Despegar Aims to Be Less Dependent on Argentina’s Travel Market
Skift Take
No one saw that Argentina's economy would take such a bad turn this year. But Despegar, based in Buenos Aires, is making moves to weather the storm after its market valuation has been slashed in half.
This year the Argentine currency has lost about half of its value against the dollar. That's been a headwind for Despegar, Latin America's largest online travel agency, which is based in Buenos Aires.
Many Argentines switched their travel plans away from destinations whose cost suddenly became more expensive, such as Miami and Santiago de Chile, preferring vacation spots within their country. The smaller transaction sizes have hurt Despegar's revenue in its home market.
On Thursday, CEO Damián Scokin told investors on a call that the company expected further industry deterioration in the fourth quarter.
Brazil is the other largest market for Despegar, where it sells under its Decolar brand. That country saw its expected growth in gross domestic product for the year trimmed by at least a percentage point — cooling travel sales.
Since March, shares of Despegar dropped about 48 percent to $16.65.
On Thursday Despegar reported third-quarter results that showed the recent Argentine currency crisis had
