A Private Holiday Homeowner’s Insight Guide ~ Germany
by azulomo | 7 min read
From Bratwurst to Braided Onions
Holiday Rental and Tourism Market in 2025 ~ Germany
Germany doesn’t chase attention—it earns trust. While other destinations ride waves of hype, Germany offers something deeper: steady demand, strong off-season bookings, and guests who keep coming back. It’s not loud. It’s not flashy. But for holiday home owners, it’s one of the most quietly powerful places to build something meaningful—and profitable.
From fairytale forests and vineyard valleys to Baltic beaches and reinvented cities, Germany’s charm is grounded, not performative. People don’t just visit—they revisit. They travel by train, by bike, by instinct. They don’t just stay. They return. They refer. They remember.
It’s the kind of destination that settles into people’s hearts. A lakeside breakfast. A forest hike followed by cake in a timber-framed café. A candlelit spa town in the drizzle. Germany doesn’t dazzle—it invites you to exhale. And as a host, that’s the real opportunity: to create the kind of place that becomes part of someone’s personal rhythm. Not just a stay, but a ritual. Because here, it’s not about spectacle—it’s about subtlety. The right linen. A working coffee machine. A clear house manual and a view you can breathe into. If that’s how you want to host—Germany’s the kind of market that rewards it.
Let’s look closer at what’s unfolding across Germany’s holiday rental scene—and where the most soulful, sustainable hosting opportunities lie in 2025 and beyond.
From braided onions to castle sunsets, Germany’s story isn’t loud—it’s layered, local, and quietly magical, season after season.
1. Germany’s Tourism Is Growing—But Differently
In 2024, Germany recorded 496 million overnight stays, marking a 1.9% increase over the previous year (Statistisches Bundesamt, 2025). Of these, approximately 62% were domestic stays, underscoring the strength of the local travel market (Statistisches Bundesamt, 2025). At the same time, international overnight stays rose by 5.4% to 85.3 million, steadily approaching pre-pandemic levels (German National Tourist Board, 2025).
This trend continues into 2025, fuelled by a growing appetite for city breaks, rural escapes, and wellness tourism—making Germany one of Europe’s most stable, diverse, and year-round holiday rental markets.
Why Germany?
Excellent infrastructure (rail, road, healthcare, safety)
Strong local tourism base (not reliant on air travel or foreign trends)
Wide appeal: cities, coast, countryside, lakes, forests, festivals
Value for money in high-quality, design-forward accommodation
Travellers are coming not for a single “bucket list” landmark—but for a layered, liveable experience: Cyclists on the Elbe river trail. Remote workers in Leipzig. Spa-lovers in Baden-Baden. Cultural tourists in Dresden. Families in the Black Forest. Nature-seekers in Bavaria. Couples sipping wine in Mosel.
→ What this means for hosts: Germany doesn’t just offer seasonal spikes. It offers a tapestry of guest types, trip styles, and travel rhythms—all year round.
2. Where Guests Are Going in 2025 ~ Germany’s Hottest Stays
Let’s bust the myth that Germany is all bratwurst and business trips. In 2025, it’s buzzing with weekenders, wanderers, and slow travellers seeking something grounded, green, and quietly gorgeous. Sure, the big cities still shine—but the real magic? It’s often just a couple of train stops beyond.
Here’s where Germany’s guests are checking in (and extending their stays):
▸ Berlin ~ Grit, Glam & Good Coffee: Still top of the charts with 13.2 million overnight stays in 2024 (VisitBerlin, 2025), Berlin is a mood. From warehouse galleries to candlelit wine bars, it’s where the digital nomads meet the poets. Even with tighter rental rules, there’s room to thrive—especially if your flat is in Kreuzberg, Prenzlauer Berg, or Charlottenburg, and has Wi-Fi that actually works and a sofa that doesn’t squeak. Rates? Around €120–€200/night, and often worth every euro.
▸ Bavaria ~ Lakes, Lederhosen & Laid-Back Luxury: If Germany had a postcard, it would be Bavaria. Think Alpine peaks, spa towns, forest trails, and the kind of lakes that make you whisper “wow.” Places like Tegernsee, Chiemsee, and Garmisch-Partenkirchen aren’t just busy in summer—they’re booked in every season. From hiking in April to hot chocolate après-ski, this region does it all. €140–€250/nightis the going rate for a well-dressed chalet with views.
▸ Baltic & North Sea Coasts ~ Salty Air, Stripey Deckchairs & Spa Time: Not everyone knows Germany has beaches—but guests who do, love them. Usedom, Rügen, Sylt, and Sankt Peter-Ording are all about red-brick charm, soft dunes, and a whole lot of peace. Summer’s packed, but it’s the off-season spa crowd that’s quietly driving year-round revenue. Guests come for the sea, but stay for the sauna. €130–€210/night is pretty common, especially for homes with a sea breeze and a coffee machine that does more than drip.
▸ Wine Regions ~ Grapes, Cobblestones & Couples Escapes: Moselle. Rheingau. Pfalz. These places are made for slow living and red wine teeth. Imagine waking up to vineyard views, hopping on a vintage bike trail, and ending the day with a glass of Riesling and a sunset. These regions attract older couples, family reunions, and friends who don’t need nightlife—they need nature and Nierstein. €120–€180/nightgets you bookings—and probably a thank-you note too.
▸ Harz Mountains & Saxon Switzerland ~ Hills, Hikes & Hidden Gems: These aren't just great Scrabble words—they’re where younger Germans are heading to switch off. The Harz region and Saxon Switzerland are perfect for weekend escapes with big skies and bigger breakfasts. Nature’s the star here, and with prices still accessible (starting under €2,500/m² for property), it’s a smart entry point for new hosts. Think affordable charm, big views, and guests who return for the mushrooms and mist.
→ Here’s the hosting takeaway: Not all dream guests come by plane. In Germany, many arrive by train, car, or bike from two hours away—looking for a reset, not a spectacle. If your property has soul, scenery, and a splash of personality, you’re in a very good spot.
3. Who Travels to Germany ~ A Layered, Loyal Market
Unlike “sun and sand” destinations that rely heavily on foreigners, Germany is powered by locals, and that’s a strength.
Primary Audiences:
Domestic Germans (a whopping 79% of all overnight stays): Families, couples, retirees, workcationers, wellness seekers.
Dutch, Swiss & Austrians: Drive-in guests who love Germany for value, safety, and culture.
Scandinavians: Flocking to southern Germany in spring/summer.
American & British travellers: Especially for culture trips (30% growth YoY for UK tourists in Q1 2025; DZT, 2025).
Gen Z & Millennials: Travel more frequently and book eco-conscious, design-led stays (Booking.com, 2025).
Guests come for:
Culture and history (Berlin, Munich, Dresden, Leipzig)
Nature and hiking (Black Forest, Bavarian Alps, Saxony)
Lakeside retreats (Tegernsee, Bodensee)
Wine, spa, and wellness holidays (Pfalz, Baden-Baden, Spreewald)
→ Travel here isn’t rushed. It’s ritual. Which means if your home becomes part of their rhythm—you’ll see them again next year.
4. Hosting in Germany ~ Not Just a Side Hustle
The German holiday rental market is mature, regulated, and full of opportunity—but it rewards professionalism.
The Most Successful Hosts:
Are detail-oriented: German guests expect order and function [full stop!]
Offer clear communication and digital guidebooks
Prioritise energy efficiency, sustainable materials, and local goods
Embrace regional design aesthetics: from modern minimalism in cities to rustic charm in wine country
Know their guest type and style accordingly
Focus on off-season and midweek bookings for stability
Hosting in Germany? It’s not usually a side hustle with wobbly Wi-Fi and leftover furniture. Most hosts here bring a bit of care, craft, and strategy to the table—because guests expect more, and the returns are worth it. You’ll find:
A second-home owner earning smart, steady income
A design lover turning a weekend project into a business
A retired couple running a guesthouse with homemade jam and handwritten tips
A young family turning their barn, attic, or annexe into something beautiful (and bookable)
An expat who knows their way around boutique stays and warm welcomes
→ German guests notice the details, soooo the bar’s a little higher. But so is the loyalty. Give them function, style, and a proper coffee machine, and they’ll come back every year.
5. The Financial Picture ~ Steady, Smart, and Worth It
Germany’s not the kind of market where you buy a run-down flat and triple your money overnight. It’s calmer than that. What it offers instead is stability—the kind of solid, long-term return that works well for people who think in years, not just seasons.
In 2025, most holiday home owners are earning between 4% and 7% of their property’s value each year from guest bookings (ImmoWelt, 2025). And in popular areas, homes are booked more than 60% of the year—especially if they’re well styled and well run.
Here’s a quick idea of what guests are paying per night:
Berlin: €130–€180
Baltic Coast: €140–€190
Bavarian Lakes: €160–€250
Wine Regions: €120–€180
And if you’re wondering about buying, here’s what you’re looking at per square metre:
Berlin (central): €5,800–€9,200
Baltic Coast: €3,000–€5,000
Harz & rural Saxony: €1,800–€2,800
Wine Regions: €2,500–€4,000
→ So no, it’s not bargain-basement, but it is the kind of place where a well-designed, well-managed stay can quietly earn for years. Think of it like a slow-burning candle: not flashy, but consistent, reliable, and beautifully worth it—especially when paired with good design and thoughtful hosting.
6. Not-to-Miss Attractions ~ The Joys That Keep Germany Booked
You don’t need to be a travel expert to know that Germany does events very well. But if you're a host, it helps to know when—and why—guests come knocking in bigger numbers. From iconic festivals to quirky regional gems, these cultural touchpoints don’t just draw visitors in, they keep them coming back.
Here’s a peek at what makes guests pack their bags (and extend their stay):
▸ Oktoberfest (Munich): Let’s start with the obvious. Oktoberfest isn’t just beer—it’s a Bavarian cultural juggernaut. With over 6 million visitors attending each year (Statista, 2024), Munich becomes a high-demand zone for short-term rentals. Bookings often start six months in advance, and rates double (sometimes even triple!!!). If your place has a garden bench and a bottle opener, you’re already halfway there.
▸ Christmas Markets (Nationwide): Germany invented the Christmas market vibe—and it shows. From the storybook stalls of Nuremberg to the romantic riverside chalets in Cologne and the twinkling forest-lit scenes in Dresden, guests travel from all over the world to sip Glühwein and stock up on handmade ornaments. It’s a golden window for cosy, well-styled rentals, especially in historic towns. Offer fairy lights, wool throws, and tips on the best Lebkuchen, and you’ll be fully booked till New Year.
▸ Neuschwanstein Castle (Bavaria): Yes, it looks like a Disney movie. No, it never gets old. This 19th-century stunner near Füssen pulls in 1.5 million+ visitors annually (Bavarian Palace Department, 2025). Nearby properties do especially well with families, romantic travellers, and road trippers blending culture with mountain views. Bonus if your listing has castle-like vibes (arched windows? A four-poster bed?).
▸ The Onion Market (Zwiebelmarkt, Weimar): You haven’t truly hosted in Germany until a guest asks about the onion festival. Yes, onions. But trust me, I’ve been! Several times actually. And every time, I leave with a braid of onions I don’t need, a full heart, and the best Bratwurst I’ll eat all year. This is Weimar’s oldest and quirkiest celebration, dating back to 1653, and it’s pure regional magic. Over 300,000 visitors show up every October for crafts, live music, local beer and mulled wine, and food stalls that smell like autumn and childhood rolled into one. It’s charming, it’s slightly eccentric, and it books out local stays fast. Guests love discovering it, and it’s proof that Germany’s regional gems aren’t just delightful… they’re also seriously good for business.
▸ Carnival (Cologne & the Rhineland): Loud, colourful, and filled with confetti, Carnival in Cologne is one of the biggest in Europe. If your home is even remotely close to the festivities (and has soundproof windows), it’ll be in high demand. Host tip? Provide costume suggestions and a late check-out option.
▸ Rheingau Wine Festival (Wiesbaden): Less chaotic than Oktoberfest, but just as beloved by locals, this late summer festival is a dream for wine lovers. Running for ten days every August, it takes over Wiesbaden’s historic square with 100+ wine stands, live music, and local food (Tourismus+Congress GmbH Wiesbaden, 2025). Great for hosts with vineyard-adjacent stays or anyone who loves a guest who arrives happy and leaves with a crate of Riesling.
▸ DomStufen-Festspiele (Erfurt): Set on the dramatic cathedral steps of medieval Erfurt, this open-air opera and theatre festival is one of Germany’s most atmospheric cultural events—without the international crowds. Taking place each July, it attracts guests who love history, music, and a bit of magic at sunset. Perfect for hosts with elegant interiors, terrace views, or an ear for Mozart.
→ Hosting opportunity: Build a seasonal calendar into your listing strategy. Add phrases like “Oktoberfest-ready”, “Steps from the Christmas Market”, or “Ideal for the Onion Festival” into your title or listing. Guests plan around events—and homes that do too book faster, and at better rates.
7. Looking Ahead ~ 2026 and Beyond
Germany’s travel future is grounded in sustainability, wellness, and experience-led hosting. According to the German National Tourist Board, travellers are already choosing quality over quantity, seeking:
Low-impact, slow holidays
Authentic, story-rich stays
Emotionally considered interiors
Digital detox or mindful tech integration
Hosts with a clear philosophy
Trends we expect to grow:
More staycations: Rising interest rates and flight costs are reinforcing domestic travel
Work + Wellness hybrids: Demand for peaceful homes with strong Wi-Fi, nature, and spa elements
Boutique conversions: Barns, old homes, stables transformed into standout properties
Longer stays, fewer moves: Guests want depth, not just distance
Experience packaging: Private chef evenings, wine walks, hiking itineraries
→ Germany’s short-term rental (STR) market is maturing — but not saturated. There is still room for emotional design and certainly for meaningful hospitality, and values-led business.
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One Wave at a Time
Hosting in Germany isn’t a trend — it’s a craft. One that rewards presence, precision, and purpose. This is not a race to the bottom. It’s a slow build to something enduring.
So whether you’re welcoming families to a converted guesthouse in the Moselle, digital nomads to a Leipzig loft, or romantic escapees to your spa-side cottage in Baden-Baden, your guests aren’t just booking a stay. They’re choosing a feeling. A rhythm. A ritual they’ll come back to. And when you host with intention? You become more than a stop on their itinerary. You become part of their story.
At azulomo, we’re here to help you host that way—beautifully, thoughtfully, and with a business that feels like you.
Germany is calling. Answer it with care.
The quiet luxury of slow. One guest at a time.
“Germany isn’t the loudest destination in Europe—but that’s exactly why it works. It’s a place where quality outlasts trends, and travellers come back not for the hype, but for the feeling. For holiday home owners, it offers something rare: a stable, soulful market where thoughtful hosting pays off. Whether you’re styling a Baltic beach flat, reviving a vineyard cottage, or creating a quiet city retreat, Germany rewards homes with purpose and presence. It’s not about being everywhere—it’s about being somewhere that matters. And building something that lasts, one considered detail at a time.”
