Lodging in Latin America

Key Findings

Variables align to generate more visits

Due to a more optimistic economic situation in countries like Brazil and Argentina, favorable exchange rates and new marketing strategies, Latin America manages to attract travelers and now targets new markets in Europe and Asia.

Brazil and Mexico control the lodging market in the region

Historically these countries have dominated the market being a multi-destination and offering varied lodging supply. International hotel chains to continue to invest in them focusing on different audiences such as business travelers or millennials.

Latin America is Airbnb’s fastest growing market             

Latin America is by far Airbnb’s fastest growing market. The initial interest of governments to regulate the platform formally has advanced slowly. The extra income Airbnb provides to those who have been affected by economic instability will result in a strong growth in short term rentals listings in the forecast.

Low cost airlines push locals to travel regionally

The expansion of low cost airlines in the region has allowed for people to opt for regional destinations and travel more frequently, saving money and increasing the lodging demand.

Consumers opt for comfort of online intermediaries

Online intermediaries allow to consumers to compare prices, read reviews, view photos, obtain discounts and centralize lodging options which are a critical advantage versus an offline booking experience. 

Low cost lodging brands plan to expand in the region

To align with a price sensitive consumer and the informal offer of Airbnb, lodging players such as Marriott battle expanding through low cost, quality brands such as Fairfield and Moxy.