The EU Commission has made proposals on how the transfer of data by Short-term rental platforms like Booking.com, Airbnb and Expedia should be streamlined for the proper authorities.
Online travel platforms have proliferated in the EU tourism sector in recent years and now account for around a quarter of all accommodation bookings.
The new EU regulation for short-term rentals is based on the recently passed Digital Services Act (DSA), which provides far-reaching obligations for all internet companies.
Similar to the DSA, the new regulation must be implemented by digital service coordinators.
Lack of Transparency
The Commission considers that the boom in short-term rentals in EU cities has raised a number of problems.
Faced with the “lack of reliable information about the identity of the host, the location where these services are offered and their duration, making it difficult for authorities to assess the impact [von Kurzzeitvermietungen] evaluate”, says the proposal.
However, efforts by authorities to request data from providers have been “fragmented, burdensome and often ineffective”, according to a senior EU official. These efforts are usually aimed at gathering information, such as rental duration, to enforce existing rules.
On the other hand, the sharing of data by platforms has been mostly limited due to technical and legal restrictions – namely with regard to personal data, which can only be shared in accordance with the EU General Data Protection Regulation.
Therefore, the Commission’s draft law aims to introduce a harmonized framework for the exchange of information on the short-term rental market, which includes obligations for hosts, platforms and local authorities.
The aim of the project is to increase transparency, allowing EU countries to retain full control over regulation of the short-term rental sector, including health and safety regulations, housing policy, security and tax issues.
registration procedure
The new regulation promises a uniform registration procedure, in which hosts and accommodations will receive a uniform registration number. According to the Commission, this should ensure more transparency and traceability.
In particular, Member States should only receive data from platforms if they have set up a host registration system. Existing systems can therefore be maintained and additional information requested if this is proportionate and necessary.
Registration would take place via a central website, where a specific registration number would be assigned, as the accuracy of rental data is being questioned by the cross-platform offering.
Hosts would be required to regularly provide information, including the address of the listed accommodation, the type and size of the unit, as well as the hosts’ names, their contact information, and the company registration number, if the host is a business.
Authorities can verify the information transmitted at any time and, if necessary, request updated information from suppliers. If hosts do not update their details, national authorities can suspend their registration number and ask online platforms to remove associated entities.
The suspension or deletion of data from the registry must be justified by the competent authorities, with the hosts having the right to appeal the decision.
The new legislation also requires online platforms to ensure that a valid registration number is in place before a unit can be put into operation and released for lease. The website interface must be adjusted so that the registration number is clearly visible.
Online platforms must also “make reasonable efforts to randomly verify information provided by their hosts”.
data sharing
In return, technology platforms like Airbnb and Booking must automatically transmit data to a central national reporting point every month.
For small platforms with less than 2,500 hosts active in the previous quarter, data must be transmitted quarterly.
The new digital portal will allow platforms to exchange information about units automatically, facilitating platform control and preventing illegal rentals. EU Member States would have to set up a one-stop shop for information via a national website.
Furthermore, data can be shared in aggregate form – and therefore anonymously – with policy makers, managing authorities and researchers, thus laying the groundwork for a future European data space for tourism.
[Bearbeitet von Nathalie Weatherald]