More Tourists Flying into Portugal This Year – Is Your Lagos Holiday Home Ready?
Faro Airport has seen a significant surge in tourist arrivals in the first half of 2025, with passenger numbers climbing by 2.4% in the first quarter compared to last year. Additionally, tourism contributed over €26 billion to Portugal’s economy in the first half of the year alone, according to The Portugal News—a figure projected to surpass €62 billion by year-end.
With expanded low-cost routes from airlines like Ryanair and Transavia, visitors are finding it easier than ever to reach the Algarve. For property owners in Lagos, this ongoing tourism growth presents a key opportunity to optimise holiday rental performance.
What This Means for Lagos Holiday Homeowners
At Resort Rentals Algarve, we’re seeing firsthand how increased visitor numbers are translating into higher demand for quality rental properties in Lagos. For homeowners, this shift offers several key benefits:
- Maximising occupancy rates: More visitors generally means greater competition for quality, professionally managed rentals.
- Increasing rental income: Properties offering strong amenities, reliable guest services, and professional oversight often command higher nightly rates.
- Enhancing long-term property value: Rentals that are consistently maintained and professionally marketed typically see stronger appreciation.
Key Guest Markets in Lagos
Successful holiday rentals are designed around evolving guest expectations. From our experience managing properties in Lagos, we’ve observed several emerging trends across different visitor groups:
- Comfort and convenience remain top priorities, especially for guests seeking stress-free stays - this often includes easy parking, clear check-in processes, and practical amenities.
- Sustainability matters to an increasing number of travellers, with many guests now valuing eco-friendly design features, energy-efficient appliances, and responsible waste management. Interest in properties with outdoor living spaces and natural surroundings is also growing.
- Proximity and authenticity drive bookings. Guests are increasingly seeking walkable locations and authentic local experiences. Providing curated area guides or insider recommendations can enhance guest satisfaction and encourage repeat visits.
Standing Out in a Growing Market
With more properties entering the Algarve rental pool, strategic management has never been more important. Owners working with experienced management teams typically benefit from:
Managing Seasonality
- Targeting digital nomads and long-stay guests in the winter season.
- Offering niche packages (such as golf partnerships or wellness retreats) to diversify off-peak bookings, something a property manager can help facilitate.
- Structuring competitive long-stay pricing models to secure steady occupancy during quieter months.
Handling Guest Feedback Professionally
- Responding promptly and diplomatically to reviews is now standard practice in professional management.
- Addressing issues consistently protects your reputation and improves future bookings.
Seasonal Pricing Strategies
- Professional teams monitor local demand and competitor pricing regularly, adjusting rates accordingly to maximise bookings.
Conclusion
With Algarve tourism booming, owners of Lagos holiday homes are well-positioned to capitalise, but only if properties are managed proactively and professionally. With seasonal pricing and year-round marketing efforts, having a dedicated management strategy is key to turning visitor growth into rental success.
At Resort Rentals Algarve, we see the difference that professional oversight can make for property owners seeking to maximise their rental’s potential in this expanding market.
