Short Term Rental Sector

Global Snapshot

• Revenue in the Vacation Rentals market is projected to reach US$94.34bn in 2023.

• Revenue is expected to show an annual growth rate (CAGR 2023-2027) of 3.37%, resulting in a projected market volume of US$107.70bn by 2027.

• In the Vacation Rentals market, the number of users is expected to amount to 0.90bn users by 2027.

• User penetration is projected to be 10.5% in 2023 and 11.3% by 2027.

• The average revenue per user (ARPU) is expected to amount to US$116.70.

• In the Vacation Rentals market, 75% of total revenue will be generated through online sales by 2027.

• In global comparison, most revenue will be generated in the United States (US$19,390.00m in 2023).

Source: Statista.com

Annual growth rate (CAGR 2023-2027) of 3.37%

Consistent ARPU

0.90bn users by 2027

Thought Process

Our initial focus will be the the short term rental (STR) market popularised by AirBNB for the following reasons:

1. The short term rental market has been remarkably robust despite external market shocks such as covid.

2. The rental yield on STR is higher than other forms of rental properties.

3. Access to data for the property and nearby properties is available in order to rate the property and define its risk based on our proprietary risk framework.