Table of Contents
The global Short-term Rental Apps Market is projected to grow significantly, reaching USD 47.2 billion by 2034, up from USD 13.42 billion in 2024, reflecting a CAGR of 13.40% over the forecast period. North America led the market in 2024, with a share of 37.5%, generating USD 5.0 billion in revenue.
The property rental segment was the largest, capturing 61.8% of the market share, while mobile apps dominated the platform segment with 74.9% market share. The individual consumer segment continues to dominate the market, accounting for over 78.3% of market share in 2024.
How Tariffs are Impacting the Economy
Tariffs disrupt global trade by increasing the costs of imported goods and raw materials. For industries like short-term rentals, where a significant portion of the service relies on furniture, appliances, and technology imports, tariffs can inflate operational costs. As these costs rise, businesses often have to pass them on to consumers in the form of higher rental prices.
Additionally, tariffs create supply chain uncertainty, causing delays in acquiring necessary goods or components, especially from overseas suppliers. This leads to further inflationary pressures, impacting the affordability of services. In markets like short-term rentals, where competition is high, price hikes may reduce consumer demand, especially in price-sensitive regions.
Furthermore, retaliatory tariffs between countries may complicate international operations for platforms managing rental properties across borders, affecting their expansion strategies and profitability. In this context, businesses in the short-term rental app market may face rising operational expenses and slower growth due to trade uncertainties.
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Impact on Global Businesses
(Rising Costs & Supply Chain Shifts + Sector-Specific Impacts)
The global business landscape is grappling with rising costs due to tariffs, particularly in industries that rely on international supply chains. In the short-term rental app market, businesses that offer vacation properties or short-term accommodations may face higher procurement costs for furniture, electronics, and essential goods needed to furnish rental properties.
This increases the overall cost of operation for hosts and property managers, pushing rental prices higher for consumers. Moreover, tariffs disrupt supply chains, causing delays in product deliveries or forcing businesses to seek new suppliers, often at higher costs. For the short-term rental market, this could affect both the affordability of rental properties and the quality of the service provided.
In the property rental segment, especially, the cost of furnishing and maintaining properties may increase due to higher prices on materials and imported goods. Additionally, tariffs on technology products could raise app development costs, impacting businesses that rely on cutting-edge mobile app features.
Strategies for Businesses
To mitigate the impact of tariffs, businesses in the short-term rental app market can consider diversifying their supply chains, sourcing materials and furniture locally, or from countries with lower tariffs. Partnering with domestic suppliers could reduce reliance on international trade and help avoid price hikes on imported goods. Companies may also look into adopting cost-efficient technologies, such as automated property management systems, which can reduce operational expenses.
For businesses relying on mobile apps for bookings, shifting to more cost-effective tech solutions or negotiating better terms with software providers could help reduce overhead costs. Additionally, businesses could explore raising rental prices gradually to offset tariff-induced cost increases without alienating price-sensitive customers, or they could focus on providing additional services and amenities that justify higher prices.
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Key Takeaways
- Tariffs increase operational costs for short-term rental app businesses, especially in procurement and technology.
- Rising costs can lead to higher prices for consumers, potentially reducing demand in price-sensitive regions.
- Businesses should diversify supply chains and explore local sourcing to mitigate tariff impacts.
- Shifting to cost-effective technologies and automating property management can help reduce operational expenses.
- Pricing strategies and added services may help businesses maintain profitability despite rising costs.
Analyst Viewpoint
While tariffs present challenges, particularly through rising costs and supply chain disruptions, businesses that diversify their supply chains and adopt more efficient technologies can navigate these issues. The short-term rental app market is poised for continued growth as demand for flexible and convenient travel options rises globally.
Over the long term, businesses that have adapted to these tariff challenges, through strategic partnerships, innovation, and local sourcing, will be in a better position to capitalize on the expanding market. By leveraging these strategies, the short-term rental app market will continue to thrive, especially as economic conditions stabilize.
Regional Analysis
North America led the short-term rental apps market in 2024, capturing 37.5% of the market share and generating USD 5.0 billion in revenue. The U.S. market was valued at USD 4.53 billion and is expected to grow at a CAGR of 12.7%.
The region’s dominance is driven by a large number of individual consumers using rental platforms and a high demand for short-term accommodations in major cities. Additionally, the Asia-Pacific region is seeing strong growth, especially in emerging markets like China, where the demand for vacation rentals and short-term accommodations continues to rise, with an expected CAGR of 10.2%.
Business Opportunities
The short-term rental app market offers significant opportunities, particularly in the growing demand for property rental services. The increasing reliance on mobile apps for travel bookings is a key trend, with mobile apps capturing 74.9% of the market share in 2024. As the number of individual consumers using rental services continues to grow, businesses can expand their reach by developing new app features, improving the customer experience, or offering additional services.
Additionally, expanding into emerging markets, such as Asia-Pacific and Latin America, where demand for short-term rentals is rising, offers substantial growth opportunities. Companies can also capitalize on the trend of offering more flexible booking options and premium services to attract high-income customers.
Key Segmentation
- By Service Type: The property rental segment is the largest, capturing 61.8% of the market share in 2024. This is driven by the high demand for vacation homes, apartments, and other types of temporary accommodation.
- By Platform: The mobile apps segment dominates with 74.9% of the market share, reflecting the growing importance of smartphones in travel bookings and consumer preferences for on-the-go booking.
- By Consumer Type: Individual consumers lead the market, accounting for 78.3% of the share, driven by the increasing number of people seeking short-term rental options for both leisure and business purposes.
- By Region: North America dominates, followed by rapid growth in emerging markets in Asia-Pacific, driven by increasing disposable incomes and travel demand.
Key Player Analysis
Players in the short-term rental apps market focus on improving user experience through mobile apps, incorporating seamless booking systems, and providing a wide range of rental options. Companies are investing in mobile-first platforms and exploring technological innovations such as AI to optimize property recommendations, customer service, and pricing.
These players are also expanding into emerging markets to capture the growing demand for short-term rental services. Furthermore, businesses are focusing on increasing brand loyalty by offering unique services, such as premium properties or personalized travel experiences, to attract and retain individual consumers.
Top Key Players in the Market
- Airbnb, Inc.
- Zillow Group, Inc.
- Move, Inc.
- Trulia, Inc.
- Redfin Corporation
- Apartment Finder, LLC
- RentPath, LLC
- Homesnap, Inc.
- Zumper, Inc.
- Apartments.com LLC
- Roomster Corporation
- Home Depot Tool Rental
- Lowe’s Tool Rental
- United Rentals
- Herc Rentals
- Sunbelt Rentals
- Acme Tools
- Bunnings
- RentHop, Inc.
- Nestpick GmbH
- Others
Recent Developments
Recent developments include the launch of enhanced mobile app features. Such as instant booking confirmations, integrated payment systems, and AI-driven recommendations. Companies are also entering new international markets, particularly in the Asia-Pacific region, where short-term rental demand is increasing rapidly.
Conclusion
The short-term rental apps market is set for strong growth. Driven by increasing demand for mobile-driven booking platforms and flexible travel accommodations. Although tariffs may present challenges, businesses that innovate and diversify their supply chains will continue to thrive. The market’s future looks promising, with opportunities in both mature and emerging markets.
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