Short-Term Rentals in Europe Evolve Amid Regulatory Pressure

Despite mounting regulatory challenges and shifting traveler behaviors, the short-term rental (STR) market in Europe remains strong and continues to evolve. Executives from Airbnb and HomeToGo, speaking at Phocuswright Europe 2025, emphasized that the sector is entering a new phase of growth and adaptation rather than decline.

Airbnb’s regional director for Europe, Middle East and Africa, Emmanuel Marill, reported robust first-quarter growth in 2025, with more than 55% of bookings now coming from rural areas—highlighting a shift in demand away from crowded urban centers. He noted the company is expanding its offerings to include more services and experiences that enhance guest stays, reinforcing its role in immersive and diversified travel.

HomeToGo’s chief investment director, Bodo Thielmann, echoed the optimism, pointing to the increasing professionalization of the STR sector. He highlighted the growing overlap between hotels and rentals, noting that technology-driven platforms are helping hosts compete on quality, consistency, and service.

Both leaders called for simpler and more uniform regulations across Europe to support sustainable growth. Thielmann stressed the importance of an “equal playing field” between hotels and rental hosts to reduce confusion and maintain healthy competition.

Looking ahead, quality control and the consistency of listings remain key priorities for the industry. While regulations and guest expectations continue to evolve, both Airbnb and HomeToGo see continued expansion opportunities, particularly in underserved regions.

As the industry matures, STR platforms are adapting to ensure long-term resilience and traveler satisfaction across Europe.

Tags: phocuswire, SyndicEx250727B

Short-Term Rentals in Europe Evolve Amid Regulatory Pressure

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