Ad Nova Competitive Intelligence Report No. 7 September 17, 2020

Competitive Intelligence Report

Mexico’s International Travel Industry No. 7 / September 17, 2020

Mexico Economic Outlook

Gross Domestic Product 2020

MEDIA Variation Forecast JULY AUGUST -10.02 -9.97

Annual General Inflation Rate

MEDIA

2020

JULY 3.64

AUGUST 3.82

2021

2.88

3.01

2021

3.56

3.60

2022

2.27

2.22

2022

3.59

3.59

Source: Survey on Expectations August 2020, Bank of Mexico.

Target Rate 4.50

Interbank Equilibrium Interest Rate Annual Percent 1 28 91 182 Day Days Days Days 4.51 4.74 4.73 4.65

Source: Bank of Mexico.

2020

MEDIA (peso per dollar) JULY AUGUST 22.69 22.61

2021

22.68

22.71

2022

22.69

22.83

Exchange Rate USD

Source: Survey on Expectations August 2020, Bank of Mexico.

Representative Interest Rate

2020 2021

14/09/2020 $21.07 ppusd

JULY

AUGUST

6.35

6.27

2021

5.08

5.11

MEDIA SURVEY

Source: Survey on Expectations August 2020, Bank of Mexico.

Exchange Rate (USD)

Laboral Market

CAD 15/09/2020 $21.06 ppusd

EURO 14/09/2020 $25.02ppeuro

4.24

% National Unemployment Rate 2020

11/09/2020 $16.15 ppcad

EXCHANGE RATE 11/09/2020 $25.28 ppeuro

4.19

Source: Survey on Expectations August 2020, Bank of Mexico.

USD 11/09/2020 $21.32 ppusd

MEDIA (closing of the quarter) III quarter IV quarter 4.32 4.20

Interbank Funding Rate

General Inflation Rate

Gross Domestic Product

September 15, 2020

Source: Survey on Expectations August 2020, Bank of Mexico.

Interbank Funding Rate

Source: Bank of Mexico

15/09/2020 $25.07 ppeuro

14/09/2020 15/09/2020 $16.02 ppcad $16.02 ppcad

YEN 11/09/2020 $0.20 ppyen

14/09/2020 $0.19 ppyen

15/09/2020 $0.19 ppyen

Government Updates

01

02 03

The Federal Government proposes that the Expenditure Budget of the Federation 2021 has an expenditure of 286.1 billion usd, after being approved this year $ 287.1 billion usd, it represents a decrease of 0.3%.

• The Ministry of Tourism was assigned 1.7 billion usd, 641.5% more than the 236.6 million usd for 2020. However, of that amount, 1.6 billion are focused on the concept "Transportation by Railroad" in charge of Fonatur, that is, the Mayan Train.

• Agrarian, Territorial and Urban Development, and National Defense were the agencies that completed the 'top 3' of the ministries with the most increases, with 46.9 and 15.7 percent, respectively.

• The Ministry of Health with 6.6 billion usd, which represents a real variation of 9.1%.

• The Ministry of Economy was assigned 297.2 million usd, that is, an increase of 1.1% compared to 2020, destinated to the promotion of foreign trade and attraction of investments.

• The Ministry of Public Education was assigned 15.3 billion usd, that is, an increase of 0.2% compared to 2020.

• The Ministry of Labor and Social Welfare, had a cut of 20.3 percent, however, the Youth Building the Future Program will be reinforced, which helps hundreds of thousands of young people to build skills directly in the workplace and opens a path for them alternative life.

• The other ministries that are projected more reductions in the budget are the Ministry of Finance (-17.3) percent and the Office of the President of the Republic (-15.3 percent). *Exchange rate 22 ppusd.

The Ministry of Finance estimates for 2021 an economic growth of 4.6 percent since this year's collapse which, according to the Bank of Mexico, will be at least 8.8 percent. The 4.6 percent "could be adjusted if the availability of a vaccine against COVID-19 allows a broad reopening at the beginning of the year ". He explained in the General Economic Policy Criteria presented as part of the 2021 Economic Package.

The Minister of Foreign Affairs assured that in November the start of vaccination in Mexico against Covid-19 will be announced. The optimism is based on the fact that there are various vaccine projects that are in phase 3 and next November, the first results could be obtained for the benefit of people.

Once phase 3 results of different vaccines are delivered, it will be the Ministry of Health that evaluates and decides on their application in Mexico.

Source: Budget of Expenses of the Federation 2021, Ministry of Finance and Public Credit & Main National Newspapers (El Economista, El Financiero, Excélsior, Milenio, Reforma, Universal).

COVID-19 Confirmed cases 680,931 SEPTEMBER 16, 2020 Active 24,428 79,622 Suspicious Recovered Deaths Death Incidence Rate

RECOVERY OF TOURIST DEMAND MONTHS OF RECOVERY FOR TOURIST ACTIVITY CRISIS

MINIMUM

MEDIAN

AVERAGE

MAXIMUM

Epidemics

10.0

17.0

19.5

34.9

Natural Disasters

1.0

13.0

16.2

92.8

Political Turmoil and Vicile Wars

10.0

20.0

22.0

44.9

Terrorism

2.0

11.5

16.0

42.0

1.0

14.0

17.7

92.8

Total

Source: World Travel Tourism Council, 2019.

According with World Travel Tourism Council estimations, the worldwide median recovery time of tourism demand derived from the impact of a pandemic is 17 months. In accordance with this, in Mexico the recovery in the demand could be expected by the month of August 2021.

485,024 71,978 10.57%

Survival Model Analysis

Reactivation of Tourist Demand

19%

It is expected that the reactivation of tourism demand will reach 59% recovery by December 2020 and for the summer of 2021 it could have a recovery between 96% and 100%

The model shows which might be the Mexican Travel preferences after the pandemic, as well as the factors that could have an impact in their travel decision

Destination Preferences After Covid

HERITAGE CITIES

PUEBLOS MAGICOS

BEACHES

CANCUN Before

EE.UU.

AMERICA

EUROPE

After

Source: Research Coordination of the Faculty of Tourism and Gastronomy, Anahuac University Mexico, September, 2020.

Survival Model Analysis LIMITING FACTORS

DRIVING FACTORS ü Keep Income level ü Keep job (77% keep it) ü Preference for national destinations (as first option) ü Proactive certifications of health protocols ü Distancing (More isolated places)

TRAVEL INDUSTRY UNCERTAIN FACTORS

Consumer Perception

ü ü ü ü

ü Impact on salary • 28% cut more than 50% of salary • 45% keep the same salary ü New covid outbreak ü Adaptation to health protocols

Limited travel promotions and packages Closed borders for International travel Dilemma: invest in promotion or support workers and companies in the sector Correct implementation of health protocols

Source: Research Coordination of the Faculty of Tourism and Gastronomy, Anahuac University Mexico, September, 2020.

Travel Industry Updates As a way to reactivate the Mexican economy, the federal government will extend "El Buen Fin 2020" for up to two weeks. This sales period is one of the most important of the year where different discounts, promotions and offers are launched for the Mexican consumers, ranging from clothing, electronics, travel packages to flights. This sale originally took place during the 4 days including the closest weekend to November 20th (a National Holiday in Mexico), however this time it will take place from November 9th to 20th. This strategy will also serve to avoid crowds in stores, shopping centers and points of sale in order to reduce health risks. Source: El Universal (Newspaper).

Travel agencies in Mexico have returned to activity almost entirely and with new products. According to the president of the Mexican Association of Travel Agencies (AMAV), Eduardo Paniagua Morales, more than 80 percent of travel agencies have reactivated nationwide and currently offer about 60 new tours, with the aim of expanding this figure eventually. In this reactivation, most of the demand is concentrated in sun and beach destinations, which have implemented many offers and promotions. Source: Reportur (Trade Media).

According to a study carried out by Despegar among some of its main clients, Mexicans will be the first travelers from Latin America to make the first postCovid-19 trip abroad, with September and December being the period they are considering to do so. The main reasons that Latin American travelers have for resuming their trips abroad are mainly related to visiting relatives, work and study, said Ezequiel Rubin, Despegar's country manager in Mexico.

Source: Ladevi (Trade Media).

UNWTO stated that to overcome the tourism crisis it is imperative that governments work closely with the private sector to get the sector back on track.

The latest UNWTO Barometer shows the profound impact this pandemic is having on an activity that millions of people depend on for a living, 440 million trips were lost and countries were deprived of $ 460 billion USD in revenue from the sector. This figure is five times higher than those registered in the global economic and financial crash of 2009. However, in many parts of the world it is possible to travel internationally in a responsible and safe way.

Coordinated action is key, said UNWTO Secretary General Zurab Pololikashvili. Source: Ladevi (Trade Media).

The federal Ministry of Tourism (SECTUR) reported that there are already more than 740 buyers registered for the "Tianguis Turístico Digital" (TTD) and more than 100 confirmed exhibitors. The buyers of the TTD that will take place on September 23 and 24 will be from 30 countries such as Canada and the United States as well as regions such as Asia, Central America, Europe and South America. SECTUR reported that agreements were established with the Mexican Association of Travel Agencies (AMAV) and with the Association for Culture and Tourism of Latin America (Current) to add another 350 companies from Mexico and Latin America, with which it is expected to exceed the goal of 1,000 registered buyers. Source: Ladevi (Trade Media).

Mexico´s Media Overview

TradeDestinations MediaHotels18.8% 10.3%Airlines Content Tourism Health Cruises 2.5%

General Tourism Information 9.8%

Reopenings 5.1%

Tourism Economic Situation 16.3%

Webinars 10%

Measures 10.1%

17.1%

Destinations and airlines restarting operations have become of interest for trade media in order to promote and reactivate the economic situation of tourism in Mexico.

Sample: 864 hits Source: Trade Media (LADEVI, LADEVI Latam, Viajando Travel, Travel Times, Invertour, Pasillo Turístico, Travel News, Publitur, Rèport México, Tráfico Magazine, Conexión Turística, Turistampa, Vidalturismo, Travel Report, ABZ Turístico, US Traveler, NITU, Altavoz Turismo, Reportur and Turitips)

Air Femme digital magazine can now be downloaded from the Readee platform.

Wokki is a new online media outlet that shares content about wellness, life&style and celebrities.

Reforma Newspaper has created a new and only soft news team.

De Viaje Magazine (Grupo Reforma) has been cancelled.

Consumer Media Updates

Mark Guttman has created his own travel blog: Don Viajes

Aeromexico’s on board magazines are also available for digital download.

Source: Direct contact with Media and Influencers

Airlines Update Aeroméxico

Mexico City Airport

Viva Aerobus

The Ministry of Communications and Transportation (SCT) highlighted in its second work report various actions undertaken to mitigate the effects of the health contingency and support the economic recovery in the air sector, despite the fact that airlines have expressed their disagreement due to the lack off supports. According to the SCT, in lease contracts with airlines discounts of up to 40% were authorized during April and May and up to 20% in June. The service providers were granted temporary support to decrease the guaranteed minimum income of 75% from April to June and all tenants were extended by three months the payment deadlines for rents from May to July 2020. Source: El Economista (Newspaper).

The airline announce that starting this September 1, will be flying from Mexico City to San Antonio Texas; as well as from September 17 from Monterrey to Dallas, Texas.

Likewise, the airline will restart its routes to Las Vegas from Monterrey and Mexico City, which will restart operations on September 10 and 11, respectively. As a result, Viva Aerobus will operate 11 routes between Mexico and the United States. Source: Aerolatinnews (News Site).

Aeroméxico received the first $ 100 million dollars of a capitalization package agreed with the investors group Apollo that could inject up to a billion dollars if the Southern District Court in New York gives the green light to the restructuring project. In a statement sent to the Mexican Stock Exchange, the airline stated that this installment is the first of a total of 200 million USD. Source: Pasillo Turistico (Trade Media).

Air Canada

Aeromexico sets a new record for the longest-range flight in Mexican aviation history. This is his first direct operation between Hong Kong International Airport and Mexico City, with a distance of 14,170 kilometers, 55 more than his recent flight between Shenzhen, China and the country's capital. The plane took off from the Mexico City International Airport on September 9 to Seoul in South Korea, where it made a technical stopover to land on September 10 in Hong Kong. Source: Pasillo Turistico (Trade Media).

Air Canada has launched a voluntary COVID-19 study of international travelers coming into Toronto’s Pearson Airport as part of a campaign to persuade the government to lift travel restrictions such as its 14-day quarantine. Under the study, participating passengers will provide samples to be analyzed for COVID-19 using polymerase chain reaction (PCR) tests upon arrival and in two follow-ups to determinate how many COVIDpositive travelers arrive. Source: Aerolatinnews (News Site).

Volaris

Volaris is preparing a new capital issue for up to 3,500 million pesos, about 159 million USD, that it will use to strengthen its liquidity and for its plans to expand its routes and aircraft fleet, in a difficult economic environment that has led to the coronavirus pandemic.

The company is evaluating different financing alternatives and requests the approval of shareholders for the issuance of new shares that can be used to obtain capital through an offer of subscription rights, the direct sale of shares or through the issuance of debt or convertible bonds "said the airline in a notice sent to the Mexican Stock Exchange". Source: El Financiero (Newspaper).

Interjet

The passive problems of the airline are greater every day, since now the debt it has with the International Airport of Mexico City is added, which is close to one billion pesos, about 45 million USD. These debts registered by the airline are for various concepts, such as space rental, airport use fee and services. Source: Milenio Negocios (Newspaper).

Puerto Vallarta Int. Airport Thanks to its commitment to prioritize the health and safety measures of its passengers, the Airports that make up Grupo Aeroportuario del Pacífico -among them the Puerto Vallarta International Airport- have been the first in the world to be certified with the Health Accreditation Airport by the Airports Council International (AHA ACI), recognition that contributes in continuing to provide confidence to visitors arriving by air. Source: Pasillo Turistico (Trade Media).

International Flights and Frequencies Status

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(August 16 – September 15)

Source: Direct contact with Airlines

International Flights and Frequencies Status

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Source: Direct contact with Airlines

International Flights and Frequencies Status

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Cancelled

International Flights and Frequencies Update

(August 16 – September 15)

International Flights Update 250

216

200 150 100

134 84

25

41

50

12

3

21

0 Total Monitored Flights

Frequency Changes Jul 16 - Ago 8

Jul 16 - Ago 8 Ago 18 - Sep 14 % difference

Suspended

New Flights

Ago 18 - Sep 14

Total Monitored Flights 84 216 257%

Frequency Changes Suspended 25 12 41 3 164% 25%

New Flights 21 134 638% Source: Direct contact with Airlines

Performance Competitive Index

Mexico’s International Travel Industry: Airlines, TO, Wholesalers, GDS , OTAS & Travel Agencies

Weighted Performance Indicators

1

1 Packages – 15%

2

Social Media Campaigns – 15%

3

Distribution Channel – 10%

4

Product – 10%

5

Sales Strategies – 10%

6

SEO – 10%

7

# of Posts – 10%

6.5

2

3

6.3

5.8

6

7

8

6.4

4

5

5.7

7.0

5.3

Travel Window – 10%

9

Social Media Tools – 5%

10

Webinars – 5%

4.6

8

9

4.3

10

4.5

11

3.9

12

13

3.7

3.2

18

19

2.8

3.4

16

17

3.1

3.8

14

15

3.3

4.0

3.0

20

Source: Trade Media and Airlines’, TOs’, Wholesalers’, GDS’, OTAs’ Social Media & e-mailings Methodology: Sample 72 tourism companies; compound index based on 4,100 data

Mexico’s Performance Competitive Index Comparative International Travel Mega Travel Mundo Joven Imacop Viajes El Corte Inglés Viaje y Punto Travel Shop Travel Viajes Group Volaris Aeromexico Regio Operadora 0.0

1.0

2.0

July 1-15

July 1-15

3.0

July 16-August 15

July 16-August 15

4.0

5.0

6.0

7.0

8.0

9.0

August 16-September 15

August 16 – September 15

1. Viajes El Corte Inglés

1. Mega Travel

1. Mega Travel

2. Mega Travel / Mundo Joven 3. PETRA Operadora

2. Viajes El Corte Inglés 3. Mundo Joven

2. Mundo Joven 3. Imacop

4. Travel Shop

4. Aeromexico

5. Aeromexico 6. Viaje y Punto

5. Travel Viajes Group 6. Travel Shop

4. Viajes El Corte Inglés 5. Viaje y Punto

7. Travel Point 8. Sierra Madre

7. Viaje y Punto / Volaris 8. La Tienda del Viaje

9. Garin Mayorista

9. Sierra Madre

8. Volaris 9. Aeroméxico

10. Prego Viajes

10. Contravel

10. Regio Operadora

6. Travel Shop 7. Travel Viajes Group

Source: Trade Media and Airlines’, TOs’, Wholesalers’, GDS’, OTAs’ Social Media & e-mailings

Region Offer by Tour Operator SAMPLE: 527 packages

42%

6%

20% +

5%

2%

9% 17%

1 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

North America

2

Viajes El Corte Inglés – 19% • • Euromundo – 10% • Mega Travel – 7% • Viajes Palacio – 7% Sierra Madre Operadora – 6% • • Mundo Joven – 4% • Regio Operadora – 4% • Contravel – 3% • Imacop – 3% • Travel Viajes Group – 3% • Viaje y Punto – 3% • Viajes Intermex – 3% • Interjet Vacations – 2% • Naturleon – 2% • Operadora VICA – 2% • Punta del Este – 2% • Riviera Operadora – 2% • Tac Tours – 2% • Travel Shop – 2% • Consolid – 1% Creatur – 1% JuliáTours – 1% LASEN Travel – 1% Viajes Marplay – 1% Grupo MexJal – 1% Mundo Cruceros y Viajes – 1% Naviterra/Navitur – 1% PE-TRA Operadora – 1% PriceTravel – 1% System Operadora – 1% Target Operadora – 1% Viajes Premier – 1% Viajes Leonarwill – 1%

Europe

3

• Viajes Palacio – 20% • Mega Travel – 15% • Garin Mayoristas – 12% • Mundo Joven – 9% • Viajes El Corte Inglés – 7% Sierra Madre Operadora – 5% • • Travel Shop – 5% • Imacop – 4% • JuliáTours – 4% • Nefertari Viajes – 4% • PE-TRA Operadora – 4% • Contravel – 2% • Travel Viajes Group – 2% • Abiega Operadora – 1% • Creatur Viajes – 1% • Viajes Marplay – 1% • Opesa – 1% • Operadora 365 – 1% • Turismo Travel – 1% • Viaje y Punto – 1% • • • • • • •

South America

4

Mega Travel – 14% Imacop – 9% JuliáTours – 9% Punta del Este Operadora – 9% Carmen Travel Services – 5% Creatur Viajes – 5% Travel Shop – 5% Abiega Operadora – 4% Prisma Operadora – 4% Viajes El Corte Inglés – 4% Viajes Palacio – 4% La Casa del Viaje – 3% Operadora VICA – 3% PE-TRA Operadora – 3% adonde/Kinich Coyol – 2% Consolid – 2% Mundo Joven – 2% Target Operadora – 2% TCD Operadora – 2% Viaje y Punto – 2% GoesGo – 1% iUmira Travel – 1% Nefertari Viajes – 1% Viajes Panorama – 1% PEMA Tours – 1% Travel Point – 1% Travel Viajes Group – 1%

• • • • • • • • • • • • • • • • •

5 • • • • • • • • • • •

Middle East Mundo Joven – 14% Mega Travel – 11% Nefertari Viajes – 11% Travel Viajes Group – 11% Imacop – 9% Euromundo – 7% Prisma Operadora – 7% Abiega Operadora – 4% Garin Mayorista – 4% Travel Shop – 4% Viaje y Punto – 4% Viajes El Corte Inglés – 4% Creatur – 2% GoesGo – 2% Viajes Panorama – 2% PE-TRA Operadora – 2% Punta del Este – 2%

Asia Garin Mayoristas – 18% Imacop – 18% Viajes Palacio – 18% Travel Viajes Group – 13% Abiega Operadora – 7% JuliáTours – 7% Mundo Joven – 7% Contravel – 3% iUmira – 3% Mega Travel -3% Panorama – 3%

6 • • • • • • • • • • • • •

Caribbean and Central America Punta del Este – 22% Target Operadora – 14% Imacop – 12% Record Vacations – 12% Viñales Tours – 8% adonde/Kinich Coyol – 4% LASEN Travel – 4% Viajes Marplay – 4% Operadora VICA – 4% Viajes Panorama – 4% Regio Operadora – 4% Viajes El Corte Inglés – 4% Viajes Palcio – 4%

7 Africa & Oceania • • • •

Juliá Tours – 50% Abiega Operadora – 24% Viajes El Corte Inglés – 13% Viajes Palacio – 13%

Source: Trade media (Abz turístico, Boletín Turístico, EMI . LADEVI, Invertour, Pasillo Turístico, Publitur,Tráfico Magazine, Turitips and Vidalturismo), TO´s Facebook, e-mailing

North America Offer by Tour Operator

Canada – 17% • • • • • • • • • • • • • • •

National – 60%

USA – 23%

Viajes El Corte Inglés – 18% Mega Travel – 11% Viajes Palacio – 11% JuliáTours – 8% Travel Shop – 8% Viajes Intermex – 8% Imacop – 6% PE-TRA Operadora – 6% Viaje y Punto – 6% Abiega Operadora – 3% Consolid – 3% LASEN Travel – 3% Mundo Joven – 3% Mundomex – 3% TCD Operadora – 3%

• • • • • • • • • • • • • • •

• • • • • • • • • • • • • • • •

Viajes El Corte Inglés – 25% Travel Viajes Group – 15% Mega Travel – 12% Operadora VICA – 8% Viaje y Punto – 8% Regio Operadora – 6% Target Operadora – 6% Imacop – 5% Tac Tours – 4% adonde/Kinich Coyol – 2% LASEN Travel – 2% Mundo Joven – 2% Record Vacations – 2% Riviera Operadora – 2% Sierra Madre Operadora – 2%

n=36

Euromundo – 14% Viajes El Corte Inglés – 13% Sierra Madre – 7% Viajes Palacio – 6% Contravel – 5% Mundo Joven – 5% Interjet Vacions – 4% Naturleon – 4% Regio Operadora – 4% Punta del Este – 3% Viajes Intermex – 3% Creatur – 2% Imacop – 2% Viajes Marplay – 2% Mega Travel – 2% Mundo Cruceros – 2%

n=49

• • • • • • • • • • • • • • •

Naviterra/Navitur – 2% PriceTravel – 2% Riviera Operadora – 2% Sytem Operadora – 2% Tac Tours – 2% Viajes Leonarwill – 2% Viajes Premier – 2% Consolid – 1% Evolution – 1% Mexjal – 1% Prisma Operadora – 1% Sevilla Sol – 1% Travel Shop – 1% Viaje y Punto – 1% YaVAs – 1%

n=131

% of Room Nights Offer by Region

• • • • • • •

44 %

43%

1-5 nights

1-10 nights

National – 52% North America – 22% South America – 9% Central America & Caribbean – 7% Middle East – 6% Europe – 3% Asia – 1%

• • • • • • • •

South America – 30% Europe – 28% North America – 17% Asia – 8% Middle East – 8% Central America & Caribbean – 4% National – 3% Africa & Oceania – 2%

9%

3%

1-15 nights • • • • • • •

Europe – 54% Asia – 18% Middle East – 18% Africa & Oceania – 4% Central America & Caribbean – 2% National – 2% South America – 2%

•

1-20 nights • • •

Europe – 69% Middle East – 25% Asia – 6%

+20 nights 1% (Europe and Middle East)

Source: Trade Media (Abz turístico, Boletín Turístico, EMI . LADEVI, Invertour, Pasillo Turístico, Publitur,Tráfico Magazine, Turitips and Vidalturismo), TO´s Facebook, e-mailing

Room Nights Average

By Season

120 packages

89 packages

Winter 2020 - 2021

N/A*

70 packages Open redemption date

6.7

Fall 2020

16 packages 12 packages 10 packages Summer Summer 2020 - 11 packages Jan – Dec Spring 2021 – 2020 Fall 2020 Winter 2022 2021 8.6

7

2%

10.5

4.9

5%

5%

2%

2%

4%

4%

7.5

5

1%

1%

2%

ora ma

Gu ad ala j 21 %

az u

Am

ste

rd a

m

Belg

iu m Bu t an Ma dri Co d lom b ia As ia

ia

Boliv

Haw a

ii

a

Paris

South Ko re

Rome

RA

Bajio 1% ey 2%

Monterr

ar a

Ig u

/ Vietnam Cambodia Italy

Croatia

Toscana

L a Ca sa

l ve

Viaje y Punto

sa Op e

s ne

an

Europe South Afric

M o ro

nd

u ga l/

S p a in

/P o rt

Po l a

ila n

Tu

Eg y

USA

Ho

pt

d

cco

ai Th

Ke

Gu

R u ss ia 2 Turk ey Rus si a U En krain g la e nd S c o / Ir e l a tla nd nd

ate

n ia ma la , Ne T a n za w n ia L i b Yo r k an o

Turkey

rk e la G r y / C r nd e o lla n e c e / a tia L u x d / B e Ir a n / lg iu em Th a b o u r g m

As

ia

iw

ga

2

e

pe ro Eu s s i a a R u ma l ate ia Gu o n e s to In d ron To drid Ma ada Ne v l trea M on wa Otta bul Istam

ilip

ie

aquia

vel

Ph

On

as

in

eg

a Tra

L

V as

Ta

na

e2 Tra

Co

nt ra v

el

Ab

M eg

Ca

da

Greec

7

Va

Greece

je

ty Ci ico ex 6%

Pe

C/ /B ru

del Via

Italy Hungary, Slov

M

Despegar ExpoMayoristas Sicilia Invertour Bogota ri Neferta st a E A S le OIT e Inglés Midd ort e s El C je ia Russia l Est V a de t n Pu r USA atu s Cre A on S U ati n i t s and De Irel op bai am u e r D Sh D e y, el k e v r a Tu me Tr si m o r Ki s d e lan couv Or n

Peru

• Tamaulipas • San Luis • Zacatecas

n ai Sp ru Pe ga l d rtu lan Po Ze w Ne ru Pe n ia a go t a P ia In d ee i mm Ki s s s pe ion Euro ress Im p l e Rica v Costa Tra Africa

P ET

Pa n

Q. R oo

Volaris radora Regio Ope Tours PEMA op Im a c

a

• Chihuahua • Coahuila • Nuevo Leon

Guatemala

r

b ia

a

Ric

la p

Bahamas

ado

en

u er b ia om

Br lo az m il bia ru, ag In c os as Sou Cu lt th Per ure Do m u in ic Co lo ana mbi a, C offe Op e ro ort ute Barb o ados Santia go d e Chile Ataca ma/Pa scua Chilean P atagonia San Jose Ga

Pe

Arizona

ica Jama ia Pers e Ch i l in a en t

Arg

Ec u

g rta

lom

Ca

Co

sta

• Queretaro • State of Mexico

Co

ol

• Mexico City • Morelos • Puebla

• Michoacan • Nayarit • Sinaloa

,P

Aguascalientes Colima Guanajuato Jalisco

Co

Guadalajara – 22

• • • •

of

fC

• Quintana Roo • Yucatan

as

Cancun – 0

• Campeche • Chiapas • Tabasco

ch es

so

• Queretaro • San Luis Potosi

c ra

Geographical Reach

y Ci t

tie

M

ico ex

Be a

Pa

Ci

Leon Nvo.

jio Ba

g Re

ion

• Aguascalientes • Guanajuato

Monterrey – 2

6.9

Source: Trade Media (Abz turístico, Boletín Turístico, EMI . LADEVI, Invertour, Pasillo Turístico, Publitur,Tráfico Magazine, Turitips and Vidalturismo), TO´s Facebook, e-mailing

o sc i l Ja

Mexico City – 81

Spring 2021 – Fall 2021

3.1

Tour Operators Webinars by Region

Bajio - 1

Winter 2020-2021 – Spring 2021

8.1

7.4

6.7

*Room Nights average

Headquarters/ No. Webinars 106

19 packages

9 packages 6 packages 3 packages 10 packages 10 packages Summer Summer 2020- Summer 2020 – Summer 2020 – Fall 2020 – Winter 2021 Spring 2021 Summer 2021 Fall 2020 2021

2%

2%

21 packages

Cataluña

3%

2.7

6%

Fall 2020 – Winter 2021

Brazil

3.1

Spring 2021

5

12%

12%

20% 15%

Fall 2020 – Spring 2021

4.3

6.7

27 packages

29 packages

a Mendoza, Argentina

7.5

68 packages 31 packages

Source: Facebook and e-mailing

Sales Strategies (Monthly)

Travel Shop Viaje y Punto Imacop Volaris Viajes Palacio Mundo Joven Viva Aerobus Sevilla Sol PriceTravel Nefertari Mega Travel LASEN Travel Creatur YaVas Viajes Leonarwill Viajes Panorama Viajes Intermex Interjet Vacations Carmen Travel Services Viajes El Corte Ingles Turismo Travel TravelInn TCD Operadora Target Operadora Operadora Sierra Madre PE-TRA Operadora Punta del Este…

Pema Tours Naturleon Mundomex Viajes Marplay GoesGo Garin Mayorista Evolution Tour Operator Euromundo Dreams Destinations Despegar Aeromexico

Interest Free Installments Non-cost changes/Cancellation Special rates Special exchange rate Changes and cancellations facilities Discount off 2x1 Payment Facilities Free nights 2 passenger with special rate/discount-off Free kids Commision Others

1

2

3

4

5

6

7

14 12 10

6

ni gh ts

Fr e

e

an d…

ng es

ia l…

Ch a

3

4

3

2

2

2

1

1

2

Sp e

cia

pa ss en

ge r

w ith

sp ec

2x 1

id s ek Fr e

In st a e

3

No nco lr st at … e ex ch an ge Co m m isi on

4

6

lr

4

6

cia

5

at es

7

6

s

7

Sp e

7

2

tF re re s

7

Ot he r

8

un to Di sc o

14

llm Pa en ym ts en tF ac ilit ie s

16 14 12 10 8 6 4 2 0

ff

# Companies

Comparative Periods

In te

0

Sample: 115 examples of sales strategies

Jul-Aug

Aug-Sep

Source: Trade Media (Abz turístico, Boletín Turístico, EMI . LADEVI, Invertour, Pasillo Turístico, Publitur,Tráfico Magazine, Turitips and Vidalturismo), TO´s Facebook, e-mailing

Companies’ Search Engine Optimization (SEO) Mega Travel Travel Viajes Group Despegar Viajes Palacio Aeromexico Volaris Interjet Viajes Fama Viajes el Viajes El Corte Corte Ingles Ingles Mundo Joven 0 South America

0.5 USA

1

1.5

Middle East

2 Europe

2.5

3

Canada

Asia Source: Google

Qualification: 3= Google’s first page 2= Google’s second page 1= Google’s third page

Social Media Campaigns

Paid

Organic

Source: Facebook and Instagram, Facebook Ads Library

3

Sample: 577 posts

7%

13% Garin Mayorista Viajes El Corte Ingles Mundo Joven Travel Point Almundo Record Vacations Travel Viajes Group Aeromexico Creatur Mega Travel Viaje y Punto GTM Operadora La Tienda del Viaje Mundomex MexicoKanko Kano Mexico Imacop GoesGo Viajes Marplay Volaris Navitur Punta del Este Operadora Travel Shop Mundo Cruceros y Viajes Operadora 365 Travel Impressions Viajes Panorama Viajes Palacio Voiash iUmira JuliรกTours LASEN Travel PE-TRA Operadora Regio Operadora Contravel Grupo Travel Consolid Despegar Pema Tours Viajes Leonarwill Viva Aerobus Carmen Travel Services Target Operadora Euromundo La Casa del Viaje Le Grand Viajes Maple Tours Prisma Operadora Sierra Madre Operadora VICA

In Kind Trade Social Media Destination Campaigns 60

50 50

40 35 34 34 32 32 32

30 24

20

10

8%

11%

18%

21 17 17 16 15 15 14 13 12 12 12 11 11 11 10

% POST BY REGION

1% 3%

4% 35%

8 8 7 7 7 6 5 5 5 5 4 4 3 3 3 3 3 2 2 1 1 1 1 1 1 1

0

Europe

USA

Asia

South America

Central America & Caribbean Canada

Middle East

Multi Region

Antarctica, Africa & Oceania

Source: Facebook and Instagram

Cruises Product Middle East

1

MSC

1

MSC

Caribbean

*N/A

Mediterranean

Number of packages

2

N/A

1

Norwegian

1

Princess

2

N/A

2

Royal Caribbean

3

MSC

1

Celebrity Baltic

Princess

1

Bahamas

Celebrity

1

Royal Caribbean

1

Alaska

2

1

6

3

2

2

12

14

1

2

Carnival

1

Celebrity

1 0

Cruise Line is not specific in those packages

2

1 2

Princess

*

2

Viajes Palacio Viajes El Corte Inglés Viajes Intermex

2

4

6

8

Mundo Joven Operadora 365 Viaje y Punto

10

16

Travel Impressions Mundo Cruceros PEMA Tours

Sample: 45 packages Source: Trade Media (Abz Turístico, Boletín Turístico, EMI . LADEVI, Pasillo Turístico, Publitur,Tráfico Magazine, Turitips and Vidalturismo), TO´s Facebook, e-mailing

Methodology • Mexico´s Media Overview: Based upon the result of direct communication with the Media and monitoring of 864 online notes from the specified Media during a period of one month.

• International Flights and Frequencies Status: Analysis of flights offered on the web pages by airline, as well as the information provided through newsletters and direct contact with airlines´ corporative offices.

• Performance Competitive Index: Analysis of 12,977 data from 78 companies (airlines, tour operators, OTAs, GDS, wholesalers and travel agencies) available in the cloud, gathered into 10 indicators. The index is built by calculating the compound simple average of each one of these 10 indicators. Each indicator has a specific average weight based on the interest that customers have in each topic. The process of the data was made with the statistical program Stata.16.

• Mexico’s Performance Competitive Index Comparative : Comparative performance of top 10 companies vs. previous periods.

• Region Offer by Tour Operator, North America Offer by Tour Operator, % of Room Nights Offer by Region, Room Nights Average: Review of 527 international travel packages and top domestic beaches for international tourism (Cancun, P. Vallarta and Los Cabos) published in the trade media, e-mailing and social media of the companies.

• Tour Operators Webinars by Region: Compilation of 106 webinars and virtual tours of international destinations published in e-mailings and social media of tour operators, wholesalers and airlines.

• Sales Strategies: Compilation of 115 examples of promotions to international destinations and Mexican beaches published in trade media, e-mailing and social media of companies.

• Companies’ Search Engine Optimization (SEO): Compilation of the results obtained using the following search criteria in Google: Travel to the United States, Travel to Canada, Travel to Asia, Travel to the Middle East and Travel to South America. Scores: 1st search engine page = 3 points, 2nd search engine page = 2 points, 3rd search engine page = 1 point.

• Social Media Campaigns: Compilation of 577 posts on Instagram and Facebook and active ads on social media during the period August 16 - September 15 available in Facebook Ads Library • In Kind Trade Social Media Destination Campaigns: 284 posts published on Facebook and Instagram • Cruises Product: Compilation of 45 cruise packages published in trade media, e-mailing and social media of the companies.

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