1.1 Presentation and definition of the market
French legislation defines seasonal rental as " a lease of a building entered into for a maximum non-renewable term of ninety consecutive days; and "
The market brings together the different platforms allowing to rent a dwelling for a short period of time, most often between private individuals and concerns different types of housing : houses, villas, apartments, rooms or even bungalows and caravans.
The global market is growing and catching up with the revenue levels generated by the hotel industry
France is the second largest European market for seasonal rentals and this type of accommodation is attracting more and more French people. Very touristic country, the French market is particularly dynamic, also drawn by a local clientele
The stiff competition between professional players in the hotel industry and private individuals using a platform to rent out their property. The legislative frame and also crucial for the future growth of the sector.
1.2 A fast-growing global market dominated by Europe and the United States
In the world the seasonal rental market will overtake the hotel market by **** in the words of VRMB . The global vacation rental market was estimated at over $** billion in ****, and is expected to grow at a CAGR of *.*% over the period ****-*** to reach nearly $*** billion in **** . The millenials represent the ...
1.3 The dynamic French market
France is following the global trend with growth in the holiday rental market driven by individuals. Seasonal rentals in France are mostly composed of rentals between individuals both professional players renting accommodation (***) have recently lost weight compared to specialised players targeting private individuals. The seasonal rental market is characterized by a ...
1.4 The impact of the Covid-19 crisis
However, the crisis linked to Covid-** will hit the tourism sector hard in ****, particularly in connection with the sharp drop in foreign tourist arrivals over the year. In August ****, estimates announced that the impact on the tourism sector should amount to ** or ** billion euros in lost revenue. In the first half ...
2.1 A significant and growing demand for tourism
The France was the most visited country in the world in **** with ** million tourists ahead of Spain and the United States according to the Enterprise Directorate-General According to the same source total domestic tourism consumption in France has been growing since **** to settle in ***.* billion in **** [***]
Annual arrivals of foreign ...
2.2 Demand driven by French customers
According to Les Echos the french customers of holiday rentals between individuals grew by **% in **** against **% for foreign customers . French customers also account for **% of the total clientele of the private rental platforms .
In general, the foreign customers still increased the number of nights spent in France in commercial accommodation which ...
2.3 Reservation and selection criteria for a vacation rental
Growing average spending
According to the real estate barometer "holiday rentals", the average expenditure per holidaymaker in **** was €*** for a week's rental during the summer months . This amount was up by **% compared to the previous year (***), but it was still below of the average budget from ***€ that the vacationers were fixing ...
2.4 The structure of tourist spending favours accommodation
In ****, the structure of tourist expenditure showed a central place given to expenditure on accommodation: for French visitors, expenditure on accommodation represented **.* billion euros, and this amount could reach **.* billion euros for foreign visitors.
Structure of tourist expenditure, French visitors France, ****, in billions of euros Source: ****
Structure of tourist expenditure, ...
3.1 A very large supply, unevenly distributed over the territory
The offer of tourist accommodation, and in particular seasonal rentals, is very important on French territory. Thus, in ****, tourist residences accounted for **.*% of the total number of beds available for tourist accommodation in France, and furnished tourist accommodation accounted for *.*% of the available beds.
The accommodation offer by type of establishment ...
3.2 A market characterized by the growth of e-commerce
E-commerce is showing very high growth rates in the holiday rental sector. Overall, according to iNSEE , the use of commercial tourist accommodation offered by private individuals on online platforms specialized companies in France has strongly increased between **** and **** (***) . A Paris, the increase was * % in the fourth quarter of **** compared to the ...
3.3 Booking and AirBnB, the two main booking platforms in France
Seasonal rental players are relying massively on the web and social networks. The new players have succeeded in penetrating the market by offering a innovative delivery system of particular to particular, convivial, a source of encounters, and at more advantageous prices, with new and varied types of accommodation. The growth of ...
4.1 Rental prices have been on the rise in recent years
Homeowners increased their rates in **** over **** with a average price increase of *% according to Les Echos . The average rent for a one week rental had a increase of **€ to reach ***€ per week in ****
In **** and always from the same source, **% of the offers were between ***€ and ***€ per week whereas in **** , **% of ...
4.2 The importance of the internet in holiday booking
According to Real Estate Consortium , **% of searches for holiday rentals in France will be done on the internet in **** when only *% of the searches are done via a real estate agency . The new tools used are for example TripAdvisor, Booking but also AirBnB where future customers can know the opinions of ...
4.3 Renting a house or an apartment remains the preferred method of accommodation for the French
According to IPSOS , **% of respondents responded by **** than their preferred hosting method was the renting a house or apartment against **% Hotels . This confirms the boom in private-to-private rentals in France .
Poll: What type of accommodation do you prefer for summer holidays? In % of Ispos /Euro Assistance / Businesscoot Processing
However, few people ...
The main challenge for the holiday rental sector remains the regulation particularly sublease restriction . The weak point of the new specialized sites is that they do not offer a guarantee. Faced with this risk, some sites have entered into an agreement with Europe Assistance (***) in order to consolidate their offer. Europ ...
The following segmentation should be remembered
- HomeAway France (Abritel) Groupe Expedia
- Leboncoin.fr (Groupe Adevinta)
- Gîtes de France
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