Skift Take
Online travel bureau were huge players in travel search throughout the pandemic in significant Latin American countries. There’s a brilliant future for these reserving websites in the region as travel restarts.
Angel Adegbesan, Skift
Online travel sales in Latin America, which plunged to $9 billion in 2020, are approximated to get better to pre-pandemic levels of $22 billion by 2022, according to a current study by Statista.
Online travel sellers were one of the pillars of the travel market and they suffered as a result of the pandemic, however the research study suggests they may be on a rebound.
In a 2020 survey carried out for the research study, booking sites were discovered to be the most popular alternatives to look for travel and tourism services among citizens of significant Latin American nations for that year.
“The Latin America occupants are extremely digital, particularly in Brazil, Argentina and Mexico, so the study doesn’t amaze me at all,” stated Fernão Loureiro, who runs a travel consultancy in Sāo Paulo, Brazil.” Given that, OTAs (online travel agencies) invest a high budget in ads both in social networks in addition to in papers, industrial breaks and football video games.”
Although online travel agencies were prominent across Latin America, their main uses differed depending upon the country. For instance, in Brazil, booking websites were mostly used to book flights while they were used to book lodgings mainly in Mexico. In Argentina, online travel sites came in initially as the preferred channel to book both flights and lodgings.
“It is an unstoppable pattern in all means so the OTAs will definitely browse in a really positive wave for the upcoming years as people are ending up being a growing number of digital and establishing the taste of taking a trip as one of the most-desired things in life,” Loureiro stated.
While Mexico had the highest online travel market share at 46 percent, Brazil took 31 percent, the study discovered. Nevertheless, Brazil led the marketplace in online travel startups with 82 in 2020 and Mexico came in second with 43 online travel start-ups.
The study also found that Despegar.com, an Argentine-founded company, has actually successfully developed itself as the leading online travel bureau in Latin America, where it controls up to 10 percent of the market share. The second-leading agency, CVC.com.br, controls about 6.7 percent market share.
Worth $22 billion in 2020, the travel market in Latin America is projected to go up to $83 billion by 2024 in the best case scenario. In the worst case situation, the growth is expected to be at $56 billion.
You can discover the research study here.