Exploring the French Short-Term Rental Market

Jamie Lane, Chief Economist at AirDNA, hosts this insightful conversation with Louis Andrews, Director and President of OVO Network. The OVO Network is one of France's most innovative vacation rental operators. As Lane notes, "You operate 220 high-end chalets with 15 employees, which is a significant operation in terms of complexity." Andrews brings a unique perspective to the French short-term rental market, having transformed OVO Network from a lifestyle business into a tech-driven powerhouse that's redefining property management in France.

The OVO Network Model: Redefining Short-Term Rentals in France

OVO Network's Origins and Evolution (2008–2025)

OVO Network's journey began in 2008, the same year Airbnb was founded, when two British entrepreneurs spotted an opportunity while riding a ski lift in the French Alps. Noticing the abundance of empty properties, they decided to create a rental solution that would eventually revolutionize how vacation rentals operate in France.

The company operated as a lifestyle business until 2020, when COVID-19 brought unprecedented challenges. Louis Andrews joined during this pivotal moment, initially as reinforcement, but quickly recognized opportunities to transform the business. Under his leadership, OVO Network evolved from a traditional operator into a technology-first company, expanding to over 220 high-end chalets supported by a hybrid team structure spanning France and the UK.

The UK entity's legal name, OVO Software Services, hints at the company's tech-centric approach that sets it apart in the French vacation rental market of 2025.

Differentiators in the 2025 French Short-Term Rental Market

"We're not a traditional property manager," Andrews emphasizes, explaining OVO Network's revolutionary approach. Unlike competitors who started by managing neighbors' Airbnb listings and handling cleaning and maintenance, OVO Network began as a software company, developing its own Property Management System (PMS) and platform, ovonetwork.com.

This tech-first strategy enables OVO Network to achieve remarkable results in 2025:

• Direct bookings: 75–80% of bookings come directly through ovonetwork.com, far exceeding the industry average of 30% for leisure destinations
• Revenue optimization: A unique 12.5% distribution fee on direct bookings effectively doubles revenue compared to OTA bookings
• Specialized teams: Dedicated account managers, revenue managers, and marketing professionals focus solely on optimizing rental performance
• Data ownership: Complete control over booking data, visitor analytics, and market insights

Scaling Challenges and Quality Control

Maintaining excellence while scaling presents unique challenges in the saturated French market of 2025. When Andrews challenged his sales team to sign 81 new properties in a single year, they questioned how to maintain quality standards. His response was clear: new properties must meet the same five-star standards as existing inventory.

The French Alps market has experienced explosive growth, with Airbnb listings increasing from 39,000 in 2019 to 68,000 by the end of 2024. Despite this saturation, OVO Network maintains its edge through meticulous curation. "We only work with properties that merit five-star reviews," Andrews explains, noting that this approach has earned them the longest-running Superhost status in France and a remarkable 4.84 review score on Airbnb.

The company's best-performing properties achieve up to 97% annual occupancy rates, demonstrating the power of combining quality curation with sophisticated revenue management strategies.

Direct Bookings and Digital Marketing in France

The Direct Booking Advantage in 2025

OVO Network's direct booking success story stands out dramatically in the 2025 French short-term rental market. While most property managers struggle to achieve meaningful direct booking rates, OVO Network consistently drives 75–80% of bookings through its own platform, more than doubling the 30% average for leisure destinations.

This success stems from aggressive digital marketing strategies that position OVO Network at the top of search results. "If you search for 'chalet with jacuzzi' in France, we're always in the top three results, often number one," Andrews reveals. This SEO dominance translates into impressive traffic, with over 40,000 unique monthly visitors to their website despite managing just 220 properties.

The company's digital marketing investment allows them to compete directly with giants like Airbnb and Booking.com for high-intent keywords, creating a sustainable competitive advantage in 2025's crowded marketplace.

Profitability and Owner Value Proposition

The financial model behind OVO Network's direct booking strategy proves highly profitable for both the company and property owners. Unlike traditional operators who offer 15% discounts for direct bookings, OVO Network charges a 12.5% distribution fee on its platform. "This means we essentially double our revenue for each direct booking," Andrews explains.

For property owners, the value proposition extends beyond immediate returns. OVO Network's exclusive platform access, combined with sophisticated revenue management and marketing capabilities, creates a compelling case for partnership. The challenge lies not in converting new owners—once leads are generated, the sales team excels at demonstrating value—but in retaining long-term owners who may become complacent about the exceptional performance OVO Network delivers.

Andrews notes that owners who work with OVO Network for at least three years can see property valuations increase by 15% when attached to a well-functioning rental business, adding another layer to the investment appeal.

Market Trends and Consumer Behavior in the French Short-Term Rental Sector

Domestic Travel and Repeat Guests in 2025

"Short-term rentals are embedded in French culture," Andrews observes, highlighting how 40–45% of French families vacation domestically. This cultural preference for domestic travel proved crucial during the pandemic and continues to drive the market in 2025, with recent data showing almost 70% of OTA bookings are domestic—remarkable for a country renowned for international tourism.

France's geographical diversity—from Mediterranean beaches to Alpine peaks, Atlantic coastlines to urban centers—provides endless vacation options without leaving the country. The well-developed transportation infrastructure and cultural tradition of extended holidays, particularly in August when much of France shuts down for vacation, reinforces this domestic travel pattern.

Repeat guest behavior in France demonstrates exceptional loyalty. "Our top repeat guest has stayed in our properties nearly 40 times, trying different homes each time," Andrews shares, illustrating how French travelers often return to favorite destinations while exploring different properties within OVO Network's portfolio.

Supply, Demand, and Market Saturation

The French Alps experienced unprecedented growth during COVID-19, with listings nearly doubling from 39,000 in 2019 to 68,000 by late 2024. "COVID caused a huge explosion and saturation of supply, as demand for remote, amenity-rich properties soared," Andrews explains. This surge aligned perfectly with OVO Network's portfolio of high-end chalets featuring jacuzzis, swimming pools, and other luxury amenities.

However, 2025 presents new challenges as demand normalizes while supply remains elevated. Many operators struggle with decreased occupancy rates, creating opportunities for well-positioned companies like OVO Network to capture market share. The company's focus on premium properties and superior marketing ensures their best properties maintain 97% annual occupancy even as competitors falter.

The shift from lifestyle-driven second home ownership to investment-focused purchases accelerates in 2025, with more buyers recognizing short-term rentals as legitimate investment vehicles rather than mere cost-offset strategies.

Technology, Regulation, and the Future of French Short-Term Rentals

Technology Adoption and Competitive Landscape in 2025

Despite France's position as the second-largest Airbnb market globally, technology adoption lags behind other markets. "France now leads in property volumes and profitability, but it still lags in tech adoption," Andrews observes. This gap creates opportunities for tech-forward operators like OVO Network to differentiate themselves.

OVO Network leverages its proprietary PMS and direct booking platform to capture valuable data—clicks, page views, search patterns, and booking behaviors—that competitors accessing guests primarily through OTAs cannot match. This data ownership enables continuous product improvement and more sophisticated revenue management strategies.

The company's tech infrastructure, originally built to support 220 properties, could easily scale to 500 or more, positioning OVO Network for significant growth as the market consolidates around technology-enabled operators.

Regulatory Environment and Industry Challenges

"Regulation is a huge issue in France right now," Andrews emphasizes, referring to recent laws implemented at the end of 2024, commonly called the "law anti-Airbnb." These regulations limit short-term rental operations in response to housing shortages and overtourism concerns. In tourist destinations like Annecy, anti-Airbnb sentiment manifests in protest signs and local opposition.

The industry must proactively engage with local stakeholders to shape reasonable regulations. As Andrews notes, using a common French phrase: "If you're not at the table, you're on the menu." This means participating in local discussions with mayors, institutions, and community groups to demonstrate the value professional operators bring versus unregulated individual hosts.

Maintaining authenticity becomes crucial as AI and automation proliferate. While technology enhances efficiency, preserving genuine human connections and authentic experiences differentiates quality operators from purely automated solutions.

Outlook: Opportunities and Risks for 2025–2030

Looking toward 2025–2030, OVO Network plans to double its inventory while maintaining quality standards, leveraging operational efficiencies through its PMS, and expanding its tech capabilities. The company's profitable, self-funded growth model provides flexibility to pursue strategic opportunities without external pressure.

However, Andrews identifies a significant emerging threat: "My main concern is the rise of PMSs that automate everything. They could become a real threat." As PMS providers add more automation and direct booking capabilities, they may bypass traditional property managers entirely, fundamentally disrupting the industry's structure.

The challenge for operators like OVO Network involves balancing automation's efficiency with the human touch that creates exceptional guest experiences. Success requires continuous innovation, strategic positioning, and maintaining the delicate balance between technology adoption and authentic hospitality that defines the French short-term rental market in 2025.