Despegar, a leading online travel agency in Latin America, has announced the filing of its Annual Report on Form 20-F for the year ended December 31, 2020, with the U.S. Securities and Exchange Commission (SEC). The filing provides key financial and operational highlights reflecting the company’s performance in the last fiscal year. The report includes Despegar’s business strategy, competitive conditions, financial information, risk factors, and more.
According to the report, Despegar’s net revenue for 2020 was $369.2 million, representing a 49.6% decrease compared to 2019. This decrease was primarily due to the impact of the COVID-19 pandemic, which led to a significant reduction in travel demand and sales. However, the company managed to partially offset the fall in revenue by implementing cost-saving measures, such as reducing marketing expenses and renegotiating contracts with suppliers.
Despite the challenging environment, Despegar remained focused on strengthening its business fundamentals during the year. It invested in technology, expanded its product portfolio, and increased its customer base. The company launched its new AI-powered virtual assistant, “Lucero,” which aims to provide personalized and efficient customer service. It also partnered with several airlines and hotels to offer new products and enhance its loyalty program.
“We are pleased with the progress we made in 2020, despite the unprecedented challenges we faced due to the pandemic,” said Damian Scokin, CEO of Despegar. “We remained committed to our long-term strategy of investing in technology and innovation, expanding our product offering, and capturing a larger share of the travel market. We believe that these initiatives will position us well for the eventual recovery of the travel industry.”
Despegar’s financial position remained stable throughout 2020, with a cash and cash equivalents balance of $400.4 million as of December 31, 2020. The company also raised approximately $150 million in gross proceeds from a public offering of its common shares in October 2020, which was used to enhance its liquidity and fund strategic initiatives.
Looking ahead, Despegar is cautiously optimistic about the future. Although travel demand remains subdued in the short term due to ongoing restrictions and uncertainties related to the pandemic, the company expects to see a gradual recovery in the coming years. It plans to continue investing in technology and innovation to improve its customer experience and capture market share.
“We believe that the travel industry will recover, albeit slowly, as vaccination efforts continue and travel restrictions are lifted,” said Scokin. “We have a strong financial position and a solid strategy in place to position ourselves for long-term growth. Our goal is to emerge from this crisis even stronger and more resilient than before.”