The travel market generated R$189.5 billion in revenue in 2023 in Brazil, according to FecomercioSP. An increase of 7.8% compared to 2022. According to a survey also conducted by FecomercioSP, in partnership with the Latin American Association of Corporate Events and Travel Management (Alagev), only corporate travel alone moved approximately R$7.3 billion in January 2024 – a 5.5% increase compared to 2023.The data indicates that the tourism segment is preparing to return to pre-pandemic levels.
In this context, thetravel techs, as startups that offer technological solutions for the travel and tourism industry are called,They are responsible for helping to boost the sector and digitally transform the travel experience, whether for leisure or work.With the aim of understanding the profile of these companies, Onfly has just completed the second edition of the Brazilian Travel Techs Map.
According to the survey,Brazil currently has 205 active travel techs, classified into a total of eleven categories.They are: Technology for other players (24.4%), Mobility (17.6%), Experiences (13.2%), Online agency and bookings (12.2%), Events (8.8%), Corporate Travel Management (6.8%), Corporate expenses (5.4%), Services for travelers (4.4%), Accommodation (3.4%), Loyalty program (2.4%) and Corporate benefit (1.5%).
Regarding the size and level of maturity of travel tech companies, over 70% of the sector consists of companies with up to 50 employees – of these, 36.1% have up to 10 employees, many of which have operations led by the founders. Companies with 100 or more employees account for only 14.2% of businesses currently in operation.
“We have an active, digitalized sector that is ready to scale. Among the companies in the country, those that offer technology-based solutions for the travel segment are still few and far between, and most of them are young and run by smaller teams. Given the size of the Brazilian tourism market and its potential for expansion, it would not be an exaggeration to say that we are facing a huge market opportunity,” he highlights.Marcelo Linhares, CEO and co-founder of Onfly, the largest B2B travel tech in Latin America that offers comprehensive management of corporate travel and expenses.
Regional cut
According to the Map of Brazilian Travel Techs, the Southeast is the region with the most companies and startups in the sector, accounting for 72.2%, with the state of São Paulo hosting more than half (109) of them. Secondly, there is the state of Minas Gerais, with 24 travel techs. The Southern region follows, accounting for 16.6% of tourism startups, with Santa Catarina (17) standing out as the third state with the most travel techs in the country.
"It is essential that we adopt innovative technologies in our operations, demonstrating to investors a commitment to the modernization of this market," completes Linhares.
Investments in travel techs
According to Crunchbase, the world's leading data platform on innovation, 2021 was the year that concentrated most of the investments in travel techs in Latin America. This year alone, tourism startups raised $154.7 million. Between 2019 and 2023, this data reached a volume of US$290 million. In Brazil, between 2019 and 2023, the sector received US$185 million, and about 75% of the investments occurred only in 2021.
