Decolar announces physical store in Brazil for the 2nd semester – 06/08/2023 – Market

Decolar announces physical store in Brazil for the 2nd semester – 06/08/2023 – Market


Despegar, which owns Decolar, resumed its plan to open the brand’s physical stores and announced the start of operation of the first establishments in Brazil and Argentina for the second half of this year. According to the company’s CCO (head of the commercial area), Marcelo Grether, São Paulo and Rio de Janeiro will be a priority, but there is the possibility of expansion to the interior of the country.

“In 2022, we announced that we were analyzing the issue. Now, we are announcing that, during the second half, we will open these stores. In our work plan, we are looking for locations to have our own stores”, he said.

Also according to Grether, the company will also do a search to find possible franchisees. “We are looking for locations, both in Argentina and Brazil, to open tents or own stores operated by us. But there are some locations, both in Brazil and Argentina, where it is better to operate with franchises.”

The announcement is part of the company’s strategy to operate in all channels –offline and online– and expand its operation in Brazil.

The Despegar Group has been snapping up Brazilian businesses in recent years. After buying fintech Koin for US$ 4 million (more than R$ 20 million at the time) in 2020, the Argentine company last year acquired the online agency ViajaNet and also the startup Stays.net, which manages digital channels of the vacation rental market.

According to Gether, although the company does not have any physical stores in Brazil and Argentina, two other brands acquired by the company operate with establishments in other Latin American countries.

In Mexico, the Best Day tour group, purchased by Despegar in 2020, has 120 points of sale in 18 states, according to the company. Along with Brazil, the country is the main market for the Argentine company, with 59% of gross bookings in the first quarter.

Viajes Falabella, acquired in 2019, has 81 points of sale spread across Chile, Peru and Colombia.

“We always thought about the digital world, we always went online. Despegar learned a lot from physical stores with other brands that it acquired, and this learning led us to the conclusion that it was a good experience”, says Gether.


See Despegar’s acquisitions:

viajes falabella

  • Year: 2019
  • Investment: US$ 27 million
  • Acquired slice: 100%

Koin

  • Year: 2020
  • Investment: US$ 4 million
  • Acquired share: 84%

Best Day

  • Year: 2020
  • Investment: US$ 56.5 million
  • Acquired slice: 100%

stays.net

  • Year: 2022
  • Investment: US$ 3 million
  • Acquired share: 51%

ViajaNet

  • Year: 2022
  • Investment: US$ 15 million
  • Acquired slice: 100%

Source: Decolar


According to the executive, even with the opening of physical stores, digital will continue to be Despegar’s main channel.

There is still no exact date for the company’s physical establishments to start operating in Brazil, but, according to Gether, the expectation is that they will open in the middle of the next semester.

X-RAY | DETAIL
1st quarter of 2023

Net income: US$ 158.7 million (R$ 781.14 million)
Ebitda: US$ 17.3 million (R$ 85.15 million)
Employees: 4,500



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