Our data intelligence shows that consolidating Montevideo’s assets as a tourist destination, particularly the perception of security and connectivity, are essential to take advantage of the 38% increase in air capacity to the Uruguayan capital and to diversify the value proposition to attract new source markets and demand segments.
Montevideo’s international air connectivity strategy can play a fundamental role in diversifying the destination’s tourism products of the country and contributing to increasing the volume of visitors, progressively opening alternative source markets related to its value proposition, which is strengthened by its good reputation as a safe destination with a pleasant climate.
This is one of the main conclusions of the analysis carried out by our team on the occasion of our participation in Tourism 360 – International Fair of Smart Tourist Destinations, in Montevideo.
Mabrian joins in a round table that will address the role of data intelligence in efficient, profitable and sustainable tourism management, with special attention to pioneering initiatives in Latin America, such as the Montevideo Tourism Observatory. This open tool, aimed at the strategic management of the destination, was launched in 2021 by the Municipality of Montevideo and Mabrian and combines official statistics with advanced data techniques to build a real-time, global vision, of the tourist dynamics in the capital city of Uruguay.
As part of this analysis, we also outlined the opportunities and challenges that Montevideo and Uruguay have in travel & tourism, based on the full year 2023 data intelligence on air connectivity, sentiment and satisfaction of tourist products and experiences, as well as performance indexes related to the sustainable management of the destination.
Montevideo-Madrid, the travel corridor to Europe
Air capacity to Carrasco airport, Montevideo’s reference aerodrome, grew by +38% in 2023 , while air seats to the country increased by 37% year-on-year. In both cases, international routes are the key to this increase, which occurs widely distributed throughout the year. In fact, and in the case of Montevideo, the largest increases are registered during April (+56% year-on-year) and June (+53% year-on-year), only behind January (+57%), a relevant month for summer season.
Eight out of the nine source countries connected with direct flights to Montevideo increased their air capacity in 2023: only the United States lost 28% of air seats year-on-year; while the growths are particularly relevant in Brazil (+80.5% year-on-year), Argentina (+54%), Peru (+25%), and Spain (24%).
The Iberia and Air Europa seats connecting Madrid with Montevideo are key to attracting more European travelers on flights with a stopover from markets which might be attracted to the destination’s value proposition, such as France or Italy. The Iberia Madrid-Montevideo connection increased its seats by 40% in 2023, and it is important due to the airline’s connectivity network that might translate into specific promotional actions that could allow to assess potential demand and to consider new direct connections, which will contribute to reduce dependence on their traditional markets.
Globally, the main motivations of international travelers to visit Montevideo and Uruguay are very similar. In the case of Montevideo, the most relevant are culture & heritage (34%, slightly above the Uruguayan average) and its gastronomy (13%), in addition to active well-being experiences (the combination of nature, well-being and active tourism), which reach 24% of share (only two points below the country’s average). Shopping is also a prominent attraction for 12% of travelers, while family tourism represents 8% (with three points difference compared to the national average), and nightlife and sun and beach activities, a 5% each.
Understanding and measuring how these motivations vary in Montevideo and in other departments and areas of interest also gives clues to the type of demand segments and products that should be developed to target these alternative markets.
An oasis of tranquility in Latin America
One of the main advantages of Montevideo is the high perception of security, reflected in the Perception of Security Index (88.7 points out of 100 possible) , slightly higher than the country’s index and similar to other mature and reference destinations in Europe or around the world. Although in 2023, the perception of travelers regarding safety in the Uruguayan capital decreased slightly (only 0.9%), it is, along with the climate perception (84.5), one of the main competitive advantages, so protecting such strong assets them is crucial.
On the other hand, Montevideo and Uruguay have challenges to address when it comes to developing and adapting of tourist products. Montevideo’s Tourist Product Satisfaction Index fell two points in 2023, reaching 65.6 points out of 100, but is still above the national index, 4.4 percentage points lower.
Likewise, Montevideo’s Hotel Satisfaction Index increased 2% compared to the previous year, reaching 61.6 points out of a possible 100 , although it remains below the national index of 65.5 points. The index shows that there is room to improve both facilities and quality of service, particularly in the mid-range (3 and 4 stars) and higher (4 and 5 stars) categories, a key factor in attracting more European and international demand and to be able to increase average hotel rates.
From the point of view of sustainable management, in Montevideo and Uruguay have progressed in their goal of beating seasonality, as indicated by the Seasonality Balance Index of 83.2 in Montevideo and 89.1 points in Uruguay. On the other hand, it is a priority, both for the capital and the country, to further diversify tourism products, as indicated by the 63.2 points of the Montevideo Product Balance Index and the 67.5 points of Uruguay, which will be of great useful to reduce dependence on issuing markets.
