Brazil’s Tourism Sector More Regional and Cooperative Than Before Pandemic

RIO DE JANEIRO, BRAZIL – Brazilians are traveling to closer locations, preferring cottages and villas and want greater flexibility to adjust their trips. These trends have forced travel agencies and tour operators to work more closely with their partners, such as hotels, inns and airlines.

For Expedia, the moment prompted an understanding of the travelers and partners’ requirements. The flexibility to change or reschedule reservations was critical for customers to travel as they felt safer. However, the reality was not as widespread among travel agencies and operators, and in some cases high fees were charged by airlines to reschedule tickets. “We urge all our partners to be more flexible,” says Nuno Sales da Ponte, director of Expedia in Brazil.

If for the major tourism and hotel chains the crisis in tourism was bad enough, it was even more difficult for small companies. Small inns, tour guides, local tours and restaurants have suffered from the lack of clients and, consequently, of income.

Back in May, Expedia organized two global donations to help these businesses, amounting to US$275 million. The largest share of this contribution, US$250 million, was directed to the platform’s hotels and hosting partners. “The companies used this amount in marketing, new products and strategies and even in renovations,” said Ponte. The remaining US$25 million were directed to the destinations, through local tourism associations and secretariats.

Expedia also set up a LinkedIn group for Brazilians who depended on tourism as their main source of income and who lost their jobs or revenue. Over 2,000 people joined the group with tips, support and new business options.

The Águia Group, which controls the famous São Paulo agency Stella Barros, paid an emergency aid amounting to three installments of R$1,200 to Rio de Janeiro’s tourist guides, who lost their livelihood when Sugar Loaf and Corcovado were closed to visitors. It also advanced R$2 million in daily rates to 40 hotels with no interest charged.

Local travel

Due to the fear of infection, local tourism is stronger – and people travel to nearby cities. The average distance per reservation dropped by 63 percent between June and August, compared to the same period last year, according to a survey conducted by Booking.

If in the past travelers covered 1,557 kilometers per reservation, this distance fell to only 569 kilometers per reservation this year. Overall, 84 percent of the total distance traveled by Brazilians between June and August occurred within the country, compared to only 32 percent over the same period in 2019.

Domestic travel is leading tourists to little known regions, such as the interior of states, although the big capitals are still prominent. The most reserved destinations in recent months were São Paulo (SP), Rio de Janeiro (RJ), Gramado (RS), Curitiba (PR) and Brasília (DF).

When it comes to choosing accommodation, Brazilians preferred an inn between the months of June and August this year, compared to the same period last year, a typical accommodation for the winter. The second most sought after type of accommodation are villas.

Before the pandemic, the options were quite different. Sixty percent of Brazilian travelers intended to stay in a traditional hotel, followed by inns (40 percent), resorts (29 percent), private homes (29 percent) and apartments (22 percent).

The trends of local travel and support to the communities and companies involved in this segment have marked the past few months. The question is whether this solidarity and support are here to stay.

Source: Exame