After almost a full year living in a pandemic, a question that is certainly important to ask is: what are the expectations for tourism this year? After all, the sector moves millions and millions of euros annually and reflects the work, directly or indirectly, of many diverse areas. In the midst of so many uncertainties, it is difficult to stipulate when the recovery will really take off. According to experts, the expectations of still having a busy summer in 2021 are quite good.
To better understand the market, we present in this piece an interview with LovelyStay’s Head of Revenue Management, Arthur Lepoutre. Read it and take the chance to clear your doubts!
LovelyStay (LS): Although we are still living through a pandemic, what are the expectations for tourism in this first semester of the year?
Arthur Lepoutre (AL): Portugal is currently very much affected by COVID-19 and its variants. According to the government, the general confinement should last until March.
Considering these factors and looking at neighboring countries such as Spain and Italy, we can foresee a recovery in tourism in April, increasing progressively from May to July with air traffic between 45% and 60% compared to 2019.
Take a look at the different air traffic scenarios by the end of June 2021 compared to 2019.
LS: What are the projections for the increase in tourism worldwide?
AL: According to Eurocontrol and the International Air Transport Organization, there are 3 types of scenarios. The most optimistic is 1, which foresees tourism picking up at the level of 2019 through 2024. In this projection, the outlook is that air traffic should be between 73% and 89% of the 2019 level between 2021 and 2022.
For scenario , the fact that vaccination will be widely available by summer 2021 was taken into account, in addition to testing capabilities for passengers, and considering that airlines will be able to invest and resume several long-haul flights.
See the chart below:
LS: With travel restrictions, will domestic tourism be an option, just as it was last year?
AL: In fact, last year domestic tourism was excellent, especially in the Algarve and rural areas. This new trend should remain strong even with fewer flight restrictions.
This is the main reason why our commercial team is expanding our portfolio in the rural areas of Portugal. If you have a touristic property in or outside the big cities, LovelyStay can help you manage it. For more information: sales@lovelystay.com.
LS: What is the profile of tourists nowadays?
AL: Nowadays, tourists are young travellers, mainly groups of friends, couples, remote workers, and digital nomads, interested in enjoying the sun and the lifestyle offered by Portugal. In addition, we can consider that business travellers still account for a considerable volume of bookings at our properties, mainly in Lisbon and Porto.
Last year, LovelyStay alone received over 24,000 guests, mainly from France, Germany, Spain, the UK, Italy and the Netherlands.
LS: Many of our owners are eager to know: what is LovelyStay’s situation right now? Explain the company’s strategies to overcome the crisis.
AL: LovelyStay is doing an admirable job in overcoming the market.
Since the beginning of COVID-19 we have had a hybrid strategy (short and medium term rentals) that guarantees a high occupancy rate and revenue results that exceed the market by +140%.
Our team has stuck together to adapt our rental solution to the volatility of market demand by offering competitive pricing, promotions for longer bookings, adapting cancellation policies, creating ads on conventional rental platforms (such as OLX and Idealista), and tracking demand through daily air traffic monitoring.
Meanwhile, we have collected a lot of performance data on market trends during this health crisis and its constraints in order to be more than prepared for the future.
Did you like this information? Although the market is more unstable, we are sure that we will soon be back to our routines. Keep following us!
Translated by Miguel Marinho Soares
LovelyStay
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