Looking ahead in the Latin America travel market
- October 2023
- Phocuswright Research
Latin America's travel market experienced a second year of strong double-digit growth, as gross bookings climbed to $48.2 billion. According to Phocuswright’s latest research report on the region Latin America Travel Market Report 2022-2026, domestic tourism drove the surge, although several countries are seeing robust gains in foreign visitors, as well. Brazil, for example, attracted 2.7 million international tourists in the first four months of 2023, putting it on a record-setting pace for the year.
Looking ahead, here’s what analysts expect about the Latin America market:
Hotel Chains Expand Influence
The hotel sector, Latin America's largest travel market, has long been characterized by independent, family-owned properties. In Brazil, for example, such accommodations account for 86% of all hotels. But as travelers again head to Latin American destinations in droves, global hotel chains are seizing the opportunity to increase market share by developing new properties, particularly in Mexico, Brazil and Colombia.
New Leaders Face Old Problems
Despite new political leadership in several Latin American countries, the region faces ongoing socioeconomic problems and corruption concerns.
Airlines on the Road to Recovery
Latin America's airlines are emerging from the dark days of the COVID pandemic in a strong financial position. Three of the region's leading carriers - Avianca, LATAM and Aeromexico - filed for Chapter 11 in U.S. bankruptcy courts in 2020. Since then, all three have completed their restructurings and are experiencing substantial growth. LATAM is Latin America's largest airline, with operations in Brazil, Chile, Colombia, Ecuador and Peru, as well as significant international business in Europe, the U.S. and the Caribbean.This report provides an overview of the Latin America travel market, including key developments, market characteristics, distribution trends and major players in each segment. It also focuses on five key country markets in the region - Mexico, Brazil, Colombia, Chile and Argentina - and includes market sizing and projections through 2026.
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