short-term rental segment in Europe was on track to generate gross bookings of
over €40 billion in 2020 – then came COVID.
latest research, Niche No More: European Short-Term Rentals, developed in partnership with AirDNA and Transparent, finds gross
bookings for the European short-term rental (STR) market declined by 33% in
2020, totaling €25.3 billion, a level last seen in 2010.
with COVID cases beginning to fall sharply and an increasing share of the
European population being vaccinated, the recovery accelerated in spring and
early summer 2021 and bookings were projected to rebound by 31% versus 2020.
the end of 2022, gross bookings will reach €37.5 billion, and a full market
recovery to pre-pandemic levels is projected to occur in 2023.
by 2025, the short-term rental segment is projected to reach €44.3 billion.
five core markets – United Kingdom, Germany, France, Italy and Spain – account for
about 70% of the total European STR gross bookings. Recovery is expected to be
the fastest in the U.K., exceeding pre-pandemic levels by the end of this year,
while France will not see full recovery to 2019 levels before 2024.
bookings continue to grab the majority of share in the European STR landscape.
From 77% in 2019, online penetration is expected to grow to 85% in 2025.
like third-party platforms and OTAs have the lion's share in this online
market. In 2021, with a share of 70% of STR bookings, intermediaries
outperformed online-direct (9%) by a factor of seven.
major players in the online space include Airbnb, Booking.com, Vrbo (and other
Expedia Group brands such as FeWo-direkt in Germany and Abritel in France) and
Awaze with multiple brands in the U.K.
important players include OYO Vacation Homes, HomeToGo (including Casamundo and
other metasearch sites), Interhome Group, and e-domizil Group, to name a few.
The vast majority of mid-tier and smaller intermediaries feature robust
internet booking engines that deliver fast search results, but they lack the
deep pockets for online marketing/SEM and growth is limited due to their
comparatively low website traffic.
to a third of European travelers stayed in a STR in 2020, but hotels remain the
leader in accommodation with an incidence rate of stay of over 75%.
that do choose rentals tend to skew younger, with Italian
(47%) and French (42%) travelers in the 18-34 age group having stayed in a STR
at least once.
40% of travelers in the U.K., Germany and France considered only STRs for their
last trip. And value for money is the most important reason overall for
choosing STRs, with 37% of European travelers citing it. Spanish travelers
(44%) are the most value-conscious while for travelers from the U.K., location
(45%) is the most important factor.
looking ahead, more than a quarter of travelers say they intend to stay in a
short-term rental on a trip in the next 12 months. While this trails intent for
hotel stays, it nevertheless bodes well for an industry still in its infancy.
Find out more...
This new research
report provides a comprehensive view of the European short-term rental market,
including detailed market sizing and projections, distribution trends, key
developments and more.