Latin America’s mobile-first market means higher online penetration

Latin America is a markedly mobile-first region, with mobile penetration forecast to reach 74% by 2025. Smartphones are the primary, and frequently only device for internet access for many travelers. In Brazil, for instance, smartphone adoption is estimated to rise to 88% by 2025, the highest adoption rate among the five core country markets included in Phocuswright’s travel research report, Latin America Travel Market Report 2022-2026.  

Brazil and Mexico combined are expected to account for half of all Latin American mobile subscribers. As a result, overall mobile penetration of supplier-direct online travel bookings is predicted to nearly double from 2022 to 2026 (see figure below). At the same time, mobile revenue is projected to skyrocket. Latin America's airlines accounted for two-thirds of all mobile gross bookings in 2022, although the car rental segment enjoyed the highest mobile penetration rate among travel suppliers.

Latin America’s travel market experienced a second year of strong double-digit growth in 2022, as gross bookings climbed 37% to $48.2 billion, largely driven by domestic and intra-regional travel.

While travel interest remains high, the region remains beleaguered by economic crises. As a mobile-first market, Latin America is positioned to see higher online penetration in several segments. While some markets have already exceeded pre-pandemic revenue totals, overall market recovery is expected for 2023, though global economic and political concerns may impact longer-term consumer travel trends.