Strategy

Our strategy is to expand our leading position, better serve our customer and supplier needs and increase our profitability. We plan to achieve these goals by:

We plan to expand our supplier base and deepen existing relationships. We intend to continue to provide access to our broad customer base and offer multiple rate plans and package deals to drive demand for our suppliers. We will also continue to invest in our software to offer our suppliers tools to better manage their inventory.

The launch of new mobile features and investment in mobile-focused marketing is expected to increase app downloads and mobile conversion. Through mobile-only rates, personalized packaged products and in-destination targeted marketing, we offer our customers an attractive range of travel products. Providing customers with functionality such as account recognition, in-app customer service, location-based targeting and highly-targeted push and in-app notifications and automated payment options should further drive mobile growth.

We have invested aggressively over the years to scale our operations and support the growth of our business. We intend to continue enhancing the infrastructure and technology that support our platform and invest in initiatives to promote automation and improve efficiency, which will simplify our operations and reduce costs.

We see strong potential to expand our customer base in the region, while increasing existing customers’ total spend. We believe that our personalized customer experience, comprehensive product offering and high-impact marketing will drive repeat purchases and attract new customers to our platform.

We are constantly tailoring and expanding our product offering to better address our customers’ needs. For example, in recent years, we launched new products, including travel insurance, bus trips, vacation rentals, and our local concierge product. By expanding our installment payment plans and adding other payment options, we expect to attract more customers and improve purchase conversion.

By further capitalizing on our large scale and increasing cross-selling, we plan to grow our revenue base. We see significant opportunity to grow our packages, hotels and other travel products businesses through marketing and cross-selling initiatives, such as offering exclusive discounts on related products upon checkout, targeted post-sale emails and personalized in-destination mobile marketing.

We may expand our business through opportunistic acquisitions that enable us to enhance our customer offerings, build our marketplace, enter new geographies or enhance our operational infrastructure. We may also consider acquiring additional technology capabilities through alliances and partnerships.

Competitive Advantages

We are the leading Online Travel Agency in Latin America and our leadership position is a result of our following core strengths:

Industry Leader in Latin America

Industry Leader in Latin America

We have achieved significant scale and brand awareness, with approximately 140 million unique visitors in the year to June, 2017. Our business benefits from a strong virtuous cycle. Weare an essential partner for suppliers. In turn, our growing network of travel suppliers helps us to attract new customers with enhanced product offerings. What’s more, by growing our user base and aggregating different products from our suppliers, we are able to offer attractive pricing and availability of travel products to our customers.

Strong Brand Recognition and Awareness

Strong Brand Recognition and Awareness

Despegar, our global brand, and Decolar, our Brazilian brand, have leading brand awareness in online travel in key markets, including Brazil and Argentina. We have dedicated significant efforts and resources to building our brands throughout our 18-year history. In the first six months of 2017, 52%of the traffic on our platform was from visitors coming to our platform directly, or through other free channels.

Local Market Expertise and Leadership

Local Market Expertise and Leadership

We have a strong track record in Latin America, with a point of sale in 20 markets, representing 95% of the region’s population, and with a leading OTA presence in key markets such as Brazil, Argentina, Mexico, Chile, and Colombia. Differences in language, local customs, travel preferences, currencies and regulatory regimes across the region create tremendous barriers to entry for international suppliers or OTAs seeking to establish a local presence.

Flexible Payment Solutions

Flexible Payment Solutions

Unlike the U.S. or Europe, installments are a popular means of payment in Latin America. In fact, we believe installment plans to be one of the keys to success in Latin American e-commerce. Our portfolio of installment plans is an important driver of traffic to our platform. Installment plans accounted for approximately 54% of our transactions in the first half of 2017. Our agreements with a broad set of banks and card issuers enable us to make available through our banking partners interest-free installment plans, while carrying no collection risk.

Leading Mobile Offering

Leading Mobile Offering

Mobile is an increasingly important part of our business, as consumers are quickly able to access and browse our real-time travel offerings, compare prices and make purchases through their mobile devices. As of June 2017, our mobile apps had more than 33 million cumulative downloads and we believe they are the most downloaded OTA apps in Latin America. During the first half of 2017, mobile (including both mobile web and our mobile apps) accounted for just over half of all user visits and approximately a quarter of transactions. Our customers using mobile devices have historically made more repeat transactions than customers using desktop computers. Additionally, our mobile presence allows in-destination marketing, which facilitates cross-selling of additional travel products, such as rental cars and destination services, to customers after they have arrived at their destination.

Powerful Data and Analytics Platform

Powerful Data and Analytics Platform

Our large web and mobile audience and transaction volume generate a significant amount of data that allows us to better understand our customers and provide personalized travel offerings and also helps us to drive our sales, marketing and operational strategy. Currently, the majority of visitors to our platform see a personalized landing page based on such factors as user account information, past search and purchasing history and geolocation. We believe that this personalization of the user experience increases engagement and likelihood of purchase.

Effective Marketing Capabilities

Effective Marketing Capabilities

Through our vertically-integrated, in-house marketing team, we are able to control all aspects of our budget, marketing campaigns and market analytics, without the need for agencies or external consultants. Our marketing team’s local knowledge and expertise in our key markets have allowed us to develop direct relationships with a broad range of local and regional media providers and purchase media directly, avoiding more costly intermediaries.

Proven and Experienced Team

Proven and Experienced Team

Our expertise in Latin America distinguishes us. Our management team has significant experience in the travel sector and across a variety of industries in the region. Members of our management team have worked at organizations such as Expedia, Kimberly-Clark, LATAM Airlines, McKinsey, Morgan Stanley, PwC and Thales, among others. In addition to our management team, we have an extensive technology team including more than 800 developers as of June 2017.

Last update: September 20, 2017