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Reports Affirm Brazilians Want to Travel

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Boston Consulting Group, PANROTAS and FecomércioSP, and a Major Acquisition also figure in the news.

● A just-released Boston Consulting Group (BCG) report shows that Brazilians have increasing confidence when it comes to the matter of travel. The group’s Consumer Sentiment study, which surveyed 1,500 Brazilians, notes that 70 percent of them intend to travel at the first opportunity they have. This is substantially different than the setting a year ago when the same survey showed that 76 percent of Brazilians had no intention of traveling, even to nearby destinations.

Gilson Machado

According to Brazil’s minister of tourism, Gilson Machado, “Over 150 million Brazilians have already been immunized with at least one dose of the COVID-19 vaccine,” adding that the achievement “was crucial to increase the confidence of travelers and get the gears of Brazilian tourism going again.”

The result of the BCG survey also reinforces the trend of domestic and proximity tourism in the country:

—26 percent of the tourists interviewed said they want to travel around Brazil; 

—19 percent prefer to travel internationally. 

—25 percent of respondents plan to make the next trip by car, with 45 percent doing so by plane.

—On October 12, the day of Nossa Senhora Aparecida (a national holiday in honor of Brazil’s Patron Saint, the Virgin Mary Aparecida, and especially important to Catholics) Brazilian airports registered more than 1.7 million passengers and the hotel occupancy rate was above 75 percent in the period, according to a survey conducted by the Ministry of Tourism.

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Also encouraging to the travel trade that market Visit USA travel product, was the largely (but modestly) upbeat of The Brazilian Overview Monthly Report* for the month of September. Some of the Report’s key points—along with other sourced information—follow:

—The Brazilian economy was mostly stable in the second quarter as it held steady for the Q2, although GDP was only -0.1 percent. Economists had hoped for a slightly stronger performance. Of particular concern as the economy entered Q4 was inflation, which registered 9.7 percent over the previous year.

—Another concern is the drought that Brazil is now experiencing. A lack of rain has created a reduction in the levels of the reservoirs of the hydroelectric plants.

—Consumer confidence in the economy has steadily increased since this past May.

—From the Reuters COVID-19 Tracker, as of October 21, Brazil has administered at least 259,937,358 doses of COVID vaccines so far. Assuming every person needs 2 doses, that’s enough to have vaccinated about 61.6 percent of the country’s population. Given the previous profiles of Brazilian visitors to the U.S., it is likely that the percentage is much higher among those Brazilians who do travel internationally.

—With the announcement by the U.S. that vaccinated travelers were welcome in the United States beginning on Nov. 8, much of the focus on the issue is the nature of tests to be administered to those who do come.

* The Brazilian Overview Monthly Report is a joint project of Brazilian travel trade publisher, PANROTAS and FecomércioSP, a São Paulo-based business research organization.

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Belvitur Acquires Flytour: According to Marcelo Cohen, president of Belvitur, the acquisition of Flytour is part of the strategy to create the largest tourism platform in the country

Marcelo Cohen (left) owner of Belvitur and other tourism-related properties, and Eloi D´Ávila Oliveira, founder of Flytour.

Belvitur, which has been operating for nearly 60 years providing corporate travel and leisure services and has diversified its offerings in recent years venturing executive aviation, focused coworking in tourism, and hotels has purchased Flytour. According to the company’s website, The Flytour Corporation is the leader in air ticket issuance in Latin America and the largest business travel agency in Brazil.

The acquisition agreement was completed after eight months of negotiations. It involved a total of R$ 500 million reais ($88.6 million), considering money and debts that were assumed, according to the newspaper Valor Econômico.

Marcelo Cohen, owner of Belvitur, will assume the presidency of the company while Eloi D’Ávila, founder of Flytour, will have a seat on the board of the new company.

A Follow-Up: How Does Brazil Do It?

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The latest country market profile from U.S. National Travel and Tourism Office (NTTO) shows how Brazil has repeatedly regrouped and re-started after setbacks. In its latest collection of country market profiles—INBOUND has focused thus far on Germany and the UK—one is able to take a look at how Brazil has fared over the first 20 years of this century.

While there are enough fall-flat-on-your-face bad years, the country’s outbound overseas tourism industry has enough strength that it should come back, again—probably next year. (A note: for purposes of meaningful comparisons, one should use 2019 as a base year, and ignore 2020 and 2021.)

Take a look at what has happened in a recent five-year window, just as Brazil was headed at what looked like permanent inclusion in the Top Ten, even Five, country source markets for the USA.

Brazil has been in recession five times in the past 20 years. Before a 2020 recession, the last one beforehand, in 2015-16, was one of the worst recessions in the country’s history. And the impact of the 2020 recession was intensified by COVID 19-driven global pandemic. Even so, there have been enough economic signals, as well as scattered reports of activity in the tourism industry, coming out of Brazil that a hoped-for recovery in 2022 just might occur.

If so, sales and marketing professionals might want to take a look at what the 20-year window highlighted in “Market Profile: Brazil” and see what it tells them.

● For instance, in survey data contained in the Market Profile, one will find that, when given the opportunity to provide multiple answers to a query, about four out of every five Brazilians said that they want to take a trip for a vacation or holiday.

● When leisure and VFR markets are combined into a single market, it tells us that nearly nine out of every 10 (88.8 percent) Brazilians visit the USA for leisure or VFR purposes.

● Also—and this is very important for travel marketers eager to host high-spend visitors, one will see right below that, in terms of total travel spending—Brazil spend less that than the UK, but substantially more than Germany.

Experts Agree: Brazilians Eager to Travel

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The anticipation was fed earlier this week, on Sept. 13, when the CDC (U.S. Centers for Disease Control and Prevention) lowered its COVID-19 travel advisory for Brazil by one notch as the pandemic wanes in Latin America’s largest economy. 

Brazil is now ranked as Level 3, or “high,” according to an update posted on the agency’s website. Travelers are still advised to avoid nonessential trips to the country, and make sure they are fully vaccinated if they do visit. The CDC had been recommending travelers avoid Brazil for more than a year. Were it not for the technical measures used by the CDC, the environment for travel to the USA from Brazil would probably be somewhere on a “10” on a scale of one to ten. 

Consider the news bytes from two authoritative reports out of Brazil.

1. Conversion‘s E-commerce Sectors in Brazil Report, Tourism showed that tourism was the economic sector with the highest growth rate in July, compared to June.

⦁ Not only has the size of the industry begun to recoup, the data from Conversion’s E-commerce Sectors in Brazil Report indicated that more than nine out of ten Brazilians (91.9 percent) told researchers that they intend to take a leisure trip after vaccination and/or the end of the pandemic. 

⦁ And of that 91.9 precent, 78 percent said that they intend to travel by plane after taking the second dose of the vaccine or completing the immunization. (The survey was carried out among 271 Brazilians connected to the Internet in order to better understand the growth of tourism and what are the expectations of tourists in relation to the future of their travels.)

⦁ Unemployment and the decrease in income of a large part of the population were some of the factors that impacted various sectors of the economy during the most critical periods of the pandemic, in addition to social isolation. As a result, tourist activities were strongly affected—according to data from the National Confederation of Commerce of Goods, Services and Tourism (CNC), they already add up to a loss of R$ 395.6 billion ($76 million) from March 2020 to June this year.

⦁ Many Brazilians are eager for the end of the pandemic to return to a more active travel routine. If before the social isolation it was already very good to travel, the expectation of being able to return to tourism practices makes 31 percent of those interviewed say that they will travel more than before the pandemic, whenever possible; the number is even higher among adults up to 30 years old, reaching 48 percent. 

⦁ When asked about travel during the pandemic, about half (50.9 percent) of respondents said they were somewhat afraid of traveling, while 29.2 percent said they were not afraid of traveling.

⦁ However, some attitudes about safety procedures have changed, as the survey told us that 60.15 percent of Brazilians said that, even after the end of the pandemic, they will no longer use services from companies that do not follow the health safety protocols for preventing covid-19.

2. More data to shore up the optimism came from The Brazilian Overview Monthly Report for August. (The Overview is a joint project of Brazilian travel trade publisher, PANROTAS and FecomércioSP, a São Paulo-based business research organization.)

“Dear international partners and friends around the world,” José Guilherme Alcorta, CEO of PANROTAS, announced in presenting the report, “Brazilians are ready to fly international again, and are already doing it, to destinations that are open for us, such as Mexico, France, Switzerland, Germany, Spain, Egypt and, very soon, Canada (in September).”

⦁ A challenging scenario when there is an unemployment rate of 14.6% for a total of 14.8 million people out of the workforce. Although the number of formal job creation has been very positive throughout this year,

⦁ While he pointed out that readers should be aware that Brazil an unemployment rate of 14.6 16 percent for a total of 14.8 million people out of the workforce, the country’s two major consumer confidence indexes have gone above the 100 standard and the numbers of both seem to be on a growth curve.

⦁ A key measure cited in the report is that the country’s largest tourism source market in Brazil, São Paulo has 70 percent of its population vaccinated with at least one dose of COVID-19 vaccine and has begun vaccinating teenagers between 12 and 17 years old on August 15th. (The vaccination rate in the rest of Brazil is still at 50 percent.)

⦁ Answers from the second edition of the Insights for Tourism survey by TRVL LAB and ELO research and analyses make it clear: Brazilians want and will travel at the end of 2021 and in the summer of 2022. According to the survey:

—61 percent of Brazilians are planning leisure trips in the six months after fully vaccinated. –

—54 percent are planning to travel this year, in the second half. –

—75 percent will not reject the national preference: sun and beach. –

—81 percent indicate relaxing and resting as the main reason for the trip and

—64 percent want to have fun. Leisure travel dominates, with international travel being planned for 2022.

While short-haul travel and destinations at favored by those Brazilians who do travel, the report tells us that, should their borders open, “we are also ready to go to the United States, Portugal and Argentina.”

For Brazil, It’s Feliz Aniversário Disney

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. . . and more

● 50th Anniversary of Walt Disney World to Launch in October. There are reasons why it is generally acknowledged that Orlando is the largest Brazilian city outside of Brazil. It is evident everywhere in the Orlando area—from Brazilian bank branches to Brazilian-owned homes and vacation properties to Orlando-based tour operators who specialize in Disney product. The city and its attractions—Disney in particular—have made the area the theme park capital of the world and the most visited long-haul destination for Brazilians.

So, it follows that the company will stage a celebration for Disney’s 50th anniversary. It was on October 1, 1971, the Walt Disney World Resort officially opened, including Magic Kingdom Park, Disney’s Contemporary Resort, Disney’s Polynesian Resort and Disney’s Fort Wilderness Resort & Campground. Disney World’s 50th Anniversary Celebrations in Orlando begin in October and span 18 months, including special events, exclusive merchandise, new shows and attractions and many surprises.

For starters, Azul Airlines‘ first Airbus 320 has been painted in honor of the 50th anniversary. Beginning in October, the first commemorative aircraft for the 50th anniversary celebration will be in operation in Brazil, in a partnership between Disney and Azul, which operates about a third of all departures from the country. In total, there will be four Azul aircraft in honor of the special date, which will arrive until 2022. The Airbus A320, painted red, yellow and black, accommodates 174 customers and will pass through airports in more than 40 Brazilian cities, including Congonhas Airport, in São Paulo, and Santos Dumont Airport, in Rio de Janeiro. Disney and Azul named the action The Most Magical Fleet in the World.



The last time Disney did a similar promotion here was pre-pandemic, with Latam Airlines, in honor of the opening of Star Wars Galaxy’s Edge, in Orlando and Anaheim parks.

● Signs of recovery show up in latest ABRACORP survey. As reported by the Brazilian travel trade publication PANROTAS, the recently released second quarter report of the Brazilian Association of Corporate Travel Agencies (ABRACORP) showed, as expected, that this sector of the country’s travel and tourism industry remains weak and underperforming. Overall turnover for the sector was 75 percent less than it was for the same period in 2019. There were, however, some positive signs of recovery.

 For instance:  

—The national figure for car rentals registered a decline of just 2.17 percent compared to the benchmark year of 2019.

—The national hotel industry, has reached an almost 50 percent recovery compared to 2019, with a decline in ADR of some 18 percent.

—As anticipated, the segment most impacted was international air travel, with a drop-off of 90 percent. Domestic air travel, meanwhile, fell by 73 percent, according to the ABRACORP survey, with a reduction of 18 percent in fares. 

“The performance of the national rental gives us an indication that the travel habit is changing a little, with a greater presence of this mode of transport, more individualized.” Said ABRACORP executive president Gervasio Tanabe.

● And from PANROTAS and FecomercioSP, the partnership between the Brazilian trave trade publican and the São Paulo-based economic research organization, respectively, there is this outlook in its just published Brazil Overview: “JULY SALES ARE HEATING UP. Sales of leisure travel in Brazil in the first half of July were the best since the beginning of the pandemic. Hotel rates and airfares for travel in Brazil are already at pre-pandemic levels. For tour operators, according to Braztoa (Brazilian Association of Tour Operators) results are equal or better than pre-pandemic levels for 22 percent of the members.”

But, says José Guilherme Alcorta, CEO of PANROTAS, conflict between individual governments is impeding a recovery—some countries still don’t accept Sinovac or Coronavirus vaccines (50 percent of Brazilians have received Coronavac shots). He says, that “without speaking the same “language” we will not come back as we should. As we can.”

For a PDF version of the Overview, click here

Australians Have No Place They Want to Go

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Trade Talk: From installment payments to vacationing on a farm

● Aussies not traveling abroad, and fewer are traveling at home. Hit hard by the pandemic, traveling Australians seem to have lost their desire to so, the findings, according to a new survey of 1,000 Australians by Hipcamp, a Sydney-based provider of outdoor stays. According to most accounts, it will be next year before international travel to and from the country starts up again. In the midst of such a situation, the survey found:

—61 percent of Australians say they have NOT booked a holiday for the next six months!

—Although nearly a quarter (24 percent) of Australians cite staycations as the most viable holiday plan for the next six months, no one seems too excited about them. 

—Asked if they thought a staycation could “actually bring them joy” in the next six months, 37.2 percent of Australians said “No” and 31.9 percent said ‘Meh,’

—The above showed a combined national total of 69.1 percent of Australians who simply aren’t staycation inspired. Visit here for more details.

● Good News from Brazil: From the Washington Post: “As vaccinations accelerate and the coronavirus retreats, Brazil finally allows itself to hope for better days. This month, for the first time since the pandemic arrive, Amazonas state had a date when it did not register a single Covid death.” Read the full article here.

● Dallas and Hotelbeds to promote weekenders: VisitDallas, the DMO that promotes Dallas as a business and leisure destination, has signed an agreement with Hotelbeds, the world’s largest bedbank, to drive domestic in-bound tourism to the U.S. city. The campaign is designed to drive domestic leisure tourism to Dallas, with a particular focus on weekday and long weekend visits. Throughout the promotion travel advisors will be introduced to the incredible opportunities that the Texan city of Dallas has to offer: its wide offer of art, culture and music, sporting events, gastronomic offerings, and the city’s unique culture.

Photo Cr: Connecting with Birds and Nature Tours

● Adventure Travel Association highlights the “experience the cattle and other creatures” on a farm vacation in Alabama’s Black Belt: “I don’t like people to feel rushed,” Christopher Black says about the access he provides to his 200-acre Black Angus cattle farm through experiential tours. “I want you to take your time, enjoy what you enjoy. If you want to sit on the edge of the field and look off into the distance, you can do that.” It’s why he went so literally with the name of his operation: Connecting with Birds & Nature Tours. “Connecting with the healing power of nature is a big part of it.” For the complete article, click here.

● Just in time for its annual trade show two months from now (Sept. 18-22 in Las Vegas), the U.S. Tourism Association’s IPW has selected Global Tourism Sports & Entertainment (GTSE) to be its first official Sports and Tourism Representation Ambassador. The new partnership is hailed by both organizations as an opportunity to drive a recovery toward travel’s pre-pandemic economic impact figure.

“With both transportation and sports news more globalized than ever, the natural intersection between sports and tourism continues to grow, as sports leagues build their fan bases across borders and oceans,” said U.S. Travel’s president and CEO Roger Dow. “Continuing that integration makes sense for the development of both economic sectors, and this partnership will be valuable in facilitating that process.”

● Installment or “Buy now, pay later” payments for travel are growing increasingly popular. Long a staple in some travel markets—particularly in South America—paying for the cost of a holiday over, say 12 months, is “increasingly becoming a way that consumers want to pay,” says Tom Botts, chief commercial officer for Uplift, which bills itself as “the largest player in the space.” Adds Botts: “It is becoming an expectation of consumers wanting this payment option, not only for retail, but also for travel.”

Commonly referred to as “buy now, pay later,” such solutions are positions as a way to enable travel consumers to purchase airline tickets, cruises, vacation packages, hotels and other travel products via payment plans that can span from a few months up to more than a year. Buy now, pay later customers typically receive credit decisions almost instantly, with interest rates determined based upon their credit histories. Payment terms range from as short as three months to as long as 18 months, said Botts. 

In April, Uplift added Southwest to existing airline clients United, Frontier, Alaska, Allegiant, Lufthansa and Aeromexico and approximately a dozen others. For the complete article, visit here.

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Tom Berrigan, Managing Editor/Producer
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