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European Short-Term Rentals: A Record-Breaking Year in Review

The European short-term rental market had an incredible year in 2023. After recovering from the pandemic-induced downturn, the market reached new heights of growth and profitability.

 


According to AirDNA, the European market generated a whopping €17.9 billion in revenue in 2023, a 35% increase from 2022. The occupancy rate also improved by 28%, reaching 64% for the year. The average daily rate (ADR) increased by 5%, hitting €114 per night.

 

These impressive results were fueled by several factors, such as the relaxation of travel restrictions, the high demand for leisure travel, the shift from hotels to alternative accommodations, and the strength of domestic and regional tourism. The market also gained from the growing use of digital platforms and tools by hosts and guests, as well as the emergence of new segments and niches within the short-term rental industry.

 

December was a special month for the European market, as it wrapped up the record year with stellar results. The revenue in December was €1.8 billion, a 40% increase from the same month in 2022. The occupancy rate was 64%, a 12 percentage point increase from 2022. The ADR was €120, a 7% increase from 2022. The top-performing countries in December were Spain, France, Italy, Germany, and the United Kingdom, which together made up 75% of the total revenue.

 

The future looks bright for the European short-term rental market, as it is expected to sustain its growth and momentum in 2024. AirDNA projects that the revenue in 2024 will reach €22.7 billion, a 26% increase from 2023. The occupancy rate will be 68%, a 4 percentage point increase from 2023. The ADR will be €122, a 2% increase from 2023. The main drivers of growth will be the recovery of international travel, the expansion of business travel and remote work, the diversification of supply and demand, and the innovation of products and services.

 

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