The comparison between hotels vs Airbnb remains one of the most discussed topics in the global tourism industry. For years, the two accommodation models were viewed as direct competitors. Today, however, the landscape is far more complex. Travellers no longer choose exclusively between a hotel or an Airbnb; instead, they look for the best experience based on the purpose of their trip, their budget, and their individual needs.
For hosts offering short-term rental properties, understanding this shift is essential. The question is no longer whether they can compete with hotels, but how they can do so effectively.
Regulatory pressure and tighter rules for short-term rentals
Hotel operators continue to raise concerns about unfair competition, calling for stricter regulations for short-term rental properties. Governments, responding both to these concerns and to growing housing shortages in many cities, have introduced tighter regulations across several markets.
The “freeze” on the issuance of new Property Registration Numbers (AMA), which has been implemented in the first three municipal districts of the Municipality of Athens, is now also being extended to the 1st Municipal Community of Thessaloniki. This development is shaping a two-speed market: properties that already hold an active AMA gain increased commercial value, as it is no longer possible to issue new licences in these specific areas. At the same time, the new restrictions on property transfers, such as in cases of sale or parental gift, may lead to the loss of the existing AMA, creating significant legal and practical issues for owners and investors.
In parallel, the tax alignment with hotel establishments (business registration requirement for those owning three or more properties, climate crisis fees, and the business levy) is tightening profit margins. The state’s tax revenues from the sector have reached nearly 1 billion euros, demonstrating that short-term rentals have now become a substantial and fully regulated industry.
Where short-term rentals still have the advantage
Despite price pressures, Airbnb remains the “king” of group and family bookings. For a group of four people or a family, booking an apartment with a kitchen is still significantly more cost-effective than reserving two or three hotel rooms. In markets such as Orlando or Miami, Airbnb can save up to 20% compared to hotels for families staying more than 5 nights. In addition, amenities such as a kitchen and a washing machine are decisive factors for travellers seeking independence and lower food expenses.
The short-term rental market in 2026
The Greek short-term rental market continues to grow strongly. According to data from the Independent Authority for Public Revenue (AADE), more than 116,600 active short-term rental properties operated in the country in 2025, proving that the model remains extremely robust. At the same time, demand for short-term rentals in Greece shows positive performance, with high occupancy rates and increased prices compared to several European markets.
Popular destinations such as Crete, Santorini, Mykonos, Athens, and Corfu continue to attract millions of visitors, who often prefer villas or luxury apartments over traditional hotels. However, the growing supply means that competition is becoming increasingly intense.
Strategic tips for hosts
To remain competitive in 2026, hosts should focus on delivering value rather than competing on price alone.
Use dynamic pricing: Implement pricing tools that automatically adjust nightly rates based on market demand, seasonality, local events, and hotel pricing.
Invest in professional photography: Avoid the “expectation gap.” High-quality photographs should accurately represent your property, while fast Wi-Fi and dedicated workspaces have become essential features for attracting remote workers and digital nomads.
Build a strong brand: Your property is more than just accommodation. Create a memorable name, professional logo, distinctive interior design, and consistent branding across your website and social media channels.
Invest in SEO and direct bookings: Relying solely on booking platforms limits profitability. An SEO-optimised website with an integrated online booking system can increase direct reservations while reducing commission costs.
Sell experiences, not just accommodation: Travellers in 2026 are looking for authentic local experiences. Partner with local chefs, tour guides, wellness providers, wineries, or artisan producers to offer unique packages that differentiate your property.
Focus on guest reviews: Reviews remain one of the strongest booking factors. Fast communication, exceptional cleanliness, and outstanding customer service are no longer optional—they are expected.
Upgrade your amenities: Invest in premium bedding, high-quality toiletries, luxury towels, coffee stations, and welcome baskets featuring locally sourced British products. Small details often create memorable guest experiences and generate better reviews.
Hotels and Airbnb are no longer competitors
The reality of 2026 shows that hotels and Airbnb serve different traveller needs and often complement each other rather than compete directly. Many travellers choose Airbnb for family holidays or extended stays while preferring hotels for business trips or short city breaks. Ultimately, the choice depends on the length of stay, group size, destination, desired amenities, and the type of travel experience guests are looking for.
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