Avanti to separate Central and South American products

Avanti Destinations will split its offerings to destinations south of Mexico into separate Central American and South American product lines and brochures for 2007. The tour operator is responding to rapid growth in eco-adventure and beach vacations to Costa Rica, Guatemala, Panama and Belize, and an uptick in demand for luxury product across Latin America.

Avanti, which is owned by Rail Europe Group, will roll out its separate Essence of Central America 2007 brochure by mid-September, with the South America equivalent to follow in early November, according to Harry Dalgaard, president of the Portland, Ore.-based tour operator.

"There's a specific Central American market that's different than long-haul South America," he said. "Also, the timing of when we get products is different; for Central America it's more of a Mexico- and Caribbean-based year. So we're breaking the product apart."

The Central America brochure will include Belize, Costa Rica, Guatemala and Panama. South America will include Argentina, Bolivia, Brazil, Chile, Peru, Ecuador and the Galapagos Islands.

Avanti sends up to 10,000 clients annually to Latin America. This year, it is posting 8.2% growth to the region over 2005.

Panama is Avanti's newest hot spot, joining Costa Rica, Belize, Ecuador, Peru, Brazil and Argentina as one of the most popular Central and South American destinations, thanks to coastal resort development.

"Overall, Panama has posted, percentagewise, the biggest growth in Central America, but it still trails Costa Rica and Belize in terms of passengers," said Dalgaard. "But it's definitely coming into its own."

Next year's product roster for Latin America, including tours and hotels (see Room Key, at right, for an example) will remain largely the same as the 2006 lineup.

"Quite frankly, this year it's more a case of refining the new product," said Dalgaard. "You have to have product in brochures for three years before it gets traction."

For example, this year's debuts ranged from self-drive tours in Belize and family resort stays in Costa Rica to winery visits in Argentina and Chile and new Brazil tours.

"We look at trends, new product our local ground operators introduce us to, and what our consortia partners are asking for, which is more family travel, more up-market," he said.

Avanti's Latin America tour operator partners include Adventure World Argentina, Panorama Tours in Costa Rica, Peru's Condor and Blumar Turismo of Brazil.

Family, flora in Central America

Avanti's Central America product focuses on soft eco-adventure, cultural and "water-based recreation" vacations. Dalgaard cautioned that the region does not offer mass-market products in the way that packaged, all-inclusive beach resorts do.

"For example, Panama is coming along with its coastal development, but there's no way it's going to ever be a beach product like the Caribbean," he said. "That's because it's so rich in its ecological aspects, in terms of flora, fauna and indigenous cultures."

Central American product introduced this year included:

Sophisticated south

While clients booking Avanti's Latin product tend to be sophisticated and well-traveled, those headed farthest south, to Argentina, Chile and Brazil, skew even more upscale and urbane, according to Dalgaard.

Peru and Ecuador are also soft adventure and eco-tourism territory.

"South America is, of course, a bigger-ticket trip appealing to a more sophisticated, urbane client who books multi-country itineraries of longer duration and a huge amount of pre- and post-cruise land extensions," he said. "It's not an impulse purchase. People will spend $10,000 to $15,000 on a South America trip."

Avanti's clients increasingly are asking for up-market add-ons. "People are asking for more private transfers and sightseeing," Dalgaard said. "The market is commoditizing air and hotel but for services, passengers are willing to pay -- and in Latin America you get more bang for your buck."

New South America tours for 2006 are:

Travel agents earn 10% commission. For more, visit www.avantidestinations.com.

To contact Destinations editor Kenneth Kiesnoski, send e-mail to [email protected].