Among 25 European capitals, NYE night hotel prices rise by 2.7%, while short-term rentals soar almost 8%, with Innsbruck’s average rental rate of €417 surpassing hotels at €323—highlighting the growing demand for flexible, unique accommodation options this New Year’s Eve.
To capture the dynamics of the market and traveller preferences, The Data Appeal Company leveraged its territorial marketing platform, D/AI Destinations, to analyse hotel and short-term rental rates across major European cities.
Short-term rentals: flexibility and personalised experiences drive demand
Apartments and private homes continue to dominate the holiday accommodation market, even during New Year’s celebrations. The sharp rise in short-term rental prices across most European cities compared to last year reflects their growing appeal among travelers seeking unique and flexible lodging options. However, this popularity comes at a cost.
Hotels across Europe have seen a modest average price increase of +2.7%, but short-term rentals have surged with a dramatic +8% increase, underscoring their demand.
While hotels generally command higher average prices, there are notable exceptions where short-term rentals rival or exceed hotel rates. In Innsbruck, for example, short-term rentals average €417, significantly surpassing the €323 average for hotels.
For travelers, the choice between a hotel and a private rental depends not only on budget but also on the type of experience they’re seeking. One thing is clear: the popularity of short-term rentals shows no signs of slowing down.
According to recent research by Eurostat’s Short-Term Rentals Insights, the share of short-term rental bookings has grown by 15% year-on-year, driven by the desire for more flexible and personalised travel experiences.
For destinations and DMOs, these trends highlight the importance of understanding traveller behaviour and adapting strategies to cater to the evolving market.
Luxury and budget: a tale of two price extremes
When it comes to hotels, London holds its position as the premium destination for New Year’s Eve, with average rates reaching an impressive €510 per night. In contrast, Liverpool emerges as the most budget-friendly option, with hotel stays available at just €168.
On the short-term rental front, London’s premium offerings dominate, averaging €467, while Athens provides exceptional value at just €156.
Price surges and drops: trends to watch
Notable shifts in pricing trends reveal destinations on the rise.
In general, we observe that both hotel prices and short-term rental rates have shown significant growth compared to New Year’s Eve 2023. For hotels, the average increase remains below 10%, whereas in the short-term rental sector, growth is typically in the double digits, reflecting the sector’s robust demand.
Bruges has experienced a +21% surge in hotel rates, underscoring its growing popularity for festive tourism. Madrid’s short-term rental market, with a staggering +43% price increase, reflects heightened demand and a burgeoning premium rental sector.
Conversely, Paris has seen significant declines, with short-term rental prices dropping by -27% and hotel rates decreasing by -5%. This trend is influenced by new regulatory measures and an oversupply of rental properties.
Helsinki’s -9% drop in hotel prices makes it an intriguing, budget-friendly option for travellers seeking an offbeat New Year’s destination.
Data as the key to market strategy
“The data highlights the shifting dynamics of traveller preferences and the critical role they play in shaping market strategies,” says Mirko Lalli, CEO of The Data Appeal Company – Almawave Group.
“For destinations, understanding pricing trends—such as the surge in short-term rentals or the rising appeal of alternative cities like Liverpool or Trieste—is key to staying competitive. By leveraging these insights, tourism professionals can fine-tune their pricing models, position their offerings more effectively, and ultimately maximise their appeal to both value-driven and premium travellers. It’s not just about following trends; it’s about anticipating them and using data to lead the way.”
