Key Takeaways
The data presented concerns the hospitality industry’s market performance in Portugal from January 2021 to January 2024.
- Overall, there’s a steady growth in Average Daily Rate (ADR) and Revenue Per Available Room (RevPAR). The ADR grows from 82€ in January 2021 to 109€ in 2024, a significant increase indicating a positive trend in average earnings per room. Similarly, the RevPAR also expanded from 16€ in 2021 to 39€ in 2024, reflecting improved room utilization.
- The occupancy rate fluctuates between 18% to 81%, with peaks seen typically in the summer months of August. This hints at a seasonal popularity in the region.
- The Average Bookings also portray a similar trend, peaking at 4 bookings on several occasions.
- The number of active listings is growing consistently, suggesting an increase in offered accommodations. It rose from 83,892 listings in January 2021 to 107,253 in January 2024.
- In summary, the metrics suggest a flourishing hospitality atmosphere in Portugal, characterized by periodic seasonal influxes but with overall growth in the major parameters of ADR, RevPAR, and active listings.
ADR Summary
The Average Daily Rate (ADR) for Portugal exhibited a clear seasonal trend from January 2021 to January 2024, indicating dynamic market performance. The ADR was initially 82€ in January 2021 and gradually increased, reaching a peak in August each year (139€ in 2021, 168€ in 2022, 173€ in 2023) before declining into the following winter months.
The trend repeats each year, with the ADR rising from the start of the year until August, followed by decreases until the end of the year. This coincides with tourism seasons, a fact evident in the increase in ADR during the warmer months – indicative of a higher demand for accommodation during popular vacation periods and the subsequent drop in chillier months when there is a lower tourism demand.
Overall, it was observed that there is a slight but steady increment in the ADR every year. For example, the ADR peaked at 139€ in August 2021, 168€ in 2022, and 173€ in 2023, showing evidence of a progressive increase each year. However, it would be important to consider other influencing factors, such as inflation or market changes, that may affect these results.
RevPAR Summary
The revenue per available room (RevPAR) in Portugal demonstrated a consistent trend for the period from January 2021 to January 2024. The RevPAR generally displays a seasonal or periodic trend where it starts to increase from the start of the year, reaching its peak in August, then descends until the year-end.
In 2021, the RevPAR began at 16€ in January, gradually climbed to 96€ in August, and then fell back to 34€ in December. A similar trend was noticed in 2022, with RevPAR starting at 27€, peaking at 136€ in August, and declining to 44€ towards the end of the year. In 2023, the RevPAR again followed the same periodic trend, commencing at 38€ in January, achieving its highest at 134€ in August, and reducing to 50€ by December.
This indicates that the summer months (June to August) are likely the peak season for the Portuguese short-term rental industry, as reflected by the highest RevPAR values during this period each year. In contrast, the winter months (November to February) are possibly the off-peak season, with lower RevPAR values. Note that the data is for the entire country as the state or region is unspecified.
Read here: How to Calculate RevPAR.
Occupancy Rate Summary
The data from Portugal from 2021 to 2024 shows a clear seasonal pattern in the occupancy rates. At the beginning of 2021, the occupancy rate started at a low of 20%. It rose consistently to peak at 69% in August 2021, indicating the summer season is likely the peak tourism period. September and October saw a slight decrease, and later, an even more significant reduction was witnessed in the winter months, reaching 36% by December.
The same pattern was observed in 2022, where the lowest occupancy was at the start of the year, at 30% in January, gradually increasing throughout the year to peak at 81% in August before again decreasing in the subsequent months to a low of 42% in December.
In 2023, similar trends were observed, where the occupancy began at 40% in January and peaked at 77% in August, followed by a gradual decrease towards the end of the year to 40% in December.
The data for 2024 is available only for January, which shows occupancy at 36%.
Summarising, these trends suggest a high season from approximately June to August, where occupancy rates are highest, and a low season during the winter months, with the lowest rates often in January. The occupancy rate starts at a low in the winter months and peaks in the summer months, reflecting the seasonal nature of market performance in the region.
Read here: How to Calculate Occupancy Rate.
Avg. Bookings Summary
The past trend for average bookings throughout the country of Portugal showed a pattern with fluctuating yet gradually increasing numbers. Beginning in January 2021, the average bookings were relatively low at 0.8. They increased slightly in March 2021 to 1.2 before seeing a more visible improvement in April and May, where the average bookings rose to 1.5 and 2.8, respectively. The highest average number of bookings in 2021 was in May, with 2.8 bookings.
In 2022, while the booking rate was generally more than the previous year, the overall trend remained somewhat consistent with minor ups and downs, rising during the spring months, peaking in May at 4.0, decreasing in the summer months, and reaching its lowest point in December, at 2.0 bookings.
The same trend seems to continue in 2023, with small fluctuations in bookings throughout the year, yet the average is a bit higher compared to 2022. The bookings peaked at 4.1 in March, decreased in the summer months, and fell to the lowest at 2.2 across December.
By 2024, the data for January showed that average bookings increased significantly to 4.0 bookings, which is relatively high compared to the same period in the previous years.
In summary, while there were fluctuations throughout the years, a seasonal trend can be noticed, with bookings tending to increase around spring, peak around May, decrease through summer and fall, and reach their lowest point during winter, particularly in December. Each year showed a gradual increase in average bookings compared to the previous year, suggesting a slowly growing trend in the short-term rental market performance.
Count of Active Listings Summary
The count of active listings in Portugal saw an increase between January 2021 and June 2021, from 83,892 to 89,102. A slight decline was observed from June 2021 to December 2021, with the count reaching 83,293 by the end of the year. This trend reversed again in 2022, when the number of active listings significantly increased, peaking in December at 94,143 listings.
There was a substantial rise in the listings throughout 2023, particularly notable between May and August 2023, reaching a peak of 108,652 active listings and ending the year noticeably high at 104,613. An overall upward trend continued into January 2024 at 107,253. The count of active listings in Portugal saw a general increasing trend over the provided period, despite some fluctuations, indicating positive market performance regarding accommodation availability.
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