What can we learn from short-term rental data from Portugal and other re-opening countries in the aftermath of altered travel restrictions? Here we review how reservations, pricing, summer occupancy and more in Portugal have been impacted by its border relaxation.
On 7th May, following a 19 week ban on international leisure travel, the UK announced their updated ‘green list‘ for unrestricted travel. The inclusion of Portugal, to be official from 17th May, was swiftly followed by the Portuguese declaring that they were relaxing their border restrictions from 17th. Reservations were seen to increase by 18% the following week, and 91% by the end of May. The UK have since reversed their decision and moved Portugal to their amber list. Below we analyse the nuances of the ramifications of these kinds of announcements on short-term rental data from Portugal and get a sense for what re-opening countries should expect.
Demand for Portuguese short-term rentals since announcements
Our first chart allows us to visualise the dearth of reservations through the height of the pandemic. It also allows us to see the uptick around the announcement of a UK travel corridor and relaxed restrictions for international travellers in early June.
Pricing of Portuguese short-term rentals
Interestingly, pricing strategy in Portugal appears to differ from European counterparts. Whilst we have observed large escalations in rates across Europe; including the UK, France, Spain and Italy, Portuguese rates have decreased.
Whilst the increments are minimal, they stand in stark contrast to the 24% average increase across the 12 other European markets, and 9% global increase.
Short-term rental data in Portugal: Summer occupancy
Here we look at the direct impact of the announcement to relax restrictions. These announcements were made during week 18. This year, between weeks 13 and 21, there was a 155% increase in occupancy on the books for July and August. This is double the increase seen during the same period in 2019, and triple that seen in pademic-suffering 2020.
Short-term rental data in Portugal: Current demand
Finally, we should touch on the level of demand currently seen for Portuguese vacation rentals, in the context of the rest of Europe.
The above chart gives a sense of the positive demand seen in Portugal overall. Whilst urban areas lag behind, this map confirms the above findings from short-term rental data from Portugal that demand experienced a significant boom from the point of relaxed restrictions. We will update this post next week with any significant impacts in the wake of a reversal of the UK travel corridor.
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