With relatively low online travel penetration and a population of more than 120 million, Mexico is a market of great untapped promise, according to a new Phocuswright report, the country had the world's 13th largest travel market in 2013.
Mexican airports transported over 55 million passengers in 20131, and despite concerns about personal safety related to inter-gang violence, international arrivals jumped 10% between 1H13 and 1H14.
On the heels of an economic upswing, Mexico's middle class will drive domestic demand for both leisure and business travel in the coming years.
Totaling US$24.3 billion in gross bookings, the Mexican travel market was Latin America's second largest in 2013.
According to Phocuswright's Latin America Online Travel Overview Second Edition, growth projections suggest that it could overtake Brazil for first place within the next decade, particularly if economic conditions improve and online travel agencies (OTAs) continue to make headway with Mexican consumers.
Because traditional channels hold sway, online penetration is low â€" more than 80% of leisure travel is booked offline. But some OTAs are now partnering with local travel agencies in hopes of tapping into Mexico's huge offline market.
"Hotel bookings in 2013 surpassed Germany, the U.K., and Spain," says Phocuswright's director, research, Luke Bujarski. "Traditional travel agents still capture a large share of the leisure market, but the pendulum is swinging toward direct and online bookings. This will create opportunities for online travel agencies with local market knowledge and technical know-how, as well as for web-savvy suppliers in tune with the latest channel management and digital marketing applications."
Phocuswright's Latin America Online Travel Overview Second Edition presents market sizing and projections for Latin America's online leisure and unmanaged business travel market from 2012 â€" 2016. The report features rich analysis of the Latin American travel market, with coverage of online versus offline bookings, bookings by travel segment, supplier-direct versus intermediary bookings and more.
Highlights include:
- Total market and online leisure/unmanaged business travel bookings for 2012 â€" 2016
- Mobile travel gross bookings for 2012 â€" 2016
- Analysis of major travel product segments â€" air, hotel, rail and car rental
- Discussion of the OTA landscape, including key players, recent developments and the relative
- influence of local versus global OTAs
Phocuswright's Latin America Online Travel Overview Second Edition provides the information and insight to make informed decisions about the region’s dynamic travel market.
1Â Secretaria de Comunicaciones y Transportes.
