The first quarter of 2024 has brought great news for the short-term rental market in Europe. With guests spending a staggering 123.7 million nights in accommodations booked through platforms like Airbnb, Booking.com, Expedia, and Tripadvisor, there’s a clear sign that the market is recovering. This data, sourced from Eurostat’s latest report, reflects the performance of the short-term rental industry across these major platforms.
Key Data highlights from the Q1 2024 report:
• January 2024: 33.3 million nights booked– a 16.7% increase from January 2023.
• February 2024: 41.2 million nights booked– a 19.0% rise from February 2023.
• March 2024: 49.2 million nights booked– a dramatic 48.0% surge from March 2023.
But what do these numbers really mean for you as a property manager or host? Let’s break it down and see how you can use this information to make smart decisions for your business.
Top OTAs and Eurostat Team Up to Provide Key Short-Term Rental Industry Data
Airbnb, Booking.com, Expedia, and Tripadvisor have joined forces with the European Union to offer exclusive monthly statistics on short-term accommodation bookings across Europe, a partnership formalized in March 2020. This partnership is a game-changer because it provides a level of insight into the short-term rental market that was previously unavailable by consolidating data from major booking platforms.
Why This Matters: Before this partnership, data on short-term rentals was scattered, making it hard to get a full picture of market trends. Now, Eurostat—the statistical office of the EU- provides detailed insights into where travelers are booking, how often, and during which months. This allows short-term rental operators to make more informed decisions about pricing, marketing, and managing properties, ultimately helping them stay ahead of the competition and better meet the needs of their guests.
Top OTAs and Eurostat Team Up to Provide Key Short-Term Rental Industry Data
Airbnb, Booking.com, Expedia, and Tripadvisor have joined forces with the European Union to offer exclusive monthly statistics on short-term accommodation bookings across Europe, a partnership formalized in March 2020. This partnership is a game-changer because it provides a level of insight into the short-term rental market that was previously unavailable by consolidating data from major booking platforms.
Why This Matters: Before this partnership, data on short-term rentals was scattered, making it hard to get a full picture of market trends. Now, Eurostat—the statistical office of the EU- provides detailed insights into where travelers are booking, how often, and during which months. This allows short-term rental operators to make more informed decisions about pricing, marketing, and managing properties, ultimately helping them stay ahead of the competition and better meet the needs of their guests.
The Big Picture: Understanding the Numbers
In the first quarter of 2024, a total of 123.7 million guest nights were booked through major platforms like Airbnb, Booking.com, Expedia, and Tripadvisor, marking a 28.3% increase compared to the same period in 2023. This 28.3% increase in guest nights means that significantly more people are booking and staying in short-term rental accommodations across Europe in the first quarter of 2024 compared to the same period in 2023.
This growth signifies the third consecutive year of double-digit increases in the first quarter, underscoring the sustained recovery and expansion of the short-term rental market following the pandemic.
While the explosive rebound seen in 2022 (+165.8%) has slowed, with growth rates stabilizing to 33.9% in 2023 and now 28.3% in 2024, the continued upward trend reflects strong and consistent demand, indicating a robust and healthy market that has fully recovered from the disruptions of 2020.
Q1 2024 Performance Overview: Month-by-month
According to information from monthly data on short-stay accommodation offered via online platforms for the first quarter of 2024 at the national level, published by Eurostat on 29th July 2024, this is a snapshot of the performance in Q1 month by month.
- January 2024
In January 2024, travelers booked 33.3 million nights in short-term accommodations, marking a 16.7% increase compared to January 2023. This suggests that more people were eager to start the year by traveling, taking advantage of winter getaways or post-holiday breaks.
- February 2024
February continued this upward trend, with 41.2 million nights booked, reflecting a 19.0% increase from February 2023. This steady growth indicates that the momentum from January carried forward, possibly fueled by winter sports enthusiasts, Valentine’s Day trips, and early spring vacation planners.
- March 2024
March, however, saw the most dramatic surge, with 49.2 million nights booked– a 48.0% increase compared to March 2023. This sharp rise could be attributed to the beginning of the spring travel season.
Note: For those in the short-term rental industry, this data suggests that March is a crucial month to focus on.
When visualized in a graph, these figures illustrate a clear month-by-month growth pattern, with each successive month setting a new record in the number of nights booked. The steep climb in March particularly highlights a peak in travel demand.
Source: Eurostat
Key Insights for Property Managers from 2023 Data
In 2023, a total of 719 million guest nights were booked through the 4 top OTAs. This is the total number of nights that guests stayed in short-term rentals booked through these platforms across the year.
To understand how much this has grown:
In 2022, there were 597 million guest nights booked, which means 2023 saw a significant increase.
In 2021, the number was even lower, at 364 million guest nights.
This shows that the short-term rental market has been growing rapidly over the past few years. From 2021 to 2022, the number of nights booked almost doubled, and then from 2022 to 2023, it continued to grow by about 20.5%. This consistent growth indicates that more and more people are choosing to stay in short-term rentals each year.
For an in-depth analysis of the 2022 data, check out this insightful article by Rental Scale-Up: AIRBNB, BOOKING, EXPEDIA, AND TRIPADVISOR JOIN FORCES TO SHOWCASE HISTORICAL RISE OF EUROPEAN SHORT-TERM RENTAL MARKETS
When we compare these numbers to the pre-pandemic levels:
In 2019, before the COVID-19 pandemic, there were 512 million guest nights booked.
The 2023 figure of 719 million guest nights is far higher than the 2019 figure, showing that not only has the market recovered from the impact of the pandemic, but it has also grown significantly beyond what was considered normal before the pandemic. This suggests that travelers are increasingly turning to short-term rentals, perhaps due to the flexibility, variety, and unique experiences they offer compared to traditional hotels.
Source: Eurostat
Top 20 Regions Commanded Almost Half of EU Guest Nights in 2023
If we look at the top 20 most popular regions across the EU, they accounted for nearly half (47%) of all the guest nights booked through these platforms in 2023. Most of these top regions are in Spain, France, and Italy, with Spain having seven regions, France six, and Italy five in the top 20. Croatia and Portugal each have one region on this list.
Source: Eurostat
The European Union (EU) is made up of 27 countries, and these countries are further divided into 242 regions for statistical purposes. In 2023, people booked a lot of short-term stays through online platforms like Airbnb, Booking.com, Expedia, and Tripadvisor, and in 17 of these regions, the number of nights people spent in these accommodations was more than 10 million.
The top 3 regions where the most guest nights were booked are:
1. Andalucía, Spain: This region saw the highest number of bookings, with 36 million guest nights. Andalucía is known for its sunny weather, beautiful beaches, and rich cultural heritage, making it a popular destination.
2. Adriatic Croatia (Jadranska Hrvatska): This region, which includes Croatia’s stunning coastline along the Adriatic Sea, had 33 million guest nights. The area is famous for its crystal-clear waters, historic towns, and scenic islands.
3. Provence-Alpes-Côte d’Azur, France: This region in the south of France, known for its Mediterranean coastline, lavender fields, and charming villages, saw 25 million guest nights.
Together, these three regions accounted for nearly 13% of all the nights people booked in the EU through these platforms. This means that a significant portion of all short-term rental bookings in the EU were concentrated in just these three areas.
The success of Andalucía in Spain, Jadranska Hrvatska in Croatia, and Provence-Alpes-Côte d’Azur in France as top destinations for short-term rentals can be attributed to several common factors:
- Stunning Natural Beauty: All three regions are renowned for their breathtaking landscapes. Andalucía boasts beautiful coastlines, mountain ranges, and historic cities; Jadranska Hrvatska is famous for its Adriatic coast, islands, and crystal-clear waters; and Provence-Alpes-Côte d’Azur offers a mix of Mediterranean coastline, charming villages, and picturesque countryside.
- Rich Cultural Heritage: These regions are steeped in history and culture, making them attractive to tourists seeking authentic experiences. Andalucía is known for its Moorish architecture and vibrant traditions; Jadranska Hrvatska features ancient cities like Dubrovnik and Split with a rich history; and Provence-Alpes-Côte d’Azur is celebrated for its Roman ruins, art history, and unique Provençal culture.
- Year-Round Appeal: Each of these destinations offers something for every season, from beach holidays in the summer to cultural explorations and culinary tourism in the off-season. This year-round appeal helps sustain high booking rates across different times of the year.
