{"id":41050,"date":"2026-08-07T10:38:43","date_gmt":"2026-08-07T07:38:43","guid":{"rendered":"https:\/\/bnbnews.gr\/?p=41050"},"modified":"2026-08-06T23:02:44","modified_gmt":"2026-08-06T20:02:44","slug":"phocuswright-short-term-rental-market-outlook-2029","status":"publish","type":"post","link":"https:\/\/bnbnews.gr\/en\/data-amp-insights\/41050\/phocuswright-short-term-rental-market-outlook-2029\/","title":{"rendered":"Phocuswright: Growth despite restrictions \u2013 What travelers are looking for today"},"content":{"rendered":"

The global short-term rental market continues to expand, despite entering a new period of increased scrutiny and stricter regulation. Restrictions introduced in many markets are not slowing the sector\u2019s momentum but are instead driving a phase of restructuring, where quality, reliability and professional management are becoming increasingly important.<\/p>\n

According to Phocuswright\u2019s new Global Short-Term Rentals 2026<\/strong> report, global short-term rental gross bookings reached $219.9 billion in 2025<\/strong> and are expected to grow at a compound annual growth rate (CAGR) of 5.3% through 2029<\/strong>, reaching $270.6 billion<\/strong>.<\/p>\n

The key message of the research is that the sector is not entering a period of decline, but rather a phase of maturity. The era of rapid expansion with limited regulatory oversight is giving way to a new operating model, where regulation, technology and changing traveler expectations are shaping the next chapter of the market.<\/p>\n

Regulation is reshaping the landscape, not stopping growth<\/h2>\n

The tightening of regulatory frameworks is one of the three major trends identified by Phocuswright for 2026.<\/p>\n

Across many countries, authorities are seeking to manage the growth of short-term rentals, particularly in destinations facing high tourism pressure and housing challenges. New rules include restrictions on new registrations, increased compliance requirements, tax controls and greater transparency in the operation of rental properties.<\/p>\n

This trend is also evident in Greece, where the short-term rental market has entered a stricter regulatory environment, with restrictions on new registrations in specific areas of Athens and Thessaloniki and intensified monitoring and enforcement.<\/p>\n

However, the global picture shows that regulation does not necessarily lead to market contraction. On the contrary, according to Phocuswright, it is contributing to the transition toward a more structured market, where professionals investing in quality and compliance gain a competitive advantage.<\/p>\n

Strong demand in Europe and North America<\/h2>\n

Demand for short-term rentals remains strong across the largest markets.<\/p>\n

In North America, gross bookings reached $78 billion in 2025<\/strong> and are forecast to increase to $81.8 billion in 2026<\/strong>, growing faster than the hotel market.<\/p>\n

In Europe, the market is expected to reach $79.7 billion in gross bookings in 2026<\/strong>, confirming the role of short-term rentals as a core component of the tourism accommodation landscape.<\/p>\n

The strong penetration of the model is evident in several European countries, where the share of travelers using short-term rentals is higher or comparable to that of the United States. Usage reaches 44% in France, 31% in the UK and 26% in Germany<\/strong>.<\/p>\n

Travelers are looking for more than just a good price<\/h3>\n

One of the most significant shifts identified by Phocuswright concerns traveler behavior.<\/p>\n

Choosing accommodation is no longer based solely on price or location. Travelers are placing greater importance on trust, consistency of experience and value for money<\/strong>.<\/p>\n

The research highlights that comparisons between hotels and short-term rentals are becoming increasingly common during the search and booking process. This means that short-term rental properties are no longer competing only with each other but are being directly compared with the hotel product.<\/p>\n

At the same time, longer trips are supporting the residential accommodation model. In the United States, average trip length increased from 6.2 nights in 2022\/23 to 7.2 nights in 2024\/25<\/strong>, while the share of trips lasting more than two weeks also increased significantly \u2014 a category where short-term rentals have a strong competitive advantage.<\/p>\n

The future depends on professionalization<\/h3>\n

For hosts and professional property managers, the new reality means that simply listing a property on a platform is no longer a guarantee of success.<\/p>\n

The market is moving toward greater professionalization, with greater emphasis on the quality of the guest experience, the reliability of information, response times and the overall management of the guest relationship.<\/p>\n

In this environment, operators investing in structured processes, technology and high hospitality standards are expected to outperform those treating short-term rentals as a passive income stream.<\/p>\n

Technology and AI are changing the booking journey<\/h3>\n

Artificial intelligence is another factor expected to significantly influence the sector.<\/p>\n

Phocuswright estimates that generative AI will change the way travelers search for and organize trips, while major platforms continue to evolve their business models.<\/p>\n

Airbnb, for example, is gradually expanding beyond simple accommodation bookings by investing in new services and experiences.<\/p>\n

However, it remains unclear whether AI will generate additional demand for short-term rentals or simply transform the way travelers discover and choose properties.<\/p>\n

The sector is growing, but under new rules<\/h3>\n

The picture emerging from the Phocuswright study is that short-term rentals are entering a new phase.<\/p>\n

Growth continues, but the model is changing. Regulations are becoming stricter, travelers are becoming more demanding, and technology is transforming how the market operates.<\/p>\n

For industry professionals, the challenge ahead will not simply be attracting more bookings, but delivering a reliable and high-quality hospitality experience that meets the evolving expectations of travelers.<\/p>\n","protected":false},"excerpt":{"rendered":"

The global short-term rental market continues to expand, despite entering a new period of increased scrutiny and stricter regulation. Restrictions introduced in many markets are not slowing the sector\u2019s momentum but are instead driving a phase of restructuring, where quality, reliability and professional management are becoming increasingly important. According to Phocuswright\u2019s new Global Short-Term Rentals<\/p>\n","protected":false},"author":4,"featured_media":41047,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","footnotes":"","_members_access_role":[],"_members_access_error":""},"categories":[513],"tags":[1588],"class_list":["post-41050","post","type-post","status-publish","format-standard","has-post-thumbnail","category-data-amp-insights","tag-phocuswright"],"_bunyad_layout_template":null,"_bunyad_layout_spacious":null,"_bunyad_sponsor_name":null,"_bunyad_sponsor_logo":null,"_bunyad_sponsor_url":null,"_bunyad_sub_title":"Phocuswright forecasts a 5.3% annual growth rate for the short-term rental market through 2029. How will the future of the sector evolve as traveler expectations continue to change?","_yoast_wpseo_metadesc":"Phocuswright forecasts continued short-term rental growth through 2029, as regulation, AI and changing traveler expectations reshape the sector.","_yoast_wpseo_focuskw":"short-term rental market","_yoast_wpseo_title":"Phocuswright: Short-term rentals grow despite new restrictions","_bunyad_layout_style":null,"yoast_head":"\nPhocuswright: Short-term rentals grow despite new restrictions<\/title>\n<meta name=\"description\" content=\"Phocuswright forecasts continued short-term rental growth through 2029, as regulation, AI and changing traveler expectations reshape the sector.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/bnbnews.gr\/en\/data-amp-insights\/41050\/phocuswright-short-term-rental-market-outlook-2029\/\" \/>\n<meta property=\"og:locale\" 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