Funchal, Madeira Airbnb Market Data 2026: STR Report & Statistics

Source: AirROIReviewed by Jun Zhou, Founder @ AirROI
Updated:

How much can you earn on Airbnb in Funchal, Madeira? Based on AirROI's 2026 dataset (April 2025 – March 2026), the short answer is $51,586 per year — at a $269 nightly rate, 58.1% occupancy, and a $165 RevPAR that reflects strong rate-to-revenue efficiency across the market.

Funchal's 2,440 active listings and solid booking activity throughout the year make it a major short-term rental market. Supply grew 78.4% over the past year, yet revenue and nightly rates both trended upward — a signal that traveler demand is outpacing new inventory rather than being diluted by it. For hosts, pricing power remains intact even as competition increases.

Regulation is high and 95% of listings show active registration — compliance is the cost of entry. The data points to a market where fundamentals reward execution — the right property, priced well, in the right neighborhood still outperforms.

What Are the Key Airbnb Metrics in Funchal?

In Funchal, the headline Airbnb metrics are $51,586 in average annual revenue,58.1% occupancy, $269 ADR, and $165 in RevPAR, and guests book about 76 days in advance.

Avg. Daily Rate (ADR)(?)
$269
The average rental revenue earned for an occupied room per day in Funchal.
Occupancy Rate(?)
58.1%
High demand. Good booking frequency.
Avg. Annual Revenue(?)
$51,586
Average annual income for an Airbnb listing in Funchal. Factors like property type, size, and location influence actual earnings.
RevPAR(?)
$165
Revenue per available rental night, combining occupancy and ADR into one efficiency metric.
Revenue Growth YoY(?)
7.1%
Positive growth (7.1%) vs. last year.
Active Airbnb Listings(?)
2,440
Total number of active short-term rentals listed.
Avg. Booking Lead Time(?)
76 days
How far in advance guests typically book in Funchal. Longer lead times indicate planned travel; shorter ones suggest last-minute demand.
STR Regulation Level(?)
High
Strict regulations. Compliance is crucial (licensing, taxes, stay limits may apply).
Peak Revenue Month(?)
August
The month with the highest average earnings, indicating peak season in Funchal.
Lowest Revenue Month(?)
March
The month with the lowest average earnings, indicating the low season in Funchal.
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How Much Do Airbnb Hosts Earn Monthly in Funchal?

Understanding the monthly revenue variations for Airbnb listings in Funchal is key to maximizing your short term rental income potential. Seasonality significantly impacts earnings. Our analysis, based on data from the past 12 months, shows that the peak revenue month for STRs in Funchal is typically August, while March often presents the lowest earnings, highlighting opportunities for strategic pricing adjustments during shoulder and low seasons. Explore the typical Airbnb income in Funchal across different performance tiers:

  • Best-in-class properties (Top 10%) achieve $11,515+ monthly, often utilizing dynamic pricing and superior guest experiences.
  • Strong performing properties (Top 25%) earn $4,562 or more, indicating effective management and desirable locations/amenities.
  • Typical properties (Median) generate around $2,938 per month, representing the average market performance.
  • Entry-level properties (Bottom 25%) see earnings around $1,800, often with potential for optimization.

Average Monthly Airbnb Earnings Trend in Funchal

What Is the Monthly Airbnb Occupancy Rate in Funchal?

Maximize your bookings by understanding the Funchal STR occupancy trends. Seasonal demand shifts significantly influence how often properties are booked. Typically, Julysees the highest demand (peak season occupancy), while March experiences the lowest (low season). Effective strategies, like adjusting minimum stays or offering promotions, can boost occupancy during slower periods. Here's how different property tiers perform in Funchal:

  • Best-in-class properties (Top 10%) achieve 92%+ occupancy, indicating high desirability and potentially optimized availability.
  • Strong performing properties (Top 25%) maintain 83% or higher occupancy, suggesting good market fit and guest satisfaction.
  • Typical properties (Median) have an occupancy rate around 66%.
  • Entry-level properties (Bottom 25%) average 43% occupancy, potentially facing higher vacancy.

Average Monthly Occupancy Rate Trend in Funchal

What Is the Average Airbnb Nightly Rate in Funchal?

Effective short term rental pricing strategy in Funchal involves understanding monthly ADR fluctuations. The Average Daily Rate (ADR) for Airbnb in Funchal typically peaks in August and dips lowest during November. Leveraging Airbnb dynamic pricing tools or strategies based on this seasonality can significantly boost revenue. Here's a look at the typical nightly rates achieved:

  • Best-in-class properties (Top 10%) command rates of $539+ per night, often due to premium features or locations.
  • Strong performing properties (Top 25%) achieve nightly rates of $226 or more.
  • Typical properties (Median) charge around $155 per night.
  • Entry-level properties (Bottom 25%) earn around $116 per night.

Average Daily Rate (ADR) Trend by Month in Funchal

What Is the RevPAR for Airbnb in Funchal?

RevPAR in Funchal is currently $165. Because RevPAR combines nightly rates with realized occupancy, it is one of the cleanest ways to compare how efficiently listings turn demand into revenue across the market.

  • Entry-level properties (Bottom 25%) see $62 RevPAR.
  • Typical properties (Median) generate $91 RevPAR.
  • Strong performers (Top 25%) earn $136 RevPAR.
  • Best-in-class (Top 10%) achieve $327 RevPAR.

Average Monthly RevPAR Trend in Funchal

RevPAR Insights for Funchal

  • The average RevPAR in Funchal is $165. This metric combines nightly rates with realized occupancy, making it one of the best single-number indicators of market efficiency.
  • The gap between the top 10% ($327) and bottom 25% ($62) is $265, indicating significant performance disparity driven by property quality, pricing strategy, and location.
  • RevPAR peaks in Aug and bottoms out in Mar, mirroring the broader seasonal demand pattern and suggesting opportunities for dynamic pricing.

Recommendations for Hosts

  • Track your own RevPAR monthly against these Funchal benchmarks. If your RevPAR falls below the median of $91, examine whether low occupancy or low ADR is the primary drag.
  • Top-quartile listings achieve $136+ RevPAR through a combination of competitive pricing, strong reviews, and strategic amenities. Target this tier through incremental improvements.
  • Use RevPAR rather than revenue alone when comparing properties of different sizes — it normalizes for available nights and gives a more accurate picture of performance.

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When Is the Peak Season for Airbnb in Funchal?

Funchal's peak Airbnb season falls in August, July, September, while the softest stretch is January, February, March. Overall, the market shows moderate seasonality with distinct peak and low periods, which should guide pricing, minimum stays, and cash-flow planning.

Peak Season (August, July, September)
  • Revenue averages $6,994 per month
  • Occupancy rates average 74.6%
  • Daily rates average $277
Shoulder Season
  • Revenue averages $5,252 per month
  • Occupancy maintains around 62.3%
  • Daily rates hold near $256
Low Season (January, February, March)
  • Revenue drops to average $4,007 per month
  • Occupancy decreases to average 45.8%
  • Daily rates adjust to average $259

Seasonality Insights for Funchal

  • The Airbnb seasonality pattern in Funchal shows moderate seasonality with distinct peak and low periods. While the sections above show seasonal averages, it is also insightful to look at the extremes:
  • During the high season, the absolute peak month showcases Funchal's highest earning potential, with monthly revenues climbing to $7,472, occupancy reaching 75.7%, and ADRs peaking at $287.
  • Conversely, the slowest single month marks the market's lowest point — revenue may dip to $3,716, occupancy could drop to 42.8%, and ADRs may adjust to $233.
  • Understanding both the seasonal averages and these monthly peaks and troughs in revenue, occupancy, and ADR is crucial for maximizing your Airbnb profit potential in Funchal.

Seasonal Strategies for Maximizing Profit

  • Peak Season: Maximize revenue through premium pricing. In a high-regulation market like Funchal, ensure your permit covers the number of nights you plan to book — some jurisdictions cap annual rental days.
  • Low Season: Even in a market with solid annual occupancy, the slower months benefit from competitive pricing and flexible check-in/check-out windows. Target remote workers and extended-stay travelers who value value over peak-season amenities.
  • Shoulder Seasons: Implement dynamic pricing that bridges peak and low rates. Target weekend travelers, local events, and business visitors. Slightly more flexible terms than peak season can help maintain occupancy without deep discounting.
  • Regularly analyze your own performance against these Funchal seasonality benchmarks and adjust your pricing and availability strategy accordingly.

Do You Need a License for Airbnb in Funchal?

Yes, Funchal, Madeira, Portugal enforces high STR regulations and 95% of active listings show registration evidence — indicating that enforcement is active and compliance is a prerequisite for operating legally. Hosts entering this market should budget for permit fees, inspections, and potential occupancy tax obligations as part of their startup costs. Always verify the latest short-term rental regulations and Airbnb license requirements directly with local government authorities for Funchal to ensure full compliance before hosting.

(Source: AirROI data, 2026, based on 95% licensed listings)

What Are the Best Neighborhoods for Airbnb in Funchal?

In a large, heavily regulated market like Funchal, neighborhood selection is one of the strongest levers for Airbnb investment performance. Zoning rules, permitting availability, and guest demand patterns can vary block by block. The 8 neighborhoods below represent areas where short-term rental activity concentrates — understanding why each one attracts guests and hosts helps investors evaluate where their property type and budget fit best.

Best neighborhoods for Airbnb in Funchal
Neighborhood / AreaWhy Host Here? (Target Guests & Appeal)Key Attractions & Landmarks
Old Town Funchal
Historic area with cobblestone streets and rich cultural heritage. A hotspot for tourists seeking to explore Madeira's traditions and local cuisine.
Funchal Cathedral, Mercado dos Lavradores, Museu de Arte Sacra, Museu CR7, Cable Car to Monte
Lido Promenade
Popular tourist area known for its seaside promenade and swimming pools. Offers beautiful views of the Atlantic and is ideal for sunbathing and relaxation.
Lido Pools, Cabo Girão Skywalk, Toboggan Ride from Monte, Ponta da Oliveira, Cristo Rei
Monte
Scenic suburb located on a hillside offering stunning views of Funchal and the bay. Attraction for nature lovers and those looking for adventure activities.
Monte Palace Gardens, Toboggan Rides, Church of Our Lady of Monte, Botanical Garden, Palheiro Gardens
Praia Formosa
The largest public beach in Funchal, offering a mix of pebbly and sandy areas. Popular with both tourists and locals for sunbathing and water sports.
Praia Formosa Beach, Madeira Story Centre, Funchal Marina, Lido Promenade, Goreana Tea Factory
Caniço de Baixo
A tranquil area near the coast known for its diving spots and beautiful views. Attracts tourists who prefer a quieter stay away from the city center.
Diving spots, Caniço Beach, Ponta da Oliveira, Aqua Parque, Cristo Rei
Sao Martinho
Residential area close to the beach and main attractions. Offers a variety of amenities and has a family-friendly atmosphere.
Funchal Zoo, World of Discoveries, Forum Madeira Shopping Centre, Sao Martinho Beach, Palheiro Golf
Camara de Lobos
Charming fishing village just outside of Funchal, famous for its picturesque harbor and local wine. Great for tourists looking for authenticity and local culture.
Camara de Lobos Harbor, Madeira Wine Lodge, Boca dos Namorados, Church of São Sebastião, Cliffs of Cabo Girão
Estreito de Camara de Lobos
Famous for its vineyards and traditional wine production. Popular with tourists interested in local wine tasting and the beautiful landscapes.
Wine estates, Levada hiking trails, Sao Goncalo Church, BioPark Madeira, Local art galleries

Because Funchal has a high regulation profile, confirming that short-term rental permits are available in your target neighborhood is a critical first step before committing to a property purchase. Regulation can vary at the neighborhood or district level even within the same city.

What Types of Properties Are on Airbnb in Funchal?

Room Type Distribution

Property Type Distribution

Market Composition Insights for Funchal

  • The Funchal Airbnb market composition is heavily skewed towards Entire Home/Apt listings, which make up 92.4% of the 2,440 active rentals. This indicates strong guest preference for privacy and space.
  • Looking at the property type distribution in Funchal, Apartment/Condo properties are the most common (75.8%), reflecting the local real estate landscape.
  • Houses represent a significant 18.9% portion, catering likely to families or larger groups.
  • Smaller segments like hotel/boutique, others, outdoor/unique (combined 5.3%) offer potential for unique stay experiences.

Funchal Airbnb Room Capacity Analysis (2026): Bedroom Distribution

Distribution of Listings by Number of Bedrooms

Room Capacity Insights for Funchal

  • The dominant room capacity in Funchal is 1 bedroom listings, making up 45.7% of the market. This suggests a strong demand for properties suitable for couples or solo travelers.
  • Together, 1 bedroom and 2 bedrooms properties represent 72.3% of the active Airbnb listings in Funchal, indicating a high concentration in these sizes.

Funchal Vacation Rental Guest Capacity Trends (2026)

Distribution of Listings by Guest Capacity

Guest Capacity Insights for Funchal

  • The most common guest capacity trend in Funchal vacation rentals is listings accommodating 4 guests (30.8%). This suggests the primary traveler segment is likely small families or groups.
  • Properties designed for 4 guests and 2 guests dominate the Funchal STR market, accounting for 58.3% of listings.
  • 20.7% of properties accommodate 6+ guests, serving the market segment for larger families or group travel in Funchal.
  • On average, properties in Funchal are equipped to host 3.7 guests.

How Do Listings in Funchal Compare on Quality?

Listing quality in Funchal can be approximated through presentation depth, bedroom count, and how often hosts disclose exact locations. These signals show how professionally the local supply base is merchandised.

Average Photos per Listing(?)
30.6
More photos correlate with higher conversion rates.
Average Beds per Listing(?)
2.4
Reflects the capacity profile of the local supply.
Exact Location Enabled(?)
35.2%
Builds guest trust and improves booking confidence.

Listing Quality Insights for Funchal

  • At 30.6 photos per listing on average, Funchal hosts invest well in visual presentation. Listings with 20+ photos consistently outperform in search ranking and conversion.
  • 35.2% of listings show their exact location. Lower disclosure rates can increase booking hesitation — guests want to know exactly where they are staying.

Recommendations for Hosts

  • Enable exact location if possible — it removes a common source of guest uncertainty and can improve your listing's position in map-based searches.
  • Use these quality indicators as a self-audit checklist. Listings that exceed the Funchal averages across all three metrics are better positioned for premium pricing.

What Amenities Do Airbnb Guests Expect in Funchal?

Amenity Prevalence

Amenity Insights for Funchal

  • Essential amenities in Funchal that guests expect include: Wifi, TV, Kitchen. Lacking these (any) could significantly impact bookings.
  • Popular amenities like Hair dryer, Hot water, Fire extinguisher are common but not universal. Offering these can provide a competitive edge.

Recommendations for Hosts

  • Ensure your listing includes all essential amenities for Funchal: Wifi, TV, Kitchen.
  • Prioritize adding missing essentials: Wifi, TV, Kitchen.
  • Consider adding popular differentiators like Hair dryer or Hot water to increase appeal.
  • Highlight unique or less common amenities you offer (e.g., hot tub, dedicated workspace, EV charger) in your listing description and photos.
  • Regularly check competitor amenities in Funchal to stay competitive.

Which Airbnb Amenities Boost Revenue in Funchal?

Not every amenity matters equally. This table focuses on the amenities most associated with higher revenue in Funchal, which makes it more useful for prioritizing upgrades than a simple popularity list alone.

AmenityPrevalenceRevenue WithRevenue WithoutRevenue Uplift
Baby bath
16.1%$156,604$31,424398.4%
Single level home
17.8%$117,721$37,278215.8%
High chair
39.8%$85,154$29,360190.0%
Shower gel
42.7%$81,985$28,928183.4%
Coffee maker
82.3%$58,115$21,241173.6%
Bed linens
84.5%$57,135$21,412166.8%
Microwave
83.1%$57,629$21,843163.8%
Iron
84.9%$56,850$21,947159.0%
Dishes and silverware
87.8%$55,747$21,565158.5%
Hot water kettle
70.4%$62,933$24,640155.4%

Revenue Impact Insights for Funchal

  • Baby bath tops the revenue impact list with a 398.4% uplift — listings with this amenity earn $156,604 vs. $31,424 without it.
  • Coffee maker, Bed linens, Microwave, Iron, Dishes and silverware — while widespread — still correlate with meaningful revenue gains, making them table stakes rather than true differentiators.

Recommendations for Hosts

  • Focus your upgrade budget on amenities in the top half of this table. Below-median amenities may improve guest experience but contribute less to revenue growth.
  • Highlight revenue-impacting amenities prominently in your listing title, photos, and description — guests can't value what they don't notice.

Dive Deeper: Advanced Funchal STR Market Data (2026)

Ready to unlock more insights? AirROI provides access to advanced metrics and comprehensive Airbnb data for Funchal. Explore detailed analytics beyond this report to refine your investment strategy, optimize pricing, and maximize your vacation rental profits.

Explore Advanced Metrics

Funchal Airbnb Guest Demographics & Profile Analysis (2026)

Guest Origin: Domestic vs. International
Top 5 Cities of Origin
Top 5 Countries of Origin
Top 5 Languages Spoken
Guest Age Distribution (Birth Decade)

Guest Profile Summary for Funchal

  • The typical guest profile for Airbnb in Funchal consists of predominantly international visitors (97%), with top international origins including France, typically belonging to the Post-2000s (Gen Z/Alpha) group (50%), primarily speaking English or French.
  • Domestic travelers account for 3.3% of guests.
  • Key international markets include United Kingdom (19.4%) and France (13.4%).
  • Top languages spoken are English (43.2%) followed by French (12.8%).
  • A significant demographic segment is the Post-2000s (Gen Z/Alpha) group, representing 50% of guests.

Recommendations for Hosts

  • Focus marketing internationally, particularly towards travelers from France.
  • Tailor amenities and listing descriptions to appeal to the dominant Post-2000s (Gen Z/Alpha) demographic (e.g., highlight fast WiFi, smart home features, local guides).
  • Highlight unique local experiences or amenities relevant to the primary guest profile.
  • Consider seasonal promotions aligned with peak travel times for key origin markets.

What Are Airbnb Guest Ratings in Funchal?

Listings in Funchal average 4.77 out of 5 overall, with about 51.7 reviews per active listing and 31.4% of listings carrying the Guest Favorite badge.

Rating Breakdown by Category

Guest Rating Insights for Funchal

  • An average rating of 4.77 places Funchal in solid territory. Most guests leave satisfied, though there is room for hosts to push toward the top tier.
  • The strongest subcategory is Communication (4.83), while Value (4.7) trails behind — a useful signal for hosts looking to prioritize upgrades.
  • 31.4% of listings carry the Guest Favorite badge, a strong trust signal that can meaningfully lift click-through and booking rates.

Recommendations for Hosts

  • Focus improvement efforts on Value — even small gains in the weakest subcategory can lift overall ratings and search ranking.
  • Encourage guests to leave reviews after checkout. Listings with more reviews rank higher in search results and convert browsers into bookers more effectively.

Funchal Airbnb Booking Patterns (2026): Available vs. Booked Days

Available Days Distribution

Booked Days Distribution

Booking Pattern Insights for Funchal

  • The most common availability pattern in Funchal falls within the 91-180 days range, representing 33.2% of listings. This suggests many properties have significant open periods on their calendars.
  • Approximately 46.7% of listings show high availability (181+ days open annually), indicating potential for increased bookings or specific owner usage patterns.
  • For booked days, the 181-270 days range is most frequent in Funchal (33%), reflecting common guest stay durations or potential owner blocking patterns.
  • A notable 54.5% of properties secure long booking periods (181+ days booked per year), highlighting successful long-term rental strategies or significant owner usage.

How Far in Advance Do Guests Book Airbnb in Funchal?

Average Booking Lead Time by Month

Booking Lead Time Insights for Funchal

  • The overall average booking lead time for vacation rentals in Funchal is 76 days.
  • Guests book furthest in advance for stays during August (average 88 days), likely coinciding with peak travel demand or local events.
  • The shortest booking windows occur for stays in March (average 56 days), indicating more last-minute travel plans during this time.
  • Seasonally, Summer (80 days avg.) sees the longest lead times, while Spring (68 days avg.) has the shortest, reflecting typical travel planning cycles.

Recommendations for Hosts

  • Use the overall average lead time (76 days) as a baseline for your pricing and availability strategy in Funchal.
  • For August stays, consider implementing length-of-stay discounts or slightly higher rates for bookings made less than 88 days out to capitalize on advance planning.
  • Target marketing efforts for the Summer season well in advance (at least 80 days) to capture early planners.
  • Monitor your own booking lead times against these Funchal averages to identify opportunities for dynamic pricing adjustments.

What Is the Average Length of Stay for Airbnb in Funchal?

Guests in Funchal stay about 6.3 nights on average, generating roughly 71,170 reservations and 29.2 bookings per listing in the latest AirROI dataset. The most common check-in time is 3:00 PM and check-out is 11:00 AM.

Monthly Length of Stay in Funchal

Check-in Time Distribution

Check-out Time Distribution

Stay Pattern Insights for Funchal

  • A mid-range stay length points to leisure-driven demand — weekend getaways and short vacations. Hosts should optimize for quick turnover efficiency while keeping the guest experience smooth.
  • At 29.2 bookings per listing, the turnover rate is high. Hosts with streamlined operations (self-check-in, automated messaging, reliable cleaners) have a structural advantage.
  • Stay lengths peak in Jan (6.8 nights) and shorten in Sep (5.8 nights). Adjust minimum-night requirements seasonally to match.

Recommendations for Hosts

  • Leverage the longer-stay pattern by offering weekly discounts — even 5-10% off can convert browsing into bookings for guests considering an extended stay.
  • Set your check-in time to match or beat the market standard of 3:00 PM. Offering early check-in flexibility can be a low-cost differentiator.
  • Monitor length-of-stay seasonality to adjust minimum-night requirements — longer minimums during peak periods maximize revenue while shorter minimums fill gaps in shoulder seasons.

Funchal Airbnb Minimum Stay Requirements Analysis

Distribution of Listings by Minimum Night Requirement

1 Night (15.2%)

1 Night

370 listings

15.2% of total

2 Nights (6.1%)

2 Nights

149 listings

6.1% of total

3 Nights (13%)

3 Nights

317 listings

13% of total

4-6 Nights (27.9%)

4-6 Nights

680 listings

27.9% of total

7-29 Nights (1.9%)

7-29 Nights

47 listings

1.9% of total

30+ Nights (35.9%)

30+ Nights

877 listings

35.9% of total

Key Insights

  • The most prevalent minimum stay requirement in Funchal is 30+ Nights, adopted by 35.9% of listings. This highlights the market's preference for longer commitments.
  • A significant segment (35.9%) caters to monthly stays (30+ nights) in Funchal, pointing to opportunities in the extended-stay market.

Recommendations

  • Align with the market by considering a 30+ Nights minimum stay, as 35.9% of Funchal hosts use this setting.
  • If feasible, allowing 1-night stays, especially midweek or during low season, could capture last-minute bookings, as only 15.2% currently do.
  • Explore offering discounts for stays of 30+ nights to attract the 35.9% of the market seeking extended stays.
  • Adjust minimum nights based on seasonality – potentially shorter during low season and longer during peak demand periods in Funchal.

Funchal Airbnb Cancellation Policy Trends Analysis (2026)

Super Strict 60 Days

63 listings

2.6% of total

Limited (11.5%)

Limited

280 listings

11.5% of total

Super Strict 30 Days (8.9%)

Super Strict 30 Days

218 listings

8.9% of total

Flexible (13.3%)

Flexible

323 listings

13.3% of total

Moderate (18.7%)

Moderate

455 listings

18.7% of total

Firm (35.5%)

Firm

866 listings

35.5% of total

Strict (9.5%)

Strict

232 listings

9.5% of total

Cancellation Policy Insights for Funchal

  • The prevailing Airbnb cancellation policy trend in Funchal is Firm, used by 35.5% of listings.
  • There's a relatively balanced mix between guest-friendly (32.0%) and stricter (45.0%) policies, offering choices for different guest needs.
  • Strict cancellation policies are quite rare (9.5%), potentially making listings with this policy less competitive unless justified by high demand or property type.

Recommendations for Hosts

  • Consider adopting a Firm policy to align with the 35.5% market standard in Funchal.
  • Using a Strict policy might deter some guests, as only 9.5% of listings use it. Evaluate if potential revenue protection outweighs possible lower booking rates.
  • Regularly review your cancellation policy against competitors and market demand shifts in Funchal.

How Much Are Airbnb Cleaning Fees in Funchal?

Cleaning fees in Funchal are meaningful operating levers, not just pass-through charges. What matters most is how often hosts charge them, how high they run relative to market norms, and how large a share of gross revenue they consume.

Average Cleaning Fee
$201
Median Cleaning Fee
$85
Listings Charging a Fee
81.8%
Fee as Revenue Share
9.2%

Cleaning Fee Insights for Funchal

  • 81.8% of listings charge a cleaning fee, making it standard practice in Funchal. Guests expect it and factor it into their booking decisions.
  • The gap between the average ($201) and median ($85) cleaning fee indicates some high-end properties are pulling the average up considerably.
  • Cleaning fees represent 9.2% of gross revenue on average — a modest component of the overall booking price.

Recommendations for Hosts

  • Price your cleaning fee competitively against the Funchal median of $85. Fees significantly above market norms can deter bookings, especially for shorter stays.
  • Monitor competitor cleaning fees regularly. Airbnb's search algorithm factors in total price, so a well-calibrated cleaning fee can improve your listing's ranking.

What Do the Top Airbnb Listings in Funchal Look Like?

Benchmark your potential! Explore examples of top-performing Airbnb properties in Funchalbased on Trailing Twelve Month (TTM) revenue. Analyze their characteristics, revenue, occupancy rate, and ADR to understand what drives success in this market.

Savoy Insular I by An Island Apart

Savoy Insular I by An Island Apart

Entire Place • 3 bedrooms

$968,076
Revenue
88.8%
Occupancy
$2965.54
Daily Rate
Vila das Quebradas by An Island Apart

Vila das Quebradas by An Island Apart

Entire Place • 3 bedrooms

$875,579
Revenue
78.2%
Occupancy
$2912.54
Daily Rate
Vila Lazareto by An Island Apart

Vila Lazareto by An Island Apart

Entire Place • 3 bedrooms

$736,385
Revenue
80.0%
Occupancy
$2989.11
Daily Rate
Vila Eucalipto by An Island Apart

Vila Eucalipto by An Island Apart

Entire Place • 5 bedrooms

$689,040
Revenue
53.4%
Occupancy
$3548.53
Daily Rate
Villa Quebra Costas by An Island Apart

Villa Quebra Costas by An Island Apart

Entire Place • 2 bedrooms

$679,044
Revenue
74.6%
Occupancy
$2479.88
Daily Rate
Madeira Palace I by An Island Apart

Madeira Palace I by An Island Apart

Entire Place • 3 bedrooms

$673,861
Revenue
76.3%
Occupancy
$2304.33
Daily Rate

Note: Performance varies based on location, size, amenities, seasonality, and management quality. Data reflects the past 12 months.

Who Are the Top Airbnb Hosts in Funchal?

Learn from the best! This table showcases top-performing Airbnb hosts in Funchal based on the number of properties managed and estimated total revenue over the past year. Analyze their scale and performance metrics.

Top Airbnb hosts in Funchal by revenue
Host NamePropertiesGrossing RevenueStay ReviewsAvg Rating
André Loja197$55,225,41182674.69/5.0
Carlota & Babi21$3,025,0269814.81/5.0
Homie88$2,756,89917934.69/5.0
LovelyStay53$2,456,27415004.69/5.0
A Home In Madeira62$2,053,81314674.88/5.0
Atlantic Holiday51$1,997,12411964.77/5.0
GuestReady11$1,694,8403104.68/5.0
OurMadeira37$1,679,50211414.85/5.0
Feels Like Home49$1,592,83815764.73/5.0
Amr48$1,513,2536684.67/5.0

Analyzing the strategies of top hosts, such as their property selection, pricing, and guest communication, can offer valuable lessons for optimizing your own Airbnb operations in Funchal.

Who Are the Airbnb Hosts in Funchal?

Funchal leans more toward professional operations than casual hosting, which usually raises the competitive bar for new entrants.

Superhosts
41.9%
Professional Management
31.3%
Cohosted Listings
26.4%
Instant Book Enabled
5.7%
Simplified Pricing
79.9%

Host Profile Insights for Funchal

  • A 41.9% Superhost share is healthy — enough experienced operators to anchor quality without making the market impenetrable for newcomers.
  • 31.3% of listings are professionally managed, indicating a mature, competitive market with institutional players.
  • 5.7% of listings have Instant Book enabled. Lower Instant Book adoption means many guests must request approval, which can slow conversions.
  • 79.9% of listings use Airbnb's simplified pricing (host-only fee), where the host pays the entire platform service fee and the guest sees one all-in price with no separate Airbnb service charge. High adoption signals a professional, PMS-connected host base — Airbnb mandates simplified pricing for software-connected listings.

Recommendations for Hosts

  • Earning Superhost status can significantly improve search ranking and guest trust. Focus on maintaining high response rates, low cancellations, and strong reviews.
  • Consider enabling Instant Book — it reduces booking friction and Airbnb's algorithm tends to favor Instant Book listings in search results.
  • With 26.4% cohosted listings, there may be a growing local market for property management services.
  • Benchmark your host metrics against these Funchal averages regularly and adjust your hosting strategy based on what top performers do differently.

Top Professional Management Companies in Funchal

These are the highest-grossing professional property management operations in Funchal, ranked by total revenue across their portfolio. Their performance metrics offer a benchmark for what institutional-level hosting looks like in this market.

Top Airbnb management companies in Funchal
CompanyListingsRevenueADROcc.Rating
An Island197$55,225,411$1,17773.1%4.69/5
Carlota21$3,025,026$68856.9%4.81/5
Homie88$2,756,899$17058.8%4.69/5
LovelyStay53$2,456,274$26459.0%4.69/5
A Home In Madeira62$2,053,813$17666.9%4.88/5
Atlantic Holiday51$1,997,124$19267.7%4.77/5
GuestReady11$1,694,840$76758.5%4.68/5
OurMadeira37$1,679,502$22658.3%4.85/5
Feels Like Home49$1,592,838$18555.0%4.73/5
Amr48$1,513,253$28242.1%4.67/5

Management Company Insights for Funchal

  • The leading management company, An Island, operates 197 listings with $55,225,411 in gross revenue — a useful benchmark for what scale looks like in Funchal.
  • Top managers average 62 properties each, pointing to a market where portfolio scale is a meaningful competitive factor.
  • Professionally managed listings in the top tier average 4.75/5 in guest ratings — demonstrating that scale and quality can coexist.

Recommendations

  • Study how top management companies price, position, and maintain their portfolios — their ADR and occupancy rates reflect strategies refined across dozens of listings.
  • If you're considering hiring a property manager, compare their portfolio performance against these benchmarks before committing.

How Does Funchal's Airbnb Market Compare to Nearby Cities?

How does the Funchal Airbnb market stack up against its neighbors? Compare key performance metrics like average monthly revenue, ADR, and occupancy rates in surrounding areas to understand the broader regional STR landscape.

Compared with Ponta do Sol, Funchal has 5 percentage points lower occupancy and about $71 higher ADR. That helps frame whether this market is winning more on demand, pricing, or both.

Airbnb markets near Funchal — performance comparison
MarketActive PropertiesMonthly RevenueDaily RateAvg. Occupancy
Arco da Calheta17$6,827$467.1250%
Ribeira Brava258$3,677$209.8361%
Câmara de Lobos141$3,649$242.9160%
Ponta do Sol320$3,501$198.1163%
Santa Cruz516$3,243$212.7856%
Calheta1,031$3,097$206.9458%
Estreito da Calheta19$3,013$207.6955%
São Vicente282$2,724$178.7259%
Porto Santo179$2,430$243.8043%
Canhas10$2,394$165.9361%

Frequently Asked Questions About Airbnb in Funchal

These quick answers summarize the most common investor and operator questions using AirROI's latest market data for Funchal.

How much do Airbnb hosts make in Funchal?

Funchal hosts earn about $51,586 per year on average, with an average nightly rate of $269 and RevPAR of $165. Those figures describe the typical revenue environment for active listings in Funchal, Madeira, not the ceiling for the best operators. Source: AirROI 2026 data, Funchal market, April 2025 to March 2026.

What is the average Airbnb occupancy rate in Funchal?

The average Airbnb occupancy rate in Funchal is 58.1%. August is the strongest month and March is the softest, so hosts should expect demand to move meaningfully throughout the year rather than stay flat.

What is the average Airbnb daily rate in Funchal?

Listings in Funchal average $269 per night. The broader pricing spread also matters: lower-performing listings cluster closer to the lower quartiles, while premium homes can price materially above the city average when demand spikes or listing quality stands out.

How many Airbnb listings are active in Funchal?

Funchal currently has about 2,440 active Airbnb listings in AirROI's market dataset. That supply count helps explain how competitive the market is, how much depth there is for benchmarking, and whether the market behaves like a niche destination or a scaled urban market.

How strict are short-term rental regulations in Funchal?

AirROI currently classifies the short-term rental regulation level in Funchal as High. The dataset also shows about 95.4% of listings with registration evidence. That is a market signal, not legal advice, so hosts should still confirm current licensing and compliance rules locally before listing.

What is the RevPAR for Airbnb in Funchal?

RevPAR in Funchal is about $165. That metric combines pricing and occupancy into one efficiency number, so it is often a better quick benchmark than ADR alone when investors want to compare how well listings convert nightly rates into realized revenue.

Is Airbnb profitable in Funchal?

At 58.1% occupancy, Funchal can be profitable — but margins depend heavily on operating costs, property acquisition price, and how well hosts optimize pricing across seasons. Average annual revenue is $51,586, but individual returns depend on property type, location within the city, and the host's operating efficiency.

How far in advance do guests book Airbnb in Funchal?

The average booking lead time in Funchal is about 76 days — a longer planning horizon typical of destination or vacation markets where travelers book well in advance. Hosts who understand their market's booking cadence can adjust minimum stays and pricing windows accordingly.

What are the best neighborhoods for Airbnb in Funchal?

Based on AirROI's analysis, some of the top neighborhoods for short-term rentals in Funchal include Old Town Funchal, Lido Promenade, Monte. Each area attracts different guest profiles — from business travelers to leisure visitors — so the best location depends on the property type and target audience a host is aiming for. See the full neighborhood breakdown above.

What type of property performs best on Airbnb in Funchal?

entire_home listings make up 92.4% of the active supply in Funchal. The most common configuration does not always mean the most profitable — operators who identify underserved property types or bedroom counts can sometimes outperform the market average by filling a gap in local supply.

How does Funchal compare to nearby Airbnb markets?

Among neighboring markets, Arco da Calheta posts $81,924 in average annual revenue with 49.6% occupancy, compared to Funchal's $51,586 and 58.1%. Comparing nearby markets helps investors understand whether a destination's performance reflects local demand or broader regional trends.

What is the average length of stay in Funchal?

The average Airbnb stay length in Funchal is about 6.3 nights. That matters for turnover, cleaning operations, and pricing strategy because shorter stays increase changeovers while longer stays can smooth occupancy and reduce operational friction.

What is the average Airbnb guest rating in Funchal?

Airbnb listings in Funchal average 4.77 out of 5 overall. About 31.4% of listings carry the guest favorite badge, which suggests a meaningful share of inventory is competing on review quality rather than price alone.

Which amenities boost Airbnb revenue in Funchal?

Baby bath and Single level home are among the strongest revenue-linked amenities in Funchal. In AirROI's latest dataset, listings with these amenities outperform those without on average revenue, which makes amenities analysis useful for prioritizing investment and listing upgrades.

Do Airbnb hosts charge cleaning fees in Funchal?

Yes. About 81.8% of active Airbnb listings in Funchal charge a cleaning fee, and the average fee is $201. The more important operating benchmark is how much of gross revenue that fee consumes, not just the absolute dollar amount.

What percentage of Airbnb hosts are Superhosts in Funchal?

A 41.9% Superhost rate signals a highly competitive market where review quality and responsiveness are table stakes, not differentiators.

About AirROI Market Data

AirROI tracks over 20 million properties across 190+ countries and maintains 15+ years of historical performance data, making it one of the deepest Airbnb and STR intelligence platforms available. The analytics pipeline aggregates listing-level data monthly — revenue, occupancy, nightly rates, RevPAR, guest demographics, booking patterns, and competitive supply — so investors and operators can benchmark any market against its own history and against neighboring destinations.

Real estate investors, property managers, financial institutions, hedge funds, tourism boards, hospitality consultants, tech platforms, and academic researchers rely on AirROI data to underwrite acquisitions, optimize pricing, model macro trends, and conduct peer-reviewed research. Data is available through in-depth market reports like this one and the Airbnb API with 22 endpoints and an Airbnb MCP Server for AI agents.

AirROI proprietary analytics as of 2026-03-31. Metrics reflect trailing twelve-month aggregates from active listings. Revenue figures are market averages, not projections. Neighborhood descriptions are AI-generated and reviewed for accuracy. For full methodology, see the data methodology page.

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