Today's by-owner vacation rentals make dream holidays more accessible and affordable by charging lower rates that no longer include intermediary fees. They also help lower vacationers' daily costs by accommodating bigger groups (more people to split the daily expenses) and providing full kitchens.
It's no wonder that the global vacation rental market, consisting of a range of properties from holiday homes to cozy cabins, is now a billion-dollar industry. Coherent Market Insights says its estimated value is $84.02 billion in 2026 and expects it to reach $125.50 billion by 2033.
How Do By-Owner Vacation Rentals Work?
By-owner vacation rentals are holiday properties directly operated and managed by their respective owners rather than professional property management firms or large hotel chains.
Owners list their units and spaces on online vacation rental platforms and marketplaces. Guests can then search for, book, and pay for these rentals online.
With most rental platforms, holiday-goers can find and book a wide range of properties, such as:
- Lakeside holiday homes
- Cozy cabins in the woods or mountains
- Beach house rentals
- Condominium units with river views
Other platforms allow owners to advertise their timeshare rentals (including those in beach resorts) to an audience of millions of people, as noted by RedWeek.
Is a By-Owner Vacation Rental Cheaper Than a Hotel?
It depends, but in many cases, yes, booking a by-owner vacation rental can be cheaper than a hotel. The difference can be even more apparent if you're:
- In a big group
- Planning an extended stay
- Budgeting carefully for food and drinks
How Can By-Owner Vacation Rentals Make Dream Holidays More Affordable?
In a recent NerdWallet survey, around 51% of polled Americans said they'd rather stay in vacation rentals than hotels if they're traveling. The difference is starker across generations, with more Gen Z-ers and Millennials preferring vacation rentals (around six in ten) vs. 51% for Gen X and 34% for Boomers.
Regardless of the age range of holiday-goers who like vacation rentals, the primary reason is often the same: the potential savings they afford.
Lower Rates
Owners of by-owner vacation rentals are usually the same people who run and manage the spaces. As self-managers, they often have lower overhead costs, as they don't have to pay full-service property management fees.
Since owners have fewer property-related costs to worry about, they can pass on the savings to their guests in the form of lower rental rates.
Another way vacation rentals can turn out to be more affordable than hotels is if they can accommodate more people. With more people to share the fees with, the per-person cost would be lower.
Savings on Food and Drinks
With many vacation rentals having fully equipped kitchens, vacationers can save money by preparing some of their meals "at home." Not having to rely on pricey restaurant food and drinks for every meal can help stretch your holiday budget.
Consider Vacation Rentals for Your Future Dream Getaways
With vacation rentals often costing less than hotel rooms (particularly for big groups), they can make your dream holidays more affordable and accessible. Book one with a fully equipped kitchen, and you can save even more on food and drinks at home.
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