Airbnb has pushed back against growing criticism of short-term rentals in Europe’s tourist hotspots, arguing that hotels—not holiday lets—are the primary driver of over-tourism in the European Union’s most visited cities.
The company’s defence comes as cities across Europe face mounting pressure from residents and policymakers to crack down on short lets amid fears that tourist crowds are making local life unaffordable and unsustainable.
But in a new report released this week, Airbnb says that hotels accounted for nearly 80% of all guest nights across the EU in 2023 and 2024, and were responsible for three-quarters of the growth in tourism demand between 2021 and 2023. During that period, guest nights in the bloc’s ten most visited cities surged by more than 200 million, or 2.5 times, as travel rebounded following the pandemic.
“If cities are serious about easing over-tourism, they must address the overwhelming impact of hotels,” said Theo Yedinsky, Airbnb’s Vice President of Public Policy.
“Europe needs more homes – not hotels – yet cities are building more hotels as the construction of housing in the region nears a decade low.”
The report highlights the rapid expansion of the hotel sector in Europe. In 2024 alone, nearly 40,000 new hotel roomsopened, with 250,000 more under construction or in planning stages. In some districts, such as Praha 1 in Prague and Santo António in Lisbon, there are now three hotel rooms for every five residents. In Spain, more than 800 hotel projects have been approved, adding 75,000 new rooms by 2026.
By contrast, Airbnb argues that its platform helps diversify tourism and spread economic benefits beyond saturated city centres. According to the company, 60% of guest nights on Airbnb in the EU in 2024 took place outside major cities, with bookings growing fastest in suburban and rural areas. In total, more than 260,000 guests stayed in neighbourhoods without a single hotel across the EU’s top ten city destinations, up 60% from 2022.
Airbnb says its model offers travellers a way to explore lesser-known areas and support local families. Almost half of all Airbnb guests in Europe said they would not have visited a particular neighbourhood if an Airbnb listing had not been available there. The company claims that for every dollar spent on Airbnb stays, guests spend an average of $2.50 in surrounding communities.
In 2024, travel on Airbnb contributed $44.6 billion to GDP across France, Germany, Italy and Spain, supporting 627,000 jobs, the report says. It also claims that nearly 50% of hosts globally rely on Airbnb income to help cover their housing costs.
Yedinsky said restrictions on short-term rentals in cities like Amsterdam and Barcelona have done little to curb rising visitor numbers. In both cities, guest nights rose by millions between 2021 and 2024, with hotels capturing the bulk of that growth. He warned that cracking down on Airbnb leads to higher hotel occupancy, inflated room rates, and less money flowing into local communities.
“Where Airbnb is restricted, visitor numbers continue to rise, more guests stay in city centre hotels, and travel becomes more expensive – with fewer proceeds going to local families,” Yedinsky said.
“When guests stay in Airbnbs they discover new communities, help families afford their homes and support local businesses.”
The company’s intervention comes amid renewed debate over the role of short lets in housing shortages and community disruption. While some cities blame platforms like Airbnb for rising rents and hollowed-out neighbourhoods, the company insists that the current hotel boom is having a far greater impact on urban crowding and pricing.
With travel demand in Europe hitting record highs in 2024, Airbnb is calling on city leaders to broaden the conversation around sustainable tourism and avoid overly restrictive policies that, it says, could exacerbate inequalityand hurt local economies.
“We encourage leaders to look beyond hotels and embrace tourism that supports families and communities,” Yedinsky said.
The full report, now shared with EU officials and city planners, is likely to intensify the debate over how best to manage the post-pandemic tourism rebound—and whether Airbnb is part of the problem or part of the solution.
