Despegar com : 2023 Sustainability Report

Impact Report

Content

Letter from the CEO

05

Team

page	03

page 35

page 04

01

Parameters for the report

page 50

02		04
About	03	Customers
Despegar
	Our ESG
	Strategy

page 28

page 08

page 22

06		page 61
Community		08
07
page 54	Index
Environment

IMPACT REPORT 2023

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LETTER FROM THE CEO	DATA SHEET	PROFILE	ESG STRATEGY	CUSTOMERS	TEAM	COMMUNITY	ENVIRONMENT	INDEX

Letter from the CEO

In 2023, Despegar entered an exciting chapter in its history. As we celebrate our 25th corporate anniversary we reaffirm our commitment to sustainability and innovation. Our relentless efforts to boost the tourism sector across the region aim to provide exceptional and affordable travel experiences that can transform people's lives.

The latest figures from the World Tourism Organization highlight the industry's resilience and fast recovery. Our state- of-the-art technology, coupled with an unmatched offering of tourist services, has led us to unprecedented success.

In 2023, we surpassed our goals and expectations, achieving historic financial and operational results.

We closed 2023 with record-breaking bookings, marking the highest figures in our history since becoming a public company. These results reflect an outstanding business performance, driven by our strategy to offer the best value proposition for our customers. This includes full-service, affordable, and reliable travel options through the

customers sales channel of choice. Our sustained focus on this strategy has not only led to significant growth in package sales, which accounted for 32% of our Gross Bookings in the fourth quarter of 2023 but also strengthened our Brand across the region.

Accordingly, we aim to make travel accessible to more people by leveraging our supplier negotiations to offer

the most favorable conditions to our customers. Moreover, our focus covers financing options, competitive prices, and multiple forms of payment. We take pride in the fact that 23 million travelers had enrolled in our Despegar Passport loyalty program as of December 2023, marking a 90% growth compared to the previous year.

We are available on whatever channel our customers prefer to buy their trips: our website; our app, which accounted for more than 45% of transactions in the last quarter of 2023; or our physical stores, which now include the first Despegar and Decolar branded branches.This multi- channel approach allows us to meet

the needs of each customer, delivering

comprehensive and personalized service throughout the entire process.

These accomplishments are the result of the tireless effort and dedication of our full team, whose commitment to our vision and values is unparalleled.

Looking ahead, we are excited about the challenges and opportunities that await us, driving us to continue to set the pace in the travel industry. A testament to our commitment to disruptive innovation and customer service is the recent launch of our generative artificial intelligence- based travel assistant SOFIA which has been revolutionizing the way that our customers interact with Despegar.

I invite you to read through our fourth Sustainability Report. This year, we have incorporated a double materiality approach to define its contents, aligning an impact perspective with an analysis of risks and opportunities.

We recognize that sustainability is a continuous journey, and we are committed to maintaining our leading position along the path toward a more sustainable future and hope that more and more people will join us in this challenge.

I am deeply thankful to our community for their unwavering support, and I look forward to our journey ahead.

Damián Scokin

CEO, DESPEGAR

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LETTER FROM THE CEO

DATA SHEET

PROFILE

ESG STRATEGY

CUSTOMERS

TEAM

COMMUNITY

ENVIRONMENT

INDEX

Parameters for the report 01

IMPACT REPORT 2023

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LETTER FROM THE CEO

DATA SHEET

PROFILE

ESG STRATEGY

CUSTOMERS

TEAM

COMMUNITY

ENVIRONMENT

INDEX

About

this Report

This is our fourth annual ESG report. We present the activities related to the environmental, social, and corporate governance management of Despegar and the companies under our control.

This document has been prepared in accordance with the Global Reporting Initiative's Universal Standards 2021 (GRI). The materiality map of the Sustainability Accounting Standards Board (SASB) for the e-commerce industry was also used to account for the impact of material aspects from a financial perspective.

The report spans the period from January 1 to December 31, 2023. Our reporting frequency is annual, and the most recent publication covered the 2022 period. During the current term, the company has experienced no significant organizational changes.

The Corporate Affairs department has led the production of this document, with collaboration from members of different operational areas within the company and technical assistance from the agency done!.

Our Stakeholders

We believe in the importance of maintaining open and transparent communication with our stakeholders to identify their expectations and concerns and address them effectively. We strive to turn this feedback into opportunities for improvement and shared-value creation.

We engage in fluent and trusted dialogue with each stakeholder group through various channels and formal communication mechanisms.

Stakeholders	Dialogue mechanisms
Despegar Team	∙	E-mail
	∙	Internal communication platform
		(Workplace)
	∙	Climate survey
	∙ Quarter-end communication
	∙ Monthly meeting with the leadership team
	∙ Biweekly meetings with directors
Users of Despegar	∙	Customer service satisfaction surveys (NPS)
	∙ Surveys and interviews with the user
		experience team
	∙	Social media
Investors	∙	Meetings with the areas of Investor Relations
		and CCAA
	∙	Quarterly Earnings Presentation
Business partners	∙	Regular meetings and gatherings
NGO	∙	Discussions and joint work with the CCAA
		area

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LETTER FROM THE CEO

DATA SHEET

PROFILE

ESG STRATEGY

CUSTOMERS

TEAM

COMMUNITY

ENVIRONMENT

INDEX

Double

Materiality

Exercise

In 2023, we performed a double- materiality exercise for the first time to define the contents of this report. In line with the Global Reporting Initiative (GRI) recommendations, we adapted our exercise to the new international directives in force, like the Corporate Sustainability Reporting Directive (CSRD) from the European Union.

We integrated the financial perspective into our impact analysis to detect and prioritize our effects on the environment, and also recognize sustainability aspects that may pose risks to the financial performance of our organization. This process encompassed 5 stages:

01 Context analysis

We first focused on understanding the context in which the organization operates, considering the nature of the business, its value chain, and the relevant regulations that can affect us. We also identified Despegar's stakeholder groups: customers, non profit organizations, the team, and investors.

02 Revision of material issues

The SASB indicators for the Internet Media & Services industry and the E-commerce industry within Consumer Goods were used to detect the economic, environmental, and social issues with an impact and risk potential for our business. In addition, we benchmarked material issues identified by relevant industry actors, on both a regional and international basis.

During the review process for this period, we consolidated the list of strategic material topics and unified certain sections of this report. The theme "Responsible tourism" was renamed "Sustainable tourism," "Environment" is now referred to as "Environmental management of operations," "Diversity and equal opportunities" was changed to "Diversity and inclusion," "Innovation" was relabeled "Product innovation and development," and "Customer satisfaction" was redefined as "Customer experience." In addition, the sections "Data privacy" and "Information security" were combined under "Cybersecurity and

data privacy."

03 Evaluation by the stakeholders' groups

We then submitted the list of material issues to various stakeholder groups for evaluation from both impact and financial perspectives. We surveyed customers, our work team, the community, and business partners to gather comprehensive feedback. Each representative ranked the issues based on their perceived level of impact on the environment, people, and the economy. Additionally, they had the opportunity to propose any issues not initially included that they believed should be incorporated into our list.

1976 responses from our stakeholders

04 Prioritization by the investment groups

We conducted a financial materiality exercise through a separate survey specifically targeting investors. In this survey, each investor assessed non-financial aspects- such as economic, social, and governance factors-based on their potential impact on the business's financial standing or performance. Investors were also given the opportunity to propose additional sustainability issues that should be considered.

05 Conclusions and materiality matrix

We integrated the results from both surveys into a materiality matrix that combines the impact and financial risk perspectives to identify strategic, top-priority, and emerging sustainability issues.

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LETTER FROM THE CEO

DATA SHEET

PROFILE

ESG STRATEGY

CUSTOMERS

TEAM

COMMUNITY

ENVIRONMENT

INDEX

Materiality matrix

This matrix highlights the most strategic, top-priority, and emerging material issues based on their impact on stakeholder groups and their significance to investors from a financial perspective.

Top-priority

01 Cybersecurity and data privacy

02 Compliance, ethics, and integrity

03 Customer experience

Strategic

04 Product innovation and development

05 Team welfare and development

06 Sustainable tourism

Emerging

07 Diversity and inclusion

08 Community development

09 Environmental management of operations

Impact materiality and financial materiality

Impact materiality

Financial materiality

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LETTER FROM THE CEO

DATA SHEET

PROFILE

ESG STRATEGY

CUSTOMERS

TEAM

COMMUNITY

ENVIRONMENT

INDEX

About

Despegar

02

IMPACT REPORT 2023

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LETTER FROM THE CEO	DATA SHEET	PROFILE	ESG STRATEGY	CUSTOMERS	TEAM	COMMUNITY	ENVIRONMENT	INDEX

About Despegar

At Despegar, we take pride in being more than just an online travel company. We strive to be agents of change, working towards a more sustainable future. Fully aware and conscious of the importance of sustainability in all our operations, we are committed to minimizing our environmental footprint in our ongoing activities connecting people to the world.

We are driven by our goal to unlock unforgettable travel experiences for people from every corner of the globe. As online travel leaders in Latin America, we have forged a pathway of innovation and excellence, guiding our users to explore thrilling destinations and live memorable experiences.

From day one of our operations, we have led the way in the digital transformation of the travel industry, leveraging technology to improve user experiences and offer innovative solutions that can streamline and enhance the travel journey. Our commitment to quality, integrity, and customer satisfaction has positioned us as the favorite partner for millions of travelers and suppliers across the region.

We operate several brands which encompass Best Day, Viajes Falabella, Hoteldo, Viajanet, Stays, and Koin, enabling us to offer a custom-travel experience to the millions of individuals who choose us in the different countries where we operate in.

We distinguish our operations into two main markets: Latin America and the Rest of the World. In Latin America we operate in Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, the Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Puerto Rico, and Uruguay. The United States and Europe fall under the Rest of the World category. Thanks to this geographical expansion, we can engage with a broad customer base and tailor our activities to the particular characteristics of each location.

We are a diverse and talented team, united by a shared passion for traveling and exploration. Creativity, collaboration, and innovation are the guiding values that drive our efforts to build an inclusive and motivating workplace environment helping our people grow and develop.

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LETTER FROM THE CEO

DATA SHEET

PROFILE

ESG STRATEGY

CUSTOMERS

TEAM

COMMUNITY

ENVIRONMENTINDEX

Our 2023 in figures

19Operations in

countries

We are pioneers in the online travel industry in Latin America.

Portfolio	85.7M
238	cumulative downloads
	of all Despegar
airlines	group apps
	1.2M	1260
	accommodations
		car rental
		companies

12,000

activities at destination places

Our team

4158

people

49.3%

men

50.7%

women

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