Low-cost carriers across the region continue to put downward pressure on legacy carriers. Countries such as Brazil and Mexico, in particular, have high low-cost carrier adoption rates. Don’t leave them out of your buying equation.
The Pacific Alliance is a Latin American trade bloc with four member states – Mexico, Chile, Colombia and Peru – which seeks to further economic integration and free trade, as well as promote common diplomatic representation and visa-free travel.
The sectors that are thriving for business travel include oil and gas, automotives and pharmaceuticals.
region, and the third-largest in the world, second only to China and the US. You would think it was plain sailing for such a large and advanced market, yet travel management here can present some real obstacles. “Access to content is an issue – most domestic airlines in Brazil are not on the GDSs [global distribution systems]. The same is true with accommodation – 40 per cent of the hotel stock is in private ownership and, again, this is not on the GDS,” explains Liliana Moreira, commercial manager at LTN Brasil travel consultants. Many hotels and their owners prefer to
work directly with clients – bookings are still generally made via email and telephone. Therefore, online bookings are not as widespread as you might expect, and trust, relationships and formal requests are the norm. This is partly due to the prevalence of independent hotels in Latin America. “But this will change as the hotel chains start to acquire properties in the region,” says Gerardo Tejado, Latin America general manager at American Express Global Business Travel. Another factor is safety: British and
European companies have increased their focus on traveller security in addition to
Buying business travel in this region takes a fair level of knowledge and forward planning
policy compliance. FCM Travel Solutions’ regional network leader, Maren Hanschke, says: “Currently, Venezuela, El Salvador and Mexico are considered to be countries of high risk. Companies need to make sure their travellers are fully prepared.”
SPORTING CHANCES Some areas of Latin America are cur- rently going through major redevelopment. Try getting a hotel room in Sao Paulo or Rio de Janeiro, even after this year’s World Cup – despite new hotels opening, it can be a big issue. “Occupancy rates run at some of the highest in the region, so getting rooms is a challenge for business
LATIN AMERICA BUSINESS TRAVEL POINTERS
BRAZIL: The continued weakness of the Brazilian Real means that prices paid for hotels are down in the country’s two largest cities, Sao Paulo and Rio de Janeiro. Hotel capacity and occupancy have grown as a result of the World Cup this year.
COLOMBIA: The country has seen a boom in business travellers. Official figures from Colombia’s Ministry of Commerce, Industry and Tourism saw a 51 per cent increase in 2013 over the previous year. By the end of 2014 nearly 7,000 new hotel rooms will be in place, a massive rise of nearly 30 per cent.
PANAMA: Hilton launched its first hotel in Panama City in August. Panama’s Tocumen International Airport is now a major regional hub (it is often referred to as the ‘Hub of the Americas’). This airport has been undergoing a multiple-stage expansion.
MEXICO: Popular for the automotive industry. The country is a business travel hotspot for clients due to the rise of investment and development.
86 BBT NOVEMBER/DECEMBER 2014
travellers and we still have the Olympics to contend with in two years’ time,” says Paul East, chief operating officer at Wings Travel Management.
Certainly those who buy and manage business travel are looking for more invest- ment to meet the demand of the interna- tional executive. “There is long-term growth in the region, and the infrastructure needs to be developed to meet demand,” says Hillgate Travel marketing manager Julian Munsey. “Although infrastructure develop- ment is increasing, investment is low at only 1.7 per cent of GDP, with only Africa investing less. However, the region is now attracting outside investment, especially from China.” The general consensus is that Latin America is in a state of flux. It is a disparate region – what applies in Brazil certainly doesn’t in Nicaragua. In the near future a lot will depend on infrastructure investments, in hotels, air networks, airports and ground transportation. This is reliant on economic growth, which is lukewarm at the moment. One thing’s for certain: buying business travel in this region takes a fair level of knowledge and forward planning – but with experience, it can be mastered.
HOTEL PRICE INDEX FOR LATIN AMERICAN COUNTRIES (RANKED)
Mexico Brazil
Puerto Rico Chile
Colombia Costa Rica Argentina
BENCHMARKS UK US
H1 2013 £123
£147 £117 £97
£104 £99 £81
£86 £118
H1 2014 £136
£128 £116 £89 £86 £83 £79
£93 £119 Source: Global Hotel Price Index from
Hotels.com
% Change 11%
-13% -1% -8%
-17% -16% -2%
+8% +1%
BUYINGBUSINESSTRAVEL.COM
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