May saw the summer season get off to a great start for the European short-term rental (STR) market, with over 37m nights stayed, an increase of 32.8% compared to 2019 and 22.6% compared to last year, according to AirDNA.

The company reported in June that the supply of available listings saw another month of positive growth at 8.6% above last year and remaining 4.8% above 2019. Steady demand coupled with subdued supply growth has enabled occupancy to grow, and occupancy was up 5.4% year-on-year (y-o-y).

Average daily rates (ADRs) are also up 19.1% y-o-y, leaving European STR landlords with impressive revenue growth. Revenue in May was up 45.9% y-o-y and 96% compared to May 2019.

Top 20 European countries
Recovery of the short-term rental sector after the COVID-19 pandemic has looked different in each of the top 20 European countries, says AirDNA. To provide a better understanding of where each country is in its recovery to pre-pandemic levels of supply and demand, the company categorized them into the following four stages that are reflective of phases in a typical lodging business cycle.

Stage 1 (demand lag): Travel demand has yet to recover and is still below pre-pandemic levels. Slow demand growth has led to lagging supply.

Of the top 20 European countries, the Czech Republic, Denmark, Ireland, Hungary, Netherlands, and Croatia have yet to return to pre-pandemic demand levels, and this lack of demand has suppressed supply.