Vacation rental is a term in the travel industry meaning renting out a furnished apartment or house on a temporary basis to tourists as an alternative to a hotel. Vacation rentals have long been a popular travel option in Europe (especially in the UK) as well as in Canada and are becoming increasingly popular across the world. They are often referred to as self-catering rentals or villa rentals. In some cities, like Barcelona, local authorities determined that vacation rentals were becoming a threat to the hotel industry and passed some legislation placing regulations and limits on the industry, while in others, such as England, Ireland, France and Spain, the government promotes and certifies holiday rentals, even offering its own program of holiday/vacation rentals.

A vacation rental is a fully furnished property, such as a condominium, townhome or single-family-style home, often referred to as villa rentals in Europe. The client/traveler arranges to rent the vacation rental property for a designated period of time, many rent on nightly basis similar to hotel rooms, although the more prevalent vacation rental industry practice is typically weekly rentals. A true vacation rental is not for sale to the guest; rather, the owner of the vacation rental merely allows the guest to rent the property for a predetermined length of time.