Travel and Tourism is one of the key sectors that play a pivotal role in any country’s economy and make a significant contribution to the country’s GDP. The global growth in travel and tourism activities has led to the rise of travel intermediaries, making them an important part of selling travel products to customers.
The market size of the travel and tourism sector in South and Central America reached a value of $85 billion in 2021, with 56% contribution from the in-store sector and the remaining 44% from the online sector. In recent years, the rise in the number of online travel intermediaries was aided by the growth in the number of internet users along with the demand for convenience among travelers further supported the rise in the market for online travel Intermediaries.
Even though there has been a rise in the number of online travel intermediaries, in-store travel still has its relevance and has been growing steadily for the past few years as it provides a sense of security, especially for the elderly who are generally skeptical of the usage of online platforms.
The travel and tourism market in South and Central America grew by a whopping 131% in 2021 with in-store growth of 126% and online growth of 138%, almost three times the next-best growth as the sector witnessed a recovery in the demand after easing the restrictions which were placed on account of the outbreak of the COVID-19 pandemic and travel intermediaries’ sharp rise in travel products as the consumers planned their travel activities after the gap of almost two years. The growth in 2021 accounted for $48 billion, surpassing the second-biggest market of Asia-Pacific by a considerable margin.
Meanwhile, the growth which the travel and tourism sector was going to see was reversed with the pandemic which completely devastated the industry in 2020. During the year 2020, the market value of the travel sector in the South and Central America region saw a de-growth of a mammoth 70%, the highest among all regions, accounting for $84 billion.
Key travel destinations among travelers in South and Central America include Machu Picchu, Cusco City, Easter Island, Rio de Janeiro, and Buenos Aires among others.
The travel and tourism market in South and Central America grew at a CAGR of negative 10% during the period 2017-2021. The global travel industry along with its allied sectors saw a slump in market value with the pandemic in 2020. Before 2020, the industry was also witnessing slow growth due to low economic growth.
The major companies with a strong presence in the travel market in South and Central America include Latin Discoveries, South American Vacations, Totally Latin America, Expedia, and Vaya among others.
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