As the summer travel season heats up, so do the global tensions around short-term vacation rentals. Governments across Europe and Asia are tightening regulations on platforms like Airbnb and other international rental services, leaving travelers scrambling. In a bold move last month, Spain ordered Airbnb to delist more than 65,000 unlicensed listings. Earlier this year, Thailand issued a stern warning to foreigners buying condos and renting them out illegally—reminding everyone that doing so violates Thai law. And they’re not alone. Countries like Italy and Greece are also introducing stricter rules to combat overtourism and protect local housing markets. airbnb 2025

While these changes may benefit local communities in the long run, they come at a risky time for travelers. With demand soaring and accommodations filling up quickly, new restrictions could result in last-minute cancellations and unexpected costs—turning a dream vacation into a logistical nightmare. To make matters worse, many standard travel insurance plans don’t cover government-related rental shutdowns, leaving travelers in a vulnerable position.

So, what can you do to protect your summer plans? According to travel insurance comparison site Squaremouth, there are options—if you know where to look and what to buy. Here’s what you need to know before booking your stay this summer.

How These Crackdowns May Impact Your Trip

The crackdowns across Spain, Italy, Thailand, Greece, and other regions are part of a larger push to address housing inequality and overtourism.

Crackdowns like these can leave travelers in a bind and cost them money, especially if accommodations are suddenly canceled or become unavailable. This happened to a Squaremouth employee recently, who had her rental suddenly canceled at the last minute.

“We had an Airbnb booked in Bangkok, but Thailand had just issued a ban on short-term rentals in apartments and condos because they say it disrupts the public,” said Arielle Turriff, Product Development Manager at Squaremouth. “Our booking got canceled, and since a lot of our plans were based around that area, we had to find a hotel nearby last minute. It ended up costing us an extra $500.”

Does Travel Insurance Cover Airbnbs?

Travel insurance can cover Airbnb stays and other vacation rentals as long as you have Trip Cancellation and Trip Interruption coverage. However, these benefits only reimburse you if you cancel for a covered reason, like an illness or severe weather that prevents you from traveling. Most plans do not cover government restrictions.

If you’re staying in an Airbnb and want complete flexibility, opt for a policy with Cancel For Any Reason (CFAR) coverage.

CFAR is an upgrade that offers partial reimbursement for prepaid and non-refundable trip payments if you need to cancel your trip for a reason not otherwise covered by Trip Cancellation, such as a government crackdown on Airbnb.

CFAR is a popular benefit for many travelers, as it provides the most possible flexibility when it comes to canceling a trip. Squaremouth has seen a 34% increase in travelers purchasing CFAR compared to last summer.

Squaremouth’s Tips for Enjoying Your Summer Vacation Rental

• Always purchase travel insurance as soon as you book your Airbnb to maximize your coverage window, especially for trip cancellation benefits.
• Heed local government notices and warnings when it comes to disruptions.
• For maximum flexibility and peace of mind, consider Cancel For Any Reason (CFAR) coverage.

Conclusion Airbnb 2025

What we’re witnessing is not a passing trend but a structural shift in how nations manage tourism, housing, and local economies. The growing crackdown on international vacation rentals signals a future where short-term stays will be more tightly regulated and monitored—especially in high-demand destinations. For travelers, this means spontaneity is no longer your best friend.

If you’re planning international travel this summer—or any time shortly—do not treat accommodation as an afterthought. Check local regulations before booking, prioritize properties with verified licenses, and seriously consider flexible travel insurance options like Cancel For Any Reason (CFAR). Most importantly, understand that platforms like Airbnb are no longer immune to regional politics or policy enforcement.

The smartest travelers in 2025 will not just search for the best deal—they’ll also safeguard their plans with foresight, flexibility, and the right protection. In this new landscape, travel peace of mind starts long before takeoff.

About Squaremouth

Squaremouth is a trusted name in the travel insurance industry, offering comprehensive, transparent, and competitive coverage to travelers for 20 years through its digital platform. With the largest portfolio of travel insurance carriers and products in the U.S., Squaremouth has insured over 4 million clients. airbnb 2025