‘Boom’ of physical stores by digital companies reaches Latin American tourism

The opening of physical stores by companies native digital is beginning to make its way into many sectors of the economy of Latin America that are experiencing profound changes in the forms of consumption, as is the case of tourism.

The strategy of establishing direct sales points to consolidate the business, a phenomenon that began a decade ago in the United States and whose main drivers were small “startups” It is expanding across the continent and reaching large companies eager to have direct contact with their customers.

After the pandemic, the opening of stores in shopping centers is growing. In Spain it increased by 24.6 percent in 2022, while in Latin America the mass return of consumers has driven the recovery of shopping centers, once the movement restrictions caused by the pandemic were overcome.

Change of trend

Some large digital native companies are following the example of small entrepreneurs. This is the case of the Argentine Despegar, a travel company based in Buenos Aires that was founded in 1999 by Roberto Souviron and today forms a consolidated group that includes Best Day, Viajes Falabella and Koin.

The former Despegar.com, one of the largest groups in the Latin American tourism sector, has opened four branches of this type in Argentina and a dozen physical stores in Brazil and plans to continue doing so in the other twelve countries on the continent where it operates.

“Although during the pandemic there was a digital ‘boom’, today we see that there is interest in advice”explains in an interview with EFE the manager of Despegar, Paula Cristi, who explains that the opening of physical stores is part of an omnichannel strategy with which they seek to promote accessible and complete trips.

Combine the digital with the physical

The decision to combine digital with physical is having an echo among e-commerce giants, such as the American Amazon or its Chinese rival Shein, which since last year have also been betting on the opening of physical stores.

In the case of Despegar, the company has several purchasing channels, a mobile application in which users manage the purchase of tourist packages and a mobile advisory call center.

He 40.1% of transactions are carried out through Despegar apps, while the fifteen% of the gross reserves – which in 2022 totaled 1,400 million – were between businesses.

Flexibility in payment methods

Despegar’s experience in markets such as Mexico, Colombia, Chile and Peru – where the company also operates with the Best Day and Viajes Falabella brands – was fundamental for the establishment of physical stores in Argentina and Brazil.

More personalized advice, especially in complete travel services, and flexibility in payment methods – including the use of cryptocurrencies – are some of the advantages offered by Despegar’s physical stores, a company with which EFE maintains a marketing agreement. dissemination of information about tourism.

A membership system called Despegar Passport, which already has 19.9 million members, and a travel planner that uses generative artificial intelligence to create personalized tourist packages are some of the new features of this company that accompany the opening of branches .

And although tourism activity in Latin America is recovering from the effects caused by the mandatory stoppage due to the pandemic, the aviation sector continues to be very affected, especially long-range flights, says Paula Cristi, although it is true that there has been a new traveler profile who seeks unique experiences, wellness trips and destinations that allow remote work.