Car Rental Statistics in Portugal

The Portuguese car rental industry is closely tied to tourism, airport mobility, and domestic business travel. Recent industry reporting shows that the sector has moved from post-pandemic vehicle shortages into a more supply-heavy market, where demand remains strong but pricing and profitability have become more competitive.

What is the annual market revenue of the car rental industry in Portugal?

Portugal’s car rental sector recorded €951 million in revenue in 2024, a 1.4% increase from 2023.

• Revenue reached a record €958 million in 2022, helped by strong tourism demand and limited rental-car supply.
• The 2022 revenue figure was 54% higher than the 2019 level, implying pre-pandemic revenue of about €622 million.
• Revenue eased to €938 million in 2023, as supply conditions began to normalize after the shortage-driven 2022 peak.
• The sector grew slightly to €951 million in 2024, but industry leaders said higher costs and lower rental prices put pressure on profitability.
• Rental prices fell by 15% in 2024 because more vehicles were available while demand softened relative to supply.

What are the most popular car rental categories in Portugal?

Small cars are the lowest-cost car rental category in Portugal, with KAYAK reporting an average small-car rental cost of €14 per day.

• Small cars are the most budget-friendly option in KAYAK’s Portugal data, averaging €14 per day.
• Medium cars average around €41 per day, while sport utility vehicles (SUVs) average around €58 per day.
• Larger vehicle types cost more, with large cars averaging €48 per day and vans averaging €88 per day.
• All-terrain vehicles average around €69 per day, while luxury cars average around €84 per day.
• Convertible rentals average around €23 per day, making them cheaper than many larger vehicle types in KAYAK’s current Portugal data.

What is the average car rental price in Portugal?

KAYAK lists the average car rental price in Portugal at €27 per day, with 25% of users finding deals at €16 per day or less.

• The average weekly rental cost is listed at €186, based on KAYAK’s current Portugal car rental data.
• The average monthly rental cost is listed at €797, or about €27 per day.
• KAYAK search data lists Porto and Lisbon as the most searched cities for Portugal car rental, each with 27% of searches.
• Funchal accounts for another 11% of KAYAK Portugal car rental searches.
• Prices should be treated as booking-platform snapshots because costs can change quickly by season, supplier, and pickup location.

What are the most common reasons for renting a car in Portugal?

Tourism is the largest driver of Portugal’s rent-a-car activity, representing 60% of operations in 2024.

• Tourists were the main demand driver in 2024, accounting for 60% of rent-a-car operations.
• Tourism for leisure and business represented 54% of rent-a-car activity in 2022.
• Corporate and public-sector demand accounted for 38% of activity in 2022.
• Replacement vehicles represented 4% of activity in 2022.
• Non-tourism individual rentals also represented 4% of activity in 2022.

What are the most popular rental destinations in Portugal?

Portugal’s most important rental destinations are closely tied to major airports, city gateways, and island tourism markets.

• KAYAK search data lists Porto, Lisbon, and Funchal as the most searched cities for car rental in Portugal.
• DiscoverCars lists Lisbon, Madeira, and Porto among the most popular rental cities in Portugal.
• DiscoverCars also lists Lisbon Airport, Madeira Airport, Porto Airport, and Faro Airport among the top rental pickup locations.
• Madeira’s rental market shows the importance of airport pickup: 58.9% of 2025 rental contracts were made with vehicle delivery at the airport.
• Madeira recorded 431,492 rental contracts and €108.9 million in vehicle-rental revenue in 2025.

What is the average car rental duration in Portugal?

The average car rental length in Portugal is 9 days, based on DiscoverCars’ current Portugal booking data.

• Rental length varies by month, with the longest average duration listed at 11 days in January.
• July has an average rental length of 10 days.
• Most other months range from 8 to 9 days.
• The shortest average durations are listed in April, May, and October, at 8 days each.
• Longer rental durations are common for leisure trips, island stays, and multi-stop travel itineraries.

When are the peak rental periods in Portugal?

Portugal’s car rental demand is highest around the summer travel season, with August standing out as the peak booking month in DiscoverCars’ search data.

• DiscoverCars lists August as the most popular month for car hire searches in Portugal.
• Search demand is lowest in January, at 0.5 times the yearly average.
• Demand rises in spring, reaching 1.1 times the yearly average in April and May.
• Summer demand climbs to 1.3 times the yearly average in July and 1.5 times in August.
• Madeira’s official rental data also points to a summer peak, with the third quarter recording the highest number of contracts and the highest total revenue in 2025.

What is the average daily car rental price in Portugal for each month?

DiscoverCars’ United Kingdom booking data, checked in June 2026, shows that average daily car hire prices in Portugal are lowest in November and highest in August.

• The lowest average daily price is listed in November, at £8 per day.
• January and February are also low-cost months, each averaging £10 per day.
• Prices rise in spring and early summer, reaching £16 per day in April and £14 per day in June.
• The highest prices are in the summer peak, at £24 per day in July and £25 per day in August.
• Prices fall back to £14 per day in September and £12 per day in October.

Portugal’s car rental outlook remains linked to tourism demand, fleet costs, electrification, and digitalization.

• Tourism remains the key demand base, with tourists representing 60% of rent-a-car operations in 2024.
• Portugal’s tourism sector stayed strong in 2025, with accommodation establishments recording 32.5 million guests and 82.1 million overnight stays.
• Fleet electrification is expected to remain a focus, but ARAC has identified charging access as a barrier for wider electric and hybrid rental use.
• Digitalization is another priority, with ARAC pointing to the need for digital reservations, contract processes, and stronger data systems.
• Profitability will likely depend on balancing fleet supply with demand after the 2024 oversupply pushed prices lower.