The increasing demand for short-term accommodation through booking platforms and its impact on tourist destinations in Croatia and worldwide is a global issue that requires analysis and potential future regulatory procedures. New consumer trends and digital transformation have led to the rise of accommodation booking platforms as major players in the tourism market. The rise of reservation platforms for accommodation has made it easier to find and book places to stay, providing additional income for property owners and boosting economic activity in tourist destinations. However, this has led to issues such as gentrification, touristification, and housing instability in these areas. The increased use of short-term accommodation through these platforms has also led to the conversion of long-term residential properties into short-term rentals, reducing the availability of long-term housing options. The process is leading to an increase in rental prices for local residents, causing frustration and forcing them to relocate. This trend of depopulation has been observed in many cities across the world and Europe, from New York and Los Angeles to Venice, Rome, Barcelona, Paris, and cities on the Croatian coast. The effects are spilling over into peripheral areas and neighbouring towns. To address this issue and reduce the negative effects, it is necessary to establish a regulatory framework for managing accommodation reservation platforms and short-term rentals. Regulation poses a significant challenge due to the varying legal frameworks and systems in different countries. It is crucial to find a balance between minimizing the negative impacts of accommodation booking platforms and not overly limiting the benefits that tourism provides to numerous stakeholders. By obtaining agreement from all parties involved, it is possible to establish regulatory measures that will contribute to sustainable policies for the advancement of tourism and digital transition. The European cities most affected by the negative effects of the growth of short-term rentals have already introduced some regulatory measures. However, the real effect of these measures can only be seen after some time. Croatia, in addition to previous milder measures to regulate short-term rentals, is also considering new options of stricter measures to limit the growth of short-term accommodation and improve housing policy.