Italy Sets New Standards In European Tourism With Five Regions Among The Most Booked For Short-Term Rentals And Continues To Attract Record Numbers Of Travelers

Italy continues to dominate Europe’s tourism landscape in 2025, with its iconic regions such as Lazio, Lombardy, Tuscany, and Veneto leading the charge in short-term rental bookings. The unprecedented demand for short-term rentals across these regions highlights Italy’s growing appeal to international travelers seeking authentic, flexible accommodation options. With record-breaking numbers of nights booked, Italy is firmly positioned as a top destination for those exploring the rich cultural heritage, scenic beauty, and vibrant cities the country has to offer, further cementing its place at the forefront of European tourism.

In 2025, Europe saw a significant increase in short-term rental bookings, with Italy standing out as a dominant destination. However, Spain’s Andalusia region still claimed the top spot for bookings, with a staggering 13.3 million nights reserved in short-term rentals, according to the latest data from Eurostat. The majority of these bookings were made through major American platforms like Airbnb, Booking.com, and Expedia, reflecting the ongoing trend of online holiday bookings.

Europe’s online booking landscape is thriving, particularly during the summer months, with record-breaking numbers. Between July and September 2025, a total of 398.1 million nights were spent in short-term rental accommodations across European properties. This marked a historic high, showing an 8.7% increase compared to the summer of 2024 and a remarkable 28.2% increase compared to the same period in 2023.

Top European Destinations for Short-Term Rentals

Despite the overall growth of online booking in Europe, only a few regions are reaping the full benefits. The 20 most popular tourist regions are concentrated in just five countries: Spain, France, Italy, Portugal, and Croatia. The clear leader in short-term rental bookings remains Andalusia, with 13.3 million nights reserved. It was followed by Eastern Croatia, which recorded 9.6 million nights, and the Île-de-France region, with 9 million nights booked. These regions have successfully positioned themselves as top destinations for tourists looking for short-term rental options.

In the second quarter of 2025, the most sought-after regions in the European Union for short-term rental accommodations were:

• Andalusia (13.3 million nights)
• Adriatic Croatia (9.6 million nights)
• Île-de-France (9 million nights)

Italy’s Dominance in Short-Term Rentals

Italy, with its rich history and cultural landmarks, continues to be a favorite for travelers across Europe. The country boasts five regions within the top 20 most visited for short-term rentals. Leading the pack is Lazio, home to the Italian capital, Rome, with over 6 million nights booked. Other high-ranking Italian regions include Lombardy, Tuscany, Sicily, and Veneto. The prevalence of short-term rental options in these regions is a testament to Italy’s appeal and the growing demand for flexible accommodation.

In fact, the Italian Association of Short-Term Rental Managers presented a report to the Chamber of Deputies in 2024, detailing the expansion of short-term rentals. According to the study, the number of short-term rental ads in major cities has skyrocketed in recent years. For example, Milan now boasts 15,586 online listings for short-term rentals, while Rome has 21,942, and Florence has 9,239. These figures are staggering compared to just a decade ago, and they highlight the rapid growth of the industry.

However, the increase in short-term rentals is not just a local phenomenon. Even though the number of listings has increased significantly, it still represents just over 1% of the total housing supply in these cities. This illustrates that, while short-term rentals are becoming more widespread, they still make up only a small fraction of the overall market.

Unstoppable Growth in Short-Term Rentals

The trend of increasing short-term rental bookings in Europe shows no signs of slowing down. Spain, which has long been a leader in the tourism industry, is a prime example of this growth. In June 2018, tourists spent 9 million nights in short-term rental properties in Spain. Fast forward to 2025, and that number has nearly doubled to 17.8 million nights. This surge is a reflection of the growing reliance on platforms like Airbnb and Booking.com, which have revolutionized the way travelers book accommodations.

Despite the overall surge in short-term rentals, the benefits have not been equally distributed across Europe. While regions like Andalusia, Croatia, and the Paris area continue to thrive, many parts of Europe have not seen the same level of growth. Furthermore, it is important to note that almost all of the platforms dominating the market are American companies, further highlighting the international nature of the short-term rental industry.

Looking to the Future of European Tourism

As short-term rentals continue to rise in popularity, they are likely to shape the future of European tourism. While destinations like Andalusia and Lazio continue to lead the pack, other regions are likely to see a boost in their rental offerings as more travelers turn to online platforms. However, this growth also brings challenges, such as rising rental prices, local housing shortages, and concerns about the impact of short-term rentals on local communities.

In the coming years, the tourism industry will need to adapt to this new reality. Local governments, rental platforms, and tourism organizations will need to find ways to balance the benefits of short-term rentals with the needs of local residents. The continued success of destinations like Andalusia and Italy’s Lazio region is a testament to the enduring appeal of Europe’s cultural and scenic treasures, but it also raises important questions about the future of tourism and the sustainability of short-term rental markets.

As Europe’s tourism industry continues to evolve, one thing is clear: short-term rentals are here to stay, and they will continue to play a major role in the region’s travel landscape for years to come.

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