Latin America is a populous continent offering a significant potential for travel to Southern Africa, but which are the most lucrative segments? Tourism Update takes a closer look.

1.Brazil

Velma Corcoran, Executive Marketing Manager at Cape Town Tourism, says Brazil is a big travel market. “They spent $26 billion (R362 billion) abroad in 2014 and it is ranked ninth in the world tourism economies by WTTC.” Tatiana Isler, SA Tourism Representative in Brazil agrees that Brazilians are inclined to spend a lot while on holiday as they indulge themselves while travelling.

2.Families

Legacy Global sales Agent in South America, Alex Miller, says wealthy families are a lucrative segment that can spend as much as incentive groups but require less work. According to her, these groups can reach upwards of 30 family members who will charter flights and stay at five-star hotels and lodges. “Lately we have seen very wealthy families from Colombia, Mexico and Venezuela; they pay for private services with Spanish-speaking guides and the very best accommodation,” says Miller.

Allan Falck, Executive Director and co-owner of Argentina-based Sundance Spirit, says Argentinian families are a lucrative segment. “Many of these are large families, eight to 15 persons,” he says, explaining that the families often consist of grandparents taking their adult children and their grandchildren on a “trip of a lifetime”. Falck adds that the largest family Sundance has booked was one of 23 on a three-week holiday to Southern Africa and the Seychelles.

3.Couples

South Africa, in combination with an Indian Ocean destination, is a popular itinerary for Argentinian honeymooners, says Falck. He adds that couples, ranging from those in the more mature demographic (semi-retired and retired) to couples without children in their late 30s, early 40s through mid-50s age groups are also lucrative.

4.High-end

Altamiro Medici, SAA Country Manager for Brazil, says high-end leisure is a lucrative market segment in the Latin American market. Julia Louw GM at Kobo Safaris says the Colombian market has a high-end segment that has a well-travelled/educated type of client who likes a combination of safari and city. “The ages range from mid-thirties up to late fifties.”

According to Corcoran, the luxury market is still strong, despite the local currency in Brazil having taken a knock similar to that taken by the rand. “This is not as significant for luxury travellers,” she says.

5.Incentives

Both Medici and Alessandra Allemann, Sales & Marketing Director at Welcome Tourism Services, suggest that incentive travel in the Brazilian market is a lucrative segment. “Travellers are generally between 45 and 55 years of age and are career-orientated individuals. Of this segment, about 55% are men and 45% are women,” says Allemann.

6.Sports tours and language groups

Falck says sports touring groups, including high schools seeking the opportunity to play rugby and field hockey against SA high schools, are a lucrative segment. “Sports touring groups are not only players but include parents and siblings who come along as supporters. It is not uncommon for these tour parties to be upward of 40-70 strong,” he says.

Medici adds that educational tours, particularly groups traveling to SA for English courses, are also a lucrative segment.

According to Miller, Argentina has been the number-one producer of sports (mainly rugby and hockey tours) and school groups (children 15 to 18). She says this is a very interesting niche as it has a word-of-mouth marketing effect and adds that most of the children attending these tours will come back to SA with their families. She adds that Brazilian youth, aged 18 to 25, have discovered South Africa as a great place to combine English Language courses and adventure. “Some students stay for two or three months in Cape Town before they explore the country,” she says.