The Company reported a 46% year-over-year increase in revenue in constant currency, sealing its fifth quarter of sustained growth. Gross Bookings rose 37% and the B2B business experienced a 43% year-over-year expansion.
Despegar, one of the leading travel technology companies in Latin America, presented its financial results for the second quarter of 2024, where it reported a period of sustained growth.
Gross Bookings amounted to US$1.3 billion, a 37% year-on-year increase in constant currency. This was driven by a strong demand environment in its key markets, Brazil and Mexico, with marked growth in domestic air transactions.
The B2B business recorded significant growth, with Gross Bookings expanding by 43% year-on-year, while White Label operations grew by 7% year-on-year. In relation to the latter, two new strategic alliances were sealed during the second quarter: with Elektra in Mexico and with Scotiabank in Chile.
Additionally, bundle sales remained at the core of commercial execution, increasing 190 basis points to 35%. The strength of bundle sales, combined with a focus on profitable growth, enabled the company to achieve a Conversion Rate of 13.8% in the quarter.
In line with its robust omnichannel strategy, the company continues to focus its efforts on apps, which remain a core business pillar and great allies when planning trips, accounting for 49% of total transactions in the quarter. Mobile downloads increased 43% year-on-year, reaching a total of 18 million, a new all-time record for the company.
For its part, Pasaporte Despegar reached 27.9 million members throughout the region, with a 65% year-on-year increase. Approximately 75% of transactions are made by members of the program.
Damián Scokin, CEO of Despegar, said: “We continue to see strong growth trends in our business. Our brand also maintains a regional leadership, which will be further strengthened by our partnership with Shakira. Importantly, our commitment to innovation remains strong, as demonstrated by the continued improvements to our generative AI travel assistant, SOFIA. Our strategic goals remain to expand package revenue, drive direct traffic through our App, and fuel the success of our loyalty program.”
Dirk Zandee, Despegar Country Manager for the Andean Region, said: “The sustained growth we are seeing at Despegar is the result of our ability to quickly adapt to market needs and take advantage of the opportunities that arise in each region. In Chile, in particular, we have managed to consolidate key strategic alliances that allow us to offer added value to our customers and strengthen our position in the market. This approach has allowed us to not only maintain, but also increase our market share in a highly competitive environment.”
Amit Singh, CFO of the Company, added: “During the second quarter, our revenues amounted to $185 million, with a year-over-year growth of 46% in constant currency. This was mainly due to growth in our key markets, Brazil and Mexico, where demand levels remain encouraging. In addition, we achieved an adjusted EBITDA of $37 million, up 22% year-over-year, with an adjusted EBITDA margin of 19.8%.
Excluding extraordinary impacts from the previous year, EBITDA growth stood at 82% year-on-year. Significant growth was also recorded in the B2B business, which saw an expansion in Gross Bookings. Pasaporte Despegar reached 27.9 million members across the region and continues to consolidate, with a 65% year-on-year increase. Looking ahead to the coming quarters, we have investment plans in Loyalty, Sales, Marketing and Technology to help us further consolidate our leadership in the sector in the long term.”
Despegar continues to work to expand its reach beyond Latin America. Its flexible technology platform, broad global portfolio and competitive pricing complement an attractive value proposition for major banks, credit cards and retailers abroad, making early expansion into new geographies very possible.
