Market Size of Online Travel Industry in Latin America
Study Period | 2020 - 2029 |
Base Year For Estimation | 2023 |
Forecast Data Period | 2024 - 2029 |
Historical Data Period | 2020 - 2022 |
CAGR | 7.00 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Latin America Online Travel Market Analysis
Online Travel Market in Latin America is expected to achieve a CAGR of 7% during the forecast period. Between 2010 and 2019, the region experienced an increase of roughly 60% in international tourist arrivals, though the COVID-19 pandemic caused a strong reverse. Mexico is the main thriving force for the Latin American tourism sector. Even during the COVID-19 pandemic, Mexico was the region's leading country for international tourism, registering more than the combined total of the other countries on the list.
The online travel market in the Latin American region is expanding with the help of several factors driving the region's current economic growth. Factors including investment stimulation by regional governments and increased skilled labor are causing a surge in new business arrivals from outside the region. Similarly, the increasing middle class worldwide and their growing interest in exploring 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.
The growing number of travelers in Latin America has benefited both regional and international airlines and 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 focus on 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.
Latin America Online Travel Industry Segmentation
The online travel market refers to the travel and tourism company that plans travel plans for their customers online through a website or a mobile application. A complete background analysis of the Online Travel Market in Latin America, which includes an assessment of the emerging trends by segments, significant changes in market dynamics, and a market overview, is covered in the report. The Online Travel Market in Latin America is segmented by Service Type (Accommodation Booking, Travel Tickets Booking, Holiday Package Booking, and Other Services), By Mode of Booking (Direct Booking, and Travel Agents), By Booking Platform (Desktop, Mobile/Tablet), and by Geography (Mexico, Brazil, Argentina, and Rest of Latin America). The report offers market size and forecast values for the Online Travel Market in Latin America in USD billion for the above segments.
By Service Type | |
Accommodation Booking | |
Travel Tickets Booking | |
Holiday Package Booking | |
Other Service Types |
By Mode of Booking | |
Direct Booking | |
Travel Agents |
By Booking Platform | |
Desktop | |
Mobile/Tablet |
By Geography | |
Mexico | |
Brazil | |
Argentina | |
Rest of Latin America |
Online Travel Market in Latin America Size Summary
The Latin America online travel market is experiencing significant growth, driven by various economic and technological factors. The region's tourism sector, particularly in countries like Mexico, Argentina, Chile, and Colombia, is benefiting from increased international tourist arrivals and a growing middle class with a keen interest in travel. The elimination of visa requirements between nations has further facilitated this trend, encouraging more travelers to explore beyond their borders. The rise of e-commerce has transformed the tourism industry, with a substantial portion of the population accessing the internet and utilizing mobile applications to book hotels, tours, and transportation, thereby reducing reliance on traditional travel agencies. This shift is contributing to the expansion of the online travel market in Latin America.
The market is becoming increasingly competitive, with major players such as Airbnb, Despegar, Trivago, CVC Corp, and Booking.com actively participating. Despite the challenges posed by the COVID-19 pandemic, which significantly impacted the tourism sector, the online travel market is expected to recover and continue its growth trajectory. The penetration of smartphones and improved internet connectivity are enhancing online purchasing capabilities, while Latin Americans' growing confidence in online security processes is fostering a more robust mobile ecosystem. Strategic acquisitions, such as Despegar's acquisition of TVLX Viagens e Turismo, are further consolidating the market, with key players seeking to strengthen their positions and expand their reach in the region.
Online Travel Market in Latin America Market Size - Table of Contents
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1. MARKET INSIGHTS AND DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.3 Market Restraints
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1.4 Market Opportunities
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1.5 Porter's Five Forces Analysis
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1.6 Insights on Current Trends and Innovations Influencing the Market
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1.7 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Service Type
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2.1.1 Accommodation Booking
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2.1.2 Travel Tickets Booking
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2.1.3 Holiday Package Booking
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2.1.4 Other Service Types
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2.2 By Mode of Booking
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2.2.1 Direct Booking
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2.2.2 Travel Agents
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2.3 By Booking Platform
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2.3.1 Desktop
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2.3.2 Mobile/Tablet
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2.4 By Geography
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2.4.1 Mexico
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2.4.2 Brazil
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2.4.3 Argentina
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2.4.4 Rest of Latin America
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Online Travel Market in Latin America Market Size FAQs
What is the current Latin America Online Travel Market size?
The Latin America Online Travel Market is projected to register a CAGR of 7% during the forecast period (2024-2029)
Who are the key players in Latin America Online Travel Market?
Despegar, CVC Corp, Airbnb, Booking Holdings and Trivago are the major companies operating in the Latin America Online Travel Market.