Fintechs Key to Reactivating Tourism in Mexico

Innovation and technology have become key pieces for economic activity in Mexico. Now that the country is facing its peak of infections and an economic crisis brought by COVID-19, many companies have seen a great opportunity in various sectors, as the pandemic has highlighted the need for the development and use of technology in various sectors, including finances. 

A clear example is Dooddo, a Mexican fintech platform dedicated exclusively to the tourism sector that offers the possibility of traveling to any part of the world, whenever you want. The platform operates with a business model based on affordable rates derived from agreements with suppliers and volume purchases, the omission of bank fees or interest rates, a customized payment plan and a digital platform that makes it easier for the client to review their trip. Individual or group travel are "essential keys to reviving tourism in the short, medium and long term", said the company.

“The start of our operation was fraught with uncertainty since nobody bet on us surviving the first year. They said that nobody would be interested in buying a long-term trip. However, we are committed to this innovative digital savings platform that consists of planning trips through personalized payment plans. We were even selected for the BBVA Momentum entrepreneurship program in its 2019 edition and received the certification as a sustainable and socially responsible company,” said CEO of Dooddo Yair Salas in a statement. According to company data, Dooddo, founded in 2016, has grown 136 percent in its annual turnover, has increased its workforce by 200 percent per year and has more than 10,000 clients nationwide.

In Latin America, more than 1,100 Fintech companies have been identified. About 441 of these operate in Mexico, which represents a growth of 14 percent over the past year, according to Finnovista's Fintech Radar report released on March. These companies offer products and services through the use of technology, which reduces costs and makes traditional sales and service models more efficient, especially in financial services, health, education, e-commerce, insurance and tourism. 

“Seventy percent of the ventures in the sector have their main operations in Mexico City, consolidating the capital as the most dynamic Fintech hub in the country and one of the most relevant in Latin America,” said Finnovista in its latest fintech report released in March.