Occupancy in accommodation rented online via an Airbnb-type platform fell by 4 percentage points year-on-year in March, from 49% last year to 45% this year, according to data compiled by AirDNA.
According to its analysis, the main reason was not weak demand, but rather expanding availability. Although the total number of bookings in Greece increased by a modest 5% year-on-year, the number of available nights increased by 20%, creating more supply than the market could absorb in March.Looking at performance by price category, the high and low ends of the market fared best. Luxury and economy properties saw the most consistent occupancy, with only a 6.6% decline each. Conversely, the economy and mid-levels were most affected by the supply and demand mismatch.
In Thessaloniki, luxury and upscale properties bucked the national trend, recording annual occupancy increases of 4% and 6% respectively. Economy grade, on the other hand, performed the weakest, reinforcing the growing preference for more premium experiences.
The picture across Europe
As of the beginning of April, 10 major European destinations had already reached 75% occupancy for Easter week bookings, an average of 10 to 20 percentage points higher compared to the same period last month. Amsterdam led the pack with 82% occupancy and an average daily rate (ADR) of €255.
What’s surprising? Despite high demand, prices remain stable. In all top cities, ADRs in Easter week are stable compared to both the week before and the week after – increasing only 0-2% on average. This makes now a prime time for travelers to find solid value in destinations with typically high demand.
Demand growth in March varied widely across Europe, with the Easter shift playing a significant role in the redistribution of travel activity in April. Only 6 countries saw an increase in overnight stays of more than 5% year-on-year – a notable slowdown compared to February, when more than half of Europe’s top 20 countries recorded double-digit growth.
Still, the demand story is not entirely muted. Several markets have managed to buck the trend:
- Sweden (+11.4% year-on-year)
- Hungary (+10.5% year-on-year)
- Spain (+10.2% year-on-year)
- Switzerland (+6.7% YoY)
- Belgium (+5.4% YoY)
- France (+5.1%)
However, some countries clearly felt the impact of time and seasonal changes, with notable decreases in overnight stays:
- Croatia (-19.2% year-on-year)
- Denmark (-9.1% year-on-year)
- Austria (-8.3% year-on-year)
- Finland (-3.0% year-on-year)
- United Kingdom (-0.9% YoY)
Occupancy was hit in much of Europe as supply continued to grow faster than demand. Croatia, Denmark and Germany saw some of the steepest declines due to inventory expansion and late holiday bookings. In most cases, these dips are temporary and reflect calendar quirks rather than broader market weakness.
