Germany’s Booming Short-Term Rental Market: A Tale of Two Tourisms

Germany has seen a surge in online bookings for tourist accommodations, reaching record-breaking numbers. On the surface, this trend appears to be a triumph for the country’s tourism sector. However, closer examination reveals two distinct tourisms operating side by side.

One segment consists of high-end travelers drawn to cities like Berlin, Munich, and Hamburg. These visitors prioritize upscale amenities and services, often booking pricey accommodations in these popular destinations. In contrast, another type of tourist seeks a more authentic experience, opting for locally owned properties that offer a genuine taste of German culture.

Websites such as Airbnb, Booking.com, and Expedia have made it easier than ever for travelers to discover unique, locally owned properties in Germany’s countryside. This allows visitors to immerse themselves in traditional Bavarian or Swabian life, rather than focus on sightseeing. Domestic demand is driving growth in this market, with Germans booking over 48 million overnight stays in 2025.

This surge is particularly notable given the decline in international bookings to pre-pandemic levels. According to data, domestic bookings increased by 13% from 2024 and are 83% above 2019 numbers. This trend suggests a growing appetite among Germans for domestic travel, similar to what’s been observed in other European countries.

Regional variation in bookings is also evident. Bavaria recorded over 10 million overnight stays in 2025, while Baden-Württemberg and North Rhine-Westphalia trailed closely behind. However, the difference in travel patterns between states stands out. Mecklenburg-Vorpommern and Schleswig-Holstein, both located in Germany’s northeastern corner, have seen a significant increase in domestic bookings – over 90% of guests hail from within the country.

Cities like Berlin are attracting a more international crowd, with foreign visitors accounting for nearly two-thirds of bookings. This trend is not unique to Berlin and has contributed to a shift towards urban tourism, which is having a profound impact on local communities.

As Germany’s tourism industry continues to grow and evolve, striking a balance between catering to high-end visitors and supporting smaller, locally owned properties will be crucial. Close collaboration between local authorities, tourism boards, and property owners will be necessary to achieve this delicate balance and ensure the long-term sustainability of the short-term rental market.

Germany’s record-breaking numbers have been achieved despite the pandemic’s disruption to global travel patterns. While domestic demand continues to drive growth, it remains to be seen whether international bookings will bounce back in the future. The tourism industry must remain adaptable and responsive to changing trends to maintain its momentum.