Vestmannaeyjabær Airbnb Market Analysis 2025: Short Term Rental Data & Vacation Rental Statistics in Southern Region, Iceland

Source: AirROI
Last updated: 2025-03-31

Is Airbnb profitable in Vestmannaeyjabær in 2025? Explore comprehensive Airbnb analytics for Vestmannaeyjabær, Southern Region, Iceland to uncover income potential. This 2025 STR market report for Vestmannaeyjabær, based on AirROI data from April 2024 to March 2025, reveals key trends in the niche market of 43 active listings.

Whether you're considering an Airbnb investment in Vestmannaeyjabær, optimizing your existing vacation rental, or exploring rental arbitrage opportunities, understanding the Vestmannaeyjabær Airbnb data is crucial. Understanding the local regulations is key to maximizing your short term rental income potential. Let's dive into the specifics.

Key Vestmannaeyjabær Airbnb Performance Metrics Overview

Avg. Daily Rate (ADR)(?)
$241
The average rental revenue earned for an occupied room per day in Vestmannaeyjabær.
Occupancy Rate(?)
40.7%
Moderate demand with booking opportunities.
Median Annual Revenue(?)
$22,097
Typical annual income for an Airbnb listing in Vestmannaeyjabær. Factors like property type, size, and location influence actual earnings.
Revenue Growth YoY(?)
-7.3%
Slight decrease (-7.3%) vs. last year.
Peak Revenue Month(?)
August
The month with the highest average earnings, indicating peak season in Vestmannaeyjabær.
Lowest Revenue Month(?)
November
The month with the lowest average earnings, indicating the low season in Vestmannaeyjabær.
STR Regulation Level(?)
Moderate
Regulation details vary. Check local government sources.
Active Airbnb Listings(?)
43
Total number of active short-term rentals listed.

Monthly Airbnb Revenue Variations & Income Potential in Vestmannaeyjabær (2025)

Understanding the monthly revenue variations for Airbnb listings in Vestmannaeyjabær 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 Vestmannaeyjabær is typically August, while November often presents the lowest earnings, highlighting opportunities for strategic pricing adjustments during shoulder and low seasons. Explore the typical Airbnb income in Vestmannaeyjabær across different performance tiers:

  • Best-in-class properties (Top 10%) achieve $4,860+ monthly, often utilizing dynamic pricing and superior guest experiences.
  • Strong performing properties (Top 25%) earn $3,288 or more, indicating effective management and desirable locations/amenities.
  • Typical properties (Median) generate around $1,902 per month, representing the average market performance.
  • Entry-level properties (Bottom 25%) see earnings around $945, often with potential for optimization.

Average Monthly Airbnb Earnings Trend in Vestmannaeyjabær

Vestmannaeyjabær Airbnb Occupancy Rate Trends (2025)

Maximize your bookings by understanding the Vestmannaeyjabær STR occupancy trends. Seasonal demand shifts significantly influence how often properties are booked. Typically, Augustsees the highest demand (peak season occupancy), while November 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 Vestmannaeyjabær:

  • Best-in-class properties (Top 10%) achieve 60%+ occupancy, indicating high desirability and potentially optimized availability.
  • Strong performing properties (Top 25%) maintain 46% or higher occupancy, suggesting good market fit and guest satisfaction.
  • Typical properties (Median) have an occupancy rate around 26%.
  • Entry-level properties (Bottom 25%) average 13% occupancy, potentially facing higher vacancy.

Average Monthly Occupancy Rate Trend in Vestmannaeyjabær

Average Daily Rate (ADR) Airbnb Trends in Vestmannaeyjabær (2025)

Effective short term rental pricing strategy in Vestmannaeyjabær involves understanding monthly ADR fluctuations. The Average Daily Rate (ADR) for Airbnb in Vestmannaeyjabær typically peaks in February and dips lowest during April. 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 $377+ per night, often due to premium features or locations.
  • Strong performing properties (Top 25%) achieve nightly rates of $260 or more.
  • Typical properties (Median) charge around $191 per night.
  • Entry-level properties (Bottom 25%) earn around $144 per night.

Average Daily Rate (ADR) Trend by Month in Vestmannaeyjabær

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Airbnb Seasonality Analysis & Trends in Vestmannaeyjabær (2025)

Peak Season (August, July, June)
  • Revenue averages $4,079 per month
  • Occupancy rates average 49.3%
  • Daily rates average $235
Shoulder Season
  • Revenue averages $2,332 per month
  • Occupancy maintains around 28.8%
  • Daily rates hold near $233
Low Season (January, November, December)
  • Revenue drops to average $1,229 per month
  • Occupancy decreases to average 17.7%
  • Daily rates adjust to average $236

Seasonality Insights for Vestmannaeyjabær

  • The Airbnb seasonality in Vestmannaeyjabær shows highly seasonal trends requiring careful strategy. While the sections above show seasonal averages, it's also insightful to look at the extremes:
  • During the high season, the absolute peak month showcases Vestmannaeyjabær's highest earning potential, with monthly revenues capable of climbing to $4,527, occupancy reaching a high of 53.5%, and ADRs peaking at $255.
  • Conversely, the slowest single month of the year, typically falling within the low season, marks the market's lowest point. In this month, revenue might dip to $984, occupancy could drop to 16.4%, and ADRs may adjust down to $217.
  • 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 Vestmannaeyjabær.

Seasonal Strategies for Maximizing Profit

  • Peak Season: Maximize revenue through premium pricing and potentially longer minimum stays. Ensure high availability.
  • Low Season: Offer competitive pricing, special promotions (e.g., extended stay discounts), and flexible cancellation policies. Target off-season travelers like remote workers or budget-conscious guests.
  • Shoulder Seasons: Implement dynamic pricing that balances peak and low rates. Target weekend travelers or specific events. Offer slightly more flexible terms than peak season.
  • Regularly analyze your own performance against these Vestmannaeyjabær seasonality benchmarks and adjust your pricing and availability strategy accordingly.

Best Areas for Airbnb Investment in Vestmannaeyjabær (2025)

Exploring the top neighborhoods for short-term rentals in Vestmannaeyjabær? This section highlights key areas, outlining why they are attractive for hosts and guests, along with notable local attractions. Consider these locations based on your target guest profile and investment strategy.

Neighborhood / AreaWhy Host Here? (Target Guests & Appeal)Key Attractions & Landmarks
Vestmannaeyjar Town
The main town on the island, known for its charming atmosphere, local restaurants, and access to beautiful hiking trails. A prime location for tourists visiting the Westman Islands.
Eldheimar Museum, Heimaey Island, Surtsey Island, Stórhöfði, Láki, Sea Life Trust's Beluga Whale Sanctuary
Surtsey Island
A UNESCO World Heritage site and biological reserve, offering unique ecological experiences. Attractive for eco-tourists and nature enthusiasts.
Surtsey Island views, Bird watching spots, Unique geological formations
Þórsvík Beach
A stunning beach area with picturesque landscapes and great for outdoor activities such as hiking and bird watching. Ideal for nature seekers.
Þórsvík Beach, Hiking trails, Wildlife observation, Scenic viewpoints
Landeyjar
Famous for its beaches and located near the ferry terminal, this area is popular among tourists preparing to explore the nearby islands.
Landeyjar Beach, Ferry to Westman Islands, Bird watching, Scenic coastal views
Stórhöfði
This is considered one of the windiest places in the world, and its unique landscape makes it an attraction for adventurous travelers.
Stórhöfði cliffs, Bird watching, Scenic photography spots
Eldfell Volcano
A significant geological site that offers hiking opportunities and spectacular views of the surrounding landscapes. Attracts adventure seekers.
Eldfell Volcano hike, Amazing views, Volcanic landscape
Heimaey Island
The largest of the Westman Islands, known for its natural beauty and vibrant birdlife. It's a great location for visitors to explore the area's rich history and culture.
The Puffin Observatory, Historical museums, Natural Harbors, Scenic viewpoints
Hiking trails around Vestmannaeyjar
A network of trails that offer stunning views and access to unique landscapes, popular with hikers and outdoor enthusiasts.
Hiking trails across the island, Unique flora and fauna, Breathtaking coastal views

Understanding Airbnb License Requirements & STR Laws in Vestmannaeyjabær (2025)

With 14% of listings showing registration in 2025, understanding potential Airbnb license requirements is crucial in Vestmannaeyjabær. Always verify the latest short term rental regulations and Airbnb license requirements directly with local government authorities for Vestmannaeyjabær to ensure full compliance before hosting.

(Source: AirROI data, 2025, based on 14% licensed listings)

Top Performing Airbnb Properties in Vestmannaeyjabær (2025)

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

Entire luxury house with beautiful volcano view

Entire luxury house with beautiful volcano view

Entire Place • 4 bedrooms

$62,854
Revenue
26.4%
Occupancy
$696.94
Daily Rate
New two bedroom apartment. Great location.

New two bedroom apartment. Great location.

Entire Place • 2 bedrooms

$52,841
Revenue
51.3%
Occupancy
$504.66
Daily Rate
Thorlaugarger - Beautiful cosy summerhouse

Thorlaugarger - Beautiful cosy summerhouse

Entire Place • 5 bedrooms

$45,571
Revenue
62.1%
Occupancy
$401.28
Daily Rate
Magical stay in Westman Islands!

Magical stay in Westman Islands!

Entire Place • 3 bedrooms

$44,675
Revenue
50.6%
Occupancy
$266.72
Daily Rate
Central cottage

Central cottage

Entire Place • N/A

$35,813
Revenue
61.7%
Occupancy
$204.18
Daily Rate
Hvassaleiti cottage

Hvassaleiti cottage

Entire Place • N/A

$35,435
Revenue
54.1%
Occupancy
$238.63
Daily Rate

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

Top Performing Airbnb Hosts in Vestmannaeyjabær (2025)

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

Host NamePropertiesGrossing RevenueStay ReviewsAvg Rating
Sigfus7$109,1042514.80/5.0
Brynja3$95,8023304.85/5.0
Gudjon5$94,0264114.80/5.0
Þorsteinn1$62,854364.81/5.0
Hjördís1$52,841514.98/5.0
Thomas2$51,341654.85/5.0
Kári2$48,901204.83/5.0
Elliði1$45,571454.80/5.0
Host #111267011$44,675374.86/5.0
Svava3$36,658234.60/5.0

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 Vestmannaeyjabær.

Dive Deeper: Advanced Vestmannaeyjabær STR Market Data (2025)

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

Explore Advanced Metrics

Vestmannaeyjabær Short-Term Rental Market Composition (2025): Property & Room Types

Room Type Distribution

Property Type Distribution

Market Composition Insights for Vestmannaeyjabær

  • The Vestmannaeyjabær Airbnb market composition is heavily skewed towards Entire Home/Apt listings, which make up 58.1% of the 43 active rentals. This indicates strong guest preference for privacy and space.
  • However, a notable 41.9% share for Private Rooms suggests opportunities for budget-conscious travelers or hosts renting out spare rooms.
  • Looking at the property type distribution in Vestmannaeyjabær, Apartment/Condo properties are the most common (30.2%), reflecting the local real estate landscape.
  • Houses represent a significant 30.2% portion, catering likely to families or larger groups.
  • The presence of 23.3% Hotel/Boutique listings indicates integration with traditional hospitality.

Vestmannaeyjabær Airbnb Room Capacity Analysis (2025): Bedroom Distribution

Distribution of Listings by Number of Bedrooms

Room Capacity Insights for Vestmannaeyjabær

  • The dominant room capacity in Vestmannaeyjabær is 1 bedroom listings, making up 39.5% of the market. This suggests a strong demand for properties suitable for couples or solo travelers.
  • Together, 1 bedroom and 2 bedrooms properties represent 51.1% of the active Airbnb listings in Vestmannaeyjabær, indicating a high concentration in these sizes.

Vestmannaeyjabær Vacation Rental Guest Capacity Trends (2025)

Distribution of Listings by Guest Capacity

Guest Capacity Insights for Vestmannaeyjabær

  • The most common guest capacity trend in Vestmannaeyjabær vacation rentals is listings accommodating 4 guests (25.6%). This suggests the primary traveler segment is likely small families or groups.
  • Properties designed for 4 guests and 2 guests dominate the Vestmannaeyjabær STR market, accounting for 44.2% of listings.
  • 23.2% of properties accommodate 6+ guests, serving the market segment for larger families or group travel in Vestmannaeyjabær.
  • On average, properties in Vestmannaeyjabær are equipped to host 3.5 guests.

Vestmannaeyjabær Airbnb Booking Patterns (2025): Available vs. Booked Days

Available Days Distribution

Booked Days Distribution

Booking Pattern Insights for Vestmannaeyjabær

  • The most common availability pattern in Vestmannaeyjabær falls within the 271-366 days range, representing 55.8% of listings. This suggests many properties have significant open periods on their calendars.
  • Approximately 97.7% of listings show high availability (181+ days open annually), indicating potential for increased bookings or specific owner usage patterns.
  • For booked days, the 91-180 days range is most frequent in Vestmannaeyjabær (48.8%), reflecting common guest stay durations or potential owner blocking patterns.
  • A notable 2.3% of properties secure long booking periods (181+ days booked per year), highlighting successful long-term rental strategies or significant owner usage.

Vestmannaeyjabær Airbnb Minimum Stay Requirements Analysis

Distribution of Listings by Minimum Night Requirement

1 Night (76.2%)

1 Night

32 listings

76.2% of total

2 Nights (19%)

2 Nights

8 listings

19% of total

3 Nights (2.4%)

3 Nights

1 listings

2.4% of total

30+ Nights (2.4%)

30+ Nights

1 listings

2.4% of total

Key Insights

  • The most prevalent minimum stay requirement in Vestmannaeyjabær is 1 Night, adopted by 76.2% of listings. This highlights the market's preference for shorter, flexible bookings.
  • A strong majority (95.2%) of the Vestmannaeyjabær Airbnb data shows acceptance of very short stays (1-2 nights), indicating a dynamic, high-turnover market.
  • Dedicated monthly rentals (30+ nights) represent a small niche (2.4%), possibly an untapped area for hosts.

Recommendations

  • Align with the market by considering a 1 Night minimum stay, as 76.2% of Vestmannaeyjabær hosts use this setting.
  • Adjust minimum nights based on seasonality – potentially shorter during low season and longer during peak demand periods in Vestmannaeyjabær.

Vestmannaeyjabær Airbnb Cancellation Policy Trends Analysis (2025)

Flexible (20.5%)

Flexible

8 listings

20.5% of total

Moderate (43.6%)

Moderate

17 listings

43.6% of total

Firm (15.4%)

Firm

6 listings

15.4% of total

Strict (20.5%)

Strict

8 listings

20.5% of total

Cancellation Policy Insights for Vestmannaeyjabær

  • The prevailing Airbnb cancellation policy trend in Vestmannaeyjabær is Moderate, used by 43.6% of listings.
  • There's a relatively balanced mix between guest-friendly (64.1%) and stricter (35.9%) policies, offering choices for different guest needs.

Recommendations for Hosts

  • Consider adopting a Moderate policy to align with the 43.6% market standard in Vestmannaeyjabær.
  • Regularly review your cancellation policy against competitors and market demand shifts in Vestmannaeyjabær.

Vestmannaeyjabær STR Booking Lead Time Analysis (2025)

Average Booking Lead Time by Month

Booking Lead Time Insights for Vestmannaeyjabær

  • The overall average booking lead time for vacation rentals in Vestmannaeyjabær is 76 days.
  • Guests book furthest in advance for stays during June (average 169 days), likely coinciding with peak travel demand or local events.
  • The shortest booking windows occur for stays in January (average 16 days), indicating more last-minute travel plans during this time.
  • Seasonally, Summer (139 days avg.) sees the longest lead times, while Winter (30 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 Vestmannaeyjabær.
  • For June stays, consider implementing length-of-stay discounts or slightly higher rates for bookings made less than 169 days out to capitalize on advance planning.
  • Target marketing efforts for the Summer season well in advance (at least 139 days) to capture early planners.
  • Monitor your own booking lead times against these Vestmannaeyjabær averages to identify opportunities for dynamic pricing adjustments.

Popular & Essential Airbnb Amenities in Vestmannaeyjabær (2025)

Amenity Prevalence

Amenity Insights for Vestmannaeyjabær

  • Essential amenities in Vestmannaeyjabær that guests expect include: Wifi, TV, Heating. Lacking these (any) could significantly impact bookings.
  • Popular amenities like Smoke alarm, Kitchen, Refrigerator are common but not universal. Offering these can provide a competitive edge.

Recommendations for Hosts

  • Ensure your listing includes all essential amenities for Vestmannaeyjabær: Wifi, TV, Heating.
  • Prioritize adding missing essentials: Wifi, TV, Heating.
  • Consider adding popular differentiators like Smoke alarm or Kitchen 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 Vestmannaeyjabær to stay competitive.

Vestmannaeyjabær Airbnb Guest Demographics & Profile Analysis (2025)

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 Vestmannaeyjabær

  • The typical guest profile for Airbnb in Vestmannaeyjabær consists of predominantly international visitors (91%), with top international origins including Iceland, typically belonging to the Post-2000s (Gen Z/Alpha) group (50%), primarily speaking English or French.
  • Domestic travelers account for 8.9% of guests.
  • Key international markets include United States (57.5%) and Iceland (8.9%).
  • Top languages spoken are English (57%) followed by French (7%).
  • 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 Iceland.
  • 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.

Nearby Short-Term Rental Market Comparison

How does the Vestmannaeyjabær 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.

MarketActive PropertiesMonthly RevenueDaily RateAvg. Occupancy
Kjósarhreppur18$8,807$548.8463%
Reykholt48$4,939$315.5054%
Ölfus16$4,866$244.0864%
Grímsnes10$4,851$339.1272%
Grímsnes- og Grafningshreppur34$4,664$356.9252%
Vik55$4,562$300.8457%
Hella109$4,235$300.9850%
Hveragerðisbær45$4,002$305.4647%
Akranes24$3,966$253.4456%
Bláskógabyggð33$3,919$296.2453%

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