April 26, 2023
August 18, 2023
Short-term rental platforms are transforming the tourism sector in Europe, giving travelers more options to explore a variety of destinations at different price points. However, for these platforms to be successful and compliant with various federal and local regulations, they must be able to properly share data with EU policymakers. But complexity abounds when it comes to remaining compliant in multiple countries and sharing data between private platforms and public institutions - especially given the complexity of the EU’s regulatory landscape.
The European Parliament is working towards new regulation 2022/0358/COD that would see increased data collection and sharing relating to short-term accommodation rental services across the EU in the hopes of better managing the tourist sector to the benefit of local communities who struggle with excessive tourism flows and a lack of affordable long-term housing.
The proposal takes a step beyond existing national, regional and local level short-term rental regulations, creating an interdependent ecosystem managing the flow of data between all stakeholders. This ecosystem’s success hinges on the regulation’s ability to specify a technological approach that empowers, rather than burdens, its stakeholders. Without further specification of a standardised approach to interoperability, there is a high risk that data sharing procedures across the system will vary significantly, leading to burdensome resource and cost requirements for all parties involved.
PUBLIC, financed by Airbnb, has written an informative report analysing the practicalities of implementing the proposed data-sharing system and proposes technological solutions to create a seamlessly functioning ecosystem. We assert that a standardised approach to interoperability must be further specified to simplify data sharing on short-term rentals. The report recommends the incorporation of APIs, SLAs, and OSS in order to centralise the approach to data exchange across the system.
The report contains three key sections:
The Proposed Regulation on data collection and sharing relating to short-term accommodation rental services has the potential to improve monitoring and regulation of short-term rental activity and simplify data sharing processes for STRPs across the EU. However, a standardised approach to interoperability is crucial to minimise system complexity.
Web3, as the Internet’s latest iteration, presents a new ecosystem of solutions that could eventually generate tangible value for governments as well.