# The Supplier Shift Powering Latin America's Travel Growth

**Publisher:** Phocuswright  
**Published:** n/a  
**Category:** Research, media & analysts  
**Type:** Report  
**Access:** Free  
**Official source:** https://www.phocuswright.com/Travel-Research/Research-Updates/2025/the-supplier-shift-powering-latin-americas-travel-growth  
**Canonical:** https://tourismintel.ai/reports/the-supplier-shift-powering-latin-americas-travel-growth-phocuswright

## At a glance
- Latin America travel gross bookings reached US$67.9 billion in 2024, forecast to rise 17% to $79.2 billion in 2025.
- More than 150 new hotel projects underway across the region, led by Brazil, Mexico and Chile, driven by investor confidence.
- Car rental markets hit record gross bookings in 2024, sustained by leisure and corporate travel demand.
- Online channels now represent more than half of OTA gross bookings, marking digital maturity in the region's distribution.
- Airlines set new passenger records in Brazil, Mexico, Colombia and Chile; low-cost carriers expanding while legacy carriers restructure.

## What the report covers
Phocuswright's Latin America Travel Market Report 2025 examines the travel supplier landscape across airlines, hotels, car rentals and intermediaries in five key markets: Mexico, Brazil, Colombia, Chile and Argentina. The report provides market sizing, projections and segment analysis through 2028, assessing how regional suppliers are adapting to post-pandemic consolidation and digital innovation amid persistent macro volatility.

## Key findings
Latin America's travel market generated US$67.9 billion in gross bookings during 2024, slightly below 2023 levels. However, the report forecasts a sharp rebound, with bookings projected to increase 17% year-on-year to reach $79.2 billion in 2025, establishing a new regional record despite ongoing macro and political volatility.

Hotels are driving growth through rate expansion rather than volume gains, with average daily rates (ADR) and revenue per available room (RevPAR) rising faster than occupancy. This rate-led growth reflects renewed investor appetite: more than 150 new hotel projects are in progress, with Brazil, Mexico and Chile leading expansion, signalling confidence in long-term regional hospitality fundamentals.

Airlines remain the backbone of Latin America's travel economy, setting new passenger records across Brazil, Mexico, Colombia and Chile. The sector is undergoing structural change: low-cost carriers continue expanding market share while legacy airlines prioritise restructuring and market leadership consolidation.

Car rental markets achieved record gross bookings in 2024, buoyed by both leisure and corporate travel segments. Simultaneously, tour operators and online travel agencies (OTAs) are accelerating digital transformation; online channels now account for more than half of OTA gross bookings, marking a significant maturity threshold for the region's distribution ecosystem.

## Key numbers
| Metric | Value | Note |
|---|---|---|
| Latin America travel gross bookings | US$67.9 billion | 2024 observed; slightly below 2023 |
| Forecast gross bookings growth | 17% | 2024 to 2025; forecast |
| Projected gross bookings | $79.2 billion | 2025 forecast; new regional record |
| New hotel projects underway | More than 150 | Led by Brazil, Mexico and Chile; ongoing |
| OTA gross bookings via online channels | More than 50% | Share of total OTA bookings; 2024 |

## Why it matters
**DMOs & destinations** — The 17% booking growth forecast for 2025 signals strong inbound demand momentum despite political and macro headwinds. DMOs should leverage this recovery phase to invest in destination marketing and infrastructure. Record hotel investment (150+ projects) and rising air passenger numbers across key cities indicate concentrated tourism opportunity in Brazil, Mexico, Colombia and Chile requiring coordinated promotional strategies.

**Hotels & hospitality** — Rate-led rather than occupancy-led growth presents both opportunity and pressure: ADR and RevPAR rising faster than room fills suggests pricing power but tightening margins. The 150+ new projects signal competition intensification. Operators must focus on operational efficiency, direct distribution and guest experience differentiation to maintain profitability as supply expands and the market matures post-pandemic.

**Travel tech & distribution** — OTAs crossing the 50%-online-channel milestone indicates Latin America's digital infrastructure is mature and competitive. Airlines, hotels and intermediaries are reshaping distribution strategies; tech providers should anticipate demand for advanced rate management, AI-driven personalisation and mobile-first solutions. The supplier consolidation phase creates both M&A activity and API/integration opportunities.

## Methodology and limits
This brief is based on the publicly available summary of Phocuswright's Latin America Travel Market Report 2025. The source text does not detail survey methodology, sample size, data sources or modelling approaches. Figures are presented as observed statistics (2024 gross bookings) and analyst forecasts (2025–2028 projections). The report covers five key country markets: Mexico, Brazil, Colombia, Chile and Argentina. Full methodology and segment breakdowns are contained in the complete paid report.

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© Phocuswright for the original report. This brief is an original editorial summary by TourismIntel (https://tourismintel.ai). Read the original: https://www.phocuswright.com/Travel-Research/Research-Updates/2025/the-supplier-shift-powering-latin-americas-travel-growth