European Short-Term Rental Market Is Growing
The boom in holiday homes in Europe: here are the best markets and strategies for hosts to implement.
April 2026
The growth of the short-term let market in Europe continues at a steady pace. The success can be attributed to several factors, such as the ease of booking thanks to online platforms, the possibility of getting personalised experiences, and the increased desire to travel following the restrictions of past years. Eurostat reports confirm that stays booked on OTAs, from Airbnb to Holidu, continue to rise, with positive trends for short-term lets in Europe expected for years to come. Let’s look at travelers’ preferences and the outlook for European hosts, including some useful tips to maximise profits by taking advantage of favourable periods.
2024: A Record Year
Bookings for individual overnight stays in 2024 within the European Union have shown extraordinary figures: the total amounts to a massive 854 million overnight stays, with growth exceeding 18% compared to 2023. If we consider the 2019 data, the increase stands at 30%. Results have been consistent for a good part of the year: in addition to the summer period, the months of March and May achieved historical peaks, with increases close to 50%. Contributing to the growth in bookings in Europe was the favourable climate, which allowed the summer season to be extended, especially in coastal areas.
The Markets That Stood Out in Europe
The pace of growth isn’t identical across all nations. According to tourism statistics in Europe, some regions really shone in 2023. Among these, we should mention Andalusia, with a total of 35.6 million overnight stays, followed by Croatia’s Jadranska Hrvatska, which comes in second with a massive 32.6 million overnight stays. Provence and the French Riviera also achieved excellent results, reaching a considerable 25 million overnight stays. Portugal also stands out: besides the popular tourist spots of Lisbon and Porto, the coastal region of the Algarve recorded significant numbers. In Italy, notable regions included Lazio, Lombardy, Tuscany, Sicily, and Veneto, all seeing millions of overnight stays contributing to Europe’s overall growth.
Where is the Highest Demand Concentrated?
While until a few years ago travelers predominantly visited major European cities, from Rome to London, from Madrid to Paris, data from the European property market shows a more balanced distribution across different locations. Indeed, travelers are increasingly fascinated by rural and countryside areas, as evidenced by the success of Provence, famous for its lavender fields, and Tuscany, which, alongside its art cities, boasts several very appealing hilly areas. Furthermore, a good portion of tourism is dedicated to relaxation and privacy. Guests prefer independent houses, with outdoor spaces and optional features like a swimming pool. Another trend relates to local experiences: adding packages like cultural visits and tasting tours is an excellent strategy to increase bookings. Finally, the need to escape the chaos rewards less crowded destinations and off-season stays.
Best Times to Receive Bookings
The high season varies depending on the area. Generally, the best times to rent out a holiday flat for maximum profit are as follows:
- Periods when school holidays are scheduled.
- Religious holidays, primarily Christmas and Easter.
- Bank holidays and spring festivals, like the May bank holidays.
- Winter season for mountain resorts.
- Summer season for coastal towns.
- Weekends.
Knowing the most in-demand periods allows you to implement strategies, such as increasing nightly prices and introducing more restrictive cancellation policies. Conversely, during the low season, you can apply more inviting rates and entice potential interested parties to book by including benefits like free cancellation.
Is Renting Out My Holiday Home a Good Investment for the Future?
The prospects for European hosts are bright, and the coming years predict a further positive trend. In the immediate future, rural areas will gain further popularity, so if you want to invest in a holiday home, you could consider an area away from the city crowds. Furthermore, the phenomenon of digital nomads is increasing: these are professionals or employees who work remotely and move from one location to another, combining work and tourism. The market of retirees, who are increasingly inclined to travel, should not be underestimated: this category often chooses off-peak seasons to benefit from more competitive prices and avoid periods of high tourist traffic.
How to Get More Bookings Based on Statistics
Holiday rentals, as we’ve seen from the data, are experiencing a period of strong growth. This, naturally, is leading many entrepreneurs to invest in short-term lets in Europe. To avoid being outmanoeuvred by the competition and to take advantage of the large volume of travelers, follow these tips:
- Utilise dynamic pricing: thanks to reliable algorithms, you can automatically vary your rates on the holiday rental website you use, depending on parameters such as seasonality, the presence of events, and the demand for flats in your area.
- Offer experiences: advertising a holiday accommodation that includes tastings of local food products and excursions is an additional service highly appreciated by guests. Try collaborating with local operators and tour guides in the area.
- Provide all possible comforts: services like WiFi, a coffee machine, and self-check-in are greatly appreciated by guests, who often include such comforts among their search keywords on the holiday rental portal they use.
- Analyse your statistics: understanding your property’s occupancy rate, the conversion of views into bookings, and your competitors’ trends is important for identifying areas where you can improve.