Taking your first solo trip is a rite of passage for a traveler. It gives you a chance to step outside of your comfort zone, deepen your sense of empowerment and independence, and spend your time exactly how you want.
12.12.2023 - 15:35 / breakingtravelnews.com
Despite being one of the largest economies in the Latin America region and even a top 20 economy by size globally, the penetration of digital innovation in Argentina has been relatively shallow by comparison. This is reflected in an under-developed online travel technology marketplace and infrastructure – be that B2C or B2B – with few exceptions beyond the very successful Despegar.
To a significant extent innovation in travel has been held back by not only Argentina’s economic instability since 2001, and subsequent difficulties in accessing international finance capital, but to a greater extent by currency controls, high taxes and an unpredictable regulatory environment for travel businesses.
Following the investiture on Sunday of a new free-market promoting government led by Milei, promising to abolish the Peso and liberalize the economy, all of this could however potentially change soon according to Nicolás Posse, Country Manager for Argentina for the global Spanish-speaking online tours & activities seller Civitatis.
“Of course, legislative approval for such changes will be needed and the new President’s party doesn’t have a majority, so things could be watered down and will take time. But the fact that Milei won such a big mandate, at 55% of the vote, for campaign promises in such stark contrast with recent economic policy for the country would suggest that we’re likely to see a shift towards a more business friendly environment that the digital travel economy could benefit from.”
For sure the international financial community seems to think this as Argentine shares and bonds rallied strongly upon news of the Milei win a few weeks ago. This is very promising for the much-needed digital innovation that Argentina’s travel community requires as “investment is going to be key and local businesses don’t have much money in the bank to self-fund” adds Posse.
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So what would a successful digital innovation evolution look like? In short, something closer to what we see in North America, Western Europe or developed parts of Asia. Civitatis believes that whether we are talking about providing in-destination experiences like tours & activities, hotel accommodation, or flights – or indeed the marketing, distribution and sale of such products – right now online technology solutions you are likely to take for granted like inventory systems or revenue pricing, channel management or third-party distribution solutions, and so on, all take place offline in Argentina. By virtue of being offline, that makes data collection and analysis almost impossible. Forget about using AI to automate processes, many actions still happen on triplicate sheets of paper!
To understand why currently such systems really
Taking your first solo trip is a rite of passage for a traveler. It gives you a chance to step outside of your comfort zone, deepen your sense of empowerment and independence, and spend your time exactly how you want.
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