Demand for short-term rentals in Southern Europe’s peak summer season is showing signs of decline, and extreme heat may be a key factor behind the shift.

Countries such as Spain, Portugal, France, Italy, Malta, and Cyprus, have seen a steady decline in the share of annual demand concentrated in those peak months, according to new data from vacation rental analytics firm AirDNA, shared with Skift.

The trend, visible across both beach towns and urban centers, suggests that travelers could be adjusting their habits to avoid the worst of summer heatwaves.

“We definitely see a movement of the share of demand from some of the peak months into the shoulder season months,” said Bram Gallagher, an economist at AirDNA. “It seems like heatwaves are going to be a recurring fixture in European travel.”

Summer Decline, Shoulder Seasons Gain

While overall demand for short-term rentals continues to grow in many of these countries, the pace is now faster in spring and autumn than in the height of summer.

In Spain, for example, there has been a sharp dip since 2018 in demand for short-term rentals in August but there have been slight increases in the period between February and May.

August demand has dropped in Italy with mild increases in May, June and February, with spring gaining ground as an alternative to peak summer.

The data show a similar trend in Greece, Cyprus and France, where February and May are growing. 

The data doesn’t measure total travel volume, it shows when people are booking. In other words, it tracks what share of annual bookings occur in each month, like August compared to April.

2023 showed the steepest drop in June to August demand share, a year that broke records as the hottest ever globally and in Europe. 

“2023 was probably the most severe heat we’ve seen,” Gallagher said. “There are many factors, overcrowding, costs, but I think weather is certainly among the top reasons things are shifting.”

That summer brought wildfires, evacuations, and weeks of extreme temperatures, often exceeding 40°C, in regions across southern Europe and wider.

These weather events led to travel disruptions, including evacuations, flight delays, and booking cancellations, according to the European Travel Commission, which found a 10% drop across those destinations in 2023 when compared to the previous year. 

The commission found in another report that 81% of Europeans say the climate somehow affects how they travel, up 7 percentage points from last year. 

The AirDNA team, which pulls data from Airbnb, Vrbo, Booking.com, and Expedia, said there are shifting trends in Northern Europe too.

Countries like Sweden, Norway, and Finland are seeing rising short-term rental booking demand during the peak summer months, a notable contrast to what’s happening further south.

Skift’s in-depth reporting on climate issues is made possible through the financial support of Intrepid Travel. This backing allows Skift to bring you high-quality journalism on one of the most important topics facing our planet today. Intrepid is not involved in any decisions made by Skift’s editorial team.

InterContinental Hotels Group (IHG) crossed one million open hotel rooms in July, capping a record pace of global expansion. But the milestone comes as revenue slipped in the United States — IHG’s largest market — and China struggles to recover.

The numbers show both momentum and pressure across IHG’s portfolio.

U.S. RevPAR Slips Despite Strong Start. IHG’s U.S. revenue per available room (RevPAR) fell 0.9% in the second quarter, reversing the 3.5% growth seen in Q1 and bringing first-half growth to just 1.2%. Executives blamed the downturn on shifting holiday calendars and broader macroeconomic headwinds.

Executives attributed the softness to shifting holidays and broader macroeconomic developments, but pointed to positive shifts.

“We believe we’re past the peak of th

Key Points

• American Airlines will launch new summer routes from Philadelphia to Budapest and Prague starting May 21, 2026, using Boeing 787-8 Dreamliners.
• These new routes reflect a strategic shift toward more international and premium travel to offset weaker domestic demand and profits.
• American’s international network expansion includes other new European routes and the debut of upgraded business class seats on select long-haul flights.

Summary

American Airlines is expanding its international network by launching new seasonal summer routes from Philadelphia to Budapest and Prague in May 2026, becoming the only U.S. carrier to serve the Hungarian capital. This move is part of a broader strategy to focus on premium and international travel, areas where demand remains strong despite softer domestic markets. The airline is also introducing new business class offerings and additional European routes to boost profitability and compete more effectively with rivals Delta and United.