Algarve Tourism Crisis: Unprecedented August Discounts Signal Deeper Problems in Portuguese Tourism Strategy

EC Travel Founder's Critical Assessment of Portuguese Tourism

Eliseu Correia, founder of EC Travel, provides a critical analysis of Portugal's tourism landscape in 2025 while marking his company's 15th anniversary. The entrepreneur describes this year as a "copy-paste of the previous one," criticizes hotel pricing strategies, and warns about the Algarve's declining competitiveness compared to destinations like Huelva, Spain.

The Copy-Paste Year: No Significant Changes

"I think this year was very much a copy-paste of the previous one. There were no major changes," Correia states. "If we look at the big picture, we continue with a serious problem at Faro Airport, which constrains us. Regarding the Algarve, we continue to lose a significant portion of our clients to Huelva."

Despite increased visitor numbers to Portugal overall, Correia questions the quality of tourism: "We have more people, yes, but I don't know if we have the clients we would like or just the possible clients."

Pricing Strategy Failure: "Something is Very Wrong"

The tourism veteran reveals a shocking development: "I have thirty-something years in this business and never, ever in my life had I seen discounts for the Algarve in August. This year, at the end of July, we received special offers of 15% and, in some groups, even 50% discount. It doesn't make sense."

Correia explains the flawed pricing approach: "For two or three years, the reference price for summer has been defined based on the highest price charged the previous year. If a hotel closed the previous August selling at 300 euros, it launches the same price for the following summer. This puts us out of competition and out of market price."

EC Travel's Performance and Growth

Despite market challenges, EC Travel expects slight growth of about 10% in revenue this year, reaching approximately 34 million euros. The company has maintained impressive consistency, "faturámos acima dos 30 milhões praticamente há 10 anos consecutivos" (we've been billing above 30 million for almost 10 consecutive years).

The COVID-19 Turning Point

The pandemic period represented the most difficult moment in Correia's career as a manager. However, it forced strategic adaptation: "It forced me to reinvent myself and turn to the national and Spanish client. And it wasn't just an emergency solution—it transformed into a long-term strategy."

This shift proved transformative: "Five years have passed and the national and Spanish markets are now dominant at EC Travel. Unlike the past, when the UK and Germany were the main markets, today the combination of these two (Portugal and Spain) is the strongest we have at home."

Critical Views on Tourism Strategy

Regarding Turismo de Portugal's focus on attracting higher-spending tourists, Correia offers a nuanced perspective: "In general, I agree with the idea. It makes sense to try to attract increasingly more clients with purchasing power. However, we have to understand what 'the other' is."

He warns against abandoning mass tourism: "We created infrastructure in the Algarve for mass tourism. If we lose volume, we will have a serious problem. If we start segmenting to the point where we cannot bring enough numbers to fill all the houses that live from tourism—which is not the top-end but the middle or lower-middle class—we will have a problem."

Future Outlook and Adaptation

For 2026, Correia remains "moderadamente otimista" (moderately optimistic) but expresses concern about persistent pricing strategy issues: "I don't feel there will be any change in the strategy of those who set prices on the street. Despite the beating they took once again, I don't feel any kind of change—and that saddens me."

The company continues to adapt, announcing they will have their own stand at BTL for the first time in their history, focusing on strengthening presence in Lisbon and Porto.

EC Travel will celebrate its 15th anniversary with a gala on February 21, 2026, featuring musical guests and surprises, though details remain under wraps.