Vacation Rentals on Mallorca: Fewer Guests, Higher Earnings – A Mixed Balance 2025

Good numbers, strange feeling: How the season went for private landlords

On a warm October morning at Mercado de l'Olivar you can hear the usual conversations: cafes fill up, a taxi driver mutters quietly about traffic on Via Roma, and somewhere a landlord is on the phone about the latest booking. Behind these everyday scenes lies for many hosts a surprisingly stable balance: The number of bookings declined slightly over the year, but revenues stayed on track – or even rose.

Fewer bookings, higher prices

From various industry circles, one hears that bookings have fallen by around five percent. At the same time, many owners have increased prices by roughly ten percent on average. The result may seem paradoxical, but it fits the picture of a market rebalancing after the pandemic: fewer guests, but more revenue per overnight stay.

Why? Part of the explanation lies in the flexibility of travelers. Today people book later, cancel more often, and some dates shift in the last weeks before the trip. This is felt especially in July, say landlords, while August ran more steadily again. Add to that local protests against overtourism and the problem of illegal listings that dampen occupancy for some reputable providers.

Autumn prices fall – opportunities for spontaneous travelers

Seasonality remains clearly visible: autumn brings noticeably lower nightly prices. In studies, the average price for October was just under 200 euros per night – significantly lower than in midsummer. Palma remains more expensive than many places in the east or north, but prices also fall sharply here.

Many hosts react pragmatically: discounts for longer stays, reduced off-season rates, or year-round renting are no longer unusual. Some even actively connect visitors with longer stays outside peak holiday season – this yields less margin, but steadier booking streams.

What does this mean for guests and residents?

For travelers this means: those who are flexible will find significantly better deals in October or November. For the island, however, challenges remain: regulation against illegal rentals, better protection for neighborhoods, and a balance between earnings and quality of life. Hosts who invest in clear communication and service currently seem to navigate the volatile season best.

The summer of 2025 has shown: the market is changing – slowly, but noticeably. For Mallorca's vacation rental hosts, it's time to respond cleverly: prices, availability, and the reputation of the accommodation matter more than ever.