The Hispanic Traveler

The most recent US Census data suggests “minority group” may soon become a misnomer when referring to Hispanic Americans. Currently one out of eight US residents is Hispanic, and by 2050 that number is projected to double.

In the travel industry, however, the Hispanic traveler’s footprint is even bigger than these impressive figures would suggest. US Hispanics outspend all other minority groups on travel, plumping up the American travel industry with nearly $1 trillion annually, according to a study by the Manhattan based consumer marketing firm scenarioDNA.

So how can the travel industry harness the buying power of US Hispanics?

“It’s important to cater to the market,” advises Alexandra Argüelles, director of product management for Amadeus. “Everything is becoming much more bilingual and it is up to travel industry leaders to meet the needs of our Spanish-speaking customers.”

Speak the language, know the market
Indeed, many travel agencies that flourish from Hispanic sales are, in fact, travel agencies owned and operated by Hispanics. These Spanish-speaking agencies serve primarily Latin American customers and specialize in booking travel to Mexico, Venezuela, Argentina, Colombia, Peru, Brazil and other countries where their clients are from or where they have family.

Be family-friendly
Understanding the importance of family to US Hispanics is crucial for travel agents hoping to tap into this growing market segment. A study conducted by the Travel Industry Association of America (TIA) found that 77% of all trips booked by US Hispanics are leisure trips, more than half of which were expressly to visit relatives. These findings were no surprise to Gerardo Concas, of Costamar Tours in Ft. Lauderdale, Florida, who estimates that 80% of the travel he books is for family visits to Latin America.

The TIA study also found that the majority of trips taken by Hispanic travelers involved at least two members of the family. This finding coincides with the Amadeus-sponsored “Future Traveller Tribes 2020” study conducted by Henley Centre, which predicts a huge increase in the number of “Global Clans”—or people traveling internationally with other family members, ranging from small children to great-grandparents.

Given these figures, having a family-oriented approach is key to making inroads with the Hispanic market. “We are a family-based business operating in a family-based market,” explains Pete Perez, of Famitours in Miami. “We specialize in extended travel, sometimes 21 days or more, as people return to visit family. It’s a niche market.”

Stay flexible
Price sensitivity and offering group rates through consolidated fare programs will win you loyal customers, Argüelles advises. And being flexible in how you accept payment can go a long way as well. While younger Latin American travelers may shop online for airfares, many members of this market segment buy in cash, check or gift card. Argüelles points out that financially, US Hispanics are incredibly diverse, ranging from top-level executives to immigrants who don’t have credit cards—so having the capability to accept cash or money orders is crucial.

“The growth and buying power of Hispanic consumers in the US presents a unique opportunity for travel agents to offer high-quality products and services that meet their needs,” Argüelles says. “It’s a win-win situation for customers and travel agencies.”