Market Size for Vacation rental in 2026 [Example]

The total available market (TAM) for vacation rentals can be estimated by considering the global population, which is around 8 billion. Assuming about 37.5% of people travel at least once a year and spend an average of $800 on accommodation, this results in approximately 3 billion travelers. Thus, the TAM for vacation rentals in the world is around $200 billion annually from lodging expenditures alone.

This includes both leisure and business travelers, as vacation rentals appeal to a broad audience looking for temporary accommodations, ranging from families on vacation to expatriates relocating for work.

To determine the serviceable addressable market (SAM), we need to narrow down our target to individuals who specifically seek vacation rentals as a lodging option. Assuming that about 20% of the total travelers use vacation rentals, we narrow the audience to approximately 500 million people.

Based on an average annual spend of $80 on vacation rentals per person, this leads to an estimated SAM of around $40 billion per year. This reflects a realistic portion of the market that can be reached through targeted marketing and customer acquisition strategies.

Looking at the serviceable obtainable market (SOM), we can estimate what portion of the SAM can be captured in the first year. Given competitive pressures and customer acquisition challenges, a conservative estimate is to capture about 0.5% of the SAM within the first year. This translates to approximately 2 million potential customers.

If these customers spend an average of $100 annually on vacation rentals, the SOM would yield around $200 million in revenue. This approach keeps expectations realistic while still highlighting the opportunity for growth as the business matures.