Supplier Shifts Driving Latin America’s Travel Growth in 2025
According to Phocuswright’s Latin America Travel Market Report 2025, the region’s travel suppliers are entering the new year stronger, more efficient and more digitally advanced than ever. Across airlines, hotels, car rentals and intermediaries, the post-pandemic reset has evolved into a new phase of consolidation, modernization and strategic innovation.
Airlines remain the backbone of Latin America’s travel economy, setting new passenger records in Brazil, Mexico, Colombia and Chile. Low-cost carriers continue expanding aggressively, while legacy airlines are restructuring operations and strengthening their market positions.
Hotels are also gaining momentum through rate-driven growth, with average daily rates and revenue per available room rising faster than occupancy. More than 150 new hotel projects are in the pipeline—led by Brazil, Mexico and Chile—reflecting renewed investor confidence in long-term demand for the region’s hospitality sector.
Car rental markets reached record gross bookings in 2024, supported by a rebound in both leisure and corporate travel. Meanwhile, tour operators and online travel agencies are accelerating their digital transformations. Online channels now account for more than half of OTA gross bookings—a milestone that highlights the region’s growing digital maturity.
Despite ongoing macroeconomic and political volatility, tourism has become one of Latin America’s most dynamic engines of growth. The industry generated $67.9 billion in gross bookings in 2024, slightly below 2023, but the outlook is strong: bookings are projected to rise 17% in 2025 to reach a record $79.2 billion.
To succeed in this environment, regional stakeholders must understand how suppliers are adapting. Airlines are reshaping networks and cost structures, hotels are reopening investment pipelines, car rental fleets are diversifying and intermediaries are redefining distribution strategies. Together, these shifts are creating a more connected, competitive and digitally enabled supplier landscape—one that will drive Latin America’s next wave of travel growth.
Related news: https://airguide.info/category/air-travel-business/artificial-intelligence/, https://airguide.info/category/air-travel-business/travel-business/