U.S. Tourists Fuel Portugal’s Holiday Rental Market for Summer 2025
Portugal is in the middle of another booming summer season, and the demand for holiday rentals in Portugal is rising fast especially among North American travellers. According to the latest data from Sojern, a global tourism analytics platform, Portugal is experiencing a 7% increase in flight bookings and a 13% surge in hotel bookings during this summer. So, what’s driving this spike and why are holiday rentals becoming a preferred option over traditional hotels?
American Travellers to Lead the Way?
The US market is showing consistent growth in interest for Portugal. Since Easter 2025, Sojern reports that over 16% of flight bookings have come from American tourists. With Lisbon and Porto remaining top urban destinations, Faro has also emerged as a significant entry point to the Algarve, capturing over 14% of flight bookings.
This trend signals a wider shift. Travellers are increasingly seeking independent stays that allow more flexibility, space and privacy. That’s where holiday rentals come in.
Why Holiday Rentals Are Popular Over Hotels
Holiday rentals in Portugal, especially in popular regions like the Algarve, offer more than just a place to sleep. Visitors are now prioritising amenities such as private pools, outdoor terraces, proximity to beaches, and fully equipped kitchens - benefits that traditional hotel stays often lack.
This is especially relevant for:
- Families and groups looking for cost-effective accommodation
- Remote workers extending their stays
- Retirees or digital nomads who want to explore the region long-term
Algarve in the Spotlight
Although Lisbon and Porto top the charts in bookings, the Algarve continues to be a major draw, the region consistently attracts tourists from across Europe and beyond.
Cities like Lagos are seeing consistent rises in interest not only for summer getaways but also for long-stay visits. With the Algarve offering a wide selection of holiday rentals, it has become synonymous with flexibility and comfort.
If you're considering renting out your property or planning a visit, this is the right moment. Increased U.S. interest means more international exposure, and the Algarve is ready to capitalise on it.
What Types of Holiday Rentals Are in Demand?
As demand for holiday rentals in Portugal continues to be on the up, certain types of properties are standing out among U.S. travellers. Spacious villas with private pools are a top choice, particularly in the Algarve, where sun, sea and space come together to create an ideal summer retreat. These properties offer comfort and privacy that appeal to both families and groups of friends travelling together.
Apartments in centres like Lagos are also in demand, especially those with balconies, modern amenities and walkable access to cultural attractions, cafes and public transport. For travellers staying longer, such as digital nomads or retirees, properties with home offices, fast Wi-Fi, and proximity to co-working spaces are increasingly sought-after, this is one to consider if you’re thinking about renting out your property in the medium-term too.
Planning Ahead for Summer 2026?
The 2025 travel landscape is also shaped by broader trends such as “coolcations” (trips to cooler destinations like Iceland or Norway). But tourism in Portugal remains strong due to its well-balanced appeal, sun, safety and value. With the demand seemingly ever-increasing, it may be a good time to start considering snapping up the best properties for your next summer trip.
In such a competitive market, travellers are encouraged to book early. The sharp rise in early flight and accommodation bookings suggests a tighter rental market ahead. For property owners, this is the time to optimise listings, update amenities and prepare for peak season.
