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Virtuous Cycle Based on Increasing Scale and Brand Recognition

Stronger Brand

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. We have a strong track record in Latin America, with a marketplace in 20 markets, representing 95% of the region’s population. We provide customers with a fast, easily searchable and transparent travel research, planning and booking experience.

More Traffic

We operate in an expanding and evolving travel market. Internet, smartphone and other mobile device penetration is increasing rapidly, driving robust growth in online travel bookings in Latin America. This is being fueled by increasing internet penetration, which is expected to be among the fastest regional increases through 2020. In addition, we believe we have the broadest travel portfolio among online travel agencies in Latin America, with a broad and diversified selection of travel products at attractive prices from global suppliers.

Larger Scale

We are the leading online travel company in Latin America with the broadest travel portfolio among online travel agencies in the region. Online travel in the region remains significantly underpenetrated by global standards and is expected to grow at a rapid pace. Alongside the continued development of the Latin American economy, a larger portion of the population has opened bank accounts, enabling access to new forms of payments. With the increased number of consumers with bank and credit card accounts, more people have the ability to make purchases online.

More Transactions and Cross Selling:

Long-term favorable macroeconomic trends in the region have expanded the middle class and increased disposable income available for discretionary purchases such as travel. Through targeted cross-selling initiatives, such as offering exclusive discounts on related products upon checkout, post-sale emails and personalized in-destination mobile marketing, we plan to grow our packages, hotels and other travel offering with multiple payment methods. As the leading Latin American OTA, we have developed long-standing relationships with a wide range of local banks to offer multiple payment methods to customers, including installment plans. In addition, we believe our personalized customer experience and comprehensive product offering will drive repeat purchases and attract new customers to our platform.

Better Supplier Terms:

A key factor that underpins our business model is the fragmentation of the travel industry. We work with a highly fragmented network of suppliers seeking online distribution. This fragmentation is compounded by regional complexities, including different languages, local customs, travel preferences, currencies and regulatory regimes across the more than 40 countries. These factors create challenges for suppliers to reach customers directly and, consequently, create a significant market opportunity for us

Last update: September 20, 2017