May 2025 – Europe’s short-term rental market is experiencing a historic surge ahead of the 2025 summer travel season, with countries including the United Kingdom, Greece, Poland, Czech Republic, Norway, Belgium, Germany, Denmark, and Greece posting record growth in bookings, according to the latest data from AirDNA.
Driven by robust traveler demand, easing inflation, and a growing pool of available properties, the sector is seeing unprecedented levels of activity. Across the continent, 18 of the 20 largest short-term rental markets have reported at least 10% year-over-year growth in summer bookings.
Greece Leads Southern Europe with 22% Booking Growth
Among the standout performers, Greece has emerged as a top summer destination, recording a 22% increase in short-term rental bookings for June through August. The country’s enduring appeal—anchored by its idyllic islands, historic sites, and strong local hospitality—is driving both volume and revenue.
Greece’s performance is mirrored by significant gains in Poland (+37%), the Czech Republic (+30%), and Norway (+27%). Belgium and Germany follow with solid 24% growth, while Finland and Denmark saw more modest gains of 8% and 9%, respectively.
Strong Fundamentals Support Market Expansion
Despite ongoing geopolitical and economic uncertainties, Europe’s travel market remains resilient. AirDNA reports a 7.1% increase in active listings, bringing the total to 3.6 million units. Demand for overnight stays surged 27.4% year-over-year, totaling 36.6 million nights booked across the continent.
Key performance metrics also reflect the strength of the market:
- Average Daily Rate (ADR): €150/night (+4.2%)
- Occupancy Rate: 59% (+18%)
- Revenue per Available Rental (RevPAR): €88/night (+23%)
These figures indicate robust profitability and sustained interest in flexible, experience-rich travel options.
April Performance Sets Stage for Strong Summer
Momentum for the summer was fueled by a strong April, during which all 20 tracked markets recorded revenue growth. Countries like Germany and Denmark saw occupancy rise by nearly 30%, driving revenue increases of 55% and 49%, respectively. Norway posted the highest revenue growth at 68.5%, supported by a rise in both rates and supply.
Greece and Switzerland also saw meaningful revenue increases, largely attributed to higher nightly rates, even with only modest occupancy gains.
Positive Outlook for Greece’s Tourism Economy
For Greece, the strong booking trends point to a prosperous season for accommodation providers, local businesses, and tourism operators. Backed by effective marketing, supportive policy, and infrastructure investments, Greece remains a cornerstone of the European travel ecosystem.
The country’s diverse offering—from the Cycladic islands to its mainland archaeological gems—continues to resonate with travelers seeking unique cultural and leisure experiences in the post-pandemic travel era.
Europe’s Top Destinations to Watch in Summer 2025
With record-breaking bookings and strong economic fundamentals, the short-term rental sector across Europe is set for a banner summer. Leading the charge are:
- Poland (+37%)
- Czech Republic (+30%)
- Norway (+27%)
- Belgium, Germany (+24%)
- Greece (+22%)
- UK, Ireland, Hungary (10–12%)
These countries are redefining post-pandemic travel demand, offering flexibility, value, and culturally rich getaways for millions of visitors.
