Market Insights & Trends



1. Prices in Europe have dropped up to 20%

After several years of rapid increases, prices have now stabilized. The market is more balanced and competitive.

2. Supply is rising across Europe

Countries like Greece and France have experienced a sharp increase in private accommodation supply. This trend is not unique to Croatia—it’s a sign that guests have more choice than ever. Ensuring that your price matches your offer is now essential.

3. Strong regulation in some countries

In Spain and Portugal, local authorities are actively restricting new rental licences. Croatia still has mild or no limitations, but similar regulations may appear in the future.

4. Tourism in Europe is expected to grow by 1% in 2026

No major declines are predicted. The market will remain stable, but growth will be modest.

5. Quality upgrades are increasingly necessary

With the rapid rise in high-quality properties across all major markets, owners of older or outdated accommodation should consider upgrades sooner rather than later.

6. Short stays are becoming the standard

More than 30% of travelers stay fewer than three nights.
Owners who do not accept one- or two-night stays lose a significant portion of potential guests. Price increases for short stays are becoming less effective, as supply continues to grow.

7. Flexibility matters—especially for holiday homes

Guests want flexible booking terms due to unpredictable life and business situations. This is one reason why holiday home bookings are arriving later each year. The second reason is, once again, increased supply.

Tips for Investing In or Upgrading Your Accommodation

If you plan to invest in a new property or renovate an existing one, consider the following:

1. Add modern, functional spaces—especially a work room

If you have underused rooms, convert them into a dedicated workspace. Many guests work remotely and choose accommodation that provides a quiet, well-equipped environment with a strong internet connection.

2. Invest in a beautiful, well-maintained garden

Outdoor areas where guests can relax, play, or enjoy nature significantly influence booking decisions. Turn your garden into a peaceful oasis.

3. Consider accepting pets

About 37% of travelers bring their pets—often outside peak season. These guests are usually older, responsible, and well-off. Ironically, properties that do not accept pets often host younger guests who may cause more damage.
If you do accept pets, consider providing a pet bed and food bowls to prevent them from using furniture or dishes.

4. Add hotel-style refillable cosmetics

Branded shampoos, gels, and soaps make guests feel cared for and often cost less than purchasing small individual products. We can recommend and deliver these amenities through Nowarent.

5. Make arrivals special with a local welcome package

A small gift and a personal message—plus a bottle or two of water—can greatly influence final ratings and reduce the impact of minor issues.
We use a package with three varieties of locally produced olive oil. If you would like something similar, we can assist you.

6. Install smart locks or padlocks

Self-check-in offers flexibility and allows guests to arrive at their convenience. You can still greet them personally, but smart locks free up your time. Contact us if you'd like more information.

7. Provide essential household items

Salt, pepper, sugar, oil, vinegar, tea, instant coffee, or coffee beans—these basics mean a lot to guests, especially late arrivals who cannot shop immediately.

8. Luxury amenities matter

Jacuzzis and heated pools are among the most frequently used search filters. More travelers—especially outside peak season—look for comfort and year-round relaxation.

The 10 Most Requested Amenities on Airbnb

According to global guest behavior, the most requested amenities include:

• Fast and stable Wi-Fi
• Smart lock / self-check-in
• Free parking
• Washer or dryer
• Pets welcome
• Dedicated work-from-home space
• Fully equipped kitchen
• Pool
• Jacuzzi
• Air conditioning and heating

Introducing Dynamic Pricing: A Tool That Increases Revenue

In 2025, we tested a dynamic pricing tool that automatically adjusts prices based on demand, within the limits we define together with the owner.

We set:

• the minimum and maximum price
• the minimum stay
• the rules for reducing minimum stays (e.g., gaps between reservations)

The tool then adjusted prices and rules daily based on real-time data from booking platforms, working 24/7 to maximize occupancy.

The result: an 18% increase in reservations.

These tools represent the future of revenue management because they react instantly to market changes and know exactly when to raise or lower prices.

For now, we use this tool only for apartments and rooms and will offer it only to properties where we believe it can make a meaningful difference. We mention it now because we have begun preparing proposals for 2026 pricing.

Planning Changes or Investments? Let Us Know

If you are considering upgrades, renovations, or new investments in your accommodation, please let us know your plans. We can provide guidance tailored to your property—and incorporate your improvements into the new price list.

Thank you for reading this post and if you want to know more, don't hesitate to contact us.

Pol Popović

CEO & Founder

Nowarent