The Rise of Hotel Opportunities in Argentina

By Arturo Garcia Rosa President & Founder, SAHIC South America and SAHIC Cuba | July 23, 2017

Co-authored by Elizabeth Karakachian, Marketing Co-ordinator, LHL Communications

Though Argentina has always sparked interest from investors around the world, some of the economic measures and political scandals related to the party that held the power for a decade (until December 2015) did not represent the best scenario for international investment. The more recent election of President Mauricio Macri, undoubtedly represents an important task of rebuilding the Argentinian economy and restoring its international credibility. Macri, already in his short stint thus far as president, has partially succeed with inroads here, and as such has been given the honor to host the World Trade Organization meeting in December 2017 along with the G20 Summit in 2018. Both events will be held in Buenos Aires.

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South America ranks as the fourth largest travel destination in the world according to Statista. With an increasing interest from international travelers, the countries in this continent have come a long way with regard to infrastructure, hospitality, and tourism development (among other criteria) in recent years. Most notable of the South American countries is Argentina, which currently is the most visited Spanish-speaking country in South America (World Economic Forum April 2017).

Argentina has strengthened its destination promotion presence around the world by focusing marketing campaigns to build awareness around the great landscapes and experiences that it offers to travelers. The country's national carrier, Aerolineas Argentinas, continues to expand airlift by adding inbound flights from the United States and Europe. Argentina strives to lead the South American travel industry by developing new hotels and other hospitality-related facilities.

In addition to its economic measures, which (among others) led to settle the country´s multi-billion-dollar debt and aid in the foreign exchange conflicts by favoring free trade deals with the United States, Argentina The country has also shown great effort in pursuing transparency, -- clearly showing its commitment to regaining the confidence of the international markets. Experts have now started to consider Argentina a frontier market. This title gives the country a competitive advantage with international investors as they see potential within such markets. While frontier destinations may have higher risks because they are emerging markets, the potential return on investment is also quite strong.

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Coming up in June 2019...

Sales & Marketing: Selling Experiences

There are innumerable strategies that Hotel Sales and Marketing Directors employ to find, engage and entice guests to their property, and those strategies are constantly evolving. A breakthrough technology, pioneering platform, or even a simple algorithm update can cause new trends to emerge and upend the best laid plans. Sales and marketing departments must remain agile so they can adapt to the ever changing digital landscape. As an example, the popularity of virtual reality is on the rise, as 360 interactive technologies become more mainstream. Chatbots and artificial intelligence are also poised to become the next big things, as they take guest personalization to a whole new level. But one sales and marketing trend that is currently resulting in major benefits for hotels is experiential marketing - the effort to deliver an experience to potential guests. Mainly this is accomplished through the creative use of video and images, and by utilizing what has become known as User Generated Content. By sharing actual personal content (videos and pictures) from satisfied guests who have experienced the delights of a property, prospective guests can more easily imagine themselves having the same experience. Similarly, Hotel Generated Content is equally important. Hotels are more than beds and effective video presentations can tell a compelling story - a story about what makes the hotel appealing and unique. A video walk-through of rooms is essential, as are video tours in different areas of a hotel. The goal is to highlight what makes the property exceptional, but also to show real people having real fun - an experience that prospective guests can have too. The June Hotel Business Review will report on some of these issues and strategies, and examine how some sales and marketing professionals are integrating them into their operations.