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Latin Americans Are Most Likely to Increase Expenditure on Travel Experiences

4/3/2018
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Euromonitor International released today an exclusive report at World Travel Market (WTM) Latin America, revealing how the regional travel industry is developing amidst socioeconomic and technological changes.

Latin America Travel Overview

  • The US remains the largest source of foreigners’ arrivals in Latin America, but China is becoming a more frequent visitor in Latin America
  • Mexico remains the largest recipient of visitors in Latin America, but Chile was the country that presented the largest growth in inbound arrivals between 2012-2017
  • Of the top 20 most visited cities in Latin America, four are in Mexico, four are in Peru, three are in Chile, two are in Brazil and Dominican Republic, and one is in Argentina, Colombia, Costa Rica and Uruguay
  • Chile hosts six of top 10 best performing cities in terms of increase rate of inbound arrivals between 2012 and 2017
  • Despite hosting the World Soccer Game in 2014 and the summer Olympic Games in 2016, Brazil ranked 34th in terms of inbound arrivals growth between 2012 and 2017
  • Venezuela hosts four of the 10 worst performing cities in terms of increase rate of inbound arrivals between 2012 and 2017
  • Foz do Iguaçu was Brazil’s worst performing city in terms of increase in inbound arrivals between 2012 and 2017

Experience More: Megatrend Boosting Travel Experiences

Consumers are increasingly spending more on experiences over things, which represents a huge potential to brands that offer value-added experiences. Consumer expenditure on experiences is set to rise from US$5.8 trillion in 2016 to US$8.0 trillion in 2030, using leisure, recreation, travel and foodservice as a proxy.

The “Experience More” megatrend is driven by a fundamental shift in consumer attitudes since the Great Recession of 2008/2009, eschewing conspicuous consumption, and opting for value-added products and experiences. In 2016, 36% of consumers agree or strongly agree that they prefer to spend their money on experiences rather than things. The “Experience More” megatrend is a truly global phenomenon, pervasive across all industries, products and services, offering infinitesimal great opportunities for brands to become creative.

 

According to our Global Consumer Survey 2017, 37% of Latin American indicated they intend to increase spending on leisure travel and vacations in 2018. This is the highest response rate among all regions and above the global response rate of 29%. Travel and holidays is the activity in which Latin Americas consumers are most likely to increase expenditure.

Click here to download the presentation: http://go.euromonitor.com/event-2018-world-travel-market-latam.html

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