Business

Decolar, Brazilian subsidiary of the Argentinian Despegar, shows signs of recovery

In April, the company laid off 400 employees in Brazil, Uruguay and Colombia

Decolar is the Brazilian subsidiary of the Argentine company Despegar. Photo: Shutterstock
  • Between June and July, sales of the Brazilian subsidiary, Decolar, accounted for 30% of transactions recorded in the same period in 2019;
  • The company reported losses in Q1; such as a 32% drop in total gross reserves;
  • Despegar laid off 400 employees in Latin America during April, reduced costs, and renegotiated the acquisition of the Mexican Best Day.

Latin American travel firm Despegar is starting to get some positive indicators on its operation after being hard hit by the pandemic’s effects. The company, which reported a 32% drop in total gross reserves during Q1, also laid off 400 employees distributed among Brazil, Uruguay, and Colombia during April.

Now, recent information learned by Valor Econômico newspaper shows that between June and July, sales of the Brazilian subsidiary, Decolar, accounted for 30% of transactions recorded in the same period in 2019, according to what Alexandre Moshe, Descolar’s general director informed to the media outlet.

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“Since March, it has been an extremely intense and challenging period for everyone. We seek to ensure the sustainability of the business. I believe that with the efforts made the company will be able to be a protagonist in the tourism industry after the crisis ”, said the executive.

In addition to the layoffs, Despegar also reduced costs and renegotiated the purchase value of its Mexican rival Best Day, an acquisition that had been previously announced in January. Despegar will release its Q2 earnings report on August 6.