Tenerife

As of May 2026, Tenerife, Santa Cruz de Tenerife, Playa de las Américas, Puerto de la Cruz have 11,674 active Airbnb and VRBO listings. This represents a 13% decrease from the previous year.

The average Airbnb or VRBO in Tenerife generates €25K per year. High-performing properties earn €59K/year, while low-performing properties earn €11K/year. This massive revenue spread suggests that market success is heavily skewed toward top-tier assets, as the declining supply has yet to meaningfully lift the performance of bottom-quartile listings.

Airbnb and VRBO can be profitable in Tenerife. Average annual revenue is €25K with 48% occupancy. High-performing properties earn up to €59K/year. The 48% occupancy rate against a contracting supply base highlights a market where consistent demand is concentrated in specific segments rather than distributed broadly across all available inventory.

The average occupancy rate for Airbnbs and VRBOs in Tenerife is 48%. This occupancy level, combined with an average nightly rate of €153, results in a RevPAR (revenue per available room) of €47 per day.

4+ bedroom properties demonstrate the strongest performance in Tenerife, with annual revenue of €64K. These properties balance operating costs and rental demand most effectively in the Tenerife market. Property performance varies significantly by location, amenities, and management quality.

Short-term rental regulations vary by jurisdiction in the Tenerife area. Tenerife (Canary Islands): Moderate. VV registration number mandatory, tourist license required, property standards enforced. Regional government actively monitors platforms and issues fines for non-compliance. Santa Cruz de Tenerife: Moderate. Same regional VV requirements apply. Municipality checks registrations. Enforcement exists but inconsistent - unlicensed properties operate but risk penalties. Playa de las Américas: Moderate. Tourist zone with high short-term rental activity. VV license required. Enforcement moderate - many comply due to visible tourist presence and inspections. Puerto de la Cruz: Moderate. VV registration mandatory. Historic tourist town with established compliance culture. Enforcement present but focuses on egregious violations rather than systematic checks. Always verify current regulations with local authorities and obtain necessary permits before operating a short-term rental.

The Tenerife Airbnb and VRBO market is currently showing balanced conditions. Supply has declined 13% year-over-year, while RevPAR has decreased 2%. This indicates balanced supply-demand dynamics. These metrics point to a stabilization phase where the contraction in inventory is effectively offsetting broader downward pressure on per-unit revenue generation.

Launch around November, 2-3 months before peak winter season (February peaks). This pre-peak timing lets you build reviews when competition is 8% lower than peak months. Avoid launching during peak season when established listings dominate, or slow months (September-May) when gaining traction is harder.

The most common amenities in Tenerife listings include: Kitchen (95%), Washing Machine (92%), Tv (84%), Balcony (64%), Pool (56%). Amenities that boost revenue the most include Hot Tub, Bbq, Air Conditioning, with Hot Tub properties earning approximately 59% more (€47K/year vs €29K/year).

Monthly estimated revenue per listing in Tenerife over the last 12 months: May: €853, June: €843, July: €976, August: €1K, September: €930, October: €1K, November: €2K, December: €2K, January: €2K, February: €2K, March: €2K, April: €1K. These figures are based on RevPAR (revenue per available room) multiplied by the number of days in each month.

The overall average nightly rate in Tenerife is €153, up 30% year-over-year. By property size: 1-bedroom properties average €109/night, 2-bedroom properties average €151/night, 3-bedroom properties average €226/night, 4+ bedroom properties average €475/night. Rates peak in December and are lowest in May.

Guests in Tenerife book an average of 41 days in advance, down 24% from last year. By property size: 1-bedroom: 39 days, 2-bedroom: 42 days, 3-bedroom: 44 days, 4+ bedroom: 49 days. Larger properties tend to have longer booking windows as guests plan group trips further ahead.

Over the past year, the Tenerife Airbnb and VRBO market has seen the following changes: supply declined 13%, revenue per listing decreased 2%, occupancy fell 9%, average nightly rates increased 30%, and lead time decreased 24%. The sharp rise in nightly rates despite falling occupancy signals a shift toward shorter booking windows and more aggressive pricing strategies.

In Tenerife, Saturday sees the highest booking demand while Tuesday has the lowest. Nightly rates peak on Friday and are lowest on Wednesday. Weekends show 8% higher occupancy than weekdays.