The holiday rental market - France (2024)

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 estimates World, ****-****, in billions of dollars Source: ****

In ****, Europe will account for **% of the global vacation rental market, ahead of the United States and Asia.

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 characterized by a large number of players and a high level of competition. The market was originally dominated by estate agents, who took care of everything, but their market share has been falling since ****. Specialized players in the sharing economy, such as AirBnB, have entered the market and are multiplying, intensifying competition. These new players enable the management of seasonal rentals from private individuals to private individuals, without agency fees (***), which normally amount to **-**% of the rent for estate agencies.

According to INSEErental of gîtes or chambres d'hôtes will account for **.*% of overnight stays in France in ****, compared with **.*% for hotels. In December ****, an occupancy rate of **% was recorded for private rentals in mainland France, marking a *-point increase on ****. This rise in occupancy rates reflects the development of the market, characterized by notable increases in both demand (***) and supply put on the market, compared with **** and ...

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 desire for social distancing, leaving the field open to more remote areas. However, after an extremely low March, April and May, the market picked up again, with the emphasis on green spaces and Franco-French tourism, most of which remained in France and sustained demand in the absence of foreign clientele.

The platforms have also repositioned themselves strategically, focusing on the countryside and smaller towns. This has enabled them to keep pace with changing demand, extend their geographical coverage by recruiting new hosts or structures, and above all escape the mounting regulatory pressure particularly visible in large cities. In September ****, large cities accounted for less than **% of the sales of Airbnb and Abritel platforms in France, a significant change from the **% recorded two years earlier.[***]

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 if it has been declining since ****. Poll: Where did you go on vacation? France, in ****, in Source: ****

Most types of accommodation used are commercial. The most popular type of accommodation is with family or friends (***). Poll: what type of accommodation did you use for your vacation? France, in ****, in Source : OpinionWay **% of French people did not go on vacation in the summer of ****, **% of them because of financial constraints, a figure up *% since ****. **% also chose not to go on holiday because of high fuel prices, a figure down *% since the previous year. Among the populations most affected by financial constraints, women (***), adults aged ** to ** and the economically inactive are more likely to be affected . Single people are also more affected.

Poll: Why didn't you go on vacation this summer? France, in ****, in Source : OpinionWay To adapt to financial constraints, the first behaviors adopted by the French are to favor French ...

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 consumption in France from **** to **** In billions of current euros Source: ****

The health crisis severely affected spending by international travelers in France. However, with the return of non-resident tourists to France since May ****, spending has picked up again.

Spending by foreign tourists in France France, ****-****, in billions of euros Source: ****

belgian visitors spent the most, at over * billion euros. On the other hand, the return of Chinese tourists is slow in coming. In ****, they spent "only" *.* billion euros, as did the Japanese.

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 explained by the buoyancy of the tourism market, particularly in countries bordering France, where average accommodation prices have risen this year. Spain, for example, remains the favorite destination for * out of ** French holidaymakers. Portugal, Italy and Morocco follow.

Preferred criteria when choosing a rental property

According to Consortium Immobilierin ****, **% of French people booked their vacation rentals between three and six months in advance, while only **% did so at the last minute. It's interesting to see how much demand in France is thought out and prepared in advance: platforms therefore invest months in advance to promote their offers (***).

Poll: When do you book your vacation rental? Source: ****

The importance of location, price and cleanliness in holidaymakers' decision criteria

In France in ****, the main determinants of demand for vacation rentals were the price of the accommodation (***).

Criteria for choosing a vacation rental in France in **** In % of total Source: ****

The reputation of ...

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 variations oscillating between slight falls and rises, the last value in **** indicating a decrease of *.*%.

change in annual arbitrable purchasing power per consumption unit France, ****-****, in Source : INSEE The index of annual arbitrable purchasing power per consumption unit, based on the year ****, has fluctuated over the period **** to ****, with an overall upward trend despite occasional declines. change in arbitrable annual purchasing power per consumption unit France, ****-****, Index base *** in **** Source: ****

In France, * million families own two houses, the result of a late rural exodus that has made the country the world leader in second homes. These homes are used by three generations, representing between ** and ** million people, and allow many families to avoid the impact of inflation on the cost of vacation accommodation. Despite rising toll, rail and air fares, vacation costs remain relatively stable thanks to the proximity of many of France's tourist destinations. The region offers ...

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 longer to observe the Organizing Committee's budget landing and to draw up an overall tourism balance sheet for the Olympic and Paralympic Games.

The Paris **** Olympic Games have proved to be both a popular and sporting success, and, according to observations on Monday, August **, the economic spin-offs also appear to be positive. The latest figures on tourist numbers show that Paris and the surrounding region were very busy during the two Olympic weeks. ***,*** foreign tourists passed through the region's airports, representing an *% increase over the same period in ****. American visitors were the most numerous, and overall attendance, including French visitors who accounted for **% of the clientele, rose by **%.

As for hotels, establishments in the Île-de-France region posted an occupancy rate of **% on August *, representing a **% improvement on the same date last year. In addition, Airbnb reported that Paris **** was the most significant global event in the platform's history, with around ...

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 beds Source: ****

Uneven geographical distribution

Nevertheless, this capacity is unevenly distributed across the country, obviously concentrated in regions with the greatest tourism potential. For example, the Auvergne Rhône Alpes region accounts for **.*% of total tourist accommodation capacity, compared with **.*% for the PACA region and **.*% for Occitanie. These three regions account for the highest percentages of total capacity in the country.

Geographical breakdown of tourist residences, by capacity France, ****, in % of capacity

Paris is by far the city with the most nights booked on vacation rental platforms, ahead of Nice and Marseille.

Nights booked via an internet platform in the main French cities France, ****, in thousands of nights Source: ****

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 inspiration for organizing their trip (***). Communication on Instagram and other platforms remains key to attracting tourists:

**% of French people decide where to go on vacation thanks to social networks (***) **% of travelers post photos and videos of their trip online * million travel-related hashtags are searched every week

Holiday rental players are banking massively on the web and social networks. New players have succeeded in penetrating the market by proposing an innovative distribution model : one-to-one, friendly, a source of encounters, and at lower prices, with new and varied types of accommodation.the various players are growing through international expansion, like AirBnB, and also through takeovers of structures offering complementary services, such as Homelidays, which acquired HomeAway, which had itself bought Abritel.

According toConsortium Immobilier**% of reservations in **** were made on Booking.com and **% on AirBnB. LeBonCoin with **% of bookings completes the podium. Between them, these three players accounted for almost half ...

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 Maritimes: €**.**/sq.m. Val d'Oise: €**.**/sq.m. Essone: €**.**/sq.m Haute Savoie: €**.**/sq.m. Seine et Marne: €**.**/sq.m.

Price per m² rented in the ten most expensive départements France, ****, in € Source: ****

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 guide them in their decision-making process.

Poll: How do you search for a vacation rental? As % of total Consortium Immobilier / Businesscoot processing

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. 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. The applicable legal texts concern meublés de tourisme, such as

Article L***-* of the French Tourism Code, which defines meublés de tourisme and provides for their classification; Article L***-*-* of the Code du tourisme, which sets out the obligations for declarations to the town hall; Article L***-* of the French Tourism Code, concerning the content of rental advertisements; Article *-* of law no. **-* of January *, ****, which sets the maximum rental period.

These texts are supplemented by regulatory provisions that stipulate penalties in the event of failure or serious inadequacy in the upkeep of the furnished accommodation, and which concern authorization for the change of use of a property. The authorizations required for renting out one's principal residence on Airbnb or another seasonal rental platform depend on the major urban areas, which may impose a registration procedure for the prior declaration.the city of ...

6. Segmentation

The following segmentation is used:

• Airbnb
• Booking.com
• SeLoger.com
• Gîtes de France
• Cléavacances
• Le Collectionnist
• Abritel (Expedia Group)
• Homanie
• Lagrange