Homestay Market Size, Share & Industry Analysis, Type (Boutique Homestay and Ordinary Homestay), By End-users (Solo, Family, and Group), By Booking Mode (Online and Offline), and Regional Forecast, 2025-2032

The global homestay market size was valued at USD 29.80 billion in 2024. The market is projected to grow from USD 34.14 billion in 2025 to USD 88.90 billion by 2032, exhibiting a CAGR of 14.65% during the forecast period. Europe dominated the homestay market with a market share of 32.08% in 2024.

Homestays are an accommodation in which travelers stay in a private residence, typically with a local host or family, rather than in a hotel or commercial lodging. The increasing preference among travelers for unique, culturally rich vacation rentals over traditional hotel accommodation is expected to fuel the global market growth. Furthermore, major players such as Airbnb, Vrbo, and others are developing user-friendly mobile experiences and enabling virtual property viewings to improve their booking rate. In addition, increasing tourism across different countries, along with the expansion of villas and unique stays, is also projected to drive the global market share.

For instance, according to the U.S. Travel Association and Tourism Economics, in March 2024, the proportion of travelers in the U.S. with plans to travel within the next six months rose to 93% in January, up from 92% in December 2023.

Market Dynamics

Market Drivers

Growing Demand for Experimental and Authentic Travel to Boost Segment Growth

Nowadays, travelers prioritize immersive experience-driven stays that create deep cultural connections, moving from conventional and standardized tourist accommodations. There is a strong shift toward personal transformation, with travelers seeking local stories, traditions, and meaningful engagement with local people and places.  Furthermore, millennials, Gen Z, and solo travelers immerse themselves in the local culture. They are drawn to environments where authenticity and meaningful cultural exchange are top priorities.

Market Restraints

Inefficiency in Service Providing Restricts Market Growth

The increasing inefficiencies in services, such as slow response to guest needs, inadequate cleanliness, inconsistent amenities, and a lack of professionalism, directly impact customer satisfaction. Additionally, poor service often leads to negative reviews, which reduces the demand for home stays among potential customers. Therefore, inefficient service makes home rentals less attractive compared to regular hotels, thus restricting homestay market growth.

Market Opportunities

Expanding Partnerships among Home Owners and Travel Agencies to Boost Market Growth

The increasing partnerships and collaborations with travel agencies and online travel agents significantly expand the audience for home rentals, and opportunity lies in the growing demand for affordable stays. These agencies tend to have established marketing channels, allowing home rentals to reach a broad base of travelers, and providing various options for travelers. Furthermore, access to the agency’s client base and dynamic pricing tools result in higher booking rates for home rental hosts, particularly during peak season. Therefore, reputable travel agencies often partner with vetted home rentals that meet quality and safety standards.

Homestay Market Trends

Fueling Online Booking Channels for Unique Stays to Expand Market Growth

Online booking platforms make home rental options an opportunity for travelers instantly accessible and offers travelers to select from a range of home rental listings worldwide, overcoming geographical barriers. Property owners can present their homes to millions of potential guests, significantly broadening their customer base and increasing their booking rate. Furthermore, robust filtering, instant booking confirmation, and convenient payment methods streamline the booking process.

Segmentation Analysis

By Type

Increasing Demand for Budget-friendly Stays Drive Demand for Ordinary Homestays

Based on type, the market is divided into boutique homestay and ordinary homestay.

The ordinary segment held the major share of the market in 2024. Ordinary home rentals are mainly popular due to their accessibility and affordability, which attracts a wide range of travelers, particularly budget-friendly consumers. These stays typically provide essential amenities and a comfortable environment.

The boutique is projected to be the second fastest-growing segment in the market.  Boutique home rentals cater to travelers seeking unique, highly curated, and personalized experiences. These home rentals distinguish themselves through themed designs and premium amenities, boosting segment growth.

By End-user

Growing Demand for Multiple Rooms, Suitable for Groups, Drives Group Segment Demand

Based on end-user, the market is divided into solo, family, and group.

The group segment holds the foremost share of the market. Groups usually search for affordability and customization options in their home stays, increasing the demand for cost-effective villas. Home rental stays often provide entire homes or multiple rooms, allowing groups to stay together.

The family segment is predicted to gain the market share at the fastest rate. Families are increasingly seeking home rental stays, owing to several advantages, such as larger living spaces, self-catering services, private spaces, and an indoor swimming pool and play areas for kids.

By Booking Mode

Rising Demand for Instant and Quick Reservations Drive Online Booking Mode

Based on booking mode, the market is bifurcated into online and offline.

The online segment seized a dominant share of the market. Online booking platforms offer travelers the ability to compare options, view photos, read reviews, and make instant, and quick reservations from anywhere at time, using websites and mobile apps.

The offline segment is predicted to grasp the market’s share at the fastest-rate. Some travelers, particularly older generations or those in regions with lower digital penetration, prefer interacting directly with travel agents or home rental stay hosts for tailored and personal services.

Homestay Market Regional Outlook

The market is segmented based on the following regions: Europe, North America, Asia Pacific, South America, and the Middle East & Africa.

North America

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North America was the second-largest market in 2024. North American consumers are increasingly converting their homes into home rental services, capitalizing on spare rooms, particularly for guests seeking affordable accommodations. This demand is further accelerated by the cost-effectiveness and customization services for home rental stays.

The U.S. has quickly adopted online booking platforms, such as Booking.com and Airbnb, making it easier for hosts and guests to access home rental stay services. In recent times, there has been a shift among American travelers toward experimental and authentic tourism. These factors are expected to drive the demand for home rentals across the U.S.

Europe

Europe led the market in 2024 and is home to some of the world’s most popular tourist destinations, such as France, Italy, Spain, and the U.K. The region benefits from high volumes of international and intra-European travelers seeking unique and authentic experiences, which, as a result, increases the demand for home rental stays. Furthermore, the region has a highly developed travel and accommodation infrastructure.

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Asia Pacific

Asia Pacific is expected to be the fastest-growing region throughout the forecast period. The travel sector of the region is growing rapidly, with Japan, India, and China at the forefront. These countries attract a rising number of domestic and international tourists, supported by expanding economies and increasing disposable income.

South America and the Middle East & Africa

South America and the Middle East & Africa are expected to grow a considerable amount of homestay market share. These regions are experiencing a rise in holiday home investments and the commercialization of home rental stays, converting them into profitable business ventures. Additionally, the rising middle-class families, along with the growing construction of small villas and apartments, are also projected to drive the market growth within these regions.

Competitive Landscape

Key Market Players

Incorporation of Customized Travel Packages to Boost Market Growth

Recently, key travel agencies have been providing customized travel plans to customers, which, as a result, increases the interest of consumers toward home rental stays with affordable packages. Guests benefit from customized packages that combine unique home rentals with itinerary planning, transfers, and local guidance. Additionally, travel companies can customize immersive, local experiences, catering to travelers seeking authenticity and community connection.

List of Key Homestay Companies Profiled in the Report

• Evolve Vacation Rental (U.S.)
• USA Homestays (U.S.)
• SaffronStays (India)
• StayVista (India)
• Homestay.com (Ireland)
• TripAdvisor (U.S.)
• The Homestay Company (India)
• Airbnb (U.S.)
• MakeMyTrip (India)
• Booking.com (Netherlands)

Key Industry Developments

• March 2025: MakeMyTrip announced the launch of AI-powered collections of hotels and home rental stays to enhance the user experience in opting for their services.
• February 2025: Xiaozhu Homestay expanded its home rentals business operations in Japan, in collaboration with SOZONEXT.
• July 2024: Ama Stays & Trails Homestay announced it has established more than 200 bungalows across 15 states in India, which are available as a part of their services.
• June 2024: Oyo launched its home rental brand 'Belvilla' in the U.K. by collaborating with Sojo Stays, a housing rental network in the country.
• June 2024: Boarding.com announced adding 2,000,000 hotel and vacation rental listings to its global portfolio in the first four months of 2024.

REPORT COVERAGE

The market research report provides a comprehensive analysis, focusing on key elements such as major companies, regional and market segmentation, competitive dynamics, types, end-users, and booking platforms. Additionally, it offers insights into market dynamics and highlights significant developments within the industry. Beyond these aspects, it also examines various factors contributing to market growth in recent years.

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Report Scope & Segmentation