Visa report reveals travel trends in Latin America and the Caribbean

03-02-23

Visa's Emerging Travel Trends report highlights the latest preferences that define the motivations for travel abroad, as well as the payment preferences of Latin Americans and Caribbeans. While there are differences among the top 12 countries in Latin America and the Caribbean, there is a common denominator: travel has become more than just a lifestyle or social status indicator, it is now a well-deserved reward for hard work.

In general, travel abroad is more accessible, with fewer restrictions for less well-heeled travellers who plan and save for a holiday. Most are looking for memorable experiences and on average, consumers in the region travel 1.9 times a year, preferably to regional destinations. 

"It is exciting to see that the travel and tourism sector is witnessing a steady and accelerating resurgence, and that a wider universe of consumers are willing to travel. Our new report highlights revealing market trends that will help us better understand the current travel preferences of consumers in LAC, and continue to develop solutions and experiences that will help make the most of travel plans," said Lorna Atiles, vice president and cross-border business leader for Visa Latin America and the Caribbean. "We look forward to being a key partner in efforts to drive cross-border travel with our unique insights and the right digital solutions.

Among the main travel motivations are seeking new experiences that are not available locally; making good family memories and recharging energy. Beach destinations, shopping trips (the shortest), cultural trips, and trips to family or adventure and nature. The report notes that travellers from South America, especially Argentina, Chile and Peru, prefer to holiday within the continent.

Search engines, social media and travel influencers are the key drivers of travel decisions. Specifically, key touchpoints are led by online travel agencies (49%), airline websites (40%), hotel websites (38%), physical travel agencies (28%) and Instagram or search engines (28%).

53% of LAC travellers already have a pre-defined travel budget of around USD 4,000. In general, travellers do not spend what they do not have. The COVID-19 pandemic helped them become more cautious consumers and more adept at travelling on a budget. About four-fifths of travel expenses are paid before (e.g. flights, accommodation, local transport) and during the trip (e.g. local transport, consumption), leaving 19% to cover expenses after the trip.

For 41% of travellers surveyed, credit cards are the main payment method because of their ease, security and control of spending. In fact, among payment needs for the entire trip - ranging from flights and accommodation to local travel and medical insurance - credit cards are used more than any other payment method (with debit cards or cash in second place). They also use credit cards for secondary purchases (e.g. accommodation, event tickets) for peace of mind, to earn reward points and to be able to pay interest-free.