Trade and tourism are key factors in the economic growth of Latin American countries. In emerging economies, the growth in tourism is constantly higher than in developed economies.
A survey by Skift shows that 67% of affluent travelers would rather spend their money on activities than on a nicer hotel. Three-quarters of high-income travelers have participated in at least one organized tour or activity.
The growth in the experience industry.
Trips must be exciting proposals and travelers are betting on out of the path experiences. It’s estimated that the tours and activities industry represents ~$ 180 billion dollars and continues to grow.
Proof of the above are the investments in startups in this sector: In 2018 alone, $ 677M USD was made in transactions. The most important was Klook with $ 200M and the acquisition of Fareharbor for + $ 300M.
Growth opportunities in LATAM.
In LATAM, most people travel within their country, due to lack of knowledge, education, different language, and less monetary resources. However, this is changing.
The largest percentage of the population (Millenials) are having disposable income that are spending on travel. 74% of them prefer to spend it on experiences than products.
Also, traveling internationally is becoming easier and cheaper. This because of the fall of the price of flights due to more airports, technology, and greater competition. In lodging, there are new alternatives that the typical hotels.
All these factors together have contributed to the average young person in Latin America, be able to travel internationally.
How are we taking advantage of this opportunity?
At LocalAdventures we solve everything a LATAM client needs to visit a remote part of the world, connecting them with international experience guides in +11 countries.
Our next step is to add experiences in more than 32 countries, dominate the market in LATAM and improve the experience for travelers.
It won’t be a surprise if the next 5 years we see acquisitions of companies focusing on this market in LATAM, something already happening all over the world.
Please share your thoughts and comments about the future of this industry.