latin america risingmedia.peru.info/impp/phocuswright27abril2015.pdf · latin america rising...

Latin America RisingPresentation for PromPeru

Lima, Monday, April 26, 2015

Cees Bosselaar

PhoCusWright Global Sizing Methodology

What is the largest industry worldwide?

1. Automotive industry?2. Travel industry?3. Chemical manufacturing?4. Mining?

What is the largest industry worldwide?

1. Automotive industry: 8% of GDP2. Travel industry: 9% of GDP3. Chemical manufacturing: 7% of GDP4. Mining: 8% of GDP

How many people are employed in the travel industry?

1. 105 million?2. 175 million?3. 255 million?

How many people are employed in the travel industry?

1. 105 million2. 175 million3. 255 million! 1 out of 12 people

How many people travel outside their borders each year?

1. 580 million?2. 750 million?3. 900 million?

How many people travel outside their borders each year?

1. 580 million2. 750 million3. 900 million4. 1 BILLION

© 2015 Phocuswright Inc. All Rights Reserved. 9Source: Phocuswright’s Global Online Travel Overview Third Edition

The Global Travel Market in 2014:

US$1.3 trillion…

…And Rising

10© 2015 Phocuswright Inc. All Rights Reserved.

Source: Phocuswright’s Global Online Travel Overview Third Edition

…Across Six RegionsGlobal travel gross bookings share by region, 2014

27%

27%

25%8%

6%

7%

The Middle East

Eastern Europe & Russia


390

732

519

809

Emerging Markets* Developed Markets**

2011 20152011 2015

Notes: *Emerging markets include Eastern Europe, the Middle East, Latin America and Asia Pacific excluding Japan and Australia/New

Zealand. **Developed markets include Europe, the U.S., Japan and Australia/New Zealand.

Source: Phocuswright's Global Online Travel Overview Third Edition

Emerging Markets Will Contribute Nearly Twice as

Much to Global Gross Bookings Growth

Global gross bookings by market type, 2011-2015 (US$B)


-

200

400

600

800

1 000

1 200

1 400

2011 2012 2013 2014 2015

Total Market Online Market


Global Travel and Online Travel Gross

Bookings

2011-2015 (US$B)



The U.S. and Europe Account for Two Thirds

of the Global Online Travel MarketOnline travel share by region, 2014

35%

21%

31%

4%

6%

4%

The Middle East




But Emerging Markets are Growing Twice as

Fast…Online travel growth by region, 2014

8%

14%

9%

16%

25%

22%

The Middle East


Figure 1.1: Latin American Total and Online Travel Markets, Gross Bookings (US$B) and Compound Annual Growth Rates (%), 2012-2016

Note: CAGR calculated using U.S. dollars. Source: Latin American Online Travel Overview Second Edition

24.4

98.5

21.2

92.1

18.5

86.2

15.9

79.9

14.1

77.7

0 50 100 150

Online Market

Total Market

2012 2013 2014 2015 2016

6%

15%

Co

mp

ou

nd

An

nu

al Gro

wth

Rate

Figure 1.2: Online Travel Penetration by Region, 2013

Source: Latin American Online Travel Overview Second Edition

43% 42%

25% 23%20% 20%

10%

15%

20%

25%

30%

35%

40%

45%

Europe U.S. APAC EasternEurope

MiddleEast

LatinAmerica

Figure 1.3: Supplier Gross Bookings (US$B) for 2013 and Compound Annual Growth Rate (%) for 2012-2016

Note: CAGR calculated using U.S. dollars.Source: Latin American Online Travel Overview Second Edition

2.0

12.5

41.1

30.8

0 10 20 30 40 50

Car Rentals

Tour Operators

Hotels

Airlines 7%

6%

3%

3%

Co

mp

ou

nd

An

nu

al Gro

wth

Rate

Figure 1.4: OTA Gross Bookings (US$B) and Compound Annual Growth Rate (%), 2012-2016


6.0

6.5

7.4

8.5

9.7

2012 2013 2014 2015 2016

13%

Figure 1.5: Latin American Online Travel Market, OTA vs. Supplier Direct Share, 2013


59%

41%

Supplier Direct OTA

Figure 1.6: Total Gross Bookings (US$B) for 2013 and Compound Annual Growth Rate (%) for 2013-2016


2.8

24.3

9.7

4.8

30.4

8.0

10%

8%

9%

9%

6%

5%

Peru

Mexico

Colombia

Chile

Brazil

Argentina Co

mp

ou

nd

An

nu

al Gro

wth

Rate

Figure 1.7: Total Online Gross Bookings (US$B) 2013 and Compound Annual Growth Rates (%) for 2013-2016


13%

15%

17%

22%

14%

20%

0.3

4.2

1.5

1.2

7.2

1.6

0.0 2.0 4.0 6.0 8.0

Peru

Mexico

Colombia

Chile

Brazil

Argentina Co

mp

ou

nd

An

nu

al Gro

wth

Rate

PhoCusWright’s Online Maturity Matrix


Saturated Heated

Inhibited Untapped

On

line

Pen

etra

tio

n

Rate of Growth

Figure 1.8: Total Gross Bookings(US$B) by Market, CAGR and Online Penetration (%), 2013

Note: CAGR calculated for 2013-2016 using U.S. dollars. Source: Latin American Online Travel Overview Second Edition

10%

12%

14%

16%

18%

20%

22%

24%

26%

28%

5% 10% 15% 20% 25%

Online P

enetr

ati

on

Online Market: Compound Annual Growth Rate

Chile

$4.8

Argentina

$8.0

Mexico

$24.3

Peru

$2.8

Colombia

$9.7

Brazil

$30.4

Regional Baselines

Figure 1.9: OTA Gross Bookings (US$B) for 2013 and Compound Annual Growth Rate (%) for 2013-2016, by Market

Note: CAGR calculated using U.S. dollars. Source: Latin American Online Travel Overview Second Edition

1.0

2.9

0.4 0.21.8

0.1

10%

15%18%

24%

12%

24%

0%

5%

10%

15%

20%

25%

30%

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

OTA Bookings CAGR

Figure 1.10: Airline Gross Bookings (US$B) for 2013 and Compound Annual Growth Rate (%) for 2013-2016

Note: CAGR calculated using local currencies. Source: Latin American Online Travel Overview Second Edition

2.6 14.2 2.3 5.3 5.5 1.0

3%

5%

12%

9%8%

7%

0%

2%

4%

6%

8%

10%

12%

14%

0

2

4

6

8

10

12

14

16

Hotel Bookings CAGR

Figure 1.11: Hotel Gross Bookings (US$B) for 2013 and Compound Annual Growth Rate (%) for 2013-2016


4.8 12.5 1.8 3.6 17.0 1.3

7%6%

7%

9% 9%

13%

0%

2%

4%

6%

8%

10%

12%

14%

0

2

4

6

8

10

12

14

16

18

Figure 1.12: Tour Operator Gross Bookings (US$B) for 2013 (US$B) and Compound Annual Growth Rate (%) for 2013-2016


1.25.2 0.8 1.6 3.1 0.7

<1%

6%

2%

8%

5%

7%

0%1%2%3%4%5%6%7%8%9%

0

1

2

3

4

5

6

TO Bookings CAGR

Figure 1.13: Car Rental Gross Bookings (US$M) for 2013 and Compound Annual Growth Rate (%) for 2013-2016


72

1 286

260

51

319

27

4%

5% 5%

4%

3%

6%

0%

1%

2%

3%

4%

5%

6%

7%

0

200

400

600

800

1 000

1 200

1 400

Car Rental Bookings CAGR

Figure 1.14: Latin American Supplier Gross Bookings, Share by Channel, 2013


2%

1%

4%

25%

2%

4%

14%

11%

96%

95%

82%

64%

Tour Operators

Car Rentals

Hotels

Airlines

Direct Indirect Other

Figure 1.15: Latin American Supplier Gross Bookings, Share by Channel, 2016


5%

4%

5%

30%

5%

7%

19%

16%

90%

89%

76%

54%

Tour Operators

Car Rentals

Hotels

Airlines

Online Direct OTAs Other

Take aways:

• LATAM total travel market is 7% of the global travel market

and grows by 6%

• LATAM online travel market is 4% of the global online travel

market and grows by 15%

Take aways:

• The global online travel penetration in Europe and the USA is

43%

• LATAM online travel penetration is 20%

Take aways:

• Brazil and Mexico are the largest markets and grow by 6% and

8%

• Colombia and Peru are the fastest growing online markets

with grow rates of 20% and 22%

TRENDS THAT AFFECT THE GROWTH

Mobile

Mobile pay

Beacons

New Entrants

Social media

Sharing economy

Business and leisure travel merge

Wearable devices

Millennials

Mobile

Mobile

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=B-oOmsQmrNFghM&tbnid=2qGrwEZ7Tp14hM:&ved=0CAcQjRw&url=http://inspirationfeed.com/articles/technology-articles/how-technology-has-changed-over-the-centuries/&ei=a6s6VLCTDvCLsQSy5YC4Bg&bvm=bv.77161500,d.cWc&psig=AFQjCNE6RxcKS3HLDJ5BqhfE3GJTbg6Sgg&ust=1413217448290157

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=B-oOmsQmrNFghM&tbnid=2qGrwEZ7Tp14hM:&ved=0CAcQjRw&url=http://inspirationfeed.com/articles/technology-articles/how-technology-has-changed-over-the-centuries/&ei=a6s6VLCTDvCLsQSy5YC4Bg&bvm=bv.77161500,d.cWc&psig=AFQjCNE6RxcKS3HLDJ5BqhfE3GJTbg6Sgg&ust=1413217448290157

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=l9liVhEsm81-bM&tbnid=6xGARmwQAYoHzM:&ved=0CAcQjRw&url=http://www.freedomworks.org/content/government-can-legally-read-your-old-emails-heres-how-stop-them&ei=mqw6VKLfB7DCsATvhoCoAg&bvm=bv.77161500,d.cWc&psig=AFQjCNEwBUq2BQWYJfKow66U4nklqHFeTQ&ust=1413217824265796

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=l9liVhEsm81-bM&tbnid=6xGARmwQAYoHzM:&ved=0CAcQjRw&url=http://www.freedomworks.org/content/government-can-legally-read-your-old-emails-heres-how-stop-them&ei=mqw6VKLfB7DCsATvhoCoAg&bvm=bv.77161500,d.cWc&psig=AFQjCNEwBUq2BQWYJfKow66U4nklqHFeTQ&ust=1413217824265796


47% Own Each of These


DestinationSelection Shopping

Booking

Sharing

22%21%

12%15%

35%34%

19% 41%

82%82%

81%57%

Tablet

Smartphone

Desktop

Base: U.S. online travelers who own smartphones (N=1,658)

Source: Phocuswright's Traveler Technology Survey 2013

More U.S. travelers use mobile

before and after bookingTraveler use of devices across the trip life cycle


vs.


OTA19%

11%

Mobile Web AppNote: Data represents SMARTPHONE activity only; research based on 1,232,473 mobile website and application sessions collected on

smartphones and tablets from 1,026 U.S. leisure travelers, June 1-June 30, 2014.

Source: Phocuswright Inc.


13% app

18% mobile web

Note: Data represents SMARTPHONE activity only; research based on 1,232,473 mobile website and application sessions collected on

smartphones and tablets from 1,026 U.S. leisure travelers, June 1-June 30, 2014.

Source: Phocuswright Inc.

New Entrants


Disruptors or Distractions?

Sharing Gets Real


Welcome to the Sharing Economy

Storage: $200 ayear

Extra parking spot: $100 a year

Lawn mower:$20 a day

Dog: $10 a walk

Boat: $250 a dayCar: $50 a day

Bike: $10 a day

Guitar: $50 a weekPower tools: $20a day

Source:

Extra room: $75 a night


Source: Phocuswright's Share This! Private Accommodation & the Rise of the New Gen Renter

17%

83%

Renters

Non-renters

17% of U.S. leisure

travelers rented in

2013. That’s 22

million renters.

U.S. Traveler

Population

http://www.phocuswright.com/products/4484


17%

83%

Renters

Non-renters


U.S. Traveler

Population

So how about

that other 83%?




Three Key Issues:

1. Awareness

2. Trust

3. Hotel services and

amenities



Renting’s Future:

The Unique Experiences of These…


…with the Hospitality and

Conveniences of These

Source: Google Images

The Business Traveler’s

New Charge

The lines between

business and leisure

travel behavior are

blurring

Bizcation?

Call it what you will, this add-on to business trips is here to stay

Bleisure?

64%

=4 days

Source: Phocuswright's Traveler Technology Survey, 2014

60%

And how they are

traveling is changing


What about private accommodation?

Should hotels be worried?


2013 2014 2015

Source: Phocuswright's U.S. Online Travel Overview Thirteenth Edition

Maybe Not… The U.S. Hotel Market

is Stronger Than Ever, but…U.S. hotel and lodging room revenue


Source: Phocuswright's Traveler Technology Survey, 2014

Maybe Not… The U.S. Hotel Market

is Stronger Than Ever, but…

More than one in

five business

travelers have used

a rental in 2014

This…

is giving way

to this…

And this…

is giving way

to this.

Ride-sharing

Car-rental sharing

Pre-arranged transportation

On-demand car rental


The

Millennial

War

#8


Why are

millennials so

important?


SPENDING

POWER


Source: U.S. Census Bureau

25% of U.S.

population

80 million U.S. consumers were born between 1977 and 2000, making the millennial generation

bigger than Baby Boomers and Generation X


0%

20%

40%

60%

80%

18-24 25-34 35-44 45-54 55-64 65+ Average

Source: Phocuswright's Consumer Travel Report Sixth Edition

And more of them travel

(especially older millennials)Percent of U.S. adults who travel, by age, 2013


• Source: Phocuswright's Consumer Travel

Millennials are twice as likely to take

long trips (14 nights or longer)…


• Source: Phocuswright's Consumer Travel Report Sixth Edition

…and 42% of millennials traveled

internationally in 2013 (compared to only 28% of older travelers).


They are passionate

for travel.



They seek unique,

authentic experiences


But before you get

your hopes up…



$3 217$3 381

Millennials Older travelers

Annual Leisure Travel Spend

…they don’t spend

quite as much.



More travel but less total

spend means millennials

are…


…a lot less likely to stay here…



6 in 10 stayed with

friends and

family when

traveling in

2013

…and more likely to stay here.



Millennials are also

demanding, and much more

likely to book last minute.


23% of millennial travelers booked their last

trip less than one week before departure

Only 12% of

older travelers

did the same


They are less motivated by

these…



85% of millennials “…always check multiple websites

to make sure they get the best deal”

…and much more likely to make their

travel decisions here.



Millennials may not be

your core audience today,

but they will be, when

they reach their peak

earning and

spending years.

Now is the time to build

relationships, as they

engage brands, form

perceptions and develop

travel habits and

preferences.


Destinationselection Shopping

Booking

6%11%

5%

36%37%

23%

Older travelers Millennials

Source: Phocuswright’s Traveler Technology Survey 2013

And mobile is a good place to start.Millennial and non-millennial travelers who use smartphones by trip planning phases, 2013


Cees Bosselaar

Director Business Development &

Destination Marketing Specialist

[email protected]

Thank you!

mailto:[email protected]

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