Germany-Hungary Outshine Switzerland, Austria, France, Denmark, And Poland, Claiming The Lead In Europe’s Christmas And New Year Travel With Over Thirty Percent Booking Increases

Published on December 6, 2025

Germany and Hungary have emerged as the top contenders for this year’s holiday season in Europe, surpassing traditional favorites like Switzerland, Austria, France, Denmark, and Poland ,with booking increases exceeding 30 percent, these two destinations have become the ultimate choice for travelers seeking a festive escape, highlighting their rising appeal and robust tourism infrastructure. Their popularity surge is a direct result of their exceptional Christmas and New Year offerings, from enchanting holiday markets to vibrant celebrations, making them the must-visit spots for the season.

As the holiday season approaches, travelers are flocking to Europe’s most iconic Christmas markets, with demand for short-term rentals rising significantly across the continent. New data from PriceLabs, a revenue management software company, reveals that demand for short-term rentals near Europe’s leading Christmas markets has surged, with Germany and Hungary leading the way, recording the most significant growth in bookings. This trend highlights the growing appeal of these countries as premier Christmas and New Year destinations. With Budapest and Frankfurt showing booking increases of 39% and 35% respectively, Europe’s festive travel scene is experiencing a remarkable shift, with travelers increasingly opting for these festive hotspots over other well-established markets.

Rising Demand for Christmas Market Rentals

The festive spirit across Europe is undeniably linked to its famed Christmas markets, which attract millions of visitors annually. However, this year, travelers are booking earlier, and in greater numbers, as they plan their festive trips. According to PriceLabs’ recent analysis, demand for short-term rentals near Europe’s Christmas markets has been exceptionally strong across all 15 cities included in their study, with December bookings surpassing the same period in 2024.

Among the top performers, Budapest and Frankfurt have recorded some of the most significant year-on-year increases, with Budapest leading the pack with an impressive 39% increase in booked nights. Frankfurt, not far behind, has posted an impressive 35% rise. Other cities such as Basel in Switzerland, Prague in the Czech Republic, and Kraków in Poland have also seen remarkable demand, with bookings up 26%, 24%, and 24% respectively.

The data shows that travelers are not only choosing popular markets but are also venturing into smaller cities and towns, boosting lesser-known destinations. This trend is attributed to travelers seeking unique experiences, avoiding overcrowded destinations, and embracing a more personal and authentic holiday experience.

Tighter Supply Amidst Growing Demand

While demand has increased, short-term rental supply in many of these cities has tightened. The analysis revealed that 10 out of the 15 cities saw a reduction in available short-term rentals compared to 2024. This decrease is partly due to tighter regulations and rising operating costs for rental owners. As regulations surrounding short-term rentals continue to tighten across Europe, hosts are finding it increasingly difficult to meet the growing demand. This trend is particularly noticeable in cities like Strasbourg and Colmar, two of France’s most famous Christmas markets, where occupancy rates for early December have already reached 73% in Strasbourg and 70% in Colmar.

With fewer rental options available, prices have risen across the board. However, the increases are not uniform, with certain cities seeing more significant price hikes than others. Budapest, despite its significant demand growth, remains one of the most affordable destinations, with an average nightly rate of €81, reflecting its attractiveness as a value-oriented destination for travelers. Conversely, Strasbourg, Colmar, and Vienna have become some of the most expensive destinations, with average daily rates (ADR) exceeding €230.

City-by-City Breakdown of Booking Trends and Price Increases

Let’s break down the booking trends and average daily rates (ADR) for each of the 15 cities analyzed by PriceLabs:

As seen in the table, Budapest is notably the most affordable destination among the analyzed cities, with an ADR of €81. This reflects Budapest’s charm as a budget-friendly choice for travelers seeking an authentic Christmas experience without breaking the bank. In contrast, Strasbourg remains the priciest destination, with €249 per night, followed closely by Colmar, at €248, and Vienna, at €231. These cities are known for their high-profile Christmas markets and attract a more upscale clientele, reflected in their higher rates.

Noteworthy Trends in Specific Cities

In addition to Budapest and Frankfurt, other cities have also shown impressive growth in demand and pricing trends:

1. Strasbourg and Colmar: Known for their stunning Christmas markets, these French cities have seen strong occupancy rates, with Strasbourg reaching 73% occupancy and Colmar not far behind at 70%. The high occupancy, combined with high ADRs, underscores the continuing popularity of these cities during the holiday season.
2. Frankfurt: The rise in bookings here is significant, reflecting the city’s central location and accessibility, making it a key destination for travelers seeking to experience the magic of a German Christmas market while benefiting from the city’s excellent transport connections.
3. Vienna: A classic European Christmas destination, Vienna has seen a 9% rise in demand, with an increase in ADRs. Known for its imperial architecture, cozy Christmas markets, and rich cultural offerings, Vienna remains a top choice for festive travelers.
4. Kraków: With a 24% increase in demand, Kraków’s Christmas markets are gaining attention for their enchanting atmosphere and lower prices compared to other European cities. Kraków continues to be one of the most affordable options for travelers seeking festive experiences without the high price tags.

The Rise of Smaller Towns and Alternative Destinations

PriceLabs’ analysis also highlights a significant shift in travel preferences, with travelers increasingly exploring smaller towns beyond the well-known Christmas market cities. This change is driven by the desire for a more intimate holiday experience, less crowded markets, and unique local experiences. Towns such as Metz in France, with an ADR of €83, and Kraków in Poland, with ADR of €87, offer a more budget-friendly alternative to pricier cities like Vienna and Strasbourg.

Looking Ahead: What This Means for the Future of European Christmas Markets

The data from PriceLabs suggests that the trend of early bookings and the increasing interest in smaller cities is likely to continue. With travelers opting for destinations that offer both charm and affordability, Budapest, Kraków, and Metz are poised to remain strong contenders for future holiday seasons. Regulatory challenges and rising costs may continue to reduce rental supply in popular markets, which could further drive demand and increase competition among cities.

As Europe’s Christmas market scene continues to evolve, it is clear that Germany and Hungary will play an increasingly dominant role, supported by cities like Budapest and Frankfurt, where demand is surging, and bookings are at an all-time high.

The 2025 Christmas season is shaping up to be a record-breaking one for Europe’s Christmas markets. With demand for short-term rentals soaring in Germany, Hungary, and other cities, travelers are booking earlier and exploring both well-established and emerging holiday destinations. Budapest and Frankfurt lead the charge with 39% and 35% growth in bookings, respectively, while cities like Vienna, Strasbourg, and Colmar remain premium destinations with their higher prices. As the demand for unique, intimate travel experiences grows, we can expect to see more attention on smaller towns and cities, making the future of Europe’s Christmas markets even more diverse and exciting.

Germany and Hungary have outpaced Switzerland, Austria, France, Denmark, and Poland this holiday season, leading Europe’s Christmas and New Year travel with over 30% booking increases. Their exceptional festive offerings and vibrant holiday experiences have made them the top destinations for travelers.

This year, Europe’s Christmas markets are more accessible and exciting than ever, offering something for every traveler, from those seeking the charm of well-known markets to those desiring the authenticity of smaller, lesser-explored destinations. Whether you’re looking for an affordable festive escape or a luxurious winter wonderland, Germany and Hungary stand at the forefront of a holiday season unlike any other.