Despegar negotiates to acquire a large Mexican travel agency

15/01/2020

Despegar is negotiating the acquisition of one of Mexico's largest travel agencies, in line with what its top executives have revealed that the objective is to continue expanding in Latin America with acquisitions such as the one made a few months ago by Viajes Falabella.

The CEO of Despegar, Damian Scokin, had announced that they are prepared to continue growing with the purchase of large travel agencies, after the absorption a few months ago of Viajes Falabella, and the one that negotiates in Mexico would be one of the largest transactions in the history of this area.

"With Falabella, we have increased our market share. We have a model that in these crisis environments becomes more attractive, because we are very efficient. By not having premises, by having consolidated the scale of operations of all Latin America that is processed in one place, and with a solid financing offer, which others do not have at times when people take much more care of money, we are positioned to continue growing", proclaimed Despegar's CEO.

Despegar reveals the strategy to be followed after the acquisition of Falabella Group's travel portfolio in the first half of the year, and seeks to continue buying more agencies. The agreement contemplates the absorption of Viajes Falabella in Chile, Colombia, Peru and Argentina and the licensing of the use of the brand.

OTA seeks to strengthen the proposal of assisted sales of tickets and tour packages from physical points through Viajes Falabella branches. Dirk Zandee, country manager of the firm in the Andean region of Despegar, explained: "Omnicanality is the new standard, we adapt to the needs of customers and in that sense, this acquisition aims to strengthen our channels according to the preference of each client, where we offer in each of the points of contact, relevant and personalized content".

In this way, Despegar in its 20th year in the market, gave a twist to its image, and also focuses on contact with passengers, to compete with its main rival, Almundo, or in some cases with the coveted Mexican Bestday. "We are listed on the U.S. Stock Exchange with a very fractional structure. The Tiger fund has 11% and Expedia, 14%," Scokin reveals about its shareholders.

"51% of all tourism spending in this region is still in traditional agencies. We were born with a global aspiration, which exceeds Argentina. And like the other unicorns, we were not born in the shadow of the state either. We are one click away from the largest travel agency in the world and we have to give the consumer reasons to prefer Despegar", said Despegar's CEO.

"We are the main sellers of the Argentinean destination in Latin America. And a month ago we signed an agreement with Ctrip, which is the largest agency in China. In 2018 and 2019, tourism to Argentina increased by 40%," added Damian Scokin, who predicted a catastrophic 2020.

By Mexicanist