Regulatory Aspects Affecting the Collaborative Economy in the Tourism Accommodation Sector in 28 EU Member States

Date published: 4 May 2018
Research commissioned by: European Commission

Why did we select this research?

The report published by the European Commission offers an updated look at the shared tourism accommodation sector, including peer to peer short term rental platforms and home exchange platforms, and its relationship with local regulations. Finds from the case studies of eleven cities are cross-analysed and combined with data from other areas throughout Europe to identify wider trends.

Key findings

355,000+ properties available for short-term rental (79% entire properties and 17% private or shared rooms.

Real estate and housing availability

Average long term rental market prices have increased in most eu cities considered

local stakeholders tend to associate rising long term rent prices with an increse in the short term rental offer, arguing that price rise often occur in the more touristic areas where the short term rental offer is higher

other causes for the rise in long term rent prices

- local specificities: ie average income growth, unemployment rates, or rates of housing ownership

- population fluctuations affecting housing availability

- existing imbalance before 2008 aggravated by the slow recovery of the construction sector post-crisis

PIETER No causality between rising housing prices and an increase of holiday rental activity: "Housing availability is primarily established as the difference between the rate of housing construction and the rate of population increase.”

Traditional accommodation providers

Collaborative short-term rental platform listings tend to be cheaper than hotel rooms

traditional accommodation operators are not negatively impacted by the collaborative accommodation offer, as overall both types of actors benefit from the increasing tourist flow

Occupancy rate is lower for collaborative economy listings compared to hotels

CoMPLEMENTARITY between two: both of them meet different types of demands

- collab econ supply meets demand of a different target group

Income and tourism indicators

Income providers earn from their collaborative economy activity accounts for a minor part of their monthly revenue and tends to be seasonal - bc lower rices in the short term rental market, occassional nature, limits imposed on number of days providers can rent property

avg revenues increase year on year

COLLABORATIVE SHORT TERM RENTAL PLATFORMS TEND TO HAVE A POSITIVE IMPACT ON TOURISM - INCREASING THE NUMBER OF INCOMING TOURISTS OVERALL

ATTRACTIVENESS OF SHORT TERM RENTAL OR HOME EXCHANGE OFFER DID NOT SEEM TO DETER TRAVELLERS FROM BOOKING HOTELS - NUMBER OF HOTEL BOOKINGS ALSO INCREASED THROUGHOUT THE PERIOD

2. The income that providers in the collaborative & #sharingeconomy earn accounts for a minor part of their monthly incomes.

Impacts on local communities

IMPACT OF THE COLLABORATIVE ACCOMMODATION SECTOR ON LOCAL ECONOMIC GROWTH IS CHALLENGING TO ASSESS

WHILE COLLAB ECON GUESTS TEND TO SPEND IN LOCAL BUSINESSES AND STAY LONGER, THEY TEND TO SPEND LESS THAN THE AVERAGE TOURIST.

MOST CASE STUDY REPORTS CONCLUDE THAT THE INCREASE IN THE NUMBER OF SHORT TERM RENTALS CUMULATED WITH THE HIGH PERCENTAGE OF ENTIRE PLACE LISTINGS, MAY HAVE PUT PRESSURE ON THE LOCAL HOUSING SUPPLY

CLEAR CORRELATIONS ARE CHALLENGING TO ESTABLISH- OTHER FACTORS SHOULD BE TAKEN INTO ACCOUNT (scarcity of the number of dwellings for residential use, rise of prices due to economic and financial crisis

counter the housing supply shortage with the construction of new dwellings for residential purpose, promotion of sustainable home sharing, or cap the number of short term rentals and hotels allowed

MIXED VIEWS FROM INHABITANTS REGARDING THE COLLABORATIVE ECONOMY IN THE ACCOMMODATION TOURISM SECTOR.

ACADEMIC RESEARCH AND COLLAB PLATFORMS HIGHLIGHT ADVANTAGES FOR LOCAL RESIDENTS, LOCAL STAKEHOLDERS SEE NEGATIVE IMPACTS ON PEACEFULNESS OF NEIGHBOURHOODS OR HOUSING PRICES.

MAJORITY OF INHABITANTS PERCEIVE TOURISM POSIVITIELY AND NEGATIVE OINIONS ARE HIGHER IN AREAS WITH HIGH TOURIST PRESSURE

3. The findings suggest complementarity between the accommodation industry and the collaborative & #sharingeconomy providers.

4. The majority of the citizens perceive tourism positively, negative opinions are higher than average in areas with more tourists. The European Commission has just published a study on the regulatory environment for collaborative & #sharingeconomy operators in the tourism accommodation sector.

Future developments

in certain cities the short term rental market has already been regulated but in most cases ITS TOO EARLY TO ASSESS EFFECTIVENESS OF REGULATORY CHANGES

PLANS TO REGULATE THE COLLABORATIVE ECONOMY IN THE ACCOMMODATION SECTOR

- plans to extend cooperation with collaborative short-term rental platfroms at the local level and enforce existing agreements

- new cities plan to set up online registers of short term accommodation providers

- another new development is an attempt to create an alternative to already established collaborative short term rental platforms.