Notitur Summer / July - August 2013 by Amdetur

Year XXV July– August 2013

July August

»Statistics Business Analytics.

Part 4 of a 5 Article Series / A Competitive Advantage for Sales and Marketing Executives

»In this issue Curtis Knipe

Experience and Innovation

TOURISm:

Driver of a New Socioeconomic model

AmDETuR Welcome to our XXVII Annual Convention

TEChNOlOgy: The Influence of Technology in 21st Century Tourism

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NOTITUR / CONTENt

BOARD OF DIRECTORS CHAIRMAN Romárico D. Arroyo Marroquín Grupo Sunset executive Carlos Trujillo Balmaseda president Amdetur secreary Gerardo Rioseco Orihuela Fiesta Americana Vacation Club treasurer C.P. Jaime Márquez Vargas / Royal Holiday LEGAL Lic. Gerardo Freyre Fregoso DIRECTOR Vera y Carbajal COUNSELORS Juan Vela Ruiz / Grupo Velas Ricardo Montaudon Corry / RCI Juan Ignacio Rodríguez Liñero / RCI Kemil Rizk / Royal Resorts Marcos Agostini / Interval International Jorge Pallas Cáceres / Promotora Cancún Sunset Clubs Gustavo Ripol Bermúdez / Presidente Club de Viajes Francisco Aranda Bezaury / Club Real Resort Gibrán Chapur / Palace Resorts Jorge Herrera Rivadeneyra / Unlimited Vacation Club Director

Rosa de Jesús Lugo Dorantes

Notitur CHAIRMAN Romárico D. Arroyo Marroquín Grupo Sunset executive Carlos Trujillo Balmaseda president Amdetur publisher Aurora Martínez V. dESIGN KEMCS Diseño y Marketing www.kemcs.com PRINTER Litográfica JM, S.A. de C.V. Tel. (55) 5581 8229 y 5582 9370 TRANSLATION Elizabeth Collins Morrison elizcollins@mac.com PHOTOGRAPHY José Mata / www.pbase.com/ppmata Amdetur Cel. (04455) 1885 8581 ADVERTISING Aurora Martínez V. aurora.martinez@prodigy.net.mx

LOCAL ASSOCIATIONS

Lic. Patricia de la Peña, Asociación de Clubes Vacacionales de Quintana Roo, A.C. / Lic. Alejandro Lemus Mateos, Asociación de Desarrolladores y Promotores Turísticos de Tiempo Compartido, A.C. (Puerto Vallarta) / Dr. Jorge Téllez Landín, Asociación Sudcaliforniana de Desarrolladores de Tiempo Compartido, A.C. / Ing. José Luis Centeno, Asociación de Promotores de Clubes Vacacionales del Estado de Guerrero, A.C. / Sr. Fernando de Leeuw Santiago, Asociación de Clubes Vacacionales de Cozumel, A.C. / C.P. Fernando Alaniz Cárdenas, Asociación de Clubes Vacacionales de Sinaloa, A.C. / Lic. Claudio Balderrama González, Asociación de Desarrolladores y Operadores Turísticos de Ixtapa y Zihuatanejo, A.C. NOTITUR is a bimonthly publication published by the Mexican Resort Development Association (AMDETUR), with five digital versions and one print version a year. WTC, Montecito #38, Piso 32, Oficinas 11–14, Col. Nápoles, México 03810, D.F. Telephones and fax: (55) 5488 2028 to 31. Printed at Litográfica JM, S.A. de C.V., Sur 111 #622, Col. Sector Popular, México 09060, D.F. Certificate of Valid Title no. 3856, dated April 19, 1989; Certificate of Valid Content from the Comisión Calificadora de Publicaciones y Revistas Ilustradas no. 3172 dated April 19, 1989. Reserve Certificate Number 04-2005030817343600-102 from the Instituto Nacional del Derecho de Autor, Ministry of Public Education. Postal Publication Registry No. PP09-0427 authorized by SEPOMEX. AMDETUR is not responsible for the advertisements or advertorials published in NOTITUR. NOTITUR complies with federal regulations on information privacy, according to the Federal Law on Protection of Data Held by Private Parties. For more information on this issue, visit our web page at www. amdetur.org.mx NOTITUR JULY-AUGUST 2013

If you would like to receive the digital version of Notitur, in English or Spanish, you can request it: aurora.martinez@prodigy.net.mx Or dowload it directly: issuu.com/notitur/stacks

July / August 2013

Tourism: Driver of a New Socioeconomic Model

The economic effects of this activity are unmistakable, because these tourist flows mean employment, accounting for one out of 12 jobs in the tourist industry, and generating 30 percent of service exports.

STATISTICS Part 4 of a 5 Article Series: Business Analytics, a Competitive Advantage for Sales and Marketing Executives

Today, there are Business Analytics solutions that are presented as pre-fabricated content about the Timeshare industry. These out-of-the-box solutions save costs and enable companies to generate immediate profits.

Amdetur Recent AMDETUR activities

Thanks to the support of our members and participation of the committees that make up AMDETUR, we continue to achieve significant advances that benefit our industry and tourism in general.

ACADEMe Second Timeshare Diploma Program

The Southern California Association of Timeshare Developers (ASUDESTICO), in collaboration with the Universidad del Golfo de California, offered its second Timeshare Diploma Program in Baja California Sur.

Technology The Influence of Technology in 21st Century Tourism

INDUSTRY Curtis Knipe, Experience and Innovation

In statistics, 70% of cell phone searches end in a purchase within one hour, while searches on desktop or laptop computers end in a purchase within a period of one month.

Now, with new flights that offer better connections to Mazatlan, and following a record number of visitors in November and December last year, prospects are brightening for this destination.

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EDITORIAL

July / August 2013 DEAR READERS: I warmly welcome you to the 27th Annual Convention of the Mexican Resort Development Association (AMDETUR). The Marketing and Sales Committee, which was responsible for organizing this event, has been able to bring together a set of nationally and internationally renowned speakers and panelists to discuss the latest topics and issues in our industry, and I'm sure participants will find this highly interesting and useful. Once again, our Convention incorporates activities relating to our University-Enterprise Liaison Program, in response to the warm acceptance it has received in previous years. This program has helped us to invite students who are enrolled in tourism degree programs at various universities to become familiar with the benefits and advantages of working in this industry. Through these actions, AMDETUR and its associates are actively promoting a higher level of education and a more professional vacation ownership industry. I'd like to take advantage of this opportunity to thank our sponsors, presenters, speakers, panelists, event organizers and all of our associates for their valuable participation in this Convention. I'm also very satisfied to welcome tourist industry authorities to this forum, and look forward to dialoguing about policies and work programs that can support the development of tourist activity in Mexico. The Mexican tourist industry is clearly showing signs of recovery, but we must redouble our efforts to encourage a stronger pace of growth. I invite you to continue dedicating yourself to this great task. Only through the concerted efforts of the authorities and private enterprise can Mexico achieve the place it deserves in the world of Tourism.

EDITORIAL

Cordially, RomĂĄrico D. Arroyo MarroquĂn Chairman of the Board of Directors

amdetur.org.mx

ANUNCIO EXCEL

amdetur.org.mx

AMDETUR

Recent

AMDETUR

activities

Thanks to the support of our members and participation of the committees that make up AMDETUR, we continue to achieve significant advances that benefit our industry and tourism in general, as we have shared in previous issues of NOTITUR. In this issue we will report on our activities in the third two-month period of 2013.

College of Architects Congress AMDETUR participated in the Congress of Specialized Societies, organized by CAM-SAM (The Mexico City College of Architects and Society of Architects of Mexico), on May 2 and 3 of this year. The meeting was attended by organizations of architects, urban planners, appraisers and specialists in the areas of tourism, civil protection and health, and discussed public policies that might be applied to increasing the competitiveness of Mexican cities. Our industry was represented by Gabriel Santoyo of Grupo Sunset World – Hacienda Tres Ríos, in a panel entitled “Infrastructure and equipment for sustainable tourism.” Consulting Forums for the National Development Plan On May 9, AMDETUR was present for the “Prosperous Mexico” citizen consultation forum, held to support the drafting of the National Development Plan for 2013-2018, headed by President Enrique Peña Nieto. The President said that his administration “had received more than 200,000 proposals and suggestions that are being analyzed and aligned with the five national goals that have been set forth: achieving a Mexico at peace; an inclusive Mexico; a Mexico with quality education for all; building a prosperous Mexico and making Mexico a globally responsible agent.” Additionally, AMDETUR took part in two industry work tables within the National Development Plan. The first of these was with the Ministry of Tourism (SECTUR) and focused on facilitating investment and financing for the industry, and the second was with the Ministry of the Economy and the National Trust Fund for Tourism Development (PROFECO), entitled “Consumer Rights.” SECTUR Sub-Committee 228 Sub-committee 228, organized by the General Department of Regulatory Improvement of the Ministry of Tourism met on May 9, where AMDETUR participated in a dialogue on standardization of the systems involved in the industry, through ISO certification. The main purpose of this Sub-Committee is to promote the modernization of tourist activity by learning about, participating in and analyzing new international trends in the field of tourism.

Third meeting of COPARMEX Tourism Commission On May 17 the Employers Confederation of the Mexican Republic (COPARMEX) organized the 3th meeting of its Tourism Committee, in which Carlos Joaquín González, Operation Under-Secretary at SECTUR, invited tourism entrepreneurs to join in diagnostic tables that will take place in June and July. He added that work tables would also be held on identifying strategic destinations, segments and sub-sectors, which will support in improving competitiveness, innovation and sustainability. Second Timeshare Diploma Program in Los Cabos Between April 16 and June 12 the Southern California Association of Timeshare Developers (ASUDESTICO) organized its Second Timeshare Diploma Program, with the collaboration of the Universidad del Golfo de California. Within that diploma program, on May 21, AMDETUR participated in module 3, “Resort Developers,” in which it spoke of the characteristics of vacation ownership tourist projects, post-sale services (including reservations and collections) and other aspects like making the sale linked to the legal verifier. AMDETUR-CMIC Mixed Commission Following up on the meetings AMDETUR has held with the Mexican Construction Industry Chamber (CMIC) and within the framework of the 2013 National Tourist Infrastructure Meeting, organized by CMIC and held on May 22-25 in Mazatlán, Sinaloa, the two organizations signed an integration agreement to create a Mixed Commission, whose objectives, among others, will be to promote the development of tourist project and share best practices in tourism-related construction activities. AMDETUR also participated in the meeting in a panel entitled “Overview of Tourism in Mexico,” where it stressed the importance of the vacation ownership industry to Mexico, as well as this Association’s interest in collaborating with institutions active in the industry, like the CMIC. Additionally, during the visit in Mazatlán a productive work meeting was held with members of the Mexican Association of Sinaloa Vacation Clubs.

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1. and 2. College of Architects Congress / 3. Mixed Commission AMDETUR-CMIC where Jorge Herrera Caldera, Governor of the State of Durango, Carlos Trujillo Balmaseda, Executive President of AMDETUR, Roberto Calvet Martínez, Executive Coordinator of Tourist Infrastructure and Eduardo Ramírez Leal, Executive Vice President of Delegations and Social Security for the CMIC, participated in the panel “Overview of Tourism in Mexico” / 4. COPARMEX 3th Tourism Committee meeting, Jose Alfonso Bayón, SECTUR; Roberto Zapata, COPARMEX; Carlos Joaquín González, SECTUR; Manuel Gutiérrez, National Chamber of the Restaurant and Condiment Industry; Armando Uribe Valle, Mexican Hotel-Motel Association / 5. Professor Mirna Guadalupe Torres Aragez of the Universidad del Caribe, delivering recognitions to presenters at the University-Enterprise Liaison Program.

University-Enterprise Liaison Program Another activity in our University-Enterprise Liaison Program took place on May 27 at the Universidad del Caribe in Cancun, Quintana Roo, through a day of talks on Timeshare. Participants included Gerardo Freyre, Legal Director at AMDETUR, Jane García, Executive Manager for Marketing and Human Resources at Royal Resorts, Jesús Calahorra, Business Development Director for the Mayan Caribbean at RCI and Carlos Trujillo, Executive President of AMDETUR. Closing out the event was a celebration of the career achievements of Miguel Osuna, General Director of AM Resorts for the Caribbean. Participants received a participation diploma from Professor Mirna Guadalupe Torres Aragez. Third Sales and Marketing Vacation Club Forum of the Americas AMDETUR attended the 3rd forum organized by the Quintana Roo Vacation Club Association (ACLUVAQ), held on May 28-29 on the theme “Productivity: A race without limits.” The event was led by extraordinary motivational speakers like Christopher Gardner, who authored the book based on his own life (and later made into movie) “The Pursuit of Happyness;” and José de Jesús, a.k.a. “Chucho” Ramírez, Professional Coach and former Coach of the Mexican Sub17 Youth Soccer Selection. During the same forum another panel was held, entitled “Productivity: The Vision of New Generations,” made up of Fernando Azcona, Villa Group, as moderator; Jorge Téllez, Corporativo Solmar; Daniel Arroyo, Sunset World; Gibrán Chapur, Grupo Palace Resorts; Armando Millet, Grupo Royal Resorts and Salomón Arroyo, Sunset World.◄

amdetur.org.mx

ACADEME

2nd timeshare diploma program

nce again, industry participants played an important role in enriching knowledge among those who work in Vacation Ownership in Baja California Sur and encouraging closer communication with the teaching staff of the various universities in Los Cabos that teach courses on Timeshare.

Thanks to the efforts of members of the Southern California Association of Timeshare Developers (ASUDESTICO), in collaboration with the Universidad del Golfo de California, the Second Program in Timeshare for Baja California Sur was given, contributing significantly to the professionalization of our industry in the region. This second academic effort was formally begun on April 16, with the support of Jorge E. Téllez Landín, Vice President, and Javier Olivares, Director of ASUDESTICO; and with the support and confidence of the resort developers affiliated with this association. This important event was attended by Rubén Reachi, Baja California Sur Secretary of Tourism, and Yolanda Razo, Rector of the Universidad del Golfo de California, which accepts this Diploma Program, unique in Mexico and Latin America, for course credit. The program consists of four modules, covering the main concepts that underlie this industry:

Module I. Tourism-Oriented Real Estate

Different types of vacation ownership; evolution of products; market characteristics and indicators; status of the industry in Mexico and in Los Cabos; technology and social networks applied to the industry, among others.

Module II. Legal Framework

International laws governing Timeshare; Official Mexican Standards affecting the Timeshare industry; legal regulations in Mexico; municipal regulations in Los Cabos, procedures involving PROFECO; standard-form agreements; and handling advertising and complaints.

Module III. Developers

How to create a hotel and Timeshare project; permits and construction; financing and co-backers; Timeshare service operations; maintenance fees; exchange company; collections; commercial agency contract; post-sale.

Module IV. Marketing

Personnel recruitment; hiring and training promoters; prospecting program; duties of supervisors and managers; types of converters; management; managing check-in situations; budgets, sales, outsourcing. Programs like this are a clear example of actions being taken by leaders of the Timeshare industry to support its evolution and the observance of its own principles and regulation, and consolidate the bases on which this expansion can continue. ◄

The Second Timeshare Diploma Program consisted of four modules, covering the main concepts that underlie this industry.

Javier Olivares, Director and Jorge Téllez, President of ASUDESTICO, with Rubén Reachi, Secretary of Tourism for the state of Baja California Sur.

NOTITUR 2013

amdetur.org.mx

Technology

The Influence of Technology

in 21st Century Tourism Contributed by CPTM

ocial networks, corporate and institutional communication and new technologies have something in common that can be used to benefit tourism in Mexico. For example, cell phone advertising is expected to result in 11.4 billion dollars in profits in 2013, 19% more than in 2012,1 and using this to support the local tourist industry could be of tremendous benefit for the country. In Mexico, tourism is a highly profitable activity, generating jobs and accounting for close to 9% of GDP. Today, new technologies have transformed the way we approach clients. Through these technologies, travelers can now research and purchase a trip, almost entirely on the Internet. Looking at the statistics, 70% of cell phone searches end in a purchase within one hour. Searches on desktop or laptop computers end in a purchase within a period of one month.2 Transactions are becoming more and more rapid, a significant trend in the tourism industry.

The biggest change, however, has been in our knowledge about the tourist. Today, it is possible to know more precisely what, when and how they search, what they buy, how frequently, how far in advance and how each purchase will take place. All of this information can be obtained at a relatively low cost. The important thing today is to have strategies that enable us to reach the right consumer, not a wider number of prospects; the challenge is in approaching those who meet the profile of the traveler who will visit Mexico, in other words, lead them directly to our destinations. Incentives like coupons are important to maintaining a destination's positioning; coupons sent by cell phone are used 10 times more frequently than printed coupons.3

NOTITUR 2013

Technology

Making use of these technologies has the potential to generate greater consumption for the industry. However, these transactions have their own risks. There is an excess of information, and this makes it more difficult to communicate with potential tourists. It is common for them, when searching for travel destinations on the web, to come across references, remarks and suggestions of all kinds, and tourists should be able to identify those that are the most relevant for their purposes. Latin American consumers are particularly wary about the use of online payment tools, a phenomenon common in Mexico and in the region at large, which should be taken into account. Under the leadership of the Ministry of Tourism, we have started out this new administration with a vision of renewal, innovation and growth. We have defined very specific strategic priorities which, together with new technologies, should enable us to increase our market share in various issuing countries. The strategic lines will follow are intended to:

70%

of cell phone searches end in a purchase within one hour. Searches on desktop or laptop computers end in a purchase within a period of one month.

• INCREASE economic flow and generate greater economic benefit for our destinations. • PUBLICIZE the largest number of destinations in the greatest number of markets, in order to diversify our tourist products. To mention a few examples: there are a great many cultural destinations available in Mexico, as well as the tremendous potential to receive convention tourism and international conferences. We can also maintain our presence in our main markets, like the United States and Canada. • ACCELERATE our market diversification. The international market for Mexico comes 50% from the United States and 50% from other international markets; increasing our presence in the rest of the world would be good for Mexico in every way. • STRENGTHEN AND EXPAND our trade alliances with industry members, which are increasingly using technology to offer their products and services. • ATTRACT TOURISTS who are not yet familiar with Mexico. We know the capacity we have to fulfill and exceed expectations of international tourists. Technology will enable us more widely disseminate experiences, attracting more “first-time” tourists.

Technological tools can also help us accelerate the development of the domestic market, helping Mexican travelers to find the best destinations for them. Tourism industry is working to make these new technologies our closest allies in promoting and diversifying destinations, and to use them as best we can to continue developing this important industry.◄

We are grateful for this collaboration of the Mexico Tourism Board (CPTM) in the publication of NOTITUR.

Sources: 1 Source: http://www.socialnomics.net/2013/04/08/mobile-marketingwhich-social-network-will-win-your-advertising-dollars/ 2 Source: http://www.socialnomics.net/2013/03/25/mobilenomics-video/ 3 Source: http://www.socialnomics.net/2013/03/25/mobilenomics-video/

amdetur.org.mx

INDUSTRY

CurtisKnipe,

Experience and Innovation

ore than 25 years of experience in the Timeshare industry have made Curtis Knipe a name for himself in the sales and marketing field, especially because of his familiarity with the US market, which is so important to Mexico, and his ability to combine these types of expertise to promote Mexican Timeshare nationally and internationally. We interviewed Knipe about the changes in these two aspects, as well as the beginnings of a recovery in the vacation ownership industry in Mazatlan.

What changes have recently occurred in terms of sales volume? From the time of my arrival to Mexico in 2007, sales volume has been very stable, but there have been a lot of challenges for all of us in recent years and we have seen a broad-based contraction in volume, for reasons weâ&#x20AC;&#x2122;re all well aware of. On this point, Iâ&#x20AC;&#x2122;d like to stress how different markets have had different outlooks in terms of the arrival of tourists, for example, in destinations as diverse as Cancun and Cozumel, compared to Mazatlan, which continues to face major challenges even today. In your opinion, what were the reasons for this decline, especially in Mazatlan? I think mainly itâ&#x20AC;&#x2122;s the impact of reports and foreign media about problems with violence in Mexico, particularly Mazatlan, and how this news are perceived in the United States and Canada. What reactions have these changes had in strategies of leads generation? In 2009, we started off the year fairly strongly in terms of prospect generation, but starting in

NOTITUR 2013

INDUSTRY

April occupancy rates declined at an unprecedented pace, due to this perception of violence, as I mentioned. Although there were no specific cases of this type in Mazatlan, these perceptions continued throughout 2010 and into 2012. Cancun recovered fairly quickly from these effects, but in the case of Mazatlan creativity was a decisive factor in attracting prospects, even creating strategic alliances with other resorts, which was unthinkable in the past, or at least it was kept very secret. We created a much more efficient and effective marketing process, which so far has resulted in a 12 percent global increase in lead generation. What is the outlook on Mazatlan as a destination? Mazatlan has a great future ahead of it. It has everything a tourist can want--warm, friendly people, unique cultural treasures, great weather almost year-round, and miles and miles of beaches. Also, it has a widely varied cuisine that is one of the best in the world. The fishing is excellent, and it's a golfer's paradise. Historic downtown Mazatlan is a unique place among Mexico's beach destinationsâ&#x20AC;&#x201D; which makes it a beautiful colonial city with a beach! Now, with new flights that offer better connections to Mazatlan, and after the record number of visitors we had in November and December last year, prospects are brightening for this destination. This is partly because of an improvement in the perceived image of Mazatlan. Has the sellers' profile changed? No, the sellers' profile is the same, but they've had to be more efficient, through improvements in their programs. This has helped them to increase closing volume, which makes up for the drop in the number of visitors and sales we had last year.

Now, with new flights that offer better connections to Mazatlan, and after the record number of visitors we had in November and December last year, prospects are brightening for this destination. Any comments on the upcoming opening of the MazAtlan-Durango highway? I'm very excited about it, because I think it will be good not only for Maztlan but for all of the southern part of the state, even Nayarit. It will bring a dramatic change in the mix of the domestic market, from 10 to 15 percent previously to as much as 40 percent, and there will also probably be a substantial increase in the volume of middle-class tourists. â&#x2014;&#x201E;

Curtis Knipe is originally from the city of Boise, Idaho. He studied Civil Engineering at Oregon State University. He has more than 25 years of experience in the Timeshare industry, and before he came to El Cid Resorts, he was Vice President for Sales at Tempus Resorts International Inc., Sales Director at Westgate Resorts, and Vice President for Sales at Island One Resorts. He is currently Timeshare Director for El Cid Vacations Club, a position he has held for five and a half years.

Curtis Knipe

amdetur.org.mx

Feature

Tourism: Driver of a New Socioeconomic Model

Por Carlos Vogeler Ruiz /Director Regional para las AmĂŠricas, OMT

By Carlos Vogeler Ruiz / Regional Director for the Americas, WTO

Trends at the start of 2013 seemed to confirm a slowing of global economic growth and growing uncertainty, sparking jitters in international markets. A recent report by the World Economic Forum pointed out the gap between rich and poor and the unsustainability of public debt as two of the biggest risks facing the world this year. Letâ&#x20AC;&#x2122;s be realistic: the global economic situation remains fragile, and instability in many regions of the world, especially the euro zone, is having seriously negative effects on standards of living for many members of society, who have been losing jobs since the 2008 financial crisis broke out. More than 200 million people became unemployed in that time. According to the International Labor Organization, the world must now create 600 million new jobs in the next decade to maintain the pace of economic growth and social stability. Although in this world economic context there are also disparities between regions, and not all of them are in the same situation, certain forces are emerging that, if taken advantage of, can transform that global outlook and shape a better world. Among these forces are the travel and tourism industry, and among the regions with the strongest prospects for development are Asia and the Americas, and particularly Latin America.

The Forces that Move a Globalized World

Major transformations have taken place in recent decades that have created a globalized world, a complex, interlocking and interdependent network, across which there are flows of goods, capital, ideas, information and, certainly, people, who are moving faster than ever before. This globalization process has two driving forces that are not just the result of a more globalized world but its very engines. These are two long-term trends that have not been swayed by the global economic 12

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Feature

crisis. THE FIRST ONE is information technology and communications, which have undergone a revolution that enables us to communicate and process information digitally in real time in a way that has never been possible up until now, helping to transform our lives and submerging us in a dynamic of unceasing change that forces us to remain more alert and up-to-date. THE SECOND is the global flow of migration, the fruit of what we now call “the age of displacement,” which has witnessed the movement of millions of people within their own countries and across borders in search of different opportunities and experiences. The world is quickly becoming urban, and more than half of the world’s population today lives in metropolitan areas. By the year 2030, this number is expected to rise to almost 5 billion. The opportunities created by these two forces—technology and mobility—have not diminished, and suggest that the world economy may once again be able to return to the path of prosperity. Travel and tourism activity has also become another globalization megatrend, which often goes unnoticed, despite the fact that it involves a growing global population and, if disrupted, could turn around a good part of the evolution accomplished.

Tourism as a pillar of progress

As with technology and mobility, tourism is a major driver of our new socioeconomic model. Suffice it to recall the dazzling evolution of travel from 1950, when 25 million international tourists were registered, to 2012, when the number surpassed the symbolic one-billion milestone, to which we must add another 5 billion, approximately, who travel within their own countries. Studies by the World Tourism Organization project an increase in this number to an astonishing 1.8 billion international tourists in 2030, close to 250 million of which will be in the region of the Americas. The economic effects of this activity are unmistakable, because these tourist flows mean employment, accounting for one out of 12 jobs in the tourist industry, and in exports, generating a billion dollars in revenues for host countries, or 30 percent of service exports. In the year 2012, the region of the Americas alone received more than two hundred fifteen billion dollars from international tourism, a little more than 20 percent of the world total, and in the case of Latin America, projected growth in the next twenty years exceeds the global average.

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Feature

Latin America in particular has never seen such a prolonged period of political stability and socioeconomic progress, despite social disparities that continue to exist in the sub-region. In this context, tourism has become a fundamental pillar of progress and a key element for combating poverty and inequality, something that most governments of the region understand well, including Mexico, which has applied important government policies for developing tourism. There are five key reasons why tourism should become a strategic pillar of any truly sustainable future economic growth.

TOURISM CREATES JOBS more rapidly than many other industries. It is not just one of the productive activities that creates more jobs, but it is capable of creating them at a comparatively higher rate.

TOURISM HAS A MULTIPLYING EFFECT on the economy, which is reflected in other productive sectors. In an age in which many economies are facing a contraction of domestic consumption, international tourism not only contributes direct revenues from exports but also has an indirect effect across its extensive value chain. Tourism is fairly resilient in adverse situations, a quality that is especially critical for facing current challenges and demonstrates its tremendous flexibility and capacity for adaptation to changing market conditions.

TOURISM REDUCES POVERTY AND CONTRIBUTES TO DEVELOPMENT. It accounts for 45% of exports of developing countries and is often one of the industries in which these nations enjoy a competitive advantage over their developed counterparts, due to their abundant natural and cultural resources. In this sense, tourism is an increasingly important and effective tool for contributing to development.

4 Travel and tourism activity has become a globalization megatrend, which, if disrupted, could turn around a good part of the evolution accomplished.

TOURISM IS ONE OF THE PRIMARY CONTRIBUTORS TO A SUSTAINABLE ECONOMY from an environmental standpoint. A recent United Nations report shows that tourism was one of the 10 vital sectors for “greening” the world economy. With the right amount of investment, tourism can be a primordial agent of change toward a green economy, because it promotes economic growth and creates jobs while improving the efficiency with which resources are used, minimizing environmental deterioration and contributing to travelers' awareness about the environment.

TOURISM BRINGS CULTURES CLOSER TOGETHER, because it joins people of all origins and conditions and has great potential for preventing conflicts and resolving crises, becoming an essential factor for understanding between people and contributing to world peace. Of course, greater political recognition is a basic condition for taking advantage of the true potential tourism offers us, incorporating public policies that stimulate tourist development and supporting public-private alliances.

Global leaders who met into major summits last year, the United Nations Conference on Sustainable Development (Rio+20) and the G20 Summit, agreed on the important role that tourism can have in light of many of the most pressing global challenges. In the important conference on sustainable development, held every 10 years in Rio de Janeiro (Rio+20), world leaders affirmed that tourism “can have a high positive impact on the three dimensions of sustainable development, has close linkages with other sectors, and can create decent jobs and generate commercial opportunities.”

NOTITUR 2013

Feature

In the same month, leading world economic powers met in Mexico at the G20 Summit to chart the course for global recovery. In their final declaration world leaders recognized, for the first time in the 13 years of the G 20's history, “the role of travel and tourism as a vehicle for job creation, economic growth and development.” Tourism is, little by little, receiving the recognition it deserves from those who are charting the course towards sustained, equitable recovery, and as the authorities work to create the economic order we require for the future, it will become more obvious that a “new economy” is taking shape, with industries like tourism at the heart of it. The term “new economy” was coined in the 1990s, to describe the evolution from a manufacturing-based economy to a service-based economy. Today, we are experiencing a new version of the “new economy” in which a new wave of services and human activities is flourishing, which no longer meets the common definition of a service-based economy. Tourism, culture, sports, creative activities and technology are the services of the new “new economy” and will be some of the more dynamic and most significant engines of economic growth of the decade. Despite its explosive expansion, there naturally continue to be obstacles for sustained growth in tourism. Complicated procedures for obtaining visas continue to obstruct travel by millions of people, there are still policies that significantly restrict the development of air transport, increases in tourism taxes are all too frequent, and current financial circumstances limit the investment capacity of both the public and private sectors.

Tourism is, little by little, receiving the recognition it deserves from those who are charting the course towards sustained, equitable recovery.

However, these obstacles in no way reduce the extraordinary power of tourism to transform the current economic scenario, if leaders of all the world make it a strategic pillar of their country's future. ◄

carlos vogeler

Carlos Vogeler Ruiz is Regional Director for the Americas for the United Nations World Tourism Organization. Among other activities, he is titular professor in the department of Business Economics at the Universidad Rey Juan Carlos in Madrid, Spain, where he teaches undergraduate and postgraduate classes in tourism. He has been President of the Affiliate Members of the World Tourism Organization, representing the nongovernmental sector of the Organization, and a founding member of the Spanish Association of Scientific Experts in Tourism (AECIT) and a member of the International Association of Scientific Experts in Tourism (IASET) headquartered in Switzerland.

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Business Analytics A Competitive Advantage for Sales and Marketing Executives Part 4 of a 5 article series

By Jesús Betanzos / Director Latin America Business Development and Consulting, for TrackResults Software

Is Your Data Making You Money? In today’s erratic sales and marketing environment, analytics is the predictable answer for winning sales and marketing teams. Today’s Sales and Marketing Directors are moving from speculative decision-making to fact-based decisionmaking. Are you currently generating additional revenue from your tour flow, by maximizing the sales and marketing data you are collecting? Sales and Marketing Performance Analytics must be performed quickly and with data that is relevant and actionable. Accessing valuable information on demand is critical. Should marketing and sales executives and management be making “key” business decisions based on outdated practices, when in this day and age we have new reliable applications to provide better information? How long can you afford to weaken your bottom-line without playing to your strengths in a proactive capacity?

”An Analytical Competitor is an organization that uses analytics extensively and systematically to outthink and outexecute the competition.“

Business Analytics Finds Your Hidden Strengths –and Weaknesses: Business Analytics tools assist in diagnosing where exactly the profitable adjustments in the sales and marketing strategies need to be made, and where the leaks in your budget are. Business Analytics aims to answer questions related to what happened, how many, and how often (which is what traditional reporting does). It also answers questions like why is this happening, what if these trends continue, what will happen next (prediction) and what is the best that can happen (optimization).

NOTITUR 2013

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“Business analytics solutions that come with prebuilt timeshare industry content “out of the box,” are currently available. These industry targeted solutions allow for saving costs and immediately profiting from their immediate use. Vacation clubs can then focus on their area of expertise, which is sales and marketing, instead of focusing on how to collect and process their data.”

Vacation Ownership Clubs are Becoming Analytical Competitors An Analytical Competitor becomes an organization that systematically and continuously improves its Key Performance Indicators (KPIs) and captures a larger market share by: A) Increasing the quantity and quality of the tours. B) Reducing cost per tour (CPT). C) Increasing Closing %. D) Increasing the Average Deal Size. E) Increasing the Cash Collection Rates. F) Decreasing the Cancellation Rates. With the use of Business Analytics tools, Sales and Marketing Directors become proactive to the results instead of reactive, and they achieve so by: A) Quickly identifying where exactly the areas of opportunity are, on an unlimited number of ever-changing situations. B) Applying the corrections and the right combinations, on the variables that they can control or influence.

"We use Business Analytics tools to dissect our operation and determine areas of opportunity. The versatility it yields in measuring performance is extremely beneficial in enhancing our ability to be successful." - Paul Little, Marketing Director at Villa del Palmar Cabo Region.

Re-engineer Your Sales and Marketing Process Using Multiple Variable Combinations Traditional reporting is usually performed on a single variable and can only report on past performance. This limits the decision makers as they can only see one slice of the pie at a time, missing the opportunity to evaluate the relationship between all the variables in the marketing mix. Proper Business Analytics instead, allows for obtaining multiple variable comparisons at will, in an unlimited number of report combinations. Here are some examples of simple, easy analytics: 1. Segmenting groups of best performers based on Tour types. 2. Optimizing tour days and tour times based on performance metrics. 3. Matching the marketing sources with the best sales agents combinations. 4. Running efficiencies including or excluding Courtesy Tours. 5. Evaluating individual performance by cross referencing sales and marketing agents with tour qualifications and demographics.

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WHAT IF – Descriptive vs. Predictive Scenarios Sales and Marketing Analytics can produce both Descriptive and Predictive scenarios in which certain variables are changed using empirical data, to produce or simulate different outcomes.

”Different predictive scenarios can be produced within seconds, in order to observe the best possible outcomes. Once a satisfactory prediction is obtained, leadership can then prescribe the solution to the sales and marketing teams.“ Profitable Decision Making Sales and Marketing managers know where the obvious problems lie. Analytics will show the not so obvious situations by measuring activities that are being overlooked. There is an abundance of profit being lost in the details. This is critical to long term improvement and VPG lift. Business Analytics provides empirical data to validate decisions. This will overcome that lingering feeling in the back of your head that says "something is wrong, but I can’t put my finger on it."

“Fine-tuned sales and marketing teams that have adopted the culture of analytics, have increased their efficiencies on average by $800 per tour.”

Return On Investment Proper analysis leads down the path to change and improvement. 67% of the Fortune 500 companies mandate the use of Analytics for their sales and marketing departments. While some companies in the vacation ownership industry are continuously seeking an improvement, many remain complacent or limited to 20th century tools. Very few timeshare companies have established Business Analytics processes, in order to systematically achieve higher results. Those companies that place simple analytical tools directly into the hands of team leaders, have a distinct advantage over those companies that remain forced to rely on the pure intuition (guesses, hunches, theories, experience and tradition).

NOTITUR 2013

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“In God we trust. All others must bring data.” – Professor and Consultant W. Edwards Deming.

The time invested in running analytics is returned at over a 100:1 ratio, meaning that one hour invested in proper analytics review can prevent weeks of underperformance in sales or on low performing marketing programs. Without the proper Business Analytics tools, thousands of dollars are being left on marketing efforts and sales tables every day. In closing, Sales and Marketing Analytics is about giving executives the ability to empower their team leaders with profitable and actionable information. In order to efficiently track and improve your results, like they say these days, "There’s an app for that.”◄

Jesús Betanzos is Director of Latin America Business Development and Consulting for TrackResults Software. TrackResults consults in the field of Business Analytics for the vacation ownership industry. jesus@trackresults.net

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