I would reduce the countries in the pull-down list to those where you actually have rentals. For example, North Korea. You also have Nicaragua in the list twice (pre- and post-Sandinista, I presume).

Your homepage has the appearance of keyword spamming with the long lists of locations.

There is no question that you being penalized by Google. I searched on "villa rentals in Greece" [no quotes] and your site is not in the top 600. Oops.

I am not an expert about this, but I think the problem is all the IDENTICAL links you have on each page.

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Dave Barnes
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http://www.marketingtactics.com