Ponta Delgada, Portugal, Sept. 28, 2026 (Lusa) - Short-term rental accommodation, one of the tourism sectors most affected by Ryanair's withdrawal from the Azores, expects 2026 to be one of the worst years ever, as revenue is expected to decline and guest numbers are projected to fall amid rising inflation.
«We've reached the end of the summer with businesses seeing lower revenues and record-high costs, because companies are seeing their bills rise, largely due to inflation, energy costs and labour costs too. As revenue is not increasing at the same rate, we are set to see the most challenging results on record for local accommodation businesses this year,» João Pinheiro, president of the Azores short-term rental accommodation Association (ALA), told the Lusa news agency.
Since October, the number of overnight stays in tourist accommodation in the Azores has been falling compared with the same period last year.
Business owners' concerns have grown after the low-cost airline Ryanair left at the end of March.
According to the most recent report from the Azores Regional Statistics Service, covering July, the hotel sector has remained «relatively stable» in recent months, but the private accommodation sector has recorded year-on-year declines since November, except in March.
Between April and July, private accommodation recorded 72,746 fewer overnight stays (a 7.6% decrease) than in the same period last year.
The president of the Azores Private Accommodation Association said that the first six months without Ryanair flights had confirmed the impact predicted when the airline made its announcement.
«Private accommodation is the sector most affected by the withdrawal. Month after month, we have seen a fall in overnight stays, and this was foreseeable. These are businesses that are reaching the end of the summer in difficulty,» he pointed out.
Business owners are already assessing the impact of the first winter without a low-cost airline flying to the Azores.
«Private accommodation owners are watching the approach of winter with caution, because when they look at the calendars and future bookings, the signs call for proactive measures. This situation presents an opportunity for growth, not only for private accommodation but also for the local economy and for small and medium-sized enterprises,» warned João Pinheiro.
After Ryanair's withdrawal, the Azorean government said it was working with TAP and Azores Airlines, the only airlines connecting the Azores to mainland Portugal since March, to fill the gap left by the low-cost carrier.
According to the business owner, the solution has yet to show noticeable results, and travel costs to the Azores have risen significantly.
«Every month we are witnessing massive inflation in transport costs to the Azores, mainly because there are only two flag carriers operating the route between the mainland and the islands. This outcome was already anticipated. We could have done much better if they had listened to us and got down to work,» he lamented.
Estate agent websites in the Azores already list short-term rental properties for sale.
The president of ALA pointed out that many business owners had invested in buying and renovating dilapidated buildings, counting on a return on investment that has yet to materialise.
According to João Pinheiro, some have chosen to put their properties up for sale, whilst others are reducing staff or pausing recruitment, «because the outlook presents significant challenges».
«If we'd been told five years ago that the Azores' strategy would be to have only the flag-carriers flying, removing a ‘player' from the market such as a ‘low-cost' airline that had been flying to the region for 10 years, many of the investors would not have made the investments they did,» he stressed.
Reacting to the figures on overnight stays in tourist accommodation, which have been falling month on month, the Azorean government claimed in July that, despite the «slight decline», the sector «managed to generate more revenue and increase its profitability levels», referring to a rise in hotel sector revenue.
The SREA reports do not include revenue figures for private accommodation, but the ALA president offers a more cautious view than the Regional Government's optimistic outlook.
«What we're hearing from our members is that, with fewer guests arriving, there's more competition and prices are falling. A number of accommodation providers are lowering prices to at least maintain their occupancy rates. Alongside the occupancy rate, which is falling, we are also seeing a decline in revenue, the average price and RevPAR [revenue per available room],» he said.
João Pinheiro argued that the Azores could once again welcome ‘low-cost' airlines through «negotiations» by the Visit Azores association or even Turismo de Portugal.
«I think these airlines are interested. Let's compare this with the Autonomous Region of Madeira, which has three ‘low-cost' airlines flying all year round, whereas we currently have none,» he emphasised.
The ALA president also highlighted the «need for renewed investment in promotion in the events sector, which is crucial for the low seasons».
«We need to develop events for the low seasons once again, to boost the market. Digital promotion itself can be improved. There needs to be more communication with market sectors, with areas that are interested in coming to the Azores during the low season. We are marketable all year round; now this promotion just needs to be done properly,» he stressed.
Lusa also sought to speak to the Regional Secretary for Tourism, Mobility and Infrastructure about the impact of Ryanair's withdrawal, but Berta Cabral has not been available for comment so far.
CYB/ADB // ADB.
Lusa
