Ad Nova Competitive Intelligence Report No. 8 October 19, 2020

Competitive Intelligence Report

Mexico’s International Travel Industry No. 8 / October 19, 2020

Mexico Economic Outlook

Gross Domestic Product 2020

MEDIA Variation Forecast AUGUST SEPTEMBER -9.97 -9.82

Annual General Inflation Rate

Evolution of the average expectations for the interbank funding rate at the end of each quarter

MEDIA

AUGUST SURVEY

2020

AUGUST 3.82

SEPTEMBER 3.89

2021

3.01

3.26

2021

3.60

3.57

2022

2.22

2.33

2022

3.59

3.57

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

SEPTEMBER SURVEY TARGET RATE

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

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

Gross Domestic Product

General Inflation Rate

Interbank Funding Rate

S October 16, 2020 Target Rate 4.25

Interbank Equilibrium Interest Rate Annual Percent 1 28 91 182 Day Days Days Days 4.23

4.53

4.51

4.49

Exchange Rate USD 2020

MEDIA (peso per dollar) AUGUST SEPTEMBER 22.61 22.14

2021

22.71

22.23

2022

22.83

22.53

% National Unemployment Rate 2020

AUGUST

SEPTEMBER

6.27

6.11

2021

5.11

5.07

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

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

Source: Bank of Mexico.

Representative Interest Rate

Laboral Market

Exchange Rate (USD)

USD 14/10/2020 $21.29 ppusd

15/10/2020 $21.38 ppusd

CAD 16/10/2020 $21.17 ppusd

14/10/2020 $16.22 ppcad

EXCHANGE RATE EURO 14/10/2020 $24.99 ppeuro

MEDIA SURVEY

15/10/2020 $25.06 ppeuro

Source: Bank of Mexico

16/10/2020 $24.81 ppeuro

15/10/2020 16/10/2020 $16.15 ppcad $16.02 ppcad

YEN 14/10/2020 $0.20 ppyen

15/10/2020 $0.20 ppyen

16/10/2020 $0.20 ppyen

Government Updates

01 02

The World Bank (WB) adjusted the fall that the Mexican economy will have this year to 10%, compared to its previous prediction of 7.5 percent. However, the global body affirmed that by 2021, the country will have a positive growth of 3.7%, seven tenths more than its previous expectation.

Last Thursday, October 8, the Mexican Government made a transfer for 159 million 876 thousand 920 dollars to the GAVI Alliance and presented the risk guarantee documents for 20 million 629 thousand 280 dollars, in compliance with the commitments acquired in the contract of participation of the COVAX Facility mechanism. With this payment, the acquisition of vaccines against Covid-19 is guaranteed and thus immunize at least 20% of the population.

03

Mexico and the US extend the border closure for another month due to COVID-19. The partial closure will continue until November 21, reported the Ministry of Foreign Relations (SRE).

04

The Carlos Slim Foundation (FCS) will make an additional donation of 90 million pesos (mp) to extend, until December, the operation of the Temporary Unit for attention to the new coronavirus (COVID-19) of the Citibanamex Center, in order to “ continue supporting the return to the new economic and social normality ”.

COVID-19 Confirmed cases 841,661 OCTOBER 16, 2020 Active 28,066 313,678 Suspicious Recovered Deaths Death Rate index

612,216 85,704 10.18%

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).

Countries Reopening September 2020 The opening of tourist destinations is gradually advancing led by Europe; the situation of the American region remains in line with the world

According to the World Tourism Organization, 43% of countries keep their borders closed to tourism

Source: OMT

Source: OMT

Source: Infographic Cicotur 41/20, Anahuac Tourism Competitiveness and Research Center.

Recovery on Flights and Seats Scheduled 2020 vs 2019 Although it should be taken with reservations when dealing with flights programmed and unconfirmed, a pattern of growing and sustained recovery.

National flights on routes with more than 80,000 Annual passengers and international flights with more than 100,000 Source: OAG

Economic Possibilities to go on vacation Mexican market - September 2020 2019 vs 2020

Jan

Feb

Mar Apr

May. Jun

Jul

Although it is at the lowest point for the month of September in recent years, the confidence of the Mexican consumer to go on vacation is evolving upwards ... although it does so very gradually Aug

Sep

Oct

Source: Inegi, ENCO/ETCO

Source: Infographic Cicotur Sept 2020, Anahuac Tourism Competitiveness and Research Center.

Nov

Dec

Travel Industry Updates One of Latin America’s strongest online travel agency, Despegar, confirmed that it completed the 100 percent acquisition of Best Day Travel Group, consolidate its leadership in the region. As of today, Best Day's online transactions represent approximately 70 percent of total sales and revenue for 2019 was approximately $ 140 million. Source: NITU (Trade Media).

On the eve of the G20 Tourism Ministers meeting last October 7th under the Saudi Presidency, as the leaders of the OECD and UNWTO, called for strong and urgent action across three fronts to sustain millions of livelihoods. First, strengthened multilateral co-operation and robust support are critical to reactivate travel. Second, governments must approach tourism recovery in a more integrated manner. Third, the need to reshape tourism towards responsibility and inclusion. Source: UNWTO website.

On October 7th, 2020, history was made as the G20 Tourism Ministers, under Saudi Arabia’s leadership, hosted more than 45 CEOs and WTTC Members, who presented a plan to save the ailing Travel & Tourism sector and 100 million jobs globally. During their G20 Chairmanship, Saudi Arabia requested the collaboration of the Travel & Tourism private sector in developing a path to recovery. In response, WTTC’s Members developed and presented a concrete plan aimed at restarting international travel. Attendees highlighted the importance of coordinated testing programs and protocols at departure points as the solution to regain consumer confidence and recover millions of jobs. Source: WTTC website.

Amazon presented its beta platform "Amazon Explore", which offers online experiences from different parts of the world, which are carried out by hosts, who give cooking classes, tourist advice, reviews of establishments, recommendations of what to do (and what not) if you visit a certain destination, virtual tours, etc. It is also possible to interact with a host, clarify doubts about the country from which it is broadcast, and much more. Currently there are several options available, such as The Best Views of Prague, Mexico City Street Art, Taiwan Religious Customs at the Longshan Temple in Taipei, Introduction to Hong Kong, among others. Source: Invertour (Trade Media).

The U.S. Travel Association announced that IPW, the most important annual international inbound travel fair in the United States, will be a face-to-face event that will take place from September 18 to 22, 2021, in Las Vegas Nevada, as planned in 2020, after being canceled by the Covid-19 pandemic.

Source: LVCVA.

Mexico´s Media Overview Trade Media Content Trade media has increased its coverage in 42% as destinations and travel attractions have been reopening and sharing more content information to media.

The main topics continue to be destinations attractions and airlines restarting operations to national and international destinations as the tourism has restarted its reactivation.

+ 42% 363 MORE ARTICLES THIS MONTH

Sample: 1227 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)

Trade Media Content 13%

25%

20% 8%

4%

7%

11% 10%

3%

1

Destinations - Attractions

2

Airlines

3

Tourism Economic Situation

4

Tourism Health Measures

5

Hotels

6

General Information

7

Webinars and virtual events

8

Reopenings

9

Cruises

Sample: 1227 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)

Consumer Media Consumer media continues to share detailed information about destinations and actual travel experiences (considering health and safety measures), to promote specific activities and different options for all kind of travelers.

Source: Direct contact with media.

Online examples: LIFE AND STYLE, Air Femme, Estilo DF, Periódico Viaje, CARAS and HOLA.

Airlines Update Aeroméxico

Volaris

The shares of Grupo Aeroméxico, which operates the largest airline in the country, rose (around 8% to 4.79 pesos) this Monday, their highest level since August 28, after the company announced that it received final authorization to a financing request, included in its current restructuring process. The airline reported that a New York court gave final approval to a request for preferential financing for up to 1,000 million dollars with which it intends to maintain liquidity to continue operating. Source: Aerolatinnews (News Site).

Starting on December 11, 2020, DFW International Airport will welcome Volaris, the only ultra-low airline in Mexico, which will directly connect DFW with the country's capital. The new flight between Mexico City and Dallas Fort Worth will be available for purchase from October 8th and will operate three weekly frequencies (Monday, Wednesday and Friday). This new route will complies with the recommendations issued by the International Air Transport Association (IATA), the European Air Safety Agency (EASA) and the World Health Organization. Source: Aerolatinnews (News Site).

Low Cost Airlines

Viva Aerobus Viva Aerobus, reported that in September 2020 it registered nearly 730 thousand passengers, an increase of 12% compared to last August, being the second airline with the highest number of passengers this month. During September, the airline operated 94 routes offering a capacity of 87% vs September 2019, measured in seats per available kilometers. In this sense, the airline achieved the highest growth in the sector when considering the increase in passengers in September 2020 compared to the previous month.

Source: Aerolatinnews (News Site).

Air Canada

Although last August, Volaris and Viva Aerobus hit a record annual falls in passenger transport in national markets of 34.9 and 47.1 percent, in just three months they managed to return their seat offer to pre-pandemic levels and have 77 and 30 aircraft in operation, respectively, the same number of airplanes they had in February, a month before the start of the social distancing measures. Source: Aerolatinnews (News Site).

New Airport in Tulum

In an effort to protect travelers and co-workers, the airline confirmed that it placed an initial order for 25,000 ID Now Covid-19 rapid test kits from the pharmaceutical company Abbott. The acquisition came just weeks after the airline partnered with McMaster Health Lab (MHL) and the Greater Toronto Airports Authority (GTAA) to do a study to support the implementation of tests to detect coronaviruses in a timely manner in place of the quarantines. Source: Aerolatinnews (News Site).

Aeromar In order to reduce travel times and improve trade between Mexico City and Laredo, Texas, Aeromar opened a direct flight to connect both urban areas and thus be able to avoid the ground border between Mexico and the United States. The new trade route will facilitate tourism and the exchange of goods between both cities and, the reunion of relatives paused by coronavirus pandemic. The company has a promotion where the round-trip flight is priced at $ 149 USD and users can purchase their tickets at that cost for the next two months.

Source: Aerolatinnews (News Site).

President Andrés Manuel López Obrador estimated that the Tulum airport, in Quintana Roo, will be inaugurated in 2023, a project for which the government are already has 2 properties, one of them with an area of 3,706 Acres. The project will be carried out by the Army. One of the two sites for the construction of this airport, belongs to the Ministry of Communications and Transportation and the other to the Navy. Source: Milenio (Newspaper).

Interjet

After the news of the cancellation of the share-code contract that Aeromar had with Interjet was announced, Aeromar gave a statement, confirming that the cooperation that began a few weeks ago had concluded by mutual agreement in the best interests of both airlines. The airlines had announced their alliance in order to jointly market some domestic routes, to increase their flight capacity, after suffering the effects of the Covid-19 pandemic. Source: Pasillo Turistico (Trade Media).

International Flights and Frequencies Status Fri, Sa t, Su n

W Un e d , ti l F r i 18 Dece , Sun ,2 m .

02 be 0 r

M on, real

o

ta wa

un nc Ca

To r

o ont

M

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to

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ve Va nc ou

o

e,

un

Fri. Until November 6, 2020

No W e d . v em b 202 er 4, 0

ntil Th u . U r 5 be No v e m 2020

ti l , Un r 7 e t.

Sa e m b 0 v 2 No 20

Tu

i, S

r

to

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Fr on,

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T o ro n

ue, n, T u, Mo h d, T t We a S Fri, un S (2), ) (2

San io on Ant

Fr

To r

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on To r

Sa nJ o Ca se d bo el

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Vancouver

real

ex

Montreal

M ont

m

Cozum el

Th u . U Decem ntil ber 1 2020 7,

ro

Mo n, T Chi ue W cag o F ed, Th , ri ( 2 u, ) (2), , Sat Su (2) n

a ap Ixt

ont

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o

To r

Ot

nt

Ae

Thu Fri ( (2), 2) (2), , Sat Su (2) n Orland o

ro

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M ont

Den ver

to

To

ver Den

hu, n, T t, o M , Sa Fri n San co Su is c n Fra

T No h u . U n v em t b il 202 er 19 , 0

Mon. Until November 16, 2020

ue, n, T Mo d (2), mi Mia We , Fri Thu Sat (2), un S (2), ) (2

T o ro n

ti l , Un 19 t. e r Sa m b 0 ce 202

Su n

S Fran an cisc Gu o adal ajar a

De

Sat, Sun

Sat,

Mo n, T h Sat u,

ntil Thu. U 17, ber Decem 0 202

(September 16– October 15)

Source: Direct contact with Airlines

International Flights and Frequencies Status

zum el

Sat

hua Chihua

Co

lph ila de

CharlotteDouglas

e

l

eni

x

Mon (2), Tue (2), Wed (2), Thu (2), Fri (2), Sat (2), Sun (2)

Mexico City Tokyo

Mo (2) n (2), ,W T Th u e d ( u e 2 ( ), 2 (2) , S a ) , F ri t, S un

e Tu ), ), ( 4 d ( 3 ri on e F M ), W (4), (3), t (4 u Th ), Sa (2) (4 Su n

s lla Da

Mon, Tue, Thu, Fri, Sat, Sun

New York

Mon Tue (2), Wed (2), Thu (2), ( (2), 2), Fri Sat Sun (2), (2)

hu, n, T M o t, S u n Sa F ri ,

M o Fr n (2 (2 i (2 ), T ), ), h Su Sa u , n t (2 )

Ph o

ago Ch i c

Phoenix

jara dala (2), Gua Mon (2), ston Tue (2), Hou Wed ), Fri (2 Thu (2), Sat (2), un S

Mo Tu n (2), W e (2 Th ed (2 ), u (2) (2), ), , Sa Fri t Ho Sun (2), ust on

Mon (2), Tue, Wed (2), Thu (2), Fri (2), Sat (2), Sun (2)

M Mo n iam We (2), Tu i d (2 e, (2), ), Thu F r i( Sat (2), 2), S Dall (2) un as

M

i ty

P u e rto Vallarta

las

oC xi c

de se Jo b o n S a Ca

Dal

un nc a C

Oaxaca

Dallas

ue ), T ), 3 ( n (3 M o W e d F ri , (3) u (3), ), Th Sat (2 , (3) n (3) Su

, (3) 3), on hu ( t M , T Sa ed ), 3) W ri ( 3 u n ( F ,S (3) i iam ue M (5), T Mon ed (5), (5), W ), Fri 5 Thu ( t (5), a S s , (4) Dalla 5) Su n (

Ph

Dallas

s lla Da

Mon, Tue, Thu, Fri, Sat, Sun

Phoenix

), Tu e Mon (2 (2), d (2), We , F ri Thu (2) ), (2 (2), Sat Sun (2)

u, Th n, (2), Mo Sat , F ri S u n

M o (2) n (2 Th , W e ), Tu (2) u (2 d (2 e ), ), , Su Sat ( Fri n ( 2), 2) Da lla M on s (4), T ue (4), W Gu e Thu ( d (4), ad 4 ala (4), S ), Fri jar at (4 D a a llas Su n ( ), 4) M on te rre y

Mo n ( 2 ia ), W (2), T Th ed ue (2) u (2) (2), ,S ,F Su at (2 ri n( 2) ),

(September 16 – October 15)

4), n ( ), o M e (4 , Tu d (4) ri We (4), F ), (4 u Th , Sat ) n ) o (4 un (4 ust S Ho

Leo n

Tu e, T Sun hu,

Ch ic a

go

Gu ada laja ra

rr nte o M

Cancun Denver

Daily

San Antonio

, hu ,T t on a M Fri, S

Mon, Fri

Los Angeles Saturday

go ica Ch

Mexico City

Sa nJ o Ca se bo de l

Denver

M Tu on ( W e 2) Th ed (2), , (2 u (2 (2) ), S ), , a F Su t (2 ri H n ), ou sto n

Sun Fri, Sat,

ey

San io ton An

, ed , W Su n n M o , F ri , u Th

Source: Direct contact with Airlines

International Flights and Frequencies Status

20

)

New Frequency

Sa nJ o Ca se d bo el Van cou v er

Ed m on to n

Mo n, S We No at, Su d, Thu vem n. U , F ber nrt ri, 5, 2 il 020 No Da ve ily m .U be n r 9 til ,2 02 0

To ro nt o

Satu rday

Van cou v er

Sa s

r mbe Nove Until Thu. 5, 2020

New Flight

Calgary

20

Daily. Until November 9, 2020

1,

Victo ria

r1

Tue. Until N 10, 2 ovember 020

be

No M ve on m .U be nt r 9 il ,2 02 Tue 0 ,W Sat ed, No , Su Thu vem n. ,F ber Unti ri, 5, 2 l 020

m

Victo ria

Da ily

Sa c

ram

en

San A

to

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io

ve

til 20 Un 20 y. r 9, l i Da be m ve No

Until Tue, Fri, Sat. 2020 November 6,

ily Da

un ri, S u, F , Th Mon

Mon, Wed, Thu, Fri

No

ry lga Ca

ka

to on

D Nove aily. Until mbe r 5, 2 020 We No d, Fri vem , Sa ber t. U 6, 2 ntil 020

No W v e ed m .U be n r 1 til 1, 20 20

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Dallas

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til

Winnipeg

Tue , Th u, S un

Daily

San Jose, C

alif

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Tor ont o

Until Novemb er 9, 2020

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Tu

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s

Sun

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Edmonton

r mbe Nove Until Sun. 8, 2020

e (3), Wed (3), Sat (3 ), Su n Th u (3), Fr (2) i (3),

ed, Fri, Mon, Tue, W Sat, Sun. Until 2020 November 6,

Edmonton

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Calgary

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Edmonton

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W

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Sa n

s

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Mon , We d, T hu, Fri, Sat,

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to

as

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Sunday

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g Re

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Tue, Wed, Sa t. Until November 30 , 2020

Vanc ouve r

k

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La s

12, til November Thu, Sun (Un 0) 202

Tu e, T

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3,

M er ida

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Toronto

Fre sn

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Saturday

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Houston

n Su

, Calif

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ity

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Tu e, W

Miami

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P

Fri. U ntil N o 6, 20 vember 20

x

Calg

s

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Thu Mon,

A Lo s

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Sat

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Cozumel a Ixtap eto Lor nillo za an M

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Fri, ed, n, W Mo

Zacatecas

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Los Angeles

Tue, Fri (Until November 3, 2020)

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An

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Lo s

i ca

.

Sat

20

Chihuahua

, 20

n Leo ca xa Oa

Mon, Wed Novem , Thu, Sun (Un ber 1, 2020) til

v1

lan d

No

Denver

Oa k

ro m

s

Ch

ele

, Sa t. F

ng

ed

sA

n, W

No v1 ,

til Un 2020 n.

Su 5, u, er Th emb v No

r 1, mbe ove til N (Un 20) Sun 20

Mo

Lo

Sa 20 t. F 20 rom

Mon, Sat

Fri,

y da urs Th

M on ,W ed ,

Tue, Fri, Sun. Until November 6, 2020

(September 16 – October 15)

Cancelled

International Flights and Frequencies Update

(September 16 – October 15)

120

108

100 80 60 40 20 4 0 New Frequency

New Flight

0 Cancelled 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 Website Structural SEO––10% 10%

4

Product– 10%

5

Sales Strategies – 10%

6

SEO Segmentation SEO– 10% – 10%

7

Social Media Tool – 10% Social Media Campaign– 10%

6.9

2

3

6.1

8

Travel Window – 10%

9

Post – Tools 5% – 5% Social#Media

10

Webinars – 5%

5.3

8

9

4.5

5.7

6

7

5.0

6.2

4

5

5.4

7.3

10

4.9

11

4.3

12

13

4.0

3.7

18

19

3.4

3.9

16

17

3.6

4.2

14

15

3.8

4.4

3.5

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

Company 1 2 3 4 5

6 7 7 7 8 9 9 9 10 11 12 12 12 12 13 13 13

Mega Travel Mundo Joven Viaje y Punto Aeromexico Viaje El Corte Inglés

Sep – Oct Aug – Sep Jul– Aug Score Score Score 7.3 7.0 7.7 6.9 6.5 7.0 6.2 5.8 5 6.1 4.5 6 5.7 6.3 7.4

Travel Shop Despegar Travel Viajes Volaris Mundomex Consolid Viva Aerobus Sierra Madre Euromundo La Casa del Viaje Sevilla Sol Prisma Operadora Contravel JuliáTours Viajes Panorama

5.4 5.3 5.3 5.3 5.0 4.9 4.9 4.9 4.5 4.4 4.3 4.3 4.3 4.3 4.2

5.7 3.8 5.3 4.6 2.8 3.0 3.4 3.3 3.0 2.8 2.4 3.1 4 3.7 3.8

5.4 3.4 5.5 5 3.1 3.6 3.2 4.3 2.7 1.6 0.03 2.8 4.1 3.5 3.1

PE-TRA Operadora Punta del Este Operadora

4.2 4.2

3.9 3.9

4 2.2

Company 13 14 15 15 15 15 15 16 16 16 16 17 18 18 19 19 19 20 20 20 20

Sep – Oct Aug – Sep Jul– Aug Score Score Score

PriceTravel Viajes Palacio Nefertari Travel Turismo Travel

4.2 4.0 4.0 3.9

2.5 4.0 3.0 2.3

2.1 N/A 2.8 3

Creatur Viajes Viajes Intermex LASEN Travel Travel Impressions Viajes Leonarwill Regio Operadora LeGrand Viajes Viajes Premier Imacop Interjet Vacations MexJal Travel Point Mundo Cruceros y Viajes YaVas Viajes Marplay

3.9 3.9 3.9 3.8 3.8 3.8 3.8 3.7 3.6 3.6 3.5 3.5 3.5 3.4 3.4

3.9 2.8 3.8 2.6 3.9 4.3 3.0 3.0 6.4 2.8 2.8 3.0 2.2 2.5 3.3

2.9 2.8 1.6 2.3 N/A 2.3 3.3 3.2 3.1 2.5 1.4 4 1.8 3 3.5

Carmen Travel Services GoesGo

3.4 3.4

2.8 2.8

2.2 3.9

Color’s number code Increase position Same position Decrease position

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

Region Offer by Tour Operator SAMPLE: 335 packages

35%

2%

18% +

7%

0%

12% 26%

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

North America Mega Travel – 9% TacTours – 9% Viajes El Corte Inglés – 9% Mundo Joven – 7% Target Operadora – 7% Carmen Travel – 5% Regio Operadora – 5% PriceTravel – 5% Sierra Madre – 4% Valero Viajes – 4% Viajes Palacio – 4% Euromundo – 3% Evolution – 3% Mundo Cruceros – 3% Record Vacations – 3% Travel Shop – 3% Viaje y Punto – 3% La Casa del Viaje – 2% Viajes Leonarwill – 2% Consolid – 1% Creatur – 1% LASEN Travel – 1% Mundomex – 1% Panorama – 1% PETRA – 1% Prisma Operadora – 1% Riviera Operadora – 1% System Oepradora – 1% TCD / Navel Traveling – 1% Ya Vas – 1%

2 • • • • • • • • • • • • • • • • • • • •

South America Mega Travel – 32% Turismo Travel – 12% Punta del Este – 10% Travel Shop – 7% PE-TRA – 6% Prisma – 6% Juliá Tours – 5% Travel Viajes Group – 5% Target – 3% Consolid – 2% Record Vacations – 2% Viaje y Punto – 2% Carmen Travel Service – 1% Creatur – 1% Le Grand – 1% Mundo Joven – 1% Nefertari – 1% Panorama – 1% Viajes El Corte Inglés – 1% Viajes Fama – 1%

3 • • • • • • • • • • • •

4 • • • • • • • • • • • • • • •

Europe Garin Mayoristas – 34% Mega Travel – 15% Travel Shop – 15% Juliá Tours – 10% Nefertari – 7% Sierra Madre – 5% Turismo Travel – 3% Viaje y Punto – 3% LASEN Travel – 2% Marplay – 2% Opesa – 2% Viajes El Corte Inglés – 2%

Middle East Mega Travel – 20% Nefertari – 14% Mundo Joven – 12% Consolid – 10% Prisma – 10% Panorama – 5% Viaje y Punto – 5% La Casa del Viaje – 3% Mundomex – 3% PE-TRA – 3% Sevilla Sol – 3% Travel Shop – 3% Travel Viajes Group – 3% Viajes Fama – 3% Viajes Intermex 3%

5

Caribbean and Central America

• • • • • • • • • • •

Turismo Travel – 24% Mundo Joven – 20% Sierra Madre – 12% Punta del Este – 8% Record Vacations – 8% Target – 8% Operadora VICA – 4% PE-TRA – 4% Regio Operadora – 4% Travel Shop – 4% Viaje y Punto – 4%

5 • • • •

Asia Juliá Tours – 43% Mega Travel – 29% Mundo Joven – 14% Viaje y Punto – 14%

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 – 16% • • • • • • • • • •

National – 58%

USA – 26%

Valero Viajes – 26% Travel Shop – 16% Mega Travel – 11% Mundo Cruceros – 11% Mundo Joven – 11% Carmen Travel – 5% LASEN Travel – 5% Mundomex – 5% Panorama – 5% Viaje y Punto – 5%

• • • • • • • • • •

• • • • • • • • • • •

Target – 27% Tac Tours – 23% Mega Travel – 10% Record Vacations – 10% Viaje y Punto – 10% Mundo Cruceros – 8% Euromundo – 3% Mundo Joven – 3% Sierra Madre – 3% Naveltraveling – 3%

n=19

Viajes El Corte Inglés – 18% Mega Travel – 10% Regio Operadora – 10% Carmen Travel – 7% Mundo Joven – 7% PriceTravel – 7% Viajes Palacio – 7% Evolution – 6% Sierra Madre – 6% Tac Tours – 5% Euromundo – 3%

n=30

• • • • • • • • • •

La Casa del Viaje – 3% Leonarwill – 3% Consolid – 1% Creatur – 1% PE-TRA – 1 % Prisma – 1% Riviera – 1% System – 1% Travel Shop – 1% YaVas – 1%

n=68

% of Room Nights Offer by Region

• • • • • • •

43 %

41%

1-5 nights

1-10 nights

National – 46% South America – 21% North America – 19% Central America & Caribbean – 10% Middle East – 2% Europe – 1% Asia – 1%

• • • • • • •

South America – 40% Europe – 21% North America – 17% Middle East – 13% Central America & Caribbean – 6% Asia – 2% National – 1%

12%

4%

1-15 nights • • • •

Europe – 52% Middle East – 35% Asia – 8% South America – 5%

1-20 nights •

Middle East – 100%

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

3 packages Winter 2020 – Spring 2021 – Summer 2021 Winter 2022

13.4

2%

3.9

6.8

4.7

8%

6%

10%

Fall 2020 – Fall 2021

Summer Fall 2021

13

1%

8.6

1%

1%

Eur op e

Qat a

A lb er t a, Q Co ueb lum ec, bia Bris tis Bo h rn eo

r

Aust ria

Greece

A PE - TR

r id ad M l ae Isr

Monterrey n

Q. R oo

Regio Operadora

M e ga

Jamaica

ra laja ada % 6

ad or a

a on

l Ber

Can3c%u

Gu

el

Sho V iaj p es E l Co r te I nglé s

Mont Trem blant

rista

a

rt

o

a yo

ram

po

rs

Op er

HotelD

M rto

no

Es te

Re

na Punta Ca

ay Urugu

Op o Pa

ve l

e2 Tr av

ou

ve l

On

iá T

Tra

Tra

ica ta R

and Zel

Dom inic ana

tina, A r g en

Cos

w Ne

Pu nt ad el

l Ju

s

el rc Ba

in

A r iz

2%

ny Germa

Travel

Costa Rica

V

tio n sti De m

Op e s

orl d W

sal

Arg e

nc eI I

d r lan

ntina

y Tur ke

rt

v ia

tze Swi

alt D

the A

na

eI nc

Un ive

Pa ris

entin a

a Fr a din an Sc

, tria ia Russ

W

Fr a

y an rm Ge

Aus

India

a Cambodi

• Tamaulipas • San Luis • Zacatecas

a

Dr ea

ld or

e iaj

W

Fra nce &

lV

W

D alt

ey isn

Morocco

• Chihuahua • Coahuila • Nuevo Leon

Tos ca

na

ulo

Arg

de

Pa

to

sa

o Sa

un

Ca

an Jap

P ey iaj

s

ia aluc And

Rio

• Queretaro • State of Mexico

Polan d

a Florid

La

• Mexico City • Morelos • Puebla

• Michoacan • Nayarit • Sinaloa

Sweden

City

Aguascalientes Colima Guanajuato Jalisco

Iran

ns

Valero Viajes

• • • •

Tra

e ssi o mp r ve l I

Un ive r

• Quintana Roo • Yucatan

o antiag o de S Camin

rsa l

• Campeche • Chiapas • Tabasco

Abiega

Ski USA

89%

• Queretaro • San Luis Potosi

ico Mex

• Aguascalientes • Guanajuato

Iran

Creatur

Peru

isn ey

Geographical Reach

ona

an Bhut

Colombia

Headquarters/ No. Webinars 66

Monterrey – 1

y

a

Zim ba bu e

Qu eb ec

Colo mbia

ali

M ald iv e

r ke Tu

ico ex

y Ci t

a di bo am

M

n

Spain

Mexico City – 59

str Au

,C m na et Vi

Leon Nvo.

jio Ba

gio Re

Za m bi a,

Pragu e

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

Guadalajara – 4

6%

Winter 2021 – Spring 2022

Tour Operators Webinars by Region

Cancun – 2

8.9

3 packages

11.6

*Room Nights average

Bajio - 0

2021

6.5

3 packages

1%

2%

Fall 2020 – Spring 2021

Winter – Spring 2021

3 packages

8.6

8.1

18 packages

Fall 2020

12% 10%

6 packages

20 packages

N/A*

8

7

12% 12%

7 packages Spring – Spring – Fall 2021 Summer 2021

3%

Winter 2020

6.6

12 packages

9.4

Spring 2021

28 packages

32 packages

Washington

13%

42 packages 37 packages

Croatia

4.4

Open redemption date

Russia

Fall - Winter

44 packages 43 packages

Germa ny

47 packages

Source: Facebook and e-mailing

Sales Strategies (Monthly) Sevilla Sol Nefertari Travel Euromundo Viaje y Punto PriceTravel Mundo Joven Viajes Palacio Viajes El Corte Inglés Regio Operadora Mega Travel

Interest Free Installments

Viajes Intermex

Non-cost changes/Cancellation

Volaris Viva Aerobus

Special rates

Travel Shop Travel Impressions

Special exchange rate

Sierra Madre Operadora Imacop

Changes and cancellations facilities Discount off

HotelDo Evolution Despegar

2x1

Vica Operadora Turismo Travel

Payment Facilities

Travel Viajes Group Target Operadora

Free nights

System Operadora

2 passenger with special rate/discount-off Free kids

Punta del Este Operadora Viajes Panorama Oitsa Naturleon

Commision

MexJal Viajes Leonarwill

Others

LeGrand LASEN Travel La Casa del Viaje Interjet Vacations Consolid Aeromexico 1

2

3

4

5

6

7

16 14 12 10 8

14 12

8

Sample: 84 examples of sales strategies

Comparative Periods 14 11

12 10 8

7

8

7 7

8

7

6

6

4

4

5

6

6 4 4

2

2

3

2

6 4

6 4

3

3

5 2 2

1

2

4

3 1

3

1

Jul-Aug

Aug-Sep

on m isi

No nco st

Co m

lr ch at an es ge s/ Ca nc el Sp lat ec io ia n le xc ha ng e ra te

Sp ec ia

Ot he rs

ni gh ts Fr ee

as 2x se Ch 1 ng an er ge w sa ith nd sp ca ec nc ial ell … at io ns fa cil iti es

2p

Fr ee

kid s

0 Di sc In ou te nt re st of f Fr ee In sta llm en Pa ts ym en tF ac ilit ie s

0

Sep-Oct

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) Website Structural SEO 10

10

Ya vas

Viaje y Punto

10

10

10

TCD Naveltraveling

10

10

10

PriceTravel

LASEN Travel

10

10

10

La Casa del Viaje

10

10

Geo Travel

Volaris

10

10

10

Turismo Travel

10

10

Target

PE-TRA

10

10

10

10

Evolution Tour Operator

Voiash

Travel Viajes Group

Sierra Madre

Operadora 365

iUmira Travel

Euromundo

Viva Aerobus

Travel Shop

Sevilla Sol

One2Travel

10

10

10

10

10

10

10

10

10

10

10

Viajes Palacio

Travel Point

Punta del Este

Oitsa

Imacop

Contravel

10

8

8

Interjet

Dream Destinations

10

10

Mega Travel

8

Riviera Operadora

8

8

8

8

GoesGo

Abiega Operadora

Tac Tours

Tourmundial

8

8

8

Regio Operadora

Pema Tours

8

8

Consolid

Operadora VICA

7

7

7

Opesa

Mexico Kanko

Aeromexico

Mex Jal

Naviterra/ Navitur

8

Interjet Vacation

Travel Inn

Viajes El Corte Ingles

8

8

8

Naturleon

Mundomex

Mundo Joven

8

8

Carmen Travel Services

Nefertari

8

Travel Impressions

8

8

Prisma Operadora

8

Viajes Fama

Viajes Intermex

Viñales Tours

System Operadora

8

8

8

8

Mundo Cruceros y Viajes

8

La Tienda del Viaje

Viajes Leonarwill

Julia Tours

GTM Operadora

Creatur

8

7

7

Viajes Premier

Marplay

adonde/ Kinich Coyol

Hotel Do

Source: Website Grader Qualification: 10= 30/30 8= 25/30 7= 20/30 (Qualification based upon the following parameters: Permission to Index, Meta Description, Content Plugins, Descriptive Link Text

SEO Segmentation Mega Travel Travel Viajes Group Despegar Viajes Palacio Aeromexico Volaris Interjet Viajes Fama Viajes El Corte Ingles Mundo Joven 0 South America

0.5

1 USA

1.5

Middle East

2

2.5

Europe

Canada

3 Asia Source: Google

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

3.5

40

25

20

15

10

5

Sample: 335 posts

Garin Mayorista Record Vacations Viajes El Corte InglĂŠs Travel Viajes Group Viajes Palacio Punta del Este Operadora Travel Point Aeromexico Mundo Joven Almundo Mundomex Navitur Viaje y Punto Creatur Travel Shop Mexico Kanko La Tienda del Viaje Viajes Panorama Volaris JuliĂĄTours Mega Travel La Casa del Viaje Imacop Viajes Marplay Turismo Travel iUmira Travel Mundo Cruceros Consolid Despegar Viajes Intermex LASEN Travel Oitsa PriceTravel TravelInn Voiash Operadora 365 Contravel Euromundo GoesGo GTM Operadora Le Grand Viajes Leonarwill Naveltraveling Opesa Oporto Mayorista Prisma Operadora Sierra Madre Operadora Travel Impressions Viva Aerobus

Social Media Campaigns

Paid Organic

Source: Facebook and Instagram, Facebook Ads Library

In Kind Trade Social Media Destination Campaigns

38

35

30

22 22 21 18 15 15 13 13 12 11 11 11 10 9 8 7 7 7 6 6 5 4 4 4 3 3 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1

0

Source: Facebook and Instagram

In Kind Trade Social Media Destination Campaigns % Post by Region 2% 2%

Europe USA

2%

5% Asia

10%

36%

South America Central America & Caribbean

14%

Canada Middle East

11% 18%

Multi Region Antarctica, Africa & Oceania

Source: 335 Facebook and Instagram

Cruises Product

Mediterranean

Middle East

Canada

Number of packages * N/A Holland America Line

* N/A MSC Royal Caribbean

*N/A Silversea Norwegian

Europe

MSC Celebrity

Celebrity

Caribbean

Princess

*N/A Royal Caribbean MSC

Bahamas Baltic

Celebrity Princess Celebrity Royal Caribbean

Alaska

Princess Carnival Celebrity 0

*

Cruise Line is not specific in those packages

1

2

3

4

Operadora 365

Mega Travel

Mundo Cruceros

Pema Tours

Viajes El Corte Inglés

Viaje y Punto

5

6

7

8

Mundo Joven

Sample: 27 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 1,227 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 4,100 data from 72 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 20 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 335 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 66 webinars and virtual tours of international destinations published in e-mailings and social media of tour operators, wholesalers and airlines.

• Sales Strategies: Compilation of 84 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) - Website Structural SEO: Compilation of the results obtained using website.grader.com : 30/30= 10, 25/30= 8, 20/30=7 (Qualification based upon the following parameters: Permission to Index, Meta Description, Content Plugins, Descriptive Link Text). If the company does not appear in the graphic, the score is 0.

• Companies’ Search Engine Optimization (SEO) - SEO Segmentation: 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 355 posts on Instagram and Facebook and active ads on social media during the period September 16 – October 15 available in Facebook Ads Library • In Kind Trade Social Media Destination Campaigns: 335 posts published on Facebook and Instagram • Cruises Product: Compilation of 27 cruise packages published in trade media, e-mailing and social media of the companies.

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