Host Wise was represented by our CEO, Renato Chainho, at the 1st ALEP National Congress, held between the 1st and 2nd of October at Alfândega do Porto. At the event, leading experts from the vacation rental industry came together to discuss strategies and future trends, with a special emphasis on maximizing revenue and optimizing prices.
Reflections on the Panel “Growth x Efficiency: What is happening with the market and price management?”
During the congress, the CEO of Host Wise participated in a panel discussion dedicated to the topic “Growth x Efficiency: What is happening with the market and price management?” moderated by Fausto Vieira da Silva, Strategic Partnership Lead at Pricelabs. Among the topics covered, the following stand out:
Opportunity for Differentiation in the Market
It was evident that the vacation rental pricing market is still relatively immature. According to data presented by PriceLabs, only 13% of properties use dynamic pricing, and 27% maintain static prices throughout the year. These numbers indicate a huge opportunity for those taking a strategic approach to revenue management, like Host Wise.
Demand Trends vs. Offer for 2025
PriceLabs projects a drop in occupancy for 2025 due to supply growing faster than demand. This data highlights the importance of adopting adaptive pricing strategies to mitigate income and occupancy rate pressure.
Revenue optimization is critical to getting the most out of and profitability from the AL farm.
In this sense, Host Wise maintains its investment policy, relying on the best professionals and technology on the market. This is a differentiating factor that allows it to achieve above-average occupancy and revenue.
Renato Chainho, CEO of Host Wise
Key Insights from the PriceLabs Report
Based on the PriceLabs report presented at the congress, here are the most relevant data and trends for the vacation rental market in Portugal, with potential impact on the management of your properties:
Listing Growth and Occupancy
11% increase in listings
The vacation rental market in Portugal recorded significant growth in the number of listings last year, signaling greater competition.
Demand is slightly higher than the 2022 occupancy
Overall occupancy suffered a slight drop of 1%, which may be related to the accelerated growth in supply.
ADR in Growth
Revenue per occupied room (ADR) increased by 10%, showing that price adjustments are possible even with a slight drop in occupancy.
Projections for 2024-2025
Descent Occupation for 2025
PriceLabs predicts a further drop in occupancy for 2025, driven by slowing demand compared to supply. This factor indicates that dynamic tariff management will be essential to maintain competitiveness and maximize income.
ADR Expectations
Despite pressure on occupancy, ADR should continue to rise as demand for quality experiences justifies a higher price level.
Dynamic Pricing Strategies
Performance of Dynamically Priced Properties
Properties that apply dynamic pricing strategies experience up to 40% higher occupancy and better overall performance. Currently, only 44% of listings in Portugal use dynamic pricing.
Impact of Competition on Pricing
The PriceLabs study highlights the importance of monitoring competition when defining pricing strategies, as supply pressure can affect prices and occupancy. For 2025, an even more agile adaptation of tariffs, taking into account the dynamics of demand and supply, is recommended.
Seasonality Analysis and Regional Trends
Porto and Algarve as reference destinations
Porto and the Algarve remain areas of intense demand but have different seasonal patterns. These regions stand out for their high yield potential during the high season but also face challenges in the low season.
Well marked seasonality
To maximize revenue, PriceLabs suggests seasonal adjustments to rates, increasing them during peak periods (spring and summer) and offering attractive discounts in the low season to maintain occupancy.
Final Reflection and Perspectives for the Future
This congress reinforced the importance of efficient and technical price management to face increased market supply and fluctuations in demand. With its focused approach to advanced revenue management, Host Wise continues to position itself as an industry leader, optimizing pricing and occupancy to ensure maximum profitability from the properties it manages.
With a dynamic and adaptable strategy, we are prepared to face the future confidently and offer results above the market average.
