The holiday rental market - France

The global vacation rental market faced a major challenge due to the COVID-19 crisis, which heavily affected the tourism sector in 2020 with an estimated loss of €30-40 billion in revenues for France alone and a loss of $320 billion internationally according to the World Tourism Organization. Despite this setback, the market, which had been dominated by Europe and the United States, was previously on a growth trajectory, with the sector expected to grow at a CAGR of 3.4% between 2020 and 2027 to reach nearly $114 billion, propelled by demand from millennials, who are expected to make up 75% of international travelers by 2025.

France, Europe's second-largest market for vacation rentals, is seeing its market driven by individuals, with online platforms such as Airbnb and Booking.com leading the way in bookings. The regulatory environment is crucial, as evidenced by France's Elan law, which limits the number of rental nights per year to 120 in order to control accommodation prices in tourist towns. Despite the crisis, French domestic tourism has shown resilience with domestic consumption preferences, as French tourists turned to local destinations during the pandemic period in 2020.

The dynamics of the French vacation rental market in the face of changing demand

In recent years, the French vacation rental market has experienced significant growth, driven mainly by local customers and complemented by international visitors. The market, with a global value of over $87 billion, has enabled France to consolidate its position as Europe's second-largest vacation rental market. This growth trajectory suggests an influential shift in tourist accommodation preferences, particularly among millennial travellers who are expected to make up three quarters of international tourists by 2025.

France, in particular, has been at the forefront of this evolution, with between 80 and 90 million tourists visiting the country, the highest number in the world. Domestic tourism consumption also showed robust growth, with spending fluctuating between $170 and $175 billion in the same year. Demand within the market is remarkable, with French customers accounting for almost two-thirds (around 66%) of the clientele on private rental platforms. It's interesting to note the steady rise in overnight stays by local and foreign tourists in market accommodations - a figure that has held steady at between 350 and 400 million overnight stays in recent years.

French tourists prefer to rent apartments or houses for their vacations, with almost 45% expressing this preference. This penchant for vacation rentals is in line with the propensity of French people to spend their vacations within the country, with over 50% choosing to stay in the country.

In addition, the average vacation budget has risen by 10% to over $2,200. The decision-making process when choosing a vacation rental revolves around three main factors: location, price and cleanliness. Location remains the top criterion, influencing around 70% of renters, followed by cost at around 50%, and cleanliness at almost 50%.

Key market players

The vacation rental market has evolved with the proliferation of digital platforms that are redefining the way travelers search for accommodation. This reshaping of the market is mainly orchestrated by a small number of key players with an influential presence, both nationally in France and globally.

• Airbnb is the paragon of the peer-to-peer accommodation sharing model, having modestly disrupted the traditional rental market, starting out by offering personal living spaces to travelers seeking unique and convivial experiences. It has evolved into a community platform where owners can offer their properties and connect with potential hosts from all over the world. The platform's staggering growth is evidenced by its impressive market presence, and it has become synonymous with vacation rentals for a wide range of customers.
• Booking.com has carved out a niche as a travel-rate aggregator, where customers can not only rent vacation homes, but also book flights, airport cabs and restaurants. Booking.com is not limited to private residential properties, but offers a wide range of accommodation types, catering for different preferences and price points. Booking.com's wide range of choices has positioned it as an industry leader, enabling users to plan their entire vacation from a single portal.
• LeBonCoin is similar to a digital marketplace, operating as a generalist classifieds site that has extended its reach into the vacation rental space. Although it offers a range of goods and services, its section dedicated to vacation rentals has attracted considerable interest in France, as it enables owners to advertise their accommodation directly to potential tenants, without the intermediation costs often associated with specialized platforms.
• SeLoger.com is a recognized name in the real estate and rental industry. As a specialist classifieds portal, it offers a multitude of options to those specifically looking to find properties to rent, including vacation homes, throughout France. It is a niche platform for property seekers, making it a targeted choice for rental transactions.
• Gîtes de France and Clévacances are networks that are the guardians of authentic French vacations, offering a range of bed & breakfasts and holiday homes. They preserve the very essence of traditional French hospitality and offer tourists the assurance of certified quality accommodation.

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 18/06/2023

Summary and extracts

List of charts

• Estimation du marché mondial de la location saisonnière
• Répartition des nuitées passées en hébergement marchand par des touristes français
• Evolution de l'offre et de la demande des appartements dans la location touristique de particuliers à particuliers
• Annual arrivals of foreign tourists
• Consommation touristique intérieure
• Part de la population ayant l'intention de louer un logement pour les vacances
• Évolution du nombre de nuitées en juillet et août 2021 par rapport à la même période en 2019,
• Sondage: Quand réservez-vous votre location de vacances?
• Critères de choix d'une location de vacances en France en 2017
• L'offre d'hébergement par type d'établissement
• Répartition géographique des résidences de tourisme, en capacité d'accueil
• Nuitées réservées via une plateforme internet dans les principales villes françaises
• Quelles sont les plateformes de réservation les plus utilisées ?
• Part des réservations par site
• Prix du m² loué des dix départements les plus chers
• Sondage: Comment recherchez-vous une location de vacances?
• Sondage: Quel mode d'hébergement préferez-vous pour les vacances d'été?
• Sondage: À l'avenir, pensez-vous mettre vos logements en location sur Airbnb
• Structure de la dépense touristique intérieure
• Number of foreign visitors
• Évolution des dépenses des touristes internationaux