How to save money on your holiday accommodation without making compromises
If you have not booked your flights for the summer yet, then you will find that the prices of a ticket have gone up for most destinations due to the war between the USA and Iran and the resulting blockage of the Strait of Hormuz. Higher fuel prices are having its mark on inflation, which has gone up since the start of the conflict. Some people fear there will be cancellation of flights due to jet fuel shortage, however, it is unlikely for Europe to face a situation of shortage. This is confirmed by the European Commission and the International Energy Agency as well as some CEOs of airlines such as Ryan Air, Lufthansa and British Airways. Of course it is a nuisance having to spend more money on airline tickets, money you would have rather spend on location to enjoy your holiday.
But there is a way to save hundreds of Euros on your holiday accommodation to offset the higher cost and which would easily cover the increase in travel expenses. Here´s how you can benefit.
When considering any type of purchase, including accommodation for your next holiday, most people prefer to pay a fair price and not discover later that they have overpaid. It could be compared to the Trivago commercial where a customer is paying for a hotel room at reception at what they think is a good rate, only to find that the person next to them has booked a similar room for 35% less. It’s not a good way to start a holiday. When you book your holiday accommodation with Happy Homes Algarve, you can be rest assured that you will not find the same villa or apartment at a lower price anywhere else, guaranteed! This benefits both tenants and homeowners, as will be explained in this blog.
The popularity of the Algarve as a holiday destination continues to increase, and is not limited to the summer months. Long stays of a couple of months in winter have gained tremendous popularity. You do not have to be wealthy to have a wonderful time here, as it caters to diverse lifestyles and preferences. From the comfort and convenience of your home you can book your preferred accommodation online via OTAs that specialize in renting temporary accommodation (such as Booking.com, VRBO and Airbnb) or directly with the owner or property management agent. OTAs have been around for a long time and are known to put heads in beds. Many hotels, homeowners and property management agencies use them but it comes at a cost.
The commission and service fee an OTA charges for a booking can be as high as 15 to 25 percent of the booking value. That’s why larger hotel groups are trying to move away from them and increase their direct bookings. Smaller hotels, small letting agencies and individual homeowners often do not have an alternative to get guests in. As a renter, you should be aware that the portal charges the owner a commission, which is factored into the rent you pay. Furthermore, renters may also be subject to a service fee by certain portals. These extra costs typically range from 15 to 25 percent of the total price when booking your holiday accommodation through a portal. When booking direct you can save hundreds to even thousands of Euros depending on the type of property and the length of your stay.
Renters should also be aware that some portals allow for dynamic pricing, if the homeowner agrees. It is a practice that airlines and hotels have had in place for many years and is now implemented by holiday rental portals. What does this impact you? The portal suggests that if there is little demand, the price of the property will be lowered for a certain period, but if there is more demand they will increase the price. Their argument to homeowners is that it will increase their rental income. Such schemes are never designed to benefit the consumer. When searching for accommodation on a portal, these properties show up at the top of the list. If you are new to the area, you may not be aware of the going rate and book. So the portal, which for years convinced you that they were looking after your interests, is actually doing the opposite.
At Happy Homes Algarve, we maintain consistent prices, ensuring transparency and predictability for our customers. That being said, if you decide to book the same property through a holiday letting portal, we will gladly greet you upon arrival and provide assistance throughout your stay. Whether you choose to book directly with us or through another platform, we value your decision and will respect it.
Achieving more direct bookings is hard work and takes a long time. Happy Homes Algarve is fortunate that the effort put in over a great many years to increase the number of direct bookings has come to fruition. During the 20+ years we have been in business we have seen the number of direct bookings grow steadily year-after-year. In 2024, over 70% of our bookings were made directly with the company, and we are working hard to increase that even further.
In principle, it makes no financial difference for our home owners whether a booking is made via OTAs or directly with us, as the OTA´s additional cost is already factored into the rent. Moreover, OTAs impose a service charge on renters as well. Having said this, the primary advantage for the homeowner and Happy Homes lies in the guests who choose to book directly with the company, starting off on a positive note by recognizing they could not have secured the property at a lower rate elsewhere. This creates a good relationship with the guests as well as goodwill in case something unexpected happens during their stay, such as a faulty appliance that needs sorting out. A better start to the holiday one cannot wish for, judging from the happy smiles on arrival during our in-person meet and greet when checking in at the property! During their stay, guests can rely on our friendly staff if and when needed, who are only a phone call away. If our guests are happy, our home owners are happy. This is reflected in the increasing number of repeat customers over the years, for which our staff gets all the kudos. We also thank our customers as without their loyalty it would not have been possible.
We wish all holidaymakers a pleasant stay in the Algarve! It would be a pleasure to greet you personally when you check into one of our beautiful holiday homes in the future.
If you are a property owner in the Eastern Algarve with a good quality property and would like to take your rentals to the next level, we would love to hear from you. Please feel free to contact us to learn more about the possibilities!
