Holiday rental market size: In 2023, the number of domestic holiday rental property stays taken by UK residents increased by 1.1% reaching 8.3 million holidays.
Holiday Rental Market Trends and Opportunities
Unique accommodation experiences rise in popularity
Holiday makers aged 16-34 are twice as likely to say that a unique look is one of the main benefits of a rental property compared to hotels. With uniqueness being an important element, brands that are able to attract one-of-a-kind and extraordinary rental properties to their platforms will become more attractive to a younger audience.
- Holiday rental property market opportunity: 10% of travellers consider a ‘unique look’ an important factor when choosing accommodation.
Things to do nearby is the most decisive factor
Holidaymakers place a ‘things to do nearby’ as the highest priority when they choose one holiday rental property over another. Certain brands have tapped into this trend by offering search filters such as ‘Distance to sea’, ‘Near a pub’ and ‘Near a shop’. While search filters help understand consumer needs and narrow down search results, there is great potential to learn from past choices travellers have made and show personalised suggestions, such as new destinations.
- Holiday rental market opportunity: 70% of holidaymakers prioritise ‘things to do nearby’ when booking their holiday rental property.
To learn more about the UK holiday rental market, including a five-year forecast, analysis of consumer behaviour, and recommendations for market opportunities, purchase our full UK Holiday Rental Property Market Report.
Leading Brands in the UK Holiday Rental Market
Sykes, Airbnb, Booking.com, Expedia, Tripadvisor, OYO Vacation Homes, Awaze, Toad Hall Cottages.
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Expert Insights from a Travel Analyst
This report, written by Marloes de Vries, a leading Travel analyst, delivers in-depth commentary and analysis to highlight trends in the holiday rental market and add expert context to the numbers.
Holiday rental properties continue to show the highest growth potential of any accommodation type. The segment is benefiting from a larger pool of new customers as a result of holidaymakers wanting more personal space during the pandemic, while its affordable image and self-catering facilities help it to appeal amid the rising cost of living.”
Marloes de Vries
Travel Associate Director
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Overview
- Key issues covered in this Report
- Products covered in this Report
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Executive Summary
- The five-year outlook for the domestic holiday rental property market
- Figure 1: Category outlook, 2023-28
- The market
- COVID-19 accelerated growth in domestic property rentals
- Domestic holiday rental property market expected to continue to grow
- Figure 2: Market size and forecast for domestic holiday rental property, by volume, 2018-28
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- Figure 3: Market size and forecast for domestic holiday rental property, by value, 2018-28
- Companies and brands
- Sykes Holiday Cottages becomes B Corp certified
- Airbnb increases focus on rooms due to the increased cost of living
- The consumer
- Pandemic has boosted the use of holiday rental properties
- Figure 4: Types of holiday accommodation used in the last three years, 2023
- Holiday rental property segment shows highest growth potential
- Figure 5: Types of holiday accommodation used in the last three years, versus future interest, 2023
- 6 in 10 adults plan to stay in holiday rentals in the near term
- Figure 6: Plans to stay in holiday rental property in the short term, 2021-23
- Increased appetite to stay in a holiday rental property abroad
- Figure 7: Expected location of next holiday rental property stay, 2021-23
- Airbnb remains leader in holiday rental property bookings
- Figure 8: Booking channels used for last holiday rental property stay, 2023
- Things to do nearby is the most decisive factor
- Figure 9: Decisive factors when choosing a holiday rental property, 2023
- Affordable image and self-catering facilities appeal amid inflationary pressures
- Brands that offer unique accommodation are more likely to appeal to younger generations
- Figure 10: Main benefits of a holiday rental property compared to a hotel, 2023
- Holiday rentals with additional services will appeal to an older demographic
- Reliability, safety and local impact are highlighted as barriers by about one in 10
- Figure 11: Reasons for not being interested in staying in a holiday rental property, 2023
- The five-year outlook for the domestic holiday rental property market
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Issues and Insights
- Consumer confidence is on the rise but consumers expected to remain price sensitive in the short term
- Ageing population presents opportunities
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Market Size and Performance
- COVID-19 accelerated growth in domestic property rentals
- Figure 12: Volume and value performance of the domestic holiday rental property market, 2015-23
- COVID-19 accelerated growth in domestic property rentals
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Market Forecast
- The five-year outlook for the domestic holiday rental property market
- Figure 13: Category outlook, 2023-28
- Domestic holiday rental property market expected to continue to grow
- Figure 14: Market size and forecast for domestic holiday rental property, by volume, 2018-28
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- Figure 15: Market size and forecast for domestic holiday rental property, by value, 2018-28
- Learnings from the last income squeeze
- Forecast methodology
- The five-year outlook for the domestic holiday rental property market
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Market Drivers
- Financial confidence improved further in June 2023
- Inflationary pressures continue to present opportunities to attract new hosts
- Figure 16: The Financial Confidence Index, 2009-23
- Inflation for food and drink remains high
- Consumers continue to prioritise their summer holiday
- Figure 17: Holiday bookings in the last three months, 2017-23
- Booking intentions comparable to pre-pandemic levels
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- Figure 18: Plans to book a holiday in the next three months, 2017-23
- Growing holiday rental market comes with more regulations
- Domestic regulations
- EU regulations
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Key Players
- Global intermediaries
- Airbnb
- Booking.com
- Expedia/Vrbo
- Tripadvisor Vacation Rentals
- OYO Vacation Homes
- Domestic brands/cottage specialists
- Awaze
- Sykes Holiday Cottages
- Other domestic holiday cottage companies
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Launch Activity and Innovation
- Sustainability moves higher up the agenda
- Sykes Holiday Cottages becomes B Corp certified
- Booking.com introduces new badge levels to recognise properties’ sustainability efforts
- Airbnb increases focus on rooms due to the increased cost of living
- Competition is heating up in the holiday rental property sector
- Startup Landfolk receives €3.8 million in funding
- Revolut adds holiday home rental feature to its app
- Mandarin Oriental Hotel Group launches branded exclusive homes
- Marriott launched Apartments by Marriott Bonvoy
- Company activity targeting the extended stay market
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Holiday Rental Property Usage
- Nearly three in 10 adults stayed in a holiday rental property in the last three years
- Figure 19: Types of holiday accommodation used in the last three years, 2023
- Pandemic has boosted the use of holiday rental properties…
- …with rental houses leading the way
- Figure 20: Types of holiday accommodation used in the last three years, 2017-23
- Holiday rental property users have a younger profile
- Figure 21: Demographic profile of holidaymakers, by type of accommodation used in the past three years, 2023
- Nearly three in 10 adults stayed in a holiday rental property in the last three years
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Future Interest in Holiday Rental Property
- Holiday rental property segment shows highest growth potential
- Figure 22: Types of holiday accommodation used in the last three years, versus future interest, 2023
- Strong growth potential among older adults
- Figure 23: Use of holiday rental property* in the last three years, versus future interest, by demographics, 2023
- Holiday rental property segment shows highest growth potential
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Holiday Rental Property Plans in 2023
- 6 in 10 adults plan to stay in holiday rentals in the near term
- Figure 24: Plans to stay in holiday rental property in the short term, 2021-23
- Increased appetite to stay in a holiday rental property abroad
- Figure 25: Expected location of next holiday rental property stay, 2021-23
- 6 in 10 adults plan to stay in holiday rentals in the near term
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Holiday Rental Property Booking
- Airbnb remains leader in holiday rental property bookings
- Generalist OTAs are the second most used booking channel
- Figure 26: Booking channels used for last holiday rental property stay, 2023
- Booking demographics
- Figure 27: Demographic profile of those who stayed in a holiday rental property in the past three years, by booking channels used for most recent stay, 2023
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Decisive Factors When Choosing a Property
- Things to do nearby is the most decisive factor
- Brands expected to make more use of AI to connect travellers with the right home
- Big-ticket purchases will move up the agenda as spending power recovers
- Figure 28: Decisive factors when choosing a holiday rental property, 2023
- Outdoor spaces and gardens broaden the appeal of holiday rental properties
- Figure 29: Decisive factors when choosing a holiday rental property – TURF Analysis, 2023
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Main Benefits Compared to Hotels
- Privacy, affordability and self-catering facilities seen as key benefits compared to hotel stays
- Affordable image and self-catering facilities appeal amid inflationary pressures
- Ageing population presents opportunities
- Brands that offer unique accommodation are more likely to appeal to younger generations
- Figure 30: Main benefits of a holiday rental property compared to a hotel, 2023
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Barriers to Staying in Holiday Rental Properties
- Costs are the biggest barrier
- Figure 31: Reasons for not being interested in staying in a holiday rental property, 2023
- Holiday rentals with additional services will appeal to an older demographic
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- Figure 32: Reasons for not being interested in staying in a holiday rental property, by age, 2023
- Reliability, safety and local impact are highlighted as barriers by about one in 10
- Costs are the biggest barrier
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Appendix – Data Sources, Abbreviations and Supporting Information
- Abbreviations
- Consumer research methodology
- TURF analysis methodology
- Figure 33: Decisive factors when choosing a holiday rental property – TURF Analysis, 2023
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Appendix – Forecast Methodology
- Market forecast and prediction intervals
- Figure 34: Lower bound, central and upper bound volume forecast for domestic holiday rental property stays, 2023-28
- Figure 35: Lower bound, central and upper bound value forecast for domestic holiday rental property stays, 2023-28
- Value forecast domestic holiday rental property stays at constant prices
- Figure 36: Value forecast for domestic holiday rental property stays at 2023 prices, 2023-28
- Market drivers and assumptions
- Forecast methodology
- Market forecast and prediction intervals
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