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May 5, 2011				            Tourism Branding Forum<br />Tying Latin America to the World   <br />Patricia Rasore<br />Direc...
Latin America: evolving from being peripheral to a powerful player in its own right.<br />
Research Revelations<br />Urban consumers, the new middle class (275M people), are fueling the travel industry - US$10 bil...
Market Sizing<br />
Polling<br />Question #1<br />What was the size of the Latin America travel market in 2010?<br />$39 Billion<br />$58 Bill...
The Latin American Online Leisure/Unmanaged Business Travel Market, Total Gross Bookings (US$B), Online Growth and Penetra...
Four Regions: Total and Online Leisure/Unmanaged Business Travel Gross Bookings and Online Penetration, 2009-2012 (US$B)<b...
Market Share by Region, 2010<br />Note: 2010-2012 projected.<br />Source: PhoCusWright’s Global Online Travel Overview Sec...
Market Share by Region, 2012<br />Note: 2010-2012 projected.<br />Source: PhoCusWright’s Global Online Travel Overview Sec...
Polling<br />Question #2<br />What country boasts the largest online penetration?<br />Mexico<br />Brazil<br />Peru<br />C...
Online Leisure/Unmanaged Business Travel Market, Total Gross Bookings (US$B), Online Growth and Penetration, for All Analy...
Online Leisure/Unmanaged Business Travel Market, Total Gross Bookings (US$B), Online Growth and Penetration, for All Analy...
Online Gross Bookings Is Not the Only Indicator<br />Online Leisure/Unmanaged Travel Gross Bookings by Market (US$B), 2010...
Highest Growth Rates are Found in the Latin American Region<br />Online Leisure/Unmanaged Business Travel Gross Bookings A...
Pockets of Opportunity Lies Where Penetration is Below 35%<br />Online Leisure/Unmanaged Business Travel Penetration by Ma...
Intermediaries<br />
Retail travel agencies retain their stature<br />Attributes<br />
Latin American Online Travel Market (Leisure/Unmanaged Business); Direct Gross Bookings by Segment (US$M), 2008-2012<br />...
Latin American Total OTA Travel Market, OTA Shares (%), 2010 vs. 2012	<br />Note: Figures may not total 100% due to roundi...
Payment options
Local content</li></li></ul><li>The Two Biggest OTAs in Mexico and Brazil in 2010<br />Source: PhoCusWright's Latin Americ...
Airlines<br />
Latin American Airlines: “Simply the Best”<br />Increases in demand as well as in efficiency<br />Expected to continue enj...
Latin American Airline Total Gross Bookings (US$B) and Supplier Website Penetration (%), 2008-2012<br />Source: PhoCusWrig...
Total Latin American Airline Market, LCC vs. Traditional Airline Shares (%), 2010 vs. 2012 <br />Note: Figures may not tot...
Lodging<br />
Polling<br />Question #3<br />What percentage of hotels in Latin America are affiliated with global chains?<br />11%<br />...
Lodging<br />Source: PhoCusWright's Latin America Online Travel Overview, 2011<br />Low online penetration<br />Lodging re...
Latin American Hotel Gross Bookings (US$B) and Supplier Website Penetration (%), 2008-2012<br />Source: PhoCusWright's Lat...
Latin America: What´s Now, What´s Next<br />
Latin America: What’s Now, What’s Next<br />Demand for travel technology solutions accelerates<br />20% smartphone penetra...
Latin America: Having a Mobile Strategy (Whether It’s App or Mobile Web Led) is Now More Important Than Ever<br />Source: ...
U.S.: A Golden Opportunity to Reach Consumers During the Mobile Trip Research Phase<br />Source: eMarketer, February 2011<...
Latin America: What’s Now, What’s Next<br />Demand for travel technology solutions accelerates<br />20% smartphone penetra...
Influence of Travel Information Sources, by Membership in Online Social Networks<br />Source: PhoCusWright's Traveler Tech...
Social Media Networks Are Not Direct Commerce Platforms<br />Social networks are already a much larger source of traffic t...
<ul><li>Latin America had a shallow recession
Expanded consumer market across the region
Expansion of intra-regional business </li></li></ul><li><ul><li>Travel technology adoption still lags
Conversion is delayed
Personalization and innovation should be areas to explore </li></li></ul><li>Expanded consumer market across the region<br />
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TBF 2011- Patricia Rasore: “Analizing the Emerging Online Travel Market in Latin America”

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The Latin American travel industry is vast, diverse, growing fast and changing even faster. The region features rapidly emerging economies, a fast growing ecommerce sector, some powerhouse travel companies with an eye toward global expansion, and tremendous opportunity for a still under-penetrated online travel market. PhoCusWright is conducting a comprehensive study of the Latin American travel marketplace, with a focus on online distribution and marketing. This research delivers an in-depth understanding of this increasingly important yet understudied part of the global online travel landscape

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  • Pie ChartUpdated 3/22/11
  • Pie ChartUpdated 3/22/11
  • Which is the market that is growing the most in the period 2010-2012?ArgentinaBrazilMexicoWhich is the fastest growing market in that same period?PeruColombiaBrazilWhich is the market that sustains the largest online penetration?MexicoBrazilChile
  • Pie ChartOther regional otas
  • Latin America LCCs represent 31% of the airline market, but account for almost the same online gross booking volume as traditional airlines ( $2.2B vs $3.0B)Dynamic LCCs are challenging the legacy domains of Brazil, Mexico and Colombia.LCCs will represent more than one third of airline revenue by 2012.LCCs in Latin America in 2010 have nearly four times more online gross bookings than online travel agencies ($7.6B vs. $2.2B).LCCs in Mexico and Brazil, along with airline Andes (Argentina), operate 100% outside of the GDSs. AZUL (Brazil) and all secondary airlines in Chile are accessed through the GDSs.On December 10, 2010 Interjet from Mexico signed an agreement to guarantee inventory distribution through the Amadeus system.On January 27, 2011 Amadeus announces global distribution agreement with TRIP Linhas Aereas from Brazil .
  • Roughly 80% of Latin American hotels are independent, inherently slowing the overall pace of online penetration in the sector. Only 11% of hotels in Latin America have a global chain affiliation, compared to 70% in the U.S. and 25% in Europe.
  • Transcript of "TBF 2011- Patricia Rasore: “Analizing the Emerging Online Travel Market in Latin America” "

    1. 1. May 5, 2011 Tourism Branding Forum<br />Tying Latin America to the World <br />Patricia Rasore<br />Director, Latin America<br />
    2. 2. Latin America: evolving from being peripheral to a powerful player in its own right.<br />
    3. 3. Research Revelations<br />Urban consumers, the new middle class (275M people), are fueling the travel industry - US$10 billion in new sales projected in two years<br />Online bookings are growing at more than three times the pace of the overall market – and soon will represent one fifth of all travel sales<br />Online growth varies widely among markets and segments; though airline websites lead, hotels and OTAs are biggest opportunities<br />The air sector in Latin America has some of the strongest passenger growth in the world<br />
    4. 4. Market Sizing<br />
    5. 5. Polling<br />Question #1<br />What was the size of the Latin America travel market in 2010?<br />$39 Billion<br />$58 Billion<br />$72 Billion<br />$85 Billion<br />
    6. 6. The Latin American Online Leisure/Unmanaged Business Travel Market, Total Gross Bookings (US$B), Online Growth and Penetration, 2008-2012<br />Source: PhoCusWright's Latin America Online Travel Overview, 2011<br />
    7. 7. Four Regions: Total and Online Leisure/Unmanaged Business Travel Gross Bookings and Online Penetration, 2009-2012 (US$B)<br />Note: 2010-2012 projected.<br />Source: PhoCusWright’s Global Online Travel Overview Second Edition, 2011<br />Online<br />Penetration<br />Total Gross <br />Bookings<br />+12.7%<br />+7.1%<br />+11.3%<br />+5.7%<br />+5.9%<br />+10.2%<br />
    8. 8. Market Share by Region, 2010<br />Note: 2010-2012 projected.<br />Source: PhoCusWright’s Global Online Travel Overview Second Edition, 2011<br />Total<br />Online<br />
    9. 9. Market Share by Region, 2012<br />Note: 2010-2012 projected.<br />Source: PhoCusWright’s Global Online Travel Overview Second Edition, 2011<br />Total<br />2012<br />Online<br />2012<br />
    10. 10. Polling<br />Question #2<br />What country boasts the largest online penetration?<br />Mexico<br />Brazil<br />Peru<br />Chile <br />
    11. 11. Online Leisure/Unmanaged Business Travel Market, Total Gross Bookings (US$B), Online Growth and Penetration, for All Analyzed Countries in 2010<br />Source: PhoCusWright's Latin America Online Travel Overview, 2011<br />
    12. 12. Online Leisure/Unmanaged Business Travel Market, Total Gross Bookings (US$B), Online Growth and Penetration, for All Analyzed Countries in 2012<br />Source: PhoCusWright's Latin America Online Travel Overview, 2011<br />
    13. 13. Online Gross Bookings Is Not the Only Indicator<br />Online Leisure/Unmanaged Travel Gross Bookings by Market (US$B), 2010 <br />Note: 2010 projected.<br />Source: PhoCusWright’s Global Online Travel Overview Second Edition, 2011<br />~<br />$120<br />
    14. 14. Highest Growth Rates are Found in the Latin American Region<br />Online Leisure/Unmanaged Business Travel Gross Bookings Average Annual Growth Rate by Market, 2010-2012<br />Note: 2010-2012 projected. Growth percentages for European markets are based on euros to be more reflective of actual trends.<br />Source: PhoCusWright’s Global Online Travel Overview Second Edition, 2011<br />
    15. 15. Pockets of Opportunity Lies Where Penetration is Below 35%<br />Online Leisure/Unmanaged Business Travel Penetration by Market, 2012<br />Note: 2010-2012 projected.<br />Source: PhoCusWright’s Global Online Travel Overview Second Edition, 2011<br />
    16. 16. Intermediaries<br />
    17. 17. Retail travel agencies retain their stature<br />Attributes<br />
    18. 18. Latin American Online Travel Market (Leisure/Unmanaged Business); Direct Gross Bookings by Segment (US$M), 2008-2012<br />Source: PhoCusWright's Latin America Online Travel Overview, 2011<br />
    19. 19. Latin American Total OTA Travel Market, OTA Shares (%), 2010 vs. 2012 <br />Note: Figures may not total 100% due to rounding.<br />Source: PhoCusWright's Latin America Online Travel Overview, 2011<br />Main areas of investment for Global OTAs in Latin America: <br /><ul><li>Local language
    20. 20. Payment options
    21. 21. Local content</li></li></ul><li>The Two Biggest OTAs in Mexico and Brazil in 2010<br />Source: PhoCusWright's Latin America Online Travel Overview, 2011<br />BestDay.com<br />Despegar.com<br />Decolar.com.br<br />Submarinoviagens.com.br<br />
    22. 22. Airlines<br />
    23. 23. Latin American Airlines: “Simply the Best”<br />Increases in demand as well as in efficiency<br />Expected to continue enjoying a virtuoso moment<br />Source: PhoCusWright's Latin America Online Travel Overview, 2011<br />
    24. 24. Latin American Airline Total Gross Bookings (US$B) and Supplier Website Penetration (%), 2008-2012<br />Source: PhoCusWright's Latin America Online Travel Overview, 2011<br />
    25. 25. Total Latin American Airline Market, LCC vs. Traditional Airline Shares (%), 2010 vs. 2012 <br />Note: Figures may not total 100% due to rounding.<br />Source: PhoCusWright's Latin America Online Travel Overview, 2011<br />
    26. 26. Lodging<br />
    27. 27. Polling<br />Question #3<br />What percentage of hotels in Latin America are affiliated with global chains?<br />11%<br />30%<br />47%<br />68% <br />
    28. 28. Lodging<br />Source: PhoCusWright's Latin America Online Travel Overview, 2011<br />Low online penetration<br />Lodging represents 44% of total travel market but only 15% of online market<br />Early stages of revenue management practices in local/national markets<br />
    29. 29. Latin American Hotel Gross Bookings (US$B) and Supplier Website Penetration (%), 2008-2012<br />Source: PhoCusWright's Latin America Online Travel Overview, 2011<br />
    30. 30. Latin America: What´s Now, What´s Next<br />
    31. 31. Latin America: What’s Now, What’s Next<br />Demand for travel technology solutions accelerates<br />20% smartphone penetration critical mass to be reached by year end <br />
    32. 32. Latin America: Having a Mobile Strategy (Whether It’s App or Mobile Web Led) is Now More Important Than Ever<br />Source: International Telecommunication Union, 3G Americas, Bernstein Research<br />Latin America: among the most “mobile” regions in world<br />(3 units/PC)<br />Mobile momentum in emerging and faster growing economies <br />Brazil: sixth largest worldwide market in mobile<br />Mobile in Brazil: second most expensive in world<br />
    33. 33. U.S.: A Golden Opportunity to Reach Consumers During the Mobile Trip Research Phase<br />Source: eMarketer, February 2011<br />12M will book a travel product in 2011<br />One third of smartphone users will research a trip in 2011 (25M)<br />Mobile travel related activity will grow to 34% in 2012, from 30% in 2010<br />Mobile travel research will continue at a steady pace <br />
    34. 34. Latin America: What’s Now, What’s Next<br />Demand for travel technology solutions accelerates<br />20% smartphone penetration critical mass to be reached by end of 2011 <br />Biggest opportunity in online media is social media<br />
    35. 35. Influence of Travel Information Sources, by Membership in Online Social Networks<br />Source: PhoCusWright's Traveler Technology Survey, 2010<br />
    36. 36. Social Media Networks Are Not Direct Commerce Platforms<br />Social networks are already a much larger source of traffic than news and media sites, and that gap will only grow larger<br />Source: PhoCusWright Inc.<br />
    37. 37.
    38. 38. <ul><li>Latin America had a shallow recession
    39. 39. Expanded consumer market across the region
    40. 40. Expansion of intra-regional business </li></li></ul><li><ul><li>Travel technology adoption still lags
    41. 41. Conversion is delayed
    42. 42. Personalization and innovation should be areas to explore </li></li></ul><li>Expanded consumer market across the region<br />
    43. 43. Foster business innovation to capture dynamics of the new online audience<br />
    44. 44. Related Release:<br />PhoCusWright’s Latin America Online Travel Overview<br />Go to www.phocuswright.com <br />for more information!<br />
    45. 45. Thank you<br />
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