2024 goes down in the history of short-term rentals in Europe as yet another record-breaking year. Preliminary data from AirDNA also suggests a bright outlook for 2025, with bookings for the February to July period up 18% compared to the same time last year.
Industry performance in Europe in 2024
Overnight stays in industry accommodations across the continent reached 440 million, a 17.3% increase compared to 2023.
The year’s top performers were Northern and Eastern European countries, with over 20% growth in overnight stays. These countries include:
- Hungary (+21.1%)
- Germany (+21.3%)
- Finland (+21.5%)
- Denmark (+21.8%)
- Sweden (+23.7%)
- Czech Republic (+27.2%)
- Poland (+29.3%)
- Norway (+31.6%)
Greece among countries with increased occupancy despite supply growth
Greece stood out in 2024 for its increased occupancy rates, with demand growth significantly outpacing supply expansion. Greece recorded a 2.7% increase in occupancy last year, while overnight stays rose by 16%, reaching 14.1 million (up from 12.1 million in 2023).
Other countries included in this occupancy increase indicator are:
- Norway (+2%)
- Spain (+5.2%)
- Croatia (+6.5%)
Occupancy increased by 1.4% year-on-year as demand outstripped supply, but ADR growth slowed to 4.4% due to increased competition.
Europe recorded a particularly strong increase in occupancy in the fall, as strong demand for off-peak months pushed occupancy rates up by more than 2% year-on-year between October and November.
In contrast to the US, where occupancy rates have fallen below 2019 levels, Europe’s rates continued to show resilience. Average occupancy rates in 2024 were 1.6% higher than in 2019.
In total, 1.3 million new listings were added in 2024. Monthly available listings in Europe averaged 3.5 million, a 14.2% increase year-on-year.
Demand showed no signs of slowing down in 2024. This growth was fueled by a resilient labor market, rising wages, and easing inflation, which collectively boosted private consumption and travel demand. Private consumption played a huge role in GDP growth for the year. The European Central Bank forecasts that it will remain a key driver for 2025.
Major music and sporting events brought travelers to cities across Europe. Key events in this category included:
- Eurovision
- The Paris Olympics
- Taylor Swift’s Eras Tour
- EURO 2024
These high-profile events drove STR revenues to new heights, with new and established hosts reaping the benefits of increased demand.
Economic indicators
- ADR: After double-digit growth in 2023, the average daily rate slowed to 4.4% in 2024. Easing inflation and rapid supply growth over the past two years began to put pressure on host prices. Across Europe, nightly rates averaged €172 in 2024.
- RevPAR: With the slowdown in ADR, annual revenue growth per available room (RevPAR) fell from 8.4% in 2023 to 5.9% in 2024. On average, revenue per available night was €97 in 2024. European short-term rental hosts earned a total of €76 billion in revenue in 2024.
Trends
- Rising Popularity of Unexplored Destinations: Travelers continue to seek out emerging destinations. More affordable destinations such as Albania, Kosovo, and Moldova experienced explosive growth, with STR supply and demand growth exceeding 40% year-on-year.
- Shift Towards Spacious and Luxurious Accommodations: In recent years, there has been a shift in traveler preferences towards more spacious and luxurious accommodations. This trend was reflected in short-term rental demand in 2024. Luxury properties and those with 3-5 bedrooms recorded occupancy growth exceeding 3% last year. In contrast, budget properties with 1-2 bedrooms showed moderate or negative occupancy growth.
2025 Outlook
Bookings for the next six months, as mentioned earlier, point to a strong season for European STRs. Bookings for the February to July period are currently up 18% year-on-year.
Bookings for February show a 12% year-on-year increase. However, with Easter returning to April this year, March is seeing weaker booking growth at +5%. In contrast, April is showing a big jump, up 44% year-on-year.
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