Most articles during the coronavirus era make pretty depressing reading.  With death, economic collapse, riots and forest fires in the news headlines daily, 2020 will not be fondly remembered by most.  But before you write off 2021 as more of the same, lets look at things from a different angle.  Maybe, just maybe, post coronavirus travel could be your gateway to explore the world.

With a world of buyers in lockdown, most businesses have had to lower their prices to avoid falling victim to the pandemic.  While many will recover in time, all are suffering from a shortage of cash flow in the short term.  This means that even selling at cost price is now a widespread tactic.

With supply outstripping demand restaurants, hostels, bus companies are all competing for your business.  This puts the buyer in a great position who can negotiate to lower even already discounted prices.

Many hostels have had to reduce their prices while the demand is significantly lower.  Furthermore almost all are offering excellent deals of stays of more than a week.  The need to avoid paying commission to online booking platforms also means extra discounts or freebies when booking direct.

In times of recession, the markets have more confidence in the more established currencies such as USD or Euros.  This has led to devaluation of some currencies in Latin America, meaning you get more when you buy in the local currency. The Argentine Peso (25% loss in value) and the Brazilian Real (23%) in particular have taken a significant hit vs the $USD since the start of February 2020.  All currencies in the region however have suffered to varying degrees.

While exchange rates are a complex issue that are driven by a number of factors.  South American exports are heavily based around natural resources.  These include oil in Colombia, Brazil and Ecuador and copper in Chile.  With the world’s factories closed, there is much lower demand for these resources.  As a result fewer companies are buying local currencies to purchase these products.

As industry begins to recover in 2021 this is likely to bounce back.  In the short term however travelers are likely to get more bang for their buck.  In effect, those traveling from outside South America can currently stretch their budgets 25% further.

Airlines are pulling out all the stops to compete for your business.  This has resulted in incredible deals such as direct flights to South America from Miami for $100USD. Most airlines lease their aircraft and a lack of travelers has led to problems in meeting their financial obligations.  Now international borders are beginning to open again they need to fill those seats again and quickly.  The result? A price war between airlines running the same routes.

In order to restart tourism, some governments have even subsidised the cost of tickets through lowering airport taxes.  This saving is then passed on to the consumer meaning even lower air fares than ever before.

The aviation and accommodation industries are conscious of the uncertainty of future restrictions and so are changing their offers accordingly. It is currently commonplace to see free cancellation offers or at least flexibility with dates with no additional charges.

At Purple Monkey Hostel Medellin we are offering free cancelation on any reservation made in 2020.  It is in all our interests that travelers can book with confidence against an unforeseen change in circumstances.

Over tourism was an increasing problem before the pandemic and historic sites had been limited visitors in order to protect them.  The achievement of hiking to a spectacular view was also diminished by sharing that site with hundreds of other tourists all jostling to get their own photo.

It may sound selfish, but seeing the sun rise over Machu Pichu would be all the more dramatic if you had it to yourselves.  With tourism numbers likely to grow gradually over the coming months, this is an opportunity that won’t last forever.

Government regulations have limited the number of beds that can be sold per room with top bunks being temporarily prohibited.  Not only does this guarantee a bottom bunk, but the space between dorm beds has been increased. As a result you have more chance on getting a good nights sleep.

We have all stopped in hostels that have crammed an extra bed into any space they have available.  One positive outcome from social distancing laws is that this is now regulated and hostels are restricted as to how many people can be squashed into one space.

In a world of uncertainty and redundancies, businesses are reluctant to hire new staff.  Because of this the job market has never been more competitive.  For many, the idea of job hunting and incurring costs back home for months with limited likelihood of success may seem futile.

The generation most hard hit in the job market will be the backpacker (18-30) age group.  Those recently graduated from university or with limited experience in their jobs are statistically the most likely to have lost work during the Covid-19 crisis.

For many of that generation who had enjoyed a taste of independence at university or on their travels will have been hit hard having to move back home with their parents during the pandemic.  For some, the opportunity to take a gap year in a tropical climate will be seen as the perfect remedy for 6 months of house arrest.  With every week away, the job market will slowly recover back home.  It is likely that when you return after a life changing trip your prospects will have have improved.

Some areas of Latin America were badly hit by the pandemic and for several months were considered the epicentre of the virus.  Fortunately however the number of active cases in the region have been declining since August.  As a result government restrictions on travel and business have now been lifted.

Of course we must all still remain vigilant and take sensible precautions. However governments are actively encouraging people to return to work so we can begin to reactivate the economy.  This is a reassuring sign that those responsible for our welfare are confident that we are at least over the worst of the crisis.