Online Travel in the BRICS Presentation

Online Travel: BRICS still hot

Despite recent headline news about the slowdown experienced in the BRICS economies, these countries continue to command strong appeal, accounting for 40% of the world’s population, 22% of its GDP and a staggering 58% of middle-class income.

China leads the pack

Thanks to the world’s largest online population, China is poised to become one of the top markets for e-commerce, with local travel companies faring well. The growth of independent travel in the country is also favouring online sales.

BRICS punch below their weight

In the BRICS, the fundamentals are in place for tourism demand. However, the share of online travel is low in the BRICS, at only 7% compared to the group’s comparative share of smartphone users (35%), m-commerce (23%) and outbound tourism demand (14%).

Mobile is fast-growing

Smartphones are becoming more mainstream across the BRICs, encouraging m-commerce. Mobile travel sales are steadily increasing in all BRIC countries, although from a small base.

Social media frenzy

In the BRICS, word of mouth is key. Social media giants like Facebook and Twitter have high profiles in countries like Brazil, Russia and India, while home-grown players are also strong, but are banned in China.

Challenges remain

Structural challenges include rolling out internet connectivity from urban to rural areas, the slow uptake of credit cards, consumer attitudes to e- and m-commerce and the associated risk of fraud. Censorship of social media sites and privacy issues with regard to big data will be hotly debated.