The Brazil Outbound Travel Market:

A blogosphere analysis

Bruges, 21 February 2013

European Travel Commission and World Tourism Organization (2013) Prepared by Kairos Future

MARKET OVERVIEW

Brazil’s population

Source: Instituto Brasileiro de Geografia e Estatística

178,7

181,1

183,4

185,6

187,6

189,6

191,5

193,3 194,9

170

175

180

185

190

195

200

2003 2004 2005 2006 2007 2008 2009 2010 2011

Population (in millions)

Brazil’s GDP

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000

0

500.000

1.000.000

1.500.000

2.000.000

2.500.000

3.000.000

2003 2004 2005 2006 2007 2008 2009 2010 2011

US

$

Mil

lio

n U

S$

GDP at current prices GDP per capita at current prices

Source: Instituto Brasileiro de Geografia e Estatística

Growing middle class

49 (28%) 30 (16%) 16 (8%)

47 (27%)

46 (24%)

40 (20%)

66 (37%)

93 (49%)

113 (56%)

13 (8%) 20 (11%) 31 (16%)

0%

50%

100%

2003 2008 2014

A/B

C

D

E

Source: Revista Veja

NETNOGRAPHIC STUDY

70.9 million internet users

Qualitative netnography • In-depth reading of

individual blogs, microblogs, forum posts, and other online content

• A qualitative analysis of travel trends, themes, motivations, and behaviour

Quantitative text analysis • 3.4 million tweets

• 20 thousand blog posts

• Search statistics from Internet search engine Google

• Extraction of themes and trends related to travel and Europe

Some of the world’s most active social

media users

86%

63%

33% 32%

22%

16%

10%

0%

50%

100%

Facebook Orkut Google Twitter LinkedIn Badoo Sonico

Source: Blog Mídia8

+

65%

… of social media users share their

product experiences online

GENERAL TRAVEL TRENDS

General travel trends

Geographical expansion of the market

Rising domestic travel

International expenditure growing faster than departures

Changing pattern of outbound travel

A growing diaspora

Stiff competition from short-haul destinations

Expansion of the travel infrastructure

Tourism goes mobile

Shopping tourism

Cruise market growth

Social travel – making friends on the road

Main trends

Geographical expansion of the market

Rising domestic travel

International expenditure growing faster than departures

Changing pattern of outbound travel

A growing diaspora

Stiff competition from short-haul destinations

Expansion of the travel infrastructure

Tourism goes mobile

Shopping tourism

Cruise market growth

Social travel – making friends on the road

Main trends

Geographical expansion of the market

Rising domestic travel

International expenditure growing faster than departures

Changing pattern of outbound travel

A growing diaspora

Stiff competition from short-haul destinations

Expansion of the travel infrastructure

Tourism goes mobile

Shopping tourism

Cruise market growth

Social travel – making friends on the road

Main trends

Geographical expansion of the market

Rising domestic travel

International expenditure growing faster than departures

Changing pattern of outbound travel

A growing diaspora

Stiff competition from short-haul destinations

Expansion of the travel infrastructure

Tourism goes mobile

Shopping tourism

Cruise market growth

Social travel – making friends on the road

The market is expanding geographically

By region By city

Source: Google Trends

Domestic travel is growing…

2003:

29,2 millions

2011:

78,9 millions

+170%

… and so is outbound travel

0

5000

10000

15000

20000

25000

30000

0

1000

2000

3000

4000

5000

6000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

US

$ M

illi

on

s

In t

ho

usa

nd

s

Departures Total outbound expenditure

Where do they increasingly travel?

+141%

+63%

+51%

+91%

+38%

Top 6 outbound destinations in Europe

24.6%

14.0%

12.9%

12.6%

10.4%

9.5%

Source: UNWTO

Changing pattern of outbound travel

19,0% 17,1% 14,1% 15,1%

12,9%

19,5% 19,9% 20,5%

24,4% 24,6%

14,9% 14,4% 14,3%

14,2% 14,0%

16,2% 15,5%

15,7% 12,5%

12,6%

11,6% 10,6%

10,0% 9,0% 10,5%

8,3% 8,9% 11,1% 10,0% 9,5%

10,5% 13,5% 14,2% 14,8% 15,9%

0%

25%

50%

75%

100%

2006 2007 2008 2009 2010

Spain Portugal France Italy Germany United Kingdom Other

A growing diaspora

”…my mom came from Brazil to

visit me here in the Netherlands

[…] in September I went to

Barcelona to catch up with my aunt

and uncle, which was great! […]

Now I’m going to Ibiza to see my

family again and my cousins who

are over from Brazil temporarily to

visit our relatives! I’m very happy, it

will be awesome to see everyone

again.”

Strong competition from the ’neighbours’

“Why travel far? In Argentina

you can enjoy beautiful

beaches, caves, mountains,

glaciers, valleys, mountains,

jungle, forest, rivers, streams,

seas… The list goes on.”

“Argentina is for those who cannot

afford to go to Europe – or love

tango.”

Brazil's purchasing

power parity in

comparison with

selected European

and Latin American

countries.

Mobile tourism…

“The smartphone is an

essential item for any traveller,

you can record every moment

of your trip and share it with

your friends. Check my list of

my favourite iPhone travel

apps!”

… is having an impact

Increased same-day mobile bookings

Focus on mobile advertising

Mobile-only companies

Smartphone apps

Websites and services for mobile

‘Rating’ society

Augmented Reality apps

Let’s go abroad to do some shopping

“A Michael Kors watch costs

$400 in USA. Here [in Brazil] it

is so highly taxed that is costs

R$1.300,00 [US$ 650]. My

conclusion: shop in USA and

save the cost of the whole trip!”

Paraguay

Florida

The cruise market is exploding

2006

2011:

800 000 cruise

guests

x4

Travelling is all about socializing

“When I sat down in my new

seat, the gentleman in the seat

next to me smiled a perfect

smile at me. Someone up there

must really like me to put me

next to that prince. [...] When

we arrived in Lisbon we

exchanged numbers and

agreed to have lunch a few

days later.”

INFLUENCERS

IN THE TRAVEL PLANNING

PROCESS

Telenovelas

“I'm dying to know Turkey! They talk about Turkey in Malhação [a

telenovela] and in this bad telenovela of 6pm. Look!”

Find TV the most

relevant & reliable

source of

information

69%

Social media

Travel blogs recommended by the Brazilian Association of Travel Blogs

Conexão Paris De uns Tempos pra cá

A Janela Laranja Rapha no Mundo

Uma Malla pelo Mundo Photo Travel

Viaje na Viagem Ke Viagem

Matraqueando Rosmarino e outros temperos

Sunday cooks Sem Destino

Da cachaça pro vinho Travel Forever

Aventura Mango Viajar e Pensar

Bistrôs Wazari

Donde Ando por Aí

Old and new channels interacting

@brunodeluca [who presents a

TV show dedicated to

backpackers]: Guys, if you are in

Croatia, Greece or Spain this

month or have tips about these

places, speak to us!

Travel agencies influential due to

inexperience

New travel channels arise

“I just bought this package on GroupOn

for two people to Buenos Aires, 3 nights

stay at Hotel Via Sui in downtown

Boenos Aires with city tour and transfer

included for only 769 reals. Not bad!”

MOTIVATIONS

Three types of motivations

Status related

Travelling as

middle class

symbol

Europe gives

prestige

Demonstrate

cultural

awareness

Photos &

artefacts

Experience-

centred

Relaxation

Religious

experiences

Knowledge

acquisition

Gastronomy

‘Real’ sport

experiences

People-centred

Social travel

Roots seeking

Visit friends and

family

EUROPE-SPECIFIC THEMES

AMONG BRAZILIAN TRAVELLERS

Europe: the big unknown

The image of Europe

Back to the roots

"It was in one of the villages within the city of Riós that my

father was born and my grandparents lived. In addition to aunts

and uncles, cousins and friends I have a true affection for this

region and I have come here ever since I was a child”.

“Getting to know Italy was

simply extraordinary [...] If

you get lost in Rome,

wherever you go is

beautiful [...] there is so

much history and culture.”

Europe = prestige + glamour = personal

brand building

“Ah, I miss that!” [Caption to a

Facebook picture of a traveller

in front of the Eiffel Tower.]

Religious travel

“There were around 80 people

in the Sanctuary of the

Miraculous Medal while I was

there and at least 60 were

Brazilians, and I am sure it was

not a tour.”

"This Sunday we will join

tourists from around the world

to fulfil the pilgrimage to

Fatima.”

5.900

3.800

1.900 1.200

270

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

Spain France Italy Portugal Turkey

Top 5 Country Monthly Google searches

Educational programmes on the rise

“Malta is located in the

Mediterranean with English

and Malteseas official

languages, super hospitable

climate, great parties and

festivals in the summer, uses

the Euro as the currency, does

not require visas for Brazilians

for stays of up to 3 months and

has excellent schools such as

EC Malta and LAL Malta!

Phew! Need more reasons to

do an exchange there?!”

Brazilian travellers disproportionally

interested in food

“The church [Saint-Germain-des-Prés] was closed for maintenance,

so we went to a nearby restaurants instead. I am so happy it was

closed, the food was heavenly.”

Crisis as an opportunity – Europe at a

discount...

“Great discounts on trips to

Europe now! I just booked a

trip to Lisbon.” "I would like to see nice places

and countries by train and

spend as little money as

possible to see as many

countries as possible. I'm

wondering if I can stop by the

cities I like for a couple of days

and then carry on with the trip

with the same ticket.”

Sports – longing to see the teams live!

“We took a self-guided tour of Camp Nou football stadium [in

Barcelona] and followed in the footsteps of famous players such as

Kubala, Cruyff, Maradona, Guardiola and Ronaldinho.”

Frustrations and Annoyances

Problems with visa procedures and immigration

High prices

Realizing one’s hotel was not as good as on the webpage

Crowded attractions and long queues

Language barriers

Closed attractions

Brazilian credit cards not widely accepted

Cultural barriers and incompatibility of habits

Cancelled departures

Delights

Gastronomic delights

Many cultures in small area

Well-preserved historical sites

An air of sophistication

Refined design to take back home

The ways of the Old Continent

Three ways to distinguish destinations

Cultural activities

Shopping

Water sports & beaches

Natural sites

Religious sites Recreational activities

Nightlife

Dining

Sports sites

Historical sites

Neighborhoods

Sports activities

Theme parks

Sightseeing & viewpoints

Casinos

Skiing

Cities awareness (oogle searches)

0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

1.400.000

1.600.000

1.800.000

1 51 101 151 201

Main hubs for Brazilian

travel in Europe

Conclusions

Cater the new middle class…

Raise awareness about Europe

Market your destination through telenovelas …

… and social channels

Enhance destinations’ classiness and glamour

Improve visa procedures

Get the basics rights and avoid frustrations

Personal brand building

Back to the roots

Lots of culture

Religious sites

Gastronomy

The world’s best teams

Liberal destination

Europe’s

USP