The online travel market in the Latin American region is expanding with the help of several factors that are driving the current economic growth in the region. Factors including investment stimulation by regional governments and an increase in skilled labour are causing a surge in new business arrivals from outside the region. Similarly, the increasing middle class across the world and their growing interest to explore more countries coupled with the elimination of visas required between nations, have caused an even greater spike in tourists who are venturing further than the confines of their national borders. However, the region is largely hit by the ongoing COVID-19 during 2020, it is anticipated that the market will return to the pre-pandemic figures slowly during the forecast period and record growth in transactions.
The growing number of travellers in Latin America has benefited both regional and international airlines, as well as hotel chains that drive the market studied. Increased tourist demand in countries such as Argentina, Chile, Colombia, and Mexico has led international hotel chains to desire a stronger presence in the region and expand their service offerings in the region. The tourism sector has been transformed by the use of e-commerce. In a population where 60% of people have access to the Internet, more and more Latin travellers are using different mobile applications and internet platforms to reserve hotels, book tours and organize transport, foregoing traditional travel agencies, thus helping the market to expand further in the region.
Key Market Trends
Growing Tourism Sector is Helping the Market to Grow Further
The tourism sector which is the parent market for the Online travel Market in the region has been helping the market to record more revenues during the review period. However, during the year 2020, the tourism market was one of the most hit due to the COVID-19 pandemic, as the situation is getting back to normal in the majority of world countries, the online travel market is anticipated to return to the growth track slowly during the forecast period. the gross travel bookings in the Latin America region collapsed by 62% to USD 21.7 billion in 2020 owing to the closure of international borders for a long time due to the faster spreading of the virus.
Growing Internet Penetration Rate is Driving the Market
The penetration of smartphones and internet connection is improving all over Latin America. This is already increasing the chances of online purchases and more opportunities opening up every day. Latin Americans are tech-savvy and love to be connected. Consumers are becoming more confident about online security processes. The mobile ecosystem in Latin America continues to thrive and is experiencing rapid innovation, driven by growth in new technologies, services, and use cases. Mobile operators across the region are contributing significantly to the Internet of Things (IoT) market, implementing the necessary infrastructure to take advantage of it. Internet access is expanding significantly in the region as Argentina boasts a leading 92% internet penetration rate as of pre-pandemic time followed by Mexico which took a leap to 55% as of 2019.
The online travel market in Latin America is expected to be competitive with the presence of major players like Airbnb, Despegar, Priceline, and Booking.com among others. The market is still expected to be slightly consolidated with Despeger holding a significant share of the market.
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Table of Contents
1.2 Scope of the Market
4.2 Market Drivers
4.3 Market Restraints
4.4 Market Opportunities
4.5 Porter's Five Forces Analysis
4.6 Technological Trends Influencing the Market
4.7 Impact of COVID-19 on the Market
5.1.1 Accommodation Booking
5.1.2 Travel Tickets Booking
5.1.3 Holiday Package Booking
5.1.4 Other Services
5.2 By Mode of Booking
5.2.1 Direct Booking
5.2.2 Travel Agents
5.3 By Booking Platform
5.4 By Geography
5.4.4 Rest of Latin America
6.2 Company Profiles
6.2.2 Booking Holdings
6.2.4 CVC Corp
6.2.6 Hotel Urbano
6.2.10 Carlson Wagonlit
A selection of companies mentioned in this report includes:
- Booking Holdings
- CVC Corp
- Hotel Urbano
- Carlson Wagonlit