Tourism in Portugal has been registering a notable increase, establishing itself as one of the key drivers of the national economy. This favorable panorama is especially propelling Short-term Rentals, which are increasingly being sought out by travelers who value authentic and personalized experiences.
It is in this constantly evolving scenario that LovelyStay distinguishes itself by combining innovation, professional management and a constant dedication to guests and owners. Our flexible and transparent approach allows us to anticipate trends and respond effectively to the challenges of a rapidly changing market.
In this post, we invite you to explore an exclusive interview with our Revenue Manager, where we analyze the strategies and prospects for the future of tourism in Portugal, as well as the constant variations in the market. Find out how LovelyStay is positioning itself to seize opportunities and consolidate its leadership in this sector, guaranteeing excellent service and efficient management.
The tourism sector in Portugal recorded an increase in revenue at the beginning of 2025 compared to 2024. Did LovelyStay follow this trend? What were your strategies?
Revenue Manager: Yes, we have followed this trend and have seen a significant increase in bookings, especially from European and American markets and also from Asian countries such as China, Japan and South Korea.
To take advantage of this growth, our Revenue Management team acted proactively, implementing strategies as early as 2024 to reduce nights available at the last minute and guarantee a high occupancy rate at the start of 2025.
Were there any specific factors that contributed to the growth of our bookings during this period?
RM: Anticipating demand has been crucial in boosting our bookings, reducing the number of nights available that have to be booked at the last minute. At the same time, we invested in medium and long-term strategies, focusing on attracting digital nomads and remote workers who choose Portugal for its mild climate and quality of life. Another relevant factor was the increase in the number of flights to Lisbon and Porto, compared to the same period in 2024, which contributed significantly to the growth in bookings.
Despite the general growth, some areas have registered a lower demand. Has LovelyStay felt this impact? If so, in which regions?
RM: Yes, we have endeed faced some challenges in the urban market, especially in the studio and one-bedroom segment in Porto, where supply has increased with the entry of new serviced apartments and hotels, intensifying competition. Even so, we managed to maintain the occupancy rate and a stable performance compared to 2024, which reinforces the effectiveness of our strategies and the solidity of our position in the market.
How does the company adapt to these discrepancies in demand? Are there any specific strategies for periods of lower affluence?
RM: To deal with these fluctuations, we rely on discounts for early bookings and promotions for extended stays, in order to attract longer-term bookings. In some cases, we’ve also opted to accept monthly stays for digital nomads and remote workers.
In addition, we adjusted our cancellation policies, giving guests more flexibility in planning their trips. This approach has not only encouraged bookings in periods of lower demand, but has also strengthened our customers’ loyalty.
Some projections indicate that tourism in Portugal in 2025 should maintain a similar pace to that of 2024 in Short-term Rentals. Does LovelyStay share this opinion?
Although we understand this outlook, we believe that 2025 could surpass 2024 in terms of demand. We expect a particularly significant increase in bookings for properties with more than two bedrooms, ideal for families and groups, as well as a growing demand for premium accommodation, with careful design and differentiating experiences. Travelers are increasingly looking for something unique – and we are prepared to respond to this trend.
What trends and challenges do you expect to encounter this year, especially in the high tourist season?
GR: Faced with high demand, we are preparing for the summer with a balanced strategy: maximizing revenue without raising fares excessively, especially in Lisbon and Porto. In 2025, we will continue to focus on anticipating and optimizing prices, while maintaining a competitive position in the market.
LovelyStay’s revenues grew by 50% in 2024. What were the main factors driving this performance and which strategies had the greatest impact?
RM: Our 50% revenue growth in 2024 was driven by a combination of strategic factors. We would highlight the 26.7% expansion of the portfolio and the strong performance in various regions: +37.4% in Madeira, +4.8% in Lisbon and Porto, and +3.6% in leisure destinations such as the Algarve.
Tourist demand remained stable, with a slight increase compared to 2023, and we were able to capitalize on this trend by diversifying our pricing strategies and managing available room nights more efficiently. We also strengthened the Revenue Management team with three new integrations, which allowed us to fine-tune pricing and maximize bookings. For 2025, the goal is to exceed 70 million euros in revenue, maintaining solid and sustainable growth.
Why LovelyStay?
LovelyStay is the right partner for those who want to maximize their property’s income. We combine technology, experience in the national market and revenue management strategies to ensure high occupancy and greater profitability. We offer a complete, personalized and uncomplicated service, adapted to the profile of each owner.
