Latinconnect – 25 Years of Innovation

The leading DMC alliance from Latin America is celebrating its 25th anniversary this year. In the following interview, Daniel Küng, CEO of Latinconnect, looks back on what has been achieved and shares insights into the future direction of the alliance.

Daniel, you must have experienced a great deal with your alliance over the past 25 years. What stands out most in your memory?
Over the years, we have naturally grown together as friends as well. Every year we meet in one of the partner countries for our annual meeting and then go on a joint discovery trip to get to know the host country better. There are countless anecdotes from these trips – enough to fill a book. One unforgettable experience was a cave expedition in Belize, where we visited an ancient Maya sacrificial site deep inside a mountain. We had to squeeze through a narrow crevice to reach this underground cathedral. Everyone made it in – but we nearly didn’t manage to get one of our partners back out into daylight. By the way, at the upcoming ITB we will be showing many snapshots from these trips at our stand.

You have also achieved a lot from a business perspective. What is the secret behind this success?
Together, you achieve more. This also applies to the Latinconnect DMCs, all of which are independent companies. Through constant dialogue, exchange and mutual trust, we have managed to overcome challenges together over the years and gain competitive advantages. It is also helpful that all managing directors are European and therefore share similar values. Another important milestone was migrating all DMCs to the same technology, Tourplan, 15 years ago. This laid the foundation for our joint IT projects.

What concrete advantages do tour operators gain by working with Latinconnect DMCs?
On the product side, it’s our German-speaking, cross-border seat-in trips as well as tailor-made programmes from a single source. On the commercial side, our bonus programme is highly appreciated. We reward loyalty and revenue growth in the form of a kickback on cumulative turnover generated with all partners. At the upcoming ITB, for example, we will be paying out more than USD 200,000 in bonuses to our tour operator partners, which can be used for marketing activities. On the technical side, tour operators benefit from our product platform www.latinconnect.com. The complete DMC product range is available online (descriptions, prices, conditions, photos, etc.), along with numerous ways to use this content. Classic sales manuals and PDF catalogue pages can be created, the entire content can be exported to third-party systems via an interface, and offers can be presented as personalised websites for clients using our Baku function. Later, all travel-related information can be accessed via the Baku travel app.

What new developments can tour operators expect in the technical area in the future?
We are working intensively on the topic of connectivity. A top priority is integrating dynamic pricing and live availability into our platform. If everything goes according to plan, this should be introduced for selected hotels later this year. In addition, we want to connect our content to leading distribution platforms so that tour operators no longer need to leave their familiar IT environments.

Are there also new developments planned on the product side?
We are placing a strong focus on developing authentic experiences and encounters in our destinations. This is the “salt” in our travel programmes and allows tour operators to stand out from standardised online travel products. To ensure these products are properly understood and sold, we are launching a communication and training initiative for tour operators this year. In addition, our DMC partners have invested a great deal of energy in expanding the content on the Latinconnect platform.

Which countries are currently covered by Latinconnect DMCs?
With the acquisition of Tierra Maya Tours, Caribbean Tours now covers Mexico, Belize, Cuba and the Dominican Republic. In Central America, our partner countries are Guatemala (Expedición Panamudo), Costa Rica (ARA Tours) and Panama (GAPA Travel). In Nicaragua, we work closely with Veranera Tours and offer cross-border trips, although the agency is not currently an official Latinconnect member. In South America, we offer Colombia (Neptuno Travel) and, through Latventure, Argentina, Chile, Ecuador and, newly added, Peru.

How do you assess the future development of tourism in Latin America?
Unfortunately, our world has become more unstable, and Latin America is no exception. The fight against drug cartels and related security issues, politically divided societies, protests, sanctions and natural disasters make the business more challenging. For travellers, it is becoming increasingly important to have the right local information and support from a local agency. In this respect, increased uncertainty can also have a positive effect on our business. Our destinations have so much to offer that overall we remain very optimistic about the future.

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