Luxury Vacation Rentals Market Is Flying High
Photo Caption: An aerial view of luxury villas listed in Turks and Caicos. Source: onefinestay
Skift Take
Supply and demand are both strong in luxury vacation rentals. Affluent spenders are driving prices higher, but data shows that even the luxury segment with its prestige pricing won't be immune if consumer anxieties about the economy grow.
Remember the Skift 2023 megatrend forecasting that luxury hospitality will go a step further?
We’re barely a quarter into the year, and the luxury rental market from Phuket to Provence is blooming with lavender and gardenia.
In the U.S., the luxury segment would see both average daily rates and length of stay double by December 2023, compared to January 2022 — from $492 to $854. The average length of stay during the same period is projected to grow from an average 6.66 nights to 12.43 nights, according to short-term rental data provider KeyData.
Looking ahead, The global luxury sector in vacation rentals is expected to be valued at $82 billion by 2031, registering a growth of 13.1 percent this decade (2021-2031).
Vacation rental company Evolve announced in January that it will offer luxury and premium properties in partnership with Homes & Villas by Marriott Benvoy. And, London-based Onefinestay, which s
