South American outbound travel market to Europe

The South American outbound travel market to Europe has shown significant growth potential, driven by rising middle-class incomes, currency stabilization, and more affordable travel options. Several factors influence this trend and its forecast for the coming years:

1. Recovery from Pandemic Impacts
Post-pandemic growth: As of recent years, the market is steadily recovering, with a particular interest in Europe, thanks to improved travel confidence and lifted restrictions. Countries like Brazil, Argentina, and Chile lead the outbound market.
Pent-up demand: South Americans, having postponed trips during COVID-19, are increasingly seeking leisure travel, with Europe being a top destination for its cultural appeal.
2. Economic Drivers and Middle-Class Expansion
Economic growth and currency stabilization: A moderate economic rebound in South American countries has improved disposable income levels, allowing more people to afford overseas travel. However, high inflation, especially in countries like Argentina, could impact the flow in the short term.
Middle-class expansion: The growing middle class in countries like Brazil, Colombia, and Peru fuels demand for international travel as access to credit and disposable income increase.
3. Popular European Destinations and Travel Preferences
Cultural and historical appeal: Spain, Portugal, France, and Italy are primary destinations for South American travelers due to shared language or cultural ties and historical interest.
Shift to unique experiences: Many travelers now seek immersive experiences over traditional tourist circuits, opting for smaller European cities, gastronomic tours, and countryside retreats.
4. Forecast and Trends
Market size growth: According to recent data, South American outbound travel to Europe is expected to grow by 5-8% annually over the next five years, depending on economic stability and airline capacity.
Travel frequency: Repeat visits are rising, and multi-country trips within Europe are increasingly common due to efficient transport links, affordable packages, and Schengen visa benefits.
5. Airline Connectivity and Competitive Pricing
Improved connectivity: Increased flight options and direct routes, especially between Brazil, Argentina, and European hubs, make travel more convenient. Airlines such as LATAM, Iberia, and TAP Air Portugal play a key role here.
Price competition: With low-cost carriers entering the long-haul market, fare competition is pushing down prices, making Europe more accessible for South American travelers.
In summary, South America’s outbound travel to Europe is projected to grow steadily, with potential challenges in economic stability balanced by increased accessibility and strong cultural ties with European destinations. The key to sustained growth will be economic resilience, expanded flight routes, and evolving travel preferences focused on diverse experiences.

We organize in March/April 2025 a Roadshow to Brazil and Argentina with extension to Chile. More information please contact Kari Halonen