TOURISM TREND REPORT

LATIN AMERICA
 Tourism Trend Report:
Latin America
by Maria Eduarda Possamai

Copyright 2016 by TrekkSoft AG

www.trekksoft.com/en/library

Cover Design Copyright 2016 by TrekkSoft

Book design by Matthias Maraczi
Edited by Lucy Fuggle

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.
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Authors note
The tourism landscape in Latin America is changing fast, and its more important than
ever for tour and activity companies to keep up. I hope this ebook will give you the
insights you need to stay ahead and go beyond that to get real results for your
company.

Maria Eduarda Possamai

@dgavazzoni

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Introduction
When we consider tourism in Latin America, we have to first regard the region as a
huge area, with twenty countries plus eleven territories, covering an area from
Mexico to the southern tip of South America, including the Caribbean.

What also comes to mind are the natural wonders of these places. Latin America is
full of beaches, wildlife, ecotourism and countries with a rich culture. Tourism is key
to the economy of many Latin American countries, and cultural tourism has become
an important source of their revenue, especially in the Andes and Meso-America.

Just to give you an idea of how important tourism really is in Latin America, the
Tourism Barometer of The United Nations World Travel Organisation shows that in
2015 Mexico was the 9th most visited country in the world and 2nd most visited
country in the Americas. Whats more, countries included in the top 10 fastest-
growing visitor numbers are Paraguay (1st, +97%), Panama (7th, +22.4%) and Chile
(9th, +20,4%). Especially notable is Paraguay, with an impressive rise of 97%. Also,
visitor numbers to the Caribbean (+7.4%) and Central America (+7.1%) rose more
than any other region in 2015.

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Economic effects on
tourism and what to
expect in the future
Despite growth in the tourism industry in recent years, many Latin American
countries have also been through economic issues. Trapped by recession, major Latin
American currencies have decreased against the value of the U.S. dollar. Overall this
situation is causing complications for business in the region, but there also are some
positives for tour and activities operators within these.

Firstly, since the USD (US dollar) is expensive for Latin Americans, this will lead to
more internal tourism and leisure, which will move the market for guides and
agencies. What's more, these countries are becoming an economical place for
foreigners because of the current exchange rate, with low costs an extra incentive for
international tourists to visit.

With the growth of the middle class and their search for value for money and new
travel interests, many destinations in emerging and developing regions (many of
which are in South America) have also managed to develop and exploit their tourism
potential to attract and retain visitors.

According to the Horwath HTL report, the expectation is that these countries will
soon have more international arrivals than developed markets, which could make
tourism an important factor in the restoration of each countrys development. One
way seen by tourist organizations and government agencies to maximise benefits is
to encourage tourism by focusing on the release of visas and minimizing fees charged
in the field.

With this positive view of tourism in mind, and with research based on the WTM
Latin America Trends Report 2016, we will show you the main trends that will drive
tourism in Latin America over the next few years. We will also outline the latest
strategies and tools to help your tourism company be prepared and make the best of
the future. 5
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Latin America Trend 1:

China is becoming a huge source
market for Latin America
One of the most important tourism trends of the moment is that of the Chinese
market and this is no different for Latin America. According to the WTM Latin America
Trends Report, Chinese tourists are expected to head to Latin America in increasing
numbers over the next few years, overtaking Japan, Russia, and Australia as a source
market by 2019.

Mexico is by far the most popular destination for Chinese visitors, accounting for
110,000 trips in 2014. Brazil is in second place (64,000) followed by Venezuela
(34,000) and Argentina (32,000) (WTM Trends).

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Regardless of what country youre in, the influx of Chinese visitors to Latin America
comes with a range of benefits for tourism companies. Here are three of the best tips
to prepare your business and tap into increased revenue from the Chinese market:

Chinese Market Tip 1: Customize your offering

According to Lawrence Reinisch, director of WTM Latin America, you need to start
by tailoring your approach to this markets needs and priorities: Customization is
key, so providing information in Mandarin and Mandarin-speaking guides is a must,
along with ensuring that shopping is integrated into the trip. Hotels are
incorporating Asian cuisine and wellness facilities, and introducing favoured brands
of beer such as Snow and Tsingtao.

Chinese Market Tip 2: Get your website online and mobile-ready

Theres no doubt about it: Chinese tourists want to book your tours and activities
online and on mobile. Choose a booking software provider like TrekkSoft that has
the software and expertise to get you set-up with a booking-optimized and high-
converting website on any device.

Chinese Market Tip 3: Its not all about group travel anymore
As Simon Bosshart, the Director for Asia Pacific for Switzerland Tourism, explained
to us in an exclusive interview, They prefer travelling in smaller intimate groups,
unlike the Japanese who prefer collective group travel. The Chinese prefer to travel
with friends and family, not mass groups with 35 to 40 people.

Weve compiled the most effective tips to reach the Chinese Market in a one-page
handy checklist. Download your copy and know exactly what you need to do next to
get bookings from this customer segment.

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Latin America Trend 2:

Its now essential that
youre mobile-ready
The growth of access via mobile is not a novelty anymore: it has been increasing over
the last few years and is a trend that will keep growing. A new report from comScore,
2016 US Cross-Platform Future in Focus, shows that mobile now represents 65% of all
digital media time. However, while some regions are close to saturation (such as the
United States), the mobile growth in Latin America is about to come.

According to the WTM Latin America Report, Latin America is expected to remain
underserved even by 2030, providing strong potential for growth in the long term.
Especially when it comes to traveling, were talking about a moving experience, and
the chances of tourists using mobile devices as they travel are high. Our data at
TrekkSoft proves this: 40% of bookings via our system come from mobile devices.

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So what can your tour and activity company take from this? Well, to reach your
audience you need to fulfill a basic step first: be where your audience is. The mobile
trend gives travel companies the possibility (and necessity) to extend their services in
order to reach every stage of the travel experience. This means your company has to
be prepared with strategies, features and tools focused on mobile which make it
easier for travelers to find your products while having a good user experience.

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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: its 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 its 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

How to get more bookings with a mobile solution

For tourism companies, its not just about having a mobile-optimized website. Its
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 can now be integrated with PayU
LATAM. Its a payment solution available in Argentina, Brazil, Chile, Colombia,
Mexico, Panama and Peru, and it accepts online domestic and international
payments through websites, mobile devices, tablets, social networks and e-mail,
which can be paid with credit card or payment slips.
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Latin America Trend 3:

Millennials - the new
generation of travellers
Millennials, the newest generation of tourists, are aged between 15 and 35 years old
and tend to be very tech-savvy. As travel and tourism statistics show that they made
up an estimated 23% of international travellers in 2015, we suggest that you
shouldnt turn a blind eye to this market.

According to the WTM Latin America report, millennials are leading the fast adoption
to mobile and are the generation most likely to use their smartphones to browse
websites. Millennials represent one-third of the population in Latin America, which
makes it an area with one of the largest millennial population shares. This coupled
with the growth of mobile usage in Latin America results in a consumer market that
shows high engagement with social media and the sharing economy.

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There are many important pieces of research and trends to consider for this market,
but here are some of the most important points to help you to adapt your tours for
millennials:

They value opinions

Word of mouth is almost invaluable for millennials. Surveys show that 95% of
millennials say that friends are the most credible source of product information.
This leads them to give more value to reviews and comments on your website. At
the same time, if your tours worth talking about, they are probably going to spread
the word and become a spontaneous marketing tool. Remember to also ask for
feedback at the end of your tour and make sure that you see the value of
responding to negative opinions and taking their feedback on-board as well.

Millennials want adventure and unique experiences

As a young and energetic target, millennials crave adventure, spontaneity, and
unique experiences. A survey by Harris Poll reveals that 78% of millennials prefer to
spend money on collecting experiences instead of things. Find out what a millennial
customer is looking for when booking your tour and try to provide authentic
experiences.

The connection with mobile and social networks

According to Expedias Millennial Traveller Report, 56% of millennials post photos
or videos of their holidays on social networks. So remember to provide
opportunities for photos and encourage them share their experience with your
tours online.

Social media is crucial for millennials. Download our Ultimate Social Media ebook and
learn the best strategies and tools to sell your tours on the most important social
networks.

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Latin America Trend 4:

The Connected DAT
(Domestic and Autonomous Traveller)

The rise of mobile has also led to a new type of domestic traveller, defined by WTM
Latin America as the Domestic and Autonomous Traveller. This is a highly connected
tourist who uses their mobile device during a trip to seek experiences and
information, make bookings, and adapt their plans on-the-go during domestic travel.

As explained by Alexis Frick, Research Analyst at Euromonitor International, the

industrys attention will soon focus more on domestic travellers:

The weak exchange rates across the region is particularly problematic for outbound
tourism from Latin American countries. The industrys attention will thus come to
focus more strongly on domestic travellers and inbound visitors from outside Latin
America.

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Tour operators will need to not only focus on these individual trends, but also pay
attention to how they intersect. For instance, will domestic connected travellers in
Latin America want a mobile-optimized booking process thats also in their own
language and currency?

To respond to the domestic and autonomous travel trend, make an effort to...

Check that all the information a tourist might want to know is displayed on your
website and available in the main languages spoken by your customers. Dont make
someone pick up the phone to make an enquiry!
Make sure youre using a user-friendly online booking system, such as TrekkSoft,
that allows a customer to easily book on your website or even on their smartphone.
Demonstrate your credibility by showing some of your TripAdvisor reviews on your
website. If youre a TrekkSoft customer, its easy to do this with the TripAdvisor
integration.

As the market becomes more digitally-minded, you may also want a way to manage
your business on your smartphone. The TrekkSoft app provides an easy solution to
see your upcoming activities, accept and manage bookings, and scan tickets. These
handy features can streamline your business and save your time for other tasks, as
they have for our customers around the globe.

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With TrekkSoft you can also take your mobile-optimized business to the next level by
selling trips through your own branded app as a ProMarketer customer:

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Conclusion
Its not enough anymore to simply focus on the market segment in which your
company operates. It has become increasingly important to understand the different
niches of target customers, technological changes, and economic impacts that your
tourism industry is experiencing. This gives you a better view of which trends are
coming up and makes it easier to keep your marketing strategies relevant.

Despite current economic issues in Latin America, in the next few years we can expect
the growth of Latin America as a tourism destination for China and developing
countries. To keep up, its becoming increasingly important for you to be ready to
accept bookings, payments, and enquiries from international customers that are
researching a trip to Latin America.

Other important trends on the rise include mobile usage and the high concentration
of millennial tourists, both of which are impacting the customer journey. These
trends make it even more important for Latin American companies to get online, offer
their customers online and mobile solutions for booking, and be active on the main
communication channels used by these digitally-savvy travellers.

TrekkSoft provides you with all the tools you need to keep up on one handy platform.
Count on our multilingual team to support you with our software and provide you
with the latest marketing tips in your mother-language to keep your business strong
and up-to-date.

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Your Success Checklist

Customize your tours and activities to appeal to the Chinese market. Our Chinese
Market Checklist can help you with this.
Start using a system like TrekkSoft to accept online bookings and payments, manage
your business, and sell your tours on a range of global distribution channels.
Make sure your business is ready for digital travellers by having a mobile-optimized
website and booking system in place.
Provide photo opportunities during your tours and encourage customers to share
these on social media.
Ask for reviews at the end of your tours to build up word of mouth advertising.
Respond to negative reviews tactfully and listen to what theyre saying. Take this
feedback on board to provide a better experience in future.
Aim to provide an authentic and unique experience, especially so you can appeal to
autonomous travellers and millennials.
Check that all the information a tourist might want to know is clearly displayed on
your website.
Demonstrate your credibility by showing some of your TripAdvisor reviews on your
website. If youre a TrekkSoft customer, its easy to do this with the TripAdvisor
integration.
Stay ahead of future trends and improve your business with the TrekkSoft blog, our
Ebook Library, and by following us on Facebook.

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Recommended

TrekkSoft Vlog

Subscribe to our YouTube channel and
enjoy our weekly how-to videos for tour
and activity providers on industry trends
and ways to adopt them!

TrekkSoft Webinars

We regularly host webinars with industry
experts to help tour and activity companies
build their business, develop their
marketing strategy, and drive bookings. Our
webinars are always free to attend, join us
for the next one!

Tourism Success Hub

Join our community on LinkedIn to connect

with other successful tourism businesses,
share your experiences and develop
partnerships. This is also your go-to place to
receive our team's expert advice for
growing your business.
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