Despegar More Upbeat on Latin America Economic Climate Than in U.S. and Europe
Skift Take
Latin American economies frequently seem to be in shambles, but there are positive developments on the inflation front as far as Despegar is concerned.
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Editor’s Note: Every Wednesday, Executive Editor and online travel rockstar Dennis Schaal will bring readers exclusive reporting and insight into the business of online travel and digital booking, and how this sector has an impact across the travel industry.While U.S. and European-based online travel agencies fret about the impact of inflation and potentially softer travel demand, Argentina-based Despegar sees a more stable economic climate on its Latin America home turf.
That's particularly true in terms of inflation in its two largest markets, Brazil, which accounted for 37 percent of its transactions in the third quarter, and Mexico, which generated 19 percent.
"As we've been pointing out over the last few months, we see the macro situation in Latin America slightly different as the one in the U.S. or Europe, although inflation has picked up in the early stages of the year," CEO Damian Scokin told financial analysts last week as he reviewed the company's third quarter financials. "If you see Brazil, there's been deflation in the last couple of months and Mexico remains more stable. So our view is more optimistic on the macro in the region in general when compared to what we see for th
