With revenues of US$ 204 million during 2023 and five million online reservations, the Argentina-based digital travel agency projects better years than before the pandemic. Its emphasis will be on growing in B2B and White Labels, in addition to ensuring its presence in the region's large markets, its CEO says.
This week, Despegar turns 25 and celebrated it big, leading the Closing Bell ceremony at the New York Stock Exchange.
Although the firm created in 1999 by Roberto Souviron in Buenos Aires has been listed on the NYSE since 2017, the invitation to this milestone was described by its CEO, Damián Scokin, as emblematic for his entire team.
“Our trajectory as a leading Travel Tech Company in Latin America is recognized and allows us to take a tour of all those great achievements that we reached along the way,” the executive details to AméricaEconomía.
The firm assures that its success is due to its technological orientation.
“In 1999 we made it possible to purchase online travel services in Latin America. In 2012, we became pioneers in launching our mobile application. And now, in 2024, we have become the first company to develop a travel assistant that integrates generative AI with an incremental and adaptive visual interface,” details Scokin.
The truth is that after a series of ups and downs in the industry in general, and for Despegar in particular, with the crisis in the sector that the pandemic unleashed, the recovery feels like revenge, after the unfortunate moments of 2020 when it had to fire a good part of its staff and recognized losses of US$ 65 million.
The company's recent financial data shows that the tables have turned. “From a record of US$5.3 million on Gross Bookings, with an increase of 31% compared to the previous year. We also achieved significant revenue growth, reaching US$204 million in the final quarter of 2023 and 31% annual growth in 2023, exceeding our expected revenue guidance. In addition, our adjusted EBITDA reached its highest level since our inception, with a growth of 248% compared to the previous year,” detailed the CEO.
Overcoming the crisis was not easy, but Scokin points out that it was possible thanks to a deep knowledge of the Latin American traveler and the region's tourism industry.
Also thanks to adaptability, continually pivoting to adapt the value proposition: “we offer a complete experience, which includes from the flight to the transfer to the hotel. In case of rescheduling of any of the products, it is possible to reschedule linked services by contacting Despegar through our multiple channels. Furthermore, through technology we manage to simplify the purchasing and after-sales processes, promoting self-management, collaborating in problem solving and providing our experience and curatorship in the selection of strategic partners,” says Scokin.
This constant search for innovation, such as the recent launch of SOFIA, its virtual travel assistant with generative AI, has been fundamental in elevating the consumer experience. “Providing our clients with a complete and personalized trip will always continue to be our main objective,” he adds.
The vision for Despegar in Latin America during 2024 remains as optimistic as it is ambitious.
"After an excellent performance in the fourth quarter and throughout 2023, we are determined to continue consolidating our leadership. The focus will be on continuing to grow in our main markets, Mexico and Brazil, and in the rest of the region," indicated Scokin.
For the coming year, the goal is threefold. On the one hand, they highlight the expansion and diversification of their operations, including the focus on the B2B business and White Labels – those products or services that are sold as a standard model, without a logo and adaptable to different businesses – as well as an omnichannel strategy “to always be available where our customers prefer to buy their trips. With 23 million members in Pasaporte Despegar and the opening of new branches in Brazil and Argentina, we continue to strengthen our presence in the region and offer a personalized travel experience for more than 30 million customers in 19 countries” emphasizes Scokin.
Today, Despegar is a team of companies that includes Best Day, Viajes Falabella, Hoteldo, Viajanet, Stays and Koin, a range with which they offer a tailored travel experience within Latin America.
The firm also declares that it has an inventory of tourist services with more than 238 airlines, 1.2 million accommodation options, more than 12,000 destination activities and more than 1,260 car rental companies. With the triad of technology plus deals and attention, Scokin highlights more than 150 financing deals across the region.
“We will aim to continue consolidating ourselves as the leading Travel Tech Company in Latin America,” concludes the CEO.
