LATIN

AMERICA
TREND
REPORT 2018
For tour & activity operators

Written by Stephanie Kutschera

Designed by Barbra Silva
Tourism Trend Report:
Latin America
by Stephanie Kutschera

Copyright © 2018 by TrekkSoft AG

www.trekksoft.com/en/academy

Cover Design Copyright © 2018 by TrekkSoft

Book design by Barbra Silva

All rights reserved. No part of this book may be reproduced in any

form by any electronic or mechanical means - except in the case of
brief quotations embodied in articles or reviews - without written
permission from the publisher.
Author’s Note
With the fast-paced nature of the tourism landscape in Latin
America, this is the second edition of our Latin America
Tourism Trends Report specific to 2018.

According to the World Travel & Tourism Council Travel &

Tourism Economic Impact 2018, Travel & Tourism generated
5,712,000 jobs across Latin America in 2017. This is forecast to
grow by 2.5% in 2018 and includes employment by hotels,
travel agents and other passenger transportation services.

The ‘direct contribution of Travel & Tourism to GDP was

127.4bn USD, and is forecast to rise to 179.7bn USD by 2028.’

This report covers the latest tourism trends in the LATAM

market, and is designed to assist tour and activity providers in
how to tailor your approach to reach new markets.

Stephanie Kutschera
Senior Marketer & Content Writer, TrekkSoft

3
Content
The current economy in Latin America 6

Travel Trend 1: Short-Term Rentals 7

Travel Trend 2: Generation Baby Boomers 11

Travel Trend 3: Solo Female Travel 15

Travel Trend 4: Connectivity 19

How to reach mobile users 23

How to get more bookings 24

Final Words 26
The current
economy in
Latin America
The economies of Latin America are growing but at a slow
rate. Inter-American Development Bank (IDB) predicts that
Latin American economies will grow 2.2% in 2018, and
continue to reach 2.6% growth in the 2018-2020 period.
Venezuela, however, is a notable exception to this growth.

To grow at a faster rate, investment is required in the area.

Eduardo Cavallo, the IDB's lead economist, said: "We need
to invest more, but especially we need to invest better."

For now, "the greatest risk [for Latin America] is

uncertainty," said Daniel Godinho, a former Brazilian
secretary of foreign trade and a senior fellow at the
Atlantic Council.

The next 3-5 years will be vital to see economic growth in

Latin America, but, we can see a visible increase in tourism
which is supporting employment and income alike.

5
LATIN AMERICA
TREND REPORT
2018

Travel Trend 1
Short-Term Rentals
Travel Trend 1:

Short-Term Rentals
In recent years, Latin Americans have become open to using short-term
lodging alternatives with companies such as Airbnb. How did this
happen? Well, Airbnb doesn’t receive the warmest welcome in most of
the markets it enters, but with Latin America, it took a different approach
by cooperating with the local governments.

In December 2017, a partnership was announced between Airbnb and

Inter-American Development Bank (IDB) to promote sustainable tourism.

“
“As part of this agreement, Airbnb and the IDB will study the impact
home sharing has on local communities, exchanging Airbnb
aggregate data on a regular basis, as well as aggregate information

”
on travel trends across Latin America and the Caribbean.” (Airbnb
Citizen, December 2017)

Bruno Lewicki, Regional Policy Director at Airbnb, said: “We’ve been

working side by side with governments in Latin America and the
Caribbean for years. This partnership furthers our commitment to be a
good neighbor to the region. We’ve already seen the positive economic
impact that home sharing has on communities. We’re excited to partner
with the IDB to further study the development impact of home sharing in
Latin America and the Caribbean and contribute to development in
emerging tourist destinations.”

LATIN AMERICA
7
2018
“We want to strike the right balance between the governments and our
users,” Nathan Blecharczyk, Airbnb’s co-founder and chief strategy officer
said. “If there are concerns, we can work together.”

In 2018, Airbnb opened its first offices in Mexico. As part of its

relationship with the local government, the company agreed in Mexico
City they would collect and remit a 3% occupancy tax, which would be
paid to the local government.

This agreement is the first of its kind, but, in 2017 Latin America became
the company’s fastest-growing market, so any inclusion will not only
benefit the local governments but Airbnb, travelers and hosts. “We have
some pretty big numbers in Mexico. Home-sharing is very popular there,
and the local government is excited about the benefits we can bring”,
said Blecharczyk.

Airbnb now has over 250,000 properties listed in South America, Mexico,
Cuba and the Caribbean. Airbnb reported that bookings grew 148% in
2016.

“This is just the beginning,” Airbnb head of policy Chris Lehane told
Bloomberg. Apparently, Airbnb will be negotiating similar agreements
with the local governments of Buenos Aires and Sao Paulo.

LATIN AMERICA
Travel Trend 1: Short-Term Rentals 8
2018
As ‘approximately half of the population in Latin America and the
Caribbean’ are either unbanked, underbanked, or don’t have payment
cards, Airbnb is now experimenting with a new payment system.

Lehane said, “We have to figure out how our product can be consistent
with how people are used to working.”

It’s clear that there will be continued substantial growth in short-term

rentals across Latin America. In fact, the World Travel Market Latin
America Trends Report 2017, states that these short-term rentals are
forecasted to double their market size by 2020.

Image source: WTM Latin Travel Trends Report 2017

LATIN AMERICA
Travel Trend 1: Short-Term Rentals 9
2018
LATIN AMERICA
TREND REPORT
2018

Travel Trend 2
Generation
Baby Boomers
Travel Trend 2:

Baby Boomers
Baby Boomers (those born between 1945 - 1964) are the largest living
adult generation. According to Euromonitor International’s latest travel
research, “tourists above 50s accounted for 25% of the global tourist
population in 2010, a proportion that should remain steady until 2020.”

The Latin America Travel Association (LATA) released findings of their

2017 LATA Travel Trends Report. They surveyed 3641 consumers about
their travel habits, and 19% of respondents had travelled to Latin
America in the last two years. The age spread of these selected travelers
was varied, however, 43% were over 55 years old and are part of the
Baby Boomer Generation.

Source: WTM Latin Travel Trends Report 2017

LATIN AMERICA
11
2018
This generation outpaces any others when it comes to travel to Latin
America, and both the local Governments and tour operators are taking
steps to cater to this thriving market.

“ The elderly are treated with respect and affection in Brazil, and
extra concerns over the safety of seniors should not be a hindrance
to visiting this country.

”
Brazil Travel Information

Euromonitor International’s predicts that travelers over 50 years old in

Latin America will increase from 25% to 28% by 2020. The report adds
that “in Peru, for example, travelers above 50 already represent 34%.”

The 2017 LATA Travel Trends Report also asked what activities were
included within traveler trips to Latin America. The most popular
attributes were culture, history and heritage for 56% of participants.
Wildlife and nature followed at 46% and walking and trekking at 30%.

“The largest share of tour operator sales to Latin America in the last two
years is amongst the 55-64 age group accounting for 29%, followed by
the 45-54 age group (23%) and the 65+ age group (20%). 52% of bookings
are couples, 18% families, 17% groups and 13% solo travellers.”

Travel Trend 2: LATIN AMERICA

Generation - Baby Boomers 12

2018
Read the latest tour & activity statistics
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LATIN AMERICA
TREND REPORT
2018

Travel Trend 3
Solo Female
Travelers
Travel Trend 3:

Solo Female Travelers

According to Solo Travel Statistics 2018, roughly one in four people say
they will travel solo in 2018. Google searches for “solo travel” and “travel
alone” were the highest they've ever been in January 2018.

A study by Booking.com of 20,500 global travelers in 2018, also found

that there is a surge in solo travel. As an interesting link to Travel Trend 2,
40% of those surveyed were Baby Boomers who had taken a solo trip in
the last year. 21% are planning to take one in the future.

Solo Travel is a growing trend around the world, especially for females. In
fact, around 70% of Abercrombie & Kent’s solo travelers take at least one
overseas trip per year. Of these travelers, 70% are female, and half are
between the ages of 50 and 60.

Image source: WTM Latin Travel Trends Report 2017

LATIN AMERICA
15
2018
So how does Female Solo Travel fair in South America? Although
locations will be approached with more caution, It still does very well.
According to Brazil’s Ministry of Tourism, asking for a GPS when renting a
car, and taking portable door or window alarms are common practices
with women who travel solo - especially those who prefer staying at
hostels.

Trip by Skyscanner completed a survey with users to report on which 10

locations were the lowest rated for safety as a solo female traveler. These
were destinations to take caution and research in advance. The list
includes Guatemala, Ecuador, Colombia, The Bahamas, Peru and Jamaica.

In the WTM Latin Travel Trends Report 2017, most women report
checking reviews on travel websites such as TripAdvisor, Hostelz and
Oyster to research not only the actual hotel, but the neighbourhood in
which it is located to choose the safest places to stay.

Cuba, is the destination that seems most appealing to solo female

travellers, according to online hostel-booking platform, Hostelworld

“ ”
The rise in total solo bookings to Cuba alone increasing by
371% from 2016 to 2017.

Travel Trend 3: LATIN AMERICA

Solo Female Travelers 16

2018
Hostelworld state that solo travellers are heading to more adventurous
spots. Lonely Planet also wrote that “solo travel was once seen as brave
and risky for female travellers, but a shift in attitude has meant that it is
now viewed an adventurous, exciting experience for women.”

“It’s great to see people and women in particular embracing solo travel,”
says Breffni Horgan, Director of Product, Hostelworld.

To reflect this change in opinion, there are now multiple solo traveler
agent offered tours to choose from when exploring Latin America. Other
travel agencies, such as Mulheres Pelo Mundo located in Brazil, connect
women who are seeking companionship for travelling. In this case,
convenience rather than safety has a strong appeal.

The top ten countries solo female travellers are choosing include
Nicaragua, South Africa, Bulgaria, Guatemala, Sri Lanka, Macedonia,
Portugal, Tanzania and Romania.

Read on blog

Travel Trend 3: LATIN AMERICA

Solo Female Travelers 17

2018
LATIN AMERICA
TREND REPORT
2018

Travel Trend 4
Connectivity
Travel Trend 4:

Connectivity
In our TrekkSoft resource, Travel Statistics to know in 2018-2019, we
cover how smartphones usage continues to grow, especially for travelers
looking to book flights, hotels, activities and attractions. There are
predicted to be 2.5bn smartphone users around the world by 2019.
Two-thirds of adults use a smartphone.

In the US, data shows that 26% of travel searches in the fourth quarter of
2017 occurred on a mobile device. In other parts of the world, it’s even
higher: Travel searches conducted on a mobile device totaled 47% in
Europe; 40% in Asia; 38% in the Middle East and Africa; and 34% in Latin
America.

Source: Google Consumer Insights, 2018

LATIN AMERICA
19
2018
In Latin America connectivity continues to grow. However, this is at a
slower pace than most other continents. ITUNews reported that in 2017
just 30% of the population is connected to mobile broadband in Latin
America and Caribbean countries. Broadband speeds in these countries
‘are 6 times slower than in Korea and 4 times slower than OECD
countries.’

According to ITUNews, alongside poor connectivity, affordability is

another obstacle for Latin America citizens to have internet access. To be
connected at home and mobile, they must dedicate around 10% of their
monthly income.

Sales will only grow as the connectivity infrastructure improves and

becomes more affordable. Consumers also require confidence in the
security of their personal data online.

“
Two out of three homes are still not connected, and the main

”
challenge in the region is to connect them, a task that must be
carried out jointly by governments, regulators, and companies.

According to TeleGeography, the list of planned cables to increase

connectivity in Latin America is extremely long. There are ‘more than 15
total projects boasting ready for service dates in 2020 or earlier.’

LATIN AMERICA
Travel Trend 4: Connectivity 20
2018
While mobile phone usage is strong around the world, smartphone usage
is less common, but this is changing. Pew Global in 2015 reported that
41% of adults in Brazil owned a smartphone. By 2017, this figure had
increased by 13% to 54%.

It’s so important that we see an increase in connectivity in Latin America.

In 2017, we found that 82% of all tour and activity bookings processed by
TrekkSoft took place on a tour company’s website or mobile app.

More consumers are staying on mobile to book instead of device

switching. After researching on their smartphone, 79% of mobile
travellers in 2017 completed a booking. That is a significant increase on
the 70% who did so in 2016. For tours and activities, the proportion of
bookings completed on mobile is 49%, and growing year-on-year.

According to eMarketer, “there are two important milestones to watch for

in the coming years. By 2019, digital travel sales will surpass $200 billion
for the first time in history, and by 2020, mobile travel sales will surpass
$100 billion.”

LATIN AMERICA
Travel Trend 4: Connectivity 21
2018
How to reach mobile users
To reach mobile users your company needs a mobile-optimized website. The
best way to reach your audience on mobile devices is by having a responsive
website.

In more simple terms, sites with responsive design adapt their layout to all
types of devices, regardless of if it's a smartphone, tablet, notebook, or any
other. With this in place, the user will be able to seamlessly access your site
anywhere and from any device.

Having a mobile-optimized website is about more than just offering your

customer a better experience: it’s become a necessity for any brand.

For some time Google has recommended the use of responsive design, but in
2015 they took it to another level: the search engine updated its search
algorithm and made mobile-friendly features a ranking signal.

This means it’s now easier than ever for mobile users to find content that
works well on their devices. In order to keep up and remain discoverable on
Google, this will lead to many other companies choosing responsive websites.

In short, if your site is not responsive, it will have less and less relevance to the
search engines (especially Google) and consequently lose visibility in searches
and traffic. How to get more bookings with a mobile solution.

77

Read: Forget printed tickets.

Why not use mobile tickets instead?
How to get more bookings
For tourism companies, it’s not just about having a mobile-optimized website.
It’s crucial to ensure that these visitors are also able to become customers. To
make this possible, you need to be able to accept mobile payments.

However, the WTM report has noticed a challenge for Latin American tour
companies: as the digital era is not yet fully evolved, you and your customers
may still be unfamiliar with digital sales channels.

There may also be a general lack of trust in security, especially when it comes
to choosing which currency to charge your customers in.

To solve this, the TrekkSoft booking system links with

TrekkPay payment services.
How to get more bookings
TrekkPay
TrekkPay allows tour and activity companies to accept payments and
issue refunds online. Unlike other payment gateways, it was created for
the travel industry and does not consider tour and activity businesses to
be high-risk.

TrekkPay also eliminates the hassle of you searching for and setting up a
compatible 3rd party solution to accept online payments. Simply, it’s a
solution created by tour and activity operators for tour and activity
operators.

*TrekkPay works in all countries except

Cuba, Iran, North Korea,
Myanmar, Sudan and Syria.
Final Words
From our findings, we can see that Latin America’s
destination popularity is thriving. Safety concerns will no
longer impact a decision to travel, and instead inspire
more adventures travelers to visit, and those who are
willing to do their destination research in advance.

In the upcoming years, it is vital for tour & activity

companies in Latin America to establish trust with
potential customers early on. This could be gained by
having a professional website, mobile-integration and live
booking availability, but more importantly, having strong
customer reviews, and a payment gateway that is secure.

At TrekkSoft, we have numerous countries in the LATAM

region who successfully use our booking software. If you’d
like to find out how you can also eliminate any customer
concerns and increase bookings, then I recommend
getting in touch with our team.

Thanks for reading!

25
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