The Short-Term Rental Market: How Much Is Too Much?
The short-term rental (STR) market has experienced a significant boom in the last two decades due to the rise of online booking providers and the increased digitalisation of the tourism value chain. These platforms have simplified the process of offering accommodation services, leading to a surge in the popularity of STRs.
Introduction
The short-term rental (STR) market has experienced a significant boom in the last two decades due to the rise of online booking providers and the increased digitalisation of the tourism value chain. These platforms have simplified the process of offering accommodation services, leading to a surge in the popularity of STRs.
This report comprehensively explores the current situation of the STR market in Europe from two perspectives – the country level and the capital city level
Beware of the boom
This report comes at a critical time when many popular tourism destinations across Europe face challenges directly caused by the growth of STRs.
These challenges span environmental, social and governance domains. Popular tourism hotspots in cities lose their local population, diminishing their attractiveness. Also, the space in residential areas is increasingly occupied by STRs, leading to unchecked real estate growth and the proliferation of the grey economy.
At the crossroads
Many countries and cities are at a crossroads, with some already implementing limitations on new (and existing) STR licenses.
This analysis aims to provide an understanding of the robustness of the STR market and underscores the necessity of regulating the overall STR market to effectively address the associated challenges.