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Executive Summary
- Opportunities for the holiday rental property market
- Three opportunities for the holiday rental property market
- Market dynamics and outlook
- Market size & forecast
- Market predictions
- Market value is forecast to continue to increase over the next five years
- Concerns about the cost of living remain prevalent
- The market is facing stricter regulations
- What consumers want and why
- Participation in holiday rental properties reached highest level since 2017
- Graph 1: types of holiday rental property accommodation used in the last three years, 2017-24
- Rental houses show the strongest growth potential
- Graph 2: types of holiday rental property used in the past three years versus interest in staying in this accommodation in the next three years, 2024
- Multigenerational travellers are looking for an experience
- Food & drink activity, visitor attractions and excursions are the most desired paid-for activities
- Privacy, self-catering facilities and affordability seen as key benefits compared to hotel stays
- Graph 3: main benefits of a holiday rental property compared to a hotel, 2024
- Cost is the biggest barrier
- Graph 4: reasons for not being interested in staying in a holiday rental property, 2024
- Innovation and marketing
- Enhancing the planning and booking process
- Airbnb introduces Icons to connect more travellers with extraordinary experiences
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Market Dynamics
- Market size
- Volume of holiday rental property stays expected to recover from a dip in 2023
- Graph 5: volume of domestic holidays taken by British residents in holiday rental properties, 2018-24
- Spend on domestic holiday rental property stays is expected to grow slightly faster than the volume
- Graph 6: value of domestic holidays taken by British residents in holiday rental properties, 2018-24
- Holiday rental properties are expected to continue to outperform the wider domestic holiday market
- Graph 7: spend per night, by type of accommodation, 2023
- Market forecast
- Market volume is forecast to reach new records
- Market value is forecast to increase over the next five years
- Consumer demand for holiday rental properties remains strong
- Macro-economic factors
- Inflation reached Bank of England’s target rate in May 2024
- Graph 8: CPI inflation rate, 2021-24
- The cost of living is still a concern
- Concerns about the cost of living are limiting confidence
- Graph 9: the financial confidence index, 2016-24
- Price sensitivity fuels the need to increase loyalty
- Social, environmental and legal factors
- Experiences that help improve travellers’ wellbeing will appeal
- Graph 10: change in priorities compared to a year ago, 2024
- UK is tightening regulations and reviewing tax treatment
- EU sharpens regulations on data collection and data sharing
- Destinations take additional measures to regulate the short-term rental market
- Holiday bookings and booking intentions
- Booking levels are comparable to last year
- Graph 11: holiday bookings in the last three months, 2023 and 2024
- Holiday booking intentions have cooled for the first time this year
- Graph 12: plans to book a holiday in the next three months, 2023 and 2024
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What Consumers Want and Why
- Holiday rental property usage
- Three in 10 adults stayed in a holiday rental property in the last three years
- Graph 13: types of holiday accommodation used in the last three years, 2024
- Participation in holiday rental properties reached highest level since 2017
- Graph 14: types of holiday rental property accommodation used in the last three years, 2017-24
- Holiday rental properties are the fastest growing type of accommodation
- Graph 15: types of holiday accommodation used in the last three years, 2017-24
- Rental houses attract the highest share of over-55s, making this category best positioned to benefit from the ageing population
- Future interest in holiday rental property
- Growth potential for the holiday rental property market looks promising
- Hotels will remain the leading accommodation type in the coming years, but the gap with holiday rentals will continue to narrow
- Rental houses show the strongest growth potential
- Graph 16: types of holiday rental property used in the past three years versus interest in staying in this accommodation in the next three years, 2024
- Strong growth potential among older adults
- Graph 17: use of holiday rental property in the last three years versus future interest, by age, 2024
- Mid-range holiday rental properties are the most sought after
- Graph 18: interest in staying in holiday rental properties, by tier level, 2024
- Opportunity to boost confidence in budget stays
- Travelling companions
- Most potential guests would travel with their partners
- Graph 19: expected travelling companions for holiday rental property stays in the next three years, 2024
- Promoting affordability and space to appeal to families
- Multigenerational travellers are looking for an experience
- Solo travel is on the rise
- Graph 20: share of potential guests who would likely stay on their own in a holiday rental property in the next three years, 2024
- Attitudes towards booking holiday rental properties
- About four in 10 potential guests are open to using AI
- Graph 21: attitudes towards using AI, 2024
- Brands that automate their entire customer service with AI risk losing customers
- Counter-balancing rapidly advancing AI-powered technologies
- Strong need for an official quality rating
- Interest in booking local activities
- Offering local experiences will appeal to the majority of guests
- Graph 22: interest in booking local activities through a holiday rental property provider, 2024
- Food & drink activity, visitor attractions and excursions are the most desired paid-for activities
- Graph 23: interest in types of local activities booked through a holiday rental property provider, 2024
- Food and drink are an integral part of younger consumers’ holidays
- Graph 24: interest in types of local activities booked through a holiday rental property provider, by age, 2024
- Helping travellers make greener choices
- Main benefits compared to hotels
- Privacy, self-catering facilities and affordability seen as key benefits compared to hotel stays
- Outdoor areas are a key attractor for older travellers
- Graph 25: main benefits of a holiday rental property compared to a hotel, by age, 2024
- Larger space appeals to families and friends travelling together
- Authentic local experience not a key advantage
- Barriers to staying in holiday rental properties
- Costs remained the biggest barrier
- Graph 26: reasons for not being interested in staying in a holiday rental property. 2023 vs 2024
- Holiday rental properties can broaden their appeal by offering additional services
- Boosting confidence among new and lapsed guests to book
- Graph 27: reasons for not being interested in staying in a holiday rental property, by type of guest, 2024
- Communicate about safety when targeting families
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Innovation And Marketing Trends
- Launch activity and innovation
- Brands leverage the possibilities of AI
- Enhancing the booking process for groups
- Developments in the field of sustainability
- Booking.com’s holiday rental quality rating
- Vrbo, Expedia and Hotels.com launch a single loyalty programme
- Airbnb introduces Icons to connect more travellers with extraordinary experiences
- Sykes Holiday Cottages reports record-breaking month for its app
- Awaze closes James Villas brand
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Appendix
- Supplementary data
- Growth potential by type of holiday rental property
- Market forecast data and methodology
- Market size domestic holiday rental property market
- Market forecast and prediction intervals (volume)
- Market forecast and prediction intervals (value)
- Forecast methodology
- Report scope and definitions
- Market definition
- Abbreviations and terms
- Methodology
- Consumer research methodology
- Snoop methodology
Holiday Rental Property Market Outlook
The share of Brits staying in a holiday rental property has reached its highest level, with a third of UK adults having stayed in such accommodation in the past three years. Looking forward, the affordable image and self-catering facilities of holiday rental properties will continue to play into the sector’s advantage, as consumers are still overwhelmingly likely to say the cost of living crisis is still a problem.
- Holiday rental market size: Spending on stays in domestic holiday rental properties by British residents is estimated to reach £3 billion in 2024.
- Holiday rental market share: Holiday rental properties show the highest growth potential of any accommodation type surveyed, with rental houses leading the way.
Holiday Rental Market Trends and Opportunities
Improve reliabilityÂ
People who have not recently stayed in a holiday rental property are more likely to avoid them due to concerns about reliability. As such, brands operating in the UK holiday rental market can do more to boost confidence among new and lapsed guests to book.
- Holiday rental property market opportunity: 86% of consumers who considered staying in a holiday rental property would find it helpful if properties received an official quality rating.
Increase focus on lesser-known regions
The growing holiday rental property market is pressured by increased regulation, particularly in places that face challenges of over tourism and concerns about sustainability. To enable future growth, providers in the holiday rental market have to attract more hosts in areas that have the capacity to grow and promote lesser-known areas to travellers.
- UK holiday rental market opportunity: 66% of travellers are interested in travel companies’ suggestions for quieter alternatives to tourist hotspots.
Topics Discussed in the Full Report
- How the domestic holiday rental property market is expected to perform over the next five years
- Participation and future interest in holiday rental property stays compared to other forms of accommodation
- Interest in booking various types of local activities through a holiday rental property provider
- Main benefits of holiday rental properties versus hotels
- Barriers to staying in holiday rental properties
- UK holiday rental market definitions: Holiday rental property refers to holiday lettings, including cottages, houses, villas, gîtes, chalets, lodges, town/city apartments, flats or just rooms in a house. Self-catering apartments on holiday resort complexes, or other types of self-catering property such as camping and caravanning or boat hire are excluded.
Purchase our UK Holiday Rental Property Market Report to receive a five-year forecast, consumer behaviour analysis, and recommendations for market opportunities. Readers of this report may also be interested in our UK Holiday Booking and Planning Market Report, or our range of Holidays and Travel Market Research.
Meet the Expert
Marloes is a research analyst at Mintel, focusing on the travel sector. She previously worked as a researcher for the British and Dutch tourist boards, after having been a project leader in the field of tourism and leisure at a leading market research agency in Amsterdam. Marloes holds a degree in Tourism Management.
Download Report SummaryThe popularity of holiday rental properties is at an all-time high, and they continue to show the greatest future growth potential of all accommodation types surveyed.
Marloes De Vries
Travel Analyst
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