As Summer starts to give way to Fall, the short-term rental market also begins a period of adjustment. We decided to take a look at how things are shaking out in Portugal.
- Lisbon appears to be keeping up with 2019 booking pace
- The lead time booking pace for Faro and Porto is over 50% for the next three weeks
- Lagos is booking up in the next three weeks with an additional bump in pickup for October
- For Madeira, 2021 booking pace is in line with 2019, with a few select weeks pacing higher than 2019
- Property managers who have not seen an increase in bookings for September and October this year need not worry as the market is pacing well in line with 2019 data
Within Portugal, for example, the chart above displays the average number of bookings that have been made per listing over the past 21 days for both 2020 and 2021. Using 2019 pace data helps provide insight into how 2021 is performing so far compared to a “normal” year.
In Lisbon, Faro, Porto, Lagos, and Madeira, the charts below display all bookings that have been made over the past 21 days by their check-in week.
Additionally, the same values for 2019 are included to provide pacing context for each market.
In the Lisbon market, last-minute booking pace for the next three weeks has met or surpassed the same time period in 2019. This market has experienced shorter booking lead times that have been sustained since the start of the pandemic. It’s increasing, however, through the end of summer as more travelers are looking to book last-minute than they have in the past year.
As booking pace recovers, property managers who have not seen an increase in bookings for September and October this year need not worry as the market is pacing well in line with 2019 data.
Faro & Porto
In the Faro and Porto markets, over 50% of booking pace lead time for the next three weeks is under one month. Both markets show that booking pace is in line with 2019 for the next month. The Porto market in particular has historically experienced shorter booking lead times that have been sustained since the start of the pandemic. At the same time in 2019, more people were booking their travels further out in September and August.
We advise that summer is anticipated to perform ahead of pick-up trends, but travel demand for the market is not at full recovery compared to 2019 data. Property managers should keep an eye on their latest booking lead time data as the market heads into the final days of summer and last-minute bookings drive occupancy.
Performance in the Lagos market shows vast recovery in the short term compared to 2019. Similar to Faro and Porto, booking lead time of up to 3-4 weeks out climbs ahead of 2019 while 1-2 months out has some growth opportunities.
Overall, the Lagos market is booking up in the next three weeks with an additional bump in pickup for October. We can see that this is an improved pattern compared to a “normal” year and already exceeding 2019 in some periods.
For the Madeira market, 2021 booking pace is either ahead or in line with 2019, with a few select weeks pacing higher than 2019. The chart shows that this year’s booking lead times are slightly longer for immediate weeks while travelers were booking further in advance (2 to 5 weeks out) than 2019.
Madeira mid-summer performance by month is ahead compared to the same time period in 2019. As booking pace recovers, property managers that have not seen an increase in bookings for mid October this year need not worry as the market is pacing well in line with 2019 data.
With government regulations changing, be sure to stay on top of your pricing strategy in order to maintain current market demand and prepare for the future. With Portugal’s eased travel restrictions and access to vaccinations, changes in travel demand are on the horizon.
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