Airbnb Market Analytics, Statistics and Data in Palermo, Sicily, Italy
Last updated: 2025-01-31
Looking to make more money with hosting or rental arbitraging Airbnbs, short-term rentals, vacation rentals in Palermo? AirROI have just the data insights! Over the last twelve months from February 2024 to January 2025, we've uncovered key trends and opportunities that successful hosts are leveraging in Palermo:
How much do Airbnb hosts make on average per month in Palermo?
The short-term rental market in Palermo shows distinct revenue patterns across different property tiers. Our analysis reveals that successful properties combine strategic pricing with quality management to maximize earnings potential. Market data demonstrates clear revenue differentiation among properties:
- Typical properties (median) earn $1,305 per month
- Strong performing properties (top 25%) make $2,167 or more
- Best-in-class properties (top 10%) achieve $3,387+ monthly
- Entry-level properties (bottom 25%) typically earn around $653
Revenue Variations by Month
Occupancy Rates Throughout the Year in Palermo
The market in Palermo shows distinct occupancy patterns influenced by seasonal trends and local dynamics. Properties that maintain high guest satisfaction scores and implement strategic pricing consistently achieve stronger occupancy rates. Current market data shows:
- Typical properties (median) maintain 46% occupancy rates
- Strong performing properties (top 25%) achieve 69% or higher
- Best-in-class properties (top 10%) reach 83%+occupancy
- Entry-level properties (bottom 25%) average around 21%
Occupancy Variations by Month
Average Daily Rates Seasonal Trends in Palermo
Daily rates in Palermo vary based on seasonality, property quality, and market dynamics. Properties that effectively balance competitive pricing with strong amenities typically command higher rates. Market analysis shows the following rate structure:
- Typical properties (median) generate $86 per night
- Strong performing properties (top 25%) secure $121 or more
- Best-in-class properties (top 10%) pull in $183+ per night
- Entry-level properties (bottom 25%) earn around $63
Daily Rate Variations by Month
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Seasonality patterns in Palermo
Peak Season (May, August, June)
- Revenue peaks at $2277.54 per month
- Occupancy rates reach 61.07%
- Daily rates average $120.50
Shoulder Season
- Revenue averages $1700.09 per month
- Occupancy maintains 45.60%
- Daily rates hold at $111.63
Low Season (November, December, January)
- Revenue drops to $756.38 per month
- Occupancy decreases to 25.37%
- Daily rates adjust to $104.71
Is it still profitable to do Airbnb in Palermo in 2025?
Yes! Palermo demonstrates highly seasonal trends requiring strategic adaptation, featuring a healthy occupancy rate of 46% and solid monthly revenue averaging $1700 and As a mature market with 4717 active listings, there's strong demand despite the competition. There's also room for profit through rental arbitrage strategies, if you can identify competitively priced properties. To maximize your return on investment, consider employing the following strategies:
Peak Season Strategy
- Implement premium seasonal pricing strategies
- Set longer minimum stay requirements during high-demand periods
- Enforce stricter cancellation policies
Shoulder Season Strategy
- Maintain competitive market-based pricing
- Offer moderate-length stay incentives
- Target a mix of leisure and business travelers with flexible booking terms
- Focus on weekend getaway packages and mid-week business traveler promotions
Low Season Strategy
- Adjust pricing to remain competitive in the market
- Target different guest segments (business travelers, long-term stays, holiday visitors, event attendees, remote workers)
- Create targeted promotional campaigns to drive occupancy
Top Places to Start Airbnb in Palermo
| Area | Why Choose This Area | Key Attractions |
|---|---|---|
| La Kalsa | Historic neighborhood with a blend of Arabic, Norman, and Baroque architecture. Popular with tourists for its rich history and culture, it's close to major attractions. | Palermo Cathedral, Palazzo dei Normanni, Quattro Canti, Ballarò Market, Martorana Church |
| Old Town (Centro Storico) | The heart of Palermo filled with narrow streets, markets, and historic buildings. It’s perfect for tourists wanting to experience the local culture and cuisine. | Teatro Massimo, Piazza Pretoria, Cappella Palatina, Via Maqueda, Ballarò |
| Mondello | Charming beach town known for its beautiful sandy beaches and clear waters. Attracts sun-lovers and families looking for a seaside retreat. | Mondello Beach, Capo Gallo Reserve, Stabilimento Balneare, Tonnara di Mondello, Lido di Mondello |
| Ballarò | Famous for its vibrant street market, this area offers an authentic experience of local life and great food. Ideal for those wanting to immerse themselves in local culture. | Ballarò Market, Church of San Giovanni degli Eremiti, Palace of the Normans, Oratorio di Santa Cita, San Francesco d'Assisi |
| Castellammare del Golfo | A picturesque coastal area popular with visitors for its beautiful landscapes, beaches, and proximity to historical sites. Great for tourists seeking relaxation and adventure. | Zingaro Nature Reserve, Tonnara di Scopello, Castello di Venere, Baia dei Faraglioni, Scopello |
| Politeama | Centrally located and bustling with shops, theaters, and dining options. Good for visitors who want easy access to cultural attractions and public transport. | Politeama Theatre, Corso Vittorio Emanuele, Piazza Castelnuovo, Via Ruggero Settimo, Mercato di Palermo |
| Borgo Vecchio | A lively neighborhood known for its authentic local atmosphere, food stalls, and vibrant nightlife. Ideal for visitors seeking a more local and less touristy experience. | Mercato del Borgo Vecchio, Church of Santa Maria di Gesù, Via Dante, Street food scene, Local restaurants |
| Falde del Monte Pellegrino | Known for its stunning natural beauty, hiking trails, and panoramic views of the city. Attracts nature lovers and those looking for a tranquil getaway from the urban hustle. | Monte Pellegrino, Santuario di Santa Rosalia, Lido di Mondello, Riserva Naturale Orientata, panoramic viewpoints |
Do you need a license for Airbnb in Palermo?
Yes, Palermo requires a license for operating an Airbnb. Current market data shows 62% of active listings maintain proper licensing, confirming this requirement. Getting licensed is an essential first step before listing your property.
Top Performing Airbnb Properties in Palermo
![[Mondello] house in villa-700m from the sea](https://a0.muscache.com/im/pictures/af346db3-aff6-4bc4-b04b-877e019279c1.jpg)
[Mondello] house in villa-700m from the sea
Entire Place • 2 bedrooms
BB22 Palace - Charming rooms and apartments
Entire Place • 4 bedrooms
Lille, Art Nouveau villa a few steps from Mondello.
Entire Place • 4 bedrooms
Villa Sul Mare Vicino Il Centro di Palermo
Entire Place • 6 bedrooms
DM house
Entire Place • 2 bedrooms
Apartments Vista Mare for Groups
Entire Place • 8 bedrooms
Top Performing Professional Hosts in Palermo
| Host Name | Properties | Grossing Revenue | Stay Reviews | Avg Rating |
|---|---|---|---|---|
| Wonderful Italy Sicilia | 165 | $3,822,294 | 3707 | 3.75/5.0 |
| Welcome To Italy | 92 | $1,750,483 | 2454 | 4.08/5.0 |
| DomuSicily | 31 | $950,883 | 598 | 3.70/5.0 |
| Fabian | 40 | $563,427 | 521 | 3.93/5.0 |
| Rosario | 16 | $473,476 | 1779 | 4.95/5.0 |
| DomuSicily | 25 | $430,830 | 353 | 3.53/5.0 |
| Sofia'S House | 35 | $334,722 | 578 | 2.05/5.0 |
| Nicoletta | 6 | $247,952 | 400 | 4.88/5.0 |
| Marco | 3 | $223,857 | 51 | 4.76/5.0 |
| Luca | 1 | $223,503 | 10 | 5.00/5.0 |
Additional analytics on vacation rental, real estate, short term rental data in Palermo
AirROI also have other key metrics and comprehensive data for your vacation rental, real estate needs. Go explore the advanced metrics that can help you make informed decisions:
Room Type Distribution
Property Type Distribution
Key Insights
- Market dominated by entire home listings (79.9%), with apartment & condo and house properties comprising 93.5% of inventory
- Untapped potential in others, outdoor & mobile segments (0.8% combined)
Room Capacity Distribution
Analysis of 4,717 properties in Palermo shows that 1 bedroom properties are most prevalent, making up 51.9% of the market. The market tends to favor smaller properties, with 1 bedroom and 2 bedrooms together representing 77.5% of all listings.
Key Insights
- Most common: 1 bedroom (51.9%)
- Least common: 5+ bedrooms (0.9%)
- Market concentration: 77.5% in top 2 sizes
- Market skew: Favors smaller properties
Guest Capacity Distribution
Analysis of 4,717 properties in Palermo reveals that 4 guests properties dominate the market, representing 32.2% of all listings. The average property accommodates 3.6 guests, with a clear trend towards larger guest capacities. Properties accommodating 4 guests and 2 guests make up 52.5% of the market.
Key Insights
- Most common capacity: 4 guests (32.2% of market)
- Least common capacity: 1 guest (0.6% of market)
- Average guest capacity: 3.6 guests per property
- Market concentration: 52.5% in top 2 capacity sizes
- Market segmentation: Predominantly larger guest capacities
Booking and Availability Patterns
Available Days Distribution
Booked Days Distribution
Among 4,717 properties in Palermo, the most common availability pattern is 271-366 days (41.5% of properties). For actual bookings, properties most frequently secure bookings for 91-180 days (27.8% of properties).
Key Insights
- Most common availability window: 271-366 days (41.5%)
- Most common booking duration: 91-180 days (27.8%)
- Properties with high availability (180+ days): 69.3%
- Properties with long-term bookings (180+ days): 32.3%
Minimum Stay Distributions
1 Night
1216 listings
28.5% of total
2 Nights
1779 listings
41.7% of total
3 Nights
786 listings
18.4% of total
4-6 Nights
238 listings
5.6% of total
7-29 Nights
48 listings
1.1% of total
30+ Nights
201 listings
4.7% of total
Key Insights
- Short stays (1-2 nights) dominate the market at 70.2%
- Mid-length stays (4-6 nights) represent 5.6% of listings
- Monthly+ stays (4.7%) suggest a stable extended-stay market
- High market flexibility with 88.6% accepting 3 nights or less
Recommendations
- Set minimum stays between 2-3 nights to align with market standards
- Adjust minimum stays seasonally based on demand patterns
- Implement different minimum stays for weekends vs. weekdays
Cancellation Policy Distribution
Super Strict 30 Days
52 listings
1.3% of total
Super Strict 60 Days
19 listings
0.5% of total
Flexible
1288 listings
33.3% of total
Moderate
1951 listings
50.4% of total
Strict
559 listings
14.4% of total
Key Insights
- Moderate is the preferred policy at 50.4% of listings
- Guest-friendly policies (Flexible & Moderate) dominate at 83.7% of the market
- Strong market consensus around Moderate policies
- Super Strict 60 Days policies are least common at 0.5% of listings
Recommendations
- Consider starting with a Moderate policy to align with market preferences
- Strong market preference for Moderate policies suggests this should be your baseline
- Consider generous cancellation terms as a competitive advantage
- Strict policies are rare - carefully consider the impact on bookings before implementing
Booking Lead Time Trends
Key Insights
- Peak booking lead times occur in May, Jun, Jul, averaging 64 days
- Shortest booking windows are in Nov, Dec, Jan, averaging 40 days
- Summer shows the longest average booking window at 61 days, while Winter has the shortest at 40 days
Recommendations
- Implement dynamic pricing strategies for Summer bookings at least 61 days in advance
- Consider early bird discounts during Winter to encourage longer lead times
- Focus on last-minute booking promotions during Nov-Jan when lead times are shortest
Popular Airbnb Amenities in Palermo
Below is the distribution of amenities across listings in Palermo:
Traveler Demographics
Key Insights
- Domestic travelers make up 10.7% of total guests, indicating a mostly international-driven market.
- Primary international markets: Germany (22.1%) and United States (20.4%)
- English is the top language at 48.3%, followed by French (15.9%)
- Notable demographic segment in <=1950s (Pre-1950s (Silent Gen)) at 8.0%
Recommendations
- Target marketing campaigns for London and Paris markets
- Develop localized content for Germany and United States
- Prioritize English and French language support
- Tailor experiences for Pre-1950s (Silent Gen) while maintaining broad age appeal
- Implement seasonal promotions aligned with key market travel patterns
Nearby Markets
Explore short-term rental performance in markets surrounding Palermo. These nearby markets offer diverse opportunities for property investors and hosts:
| Market | Properties | Monthly Revenue | Daily Rate | Occupancy |
|---|---|---|---|---|
| Partinico | 119 | $2,084 | $314.61 | 37% |
| Santa Flavia | 185 | $1,826 | $164.78 | 46% |
| Cefalù | 1,083 | $1,792 | $190.10 | 46% |
| Collesano | 46 | $1,688 | $240.30 | 37% |
| San Marco d'Alunzio | 13 | $1,687 | $182.14 | 35% |
| Acquedolci | 30 | $1,683 | $199.00 | 40% |
| Altavilla Milicia | 79 | $1,624 | $215.09 | 41% |
| Mistretta | 10 | $1,615 | $154.62 | 37% |
| Marausa | 18 | $1,608 | $322.77 | 28% |
| Buseto Palizzolo | 37 | $1,588 | $253.43 | 35% |
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