A new research report points at the rapid growth and the greater potential of vacation rentals market in remote towns and villages. The report by market intelligence firm, Future Market Insights, says that the rising travel connectivity and development in roadways and other transport services has contributed majorly in the rise of tourism. Meanwhile, the internet services have help to expand the connectivity across the globe. Both together helped in better connectivity establishment with remote regions.
The report says that nowadays remote regions are attracting the huge number of travellers due to the rising trends of eco-tourism, ethno tourism, sustainable tourism and rural tourism. The governments from various parts of the world are focusing on remote place such as villages and countryside for development of tourism infrastructure as this contribute to the development of towns and villages.
Meanwhile, various vacation rental providers are focusing on building their infrastructure in such areas due to low cost of land, subsidies from government, scarcity of lands in towns and cities and due to ecological balance, says FMI. Also, this helps create opportunity for local players to participate in market and cater the needs of travellers.
Thus, in upcoming years the development of remote regions will help to generate new opportunities for tourism industry and will result in growth of vacation rentals market.
FMI predicts that the global vacation rentals market is estimated to expand at a compounded annual growth rate (CAGR) of over 5 pc throughout the forecast period of 2022-2032, to be valued at USD 119 billion by the end of 2032.
Key Takeaways from the Vacation Rentals Market Study
One of the main findings of the study is that the rising participation of travellers in eco-tourism, sustainable tourism, ethno tourism is anticipated to rise the market for vacation rentals in tourism industry. The trends of such social tourism are trending and will contribute majorly to the market. In last few years, there is a rise in growth of international travellers traveling for various reasons across the regions. As they search for budget friendly accommodation there might be a great demand from international travellers for vacation rentals, says the report.
The vacation rentals market is anticipated to be high on demand and grow rapidly in developing countries. Various tourist attraction places in developing countries are located near remote locations and the market is fragmented with various new participant’s in rental vacation market.
FMI says that the Covid-19 pandemic had a significant impact on the tourism industry, resulting in a dramatic fall in business and prospective customers in the tourism industry. Due to limited opportunities and decline in economic activity many vacation rentals providers faced a tremendous loss, whereas in post Covid-19 situations vacation rentals continued to face lack of business due to the precautionary measures abide by government in various regions and the fear of getting infected discouraged the vacationers to participate in tourism activities.
Meanwhile, it is projected that vacation rentals would continue to flourish in the post-pandemic era. The foundations of vacation rentals allow travellers to be as comfortable as they would at home without the danger of contracting a contagious disease, says FMI.