Short-term rentals in the Azores expect "worst results ever" due to Ryanair's departure

The local accommodation sector, one of the tourism segments hardest hit by Ryanair’s departure from the Azores, forecasts that 2026 will bring the “worst-ever results” in revenue, driven by fewer guests and rising inflation.

By TPN/Lusa, in News · 28 Sep 2026, 17:33 · 0 Comments

azores lake
Credits: Unsplash; Author: Damir Babacic;

“We are reaching the end of the summer with businesses facing lower revenues and record costs, as companies see their bills rise, largely due to inflation, as well as energy and labour costs. With revenue not keeping pace, we are looking at a year of record-low results for local accommodation businesses,” João Pinheiro, president of the Azores Local Accommodation Association (ALA), told the Lusa news agency.

Since October, the number of overnight stays in tourist accommodation in the Azores has declined compared with the same period the previous year.

Business owners’ concerns intensified after the low-cost airline Ryanair left at the end of March.

According to the latest report from the Regional Statistics Service of the Azores, covering July, the hotel sector has maintained a “relatively stable” trend in recent months; however, the local accommodation sector has recorded year-on-year declines every month since November, except March.

Between April and July, the local accommodation sector lost 72,746 overnight stays (7.6%) compared to the same period the previous year.

The president of the Azores Local Accommodation Association stated that the first six months without Ryanair flights confirmed the impact predicted when the airline announced its departure.

“Local accommodation is the sector most affected by the exit. Month after month, we have seen a drop in overnight stays, a result that was already foreseen. These businesses are reaching the end of the summer facing difficulties,” he noted.

Business owners are already calculating the impact of the first winter without a low-cost carrier flying to the Azores.

“Local accommodation owners are very apprehensive about the start of winter because, looking at the calendars and future bookings, the signs are not encouraging. This will create an added problem—not just for local accommodation, but for the local economy and for small and medium-sized enterprises,” warned João Pinheiro.

After announcing Ryanair’s departure, the Azorean government said it was working with TAP and Azores Airlines, the only carriers connecting the Azores to mainland Portugal since March, to fill the void left by the low-cost airline.

According to the business owner, the solution not only failed to have an impact, but travel prices to the Azores have skyrocketed.

“Every month, we are witnessing massive inflation in transport costs to the Azores, primarily because only two flag carriers are operating the route between the mainland and the islands. This outcome was anticipated. We could have done much better if they had listened to us and taken action,” he lamented.

Listings for local accommodation properties for sale are already available on real estate agencies’ websites in the Azores.

The ALA president highlighted that many business owners had invested in purchasing and renovating dilapidated buildings, counting on profitability that failed to materialise.

According to João Pinheiro, some have chosen to put their properties up for sale, while others are laying off staff or halting hiring, “because the outlook is far from good.”

“If we had been told five years ago that the Azores’ strategy would be to rely solely on flag carriers—thereby removing a market player like a low-cost airline that had already been flying to the region for a decade—many investors would not have made the investments they did,” he emphasised.

Responding to figures on overnight stays in tourist accommodation—which have been declining month by month—the Azorean government claimed in July that, despite the “slight decrease,” the sector “managed to generate more revenue and increase profitability levels,” citing higher hotel earnings.

SREA reports do not include revenue figures for local accommodation (short-term rentals), but the ALA president contradicts the Regional Government’s more optimistic view.

“Feedback from our members indicates that, with fewer arriving guests, competition has intensified and prices are dropping. Several properties are lowering their rates to at least safeguard occupancy levels. Beyond occupancy rates, which are falling, we are also seeing a decline in earnings, average rates, and RevPAR [revenue per available room],” he noted.

João Pinheiro argued that the Azores could once again attract low-cost airlines if the “Visit Azores” association, or even Turismo de Portugal, engaged in negotiations.

“I believe there is interest from these airlines. Let’s compare the situation with the Autonomous Region of Madeira, which has three low-cost carriers flying year-round, whereas we currently have none,” he emphasised.

The ALA president also criticised the “lack of investment in event promotion, which was crucial for the off-season.”

“We need to develop events for the off-season again to boost the market. Even digital promotion is falling short. There needs to be better communication with market sectors and with areas interested in visiting the Azores during the off-season. We are a year-round destination; the promotion needs to be done right,” he stressed.

Lusa also sought comment from the Regional Secretary for Tourism, Mobility, and Infrastructure regarding the impact of Ryanair’s departure, but Berta Cabral has not been available so far.