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Summary of our market study
The global vacation rental market is estimated at nearly $136 billion.
France, Europe's second largest market for vacation rentals, is seeing its market driven by private individuals, with online platforms such as Airbnb and Booking.com. Seasonal rentals in France are mainly between individuals. French customers account for almost two-thirds of the clientele of vacation rental platforms.
The global vacation rental market has been disrupted by the COVID-19 crisis, with an estimated loss of 30 to 40 billion euros in revenues for France alone, and a loss of 320 billion dollars internationally.
France is Europe's second-largest vacation rental market. Millennials make up three quarters of international tourists.
France receives between 80 and 90 million tourists a year, the highest number in the world. Domestic tourism consumption fluctuates between 170 and 175 billion euros. The share of commercial accommodation is around 30%.
The number of overnight stays by local and foreign tourists varies between 350 and 400 million.
45% of French tourists prefer to rent apartments or houses for their vacations. Over 50% choose to stay in the country for their vacations. The average vacation budget is over 2,200 euros.
Location is the primary criterion for choosing a vacation rental for 70% of renters, followed by cost for 50%, and cleanliness for 50%.
The French Elan law limits the number of rental nights per year to 120, in order to control prices in tourist towns.
Main market players
- Airbnb industry leader
- Booking.com is an online travel agency
- LeBonCoin digital marketplace, which has extended its scope to the vacation rental space.
- SeLoger.com portal specialized in classified ads
- Gîtes de France and Clévacances networks offering a range of bed & breakfasts and tourist residences.
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Summary and extracts
1 Market overview
1.1 Market overview and definition
French legislation defines seasonal rental as "the rental of a property for a maximum, non-renewable period of ninety consecutive days" .
The market brings together the various platforms that enable people to rent a property for a short period of time, usually between private individuals, and concerns different types of accommodation : houses, villas, apartments, rooms or even bungalows and caravans.
The global market is growing fast, and is catching up with revenue levels generated by the hotel industry.
France is Europe's second-largest market for holiday rentals, and this type of accommodation is becoming increasingly popular with the French. As a tourist destination, the French market was particularly dynamic before the emergence of the pandemic, and was also driven by local customers. Since 2020, the nature of the market has changed considerably, with the absence of international clientele and the search for "nature" becoming enduring market trends.
Competition is intense between professional players in the hotel industry and private individuals using a platform to rent out their property. The legislative framework is also decisive for the sector's future growth, with the number of Airbnb ads in Lyon, for example, dropping by 59% in the two years between 2021 and 2023 due to restrictive measures introduced by the city[BFM TV]. Nevertheless, the overall trend is towards recovery across the country with the return of international tourists. The market is driven by demand for CtoC rentals rather than hotels.
1.2 A fast-growing global market dominated by Europe and the United States
The global vacation rental market was estimated at more than $***.** billion in ****, and is expected to reach nearly $***.** billion in ****. Millennials represent the main driving force in this market: by ****, this demographic is expected to account for **% of international travelers, helping to sustain this strong market growth. [***]
Global vacation rental market ...
1.3 Growth in the French market
France is following the global trend, with growth in the vacation rental market driven by private individuals. Seasonal rentals in France are predominantly made up of rentals between private individuals, as professional players renting out accommodation (***) have recently lost ground to specialized players targeting private individuals. The seasonal rental market is ...
1.4 The impact of the Covid-19 crisis
Number of foreign visitors France, ****-****, in millions Source: ****
Between **** and ****, France lost more than **% of its foreign clientele, severely impacting destinations particularly dependent on foreign tourists. The vacation rental market was among the first to be hit by mass cancellations. Large cities were the first to be affected by the ...
2 Demand analysis
2.1 Demand from French tourists
The different types of travelers can be grouped as follows:
Source: ****
The reasons for travel are
Leisure, relaxation and vacation Visiting family and friends Health (***) Pilgrimages, sporting events, school trips, etc.
**% of French people went on vacation in the summer of ****, and France is still the most popular destination, even ...
2.2 Demand from international tourists
France was the most visited country in the world in **** with ** million tourists , ahead of Spain and the USA.According to the same source, total domestic tourism consumption in France has been growing since ****, reaching ***.* billion euros in **** [***]
Annual arrivals of foreign tourists France, ****-****, in millions Source: ****
Total domestic tourism ...
2.3 Reservations and selection criteria for holiday rentals
Average spending on the rise
According to the "vacation rental" real estate barometer, average spending per holidaymaker in **** amounted to €*** for a week's rental during the summer. This amount was up **% on the previous year(***), but still fell short of the average budget of €*** set by holidaymakers. This growth can be ...
2.4 The decline in French purchasing power
The evolution of annual arbitrable purchasing power per consumption unit between **** and **** reveals an initial period of significant decline, reaching its lowest point in **** with a *.*% reduction. After this fall, a gradual improvement is observed from **** to ****, culminating in an increase of *.*% in ****. The most recent period shows increased volatility, with ...
2.5 The Paris 2024 Olympic Games: towards a sharp rise in demand for holiday rentals in Paris?
Regarding the precise economic impact of the **** Olympic Games, it is mentioned that the first assessments are slightly premature. To assess the short-term economic impact of the Games, i.e. during ****, it is still too early, as many elements are still being finalized. It will be necessary to wait a little ...
3 Market structure
3.1 A very large supply, unevenly distributed across the territory
The supply of tourist accommodation, and in particular seasonal rentals, is very high in France. In ****, tourist residences accounted for **.*% of the total number of beds available for tourist accommodation in France, and furnished tourist accommodation accounted for *.*%.
Accommodation supply by type of establishment, in available beds France, ****, in % of available ...
3.2 Digital is the preferred choice for housing reservations and communications
Percentage of respondents having booked a hotel/private accommodation on the following sites France, in ****, in Source: ****
booking and Airbnb are the two most widely used platforms in France for booking overnight stays, according to Mister Travel. In addition, the internet and social networks are widely used by tourists to get ...
4 Offer analysis
4.1 Map of France with rental prices per m²
Source: ****
This map of France shows the average rental price per m² (***). Unsurprisingly, the regions and départements with the highest average prices are those with a high population density and which attract many tourists:
Paris: €**.**/sq.m Hauts de Seine: €**.**/sq.m. Val de Marne: **.** Seine Saint Denis: **.** Yvellines: €**.**/sq.m. Alpes ...
4.2 The importance of the internet in vacation booking
According to Consortium Immobilier**% of searches for vacation rentals in France were carried out online in ****, while only *% of searches were carried out via a real estate agency. The new tools used include TripAdvisor, Booking and also AirBnB , where future customers can find out about the opinions of previous customers to ...
4.3 Renting a house or apartment remains the preferred form of accommodation for French people
According to IPSOSin ****, **% of those surveyed said their preferred accommodation was renting a house or apartment , versus **% hotels. This confirms the boom in private-to-private rentals in France.
Poll: What type of accommodation do you prefer for your summer vacations? In % of total Ispos /Euro Assistance / Businesscoot processing
5 Regulations
5. Seasonal rental regulations are highly regulated in France
Short-term rental of accommodation to tourists has become commonplace in France thanks to the rise of the collaborative economy and platforms such as Airbnb, Abritel-HomeAway and Booking.com.
However, there are rules to follow when renting out your apartment or house to holidaymakers, which are laid down by law and regulation. ...
6 Positioning the players
6. Segmentation
The following segmentation is used:
- Airbnb
- Booking.com
- SeLoger.com
- Gîtes de France
- Cléavacances
- Le Collectionnist
- Abritel (Expedia Group)
- Homanie
List of charts presented in this market study
- Estimating the global vacation rental market
- Breakdown of nights spent in commercial accommodation by French tourists
- Trends in supply and demand for apartments in the private-to-private tourist rental market
- CtoC tourist rental occupancy rate
- Poll: Where did you go on vacation?
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Latest news
Max Aniort, luxury host - 09/07/2024
- 300 employees
- 150 million euros in sales
- The company celebrates its tenth anniversary
- Specialist in high-end vacation rentals with concierge service.
- Over 3,000 vacation homes in the collection.
Airbnb, in top form! - 30/04/2024
- - Airbnb sales in 2023: $9.9 billion
- - Comparison of Airbnb sales in 2023 with 2018-2019: doubled
- - Year of first profit in Airbnb's history: 2022
Homanie launches the first corporate seminar observatory - 28/08/2023
- Homanie employs 12 people
- Corporate seminars account for nearly 60% of sales
- . The main perceived benefits of corporate seminars are: strengthening team cohesion (85%), improving communication (54%) and generating new ideas (44%).
- Homanie has some sixty houses in exceptional geographical locations.
The Collectionist, a luxury vacation rental company, makes acquisitions. - 02/03/2023
- Specialist in high-end vacation rentals with concierge service
- Average price of a week's rental around 30,000 euros 1,800 exceptional homes in 30 cities worldwide
- 60 million euros raised in December from Highland Europe investment fund
- Medium-term target of 500 million euros by 2026
- Three acquisitions in 2022 in France, Greece and Ibiza, with a strategic partnership with Insider Villas. The Paris-based SME, founded in 2014, will gain access to the 160-home portfolio of the Spanish Insiders Villa group, which operates in Mallorca, Ibiza and Menorca
- The Collectionist currently employs 250 people
- In 2022 alone, more than 500 new properties have been added to the company's catalog
- Le Collectionist joins French Tech 120, a government support program for France's most successful companies
Fiber optics: Circet takes over Scopelec and half its workforce (around 1,000 jobs) - 22/01/2023
- Scopelec company specialized in the installation and maintenance of fiber optic and copper networks
- Circet group of 15,000 employees in 14 countries, with sales of 2.42 billion euros in 2021,
CEPSA, a Spanish company, wants to make a name for itself in the hydrogen field. - 09/12/2022
- Gigantic green hydrogen production hub to run between Cadiz and Huelva
- Cepsa will invest 3 billion euros to set up the solar fields and wind turbines that will generate the renewable energy needed to power the electrolysis process.
- The circuit is expected to produce 300,000 tonnes of green hydrogen per year
- Maersk plans to invest 10 billion euros in Spain to set up two bases for e-methanol production
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