Vallarta Adventures

Jorge Carrillo

The tourism sector, particularly tours and activities, as well as travel experiences in Mexico and Latin America in general, faced a significant challenge due to COVID-19. The challenge was to regain the confidence of travelers to visit beaches and tourist centers once again. Tour operators and online travel agents (OTAs) had to promote and test new methods of attraction to convince travelers to make reservations in areas that were potentially dangerous due to the risk of contracting COVID-19. They were blindly trusted to lift slumping sales. In other words, traditional sales channels in Mexico, and likely in the rest of Latin America, had to adapt to changing circumstances.

Until then, digital marketing and e-commerce in the tourism sector relied heavily on sales made through online travel agents (OTAs) or destination management companies (DMCs). Direct sales through providers' websites were minimal, and there was little confidence in this type of purchase. As a result, there was a decrease in sales that exceeded 60 percent compared to a similar period between 2013 and 2018, which had set record sales figures, at least in Mexico.

The drop in sales in the tour sector I work in was extremely sensitive, leading to job losses and the implementation of strict cost-saving policies while maintaining the quality of services provided. Our main challenge was to regain the trust of travelers and convey a sense of security for their trips. To address this challenge, we took several actions such as rewriting website texts multiple times to improve communication, enhancing multimedia materials such as videos and photos, and implementing more efficient purchase promotions without compromising the financial viability of the business. These measures helped to reverse the drop in sales through resellers of our product. Additionally, technology played a significant role in our recovery plans.

Prior to the pandemic, direct purchases by clients planning trips on the websites of tours and experience providers represented no more than 15 to 18 percent of total sales. Meanwhile, up to 75 percent of sales came from destination management companies (DMCs), and 10 percent of sales were from customers making last-minute purchases at the destination, resulting in sales commissions of up to 50 percent and posing a financial burden on the service provider.

By improving direct communication with customers through email marketing campaigns and phone calls, updating website technologies for better SEO and SEM performance, and substantially improving the user experience (UX) and user interface (UI), we were able to reverse negative sales trends. As a result, direct sales through tour providers' websites have increased to at least 35 percent of total sales in 2023, at least in my company. Additionally, sales commission payments have decreased since discounts can be granted directly to customers who make purchases.

“With improved efficiency, security, and quality of services, coupled with a seamless and secure purchasing experience, the circle is complete. It is important to recognize that technology when used imaginatively, can be a vital ally in enhancing tourism experiences and tours.”

The purchasing habits of Latin American customers have changed since the pandemic, unlike customers and visitors from other regions such as the USA and Canada, which are the main tourism markets in Latin America. This shift in behavior has led to an increase in domestic consumption, particularly since the economic reactivation in the region and the confinement measures that COVID forced upon people. As a result, the potential market for visitors in Latin America appears to be greater than before the pandemic.

To summarize, improving website performance, graphic communication, payment methods (payment gateways), and written communication have significantly contributed to changing buying habits and increasing consumer confidence in the tourism industry, particularly for tours and experiences in the national and Latin American markets, as I previously mentioned.

As a result, there has been a significant reduction in commissions and royalties paid to tour resellers, allowing companies to pass on discounts directly to clients without affecting their finances. This has resulted in an improvement in service and product quality, contributing significantly to the recovery of tourism activity. The Mexican and Latin American markets have regained confidence in making online purchases and trusting the suppliers and websites they visit.

Ultimately, the experiences and expeditions during a tourist's trip are the most memorable moments. With improved efficiency, security, and quality of services, coupled with a seamless and secure purchasing experience, the circle is complete. It is important to recognize that technology when used imaginatively, can be a vital ally in enhancing tourism experiences and tours. Therefore, it is imperative to adapt to new technologies, reduce dependence on sales channels outside of the business, and ensure that the quality of services provided is not compromised.