Ad Nova Competitive Intelligence Report No. 9 December, 2020

Competitive Intelligence Report Mexico’s International Travel Industry No. 9 / December, 2020

Mexico Economic Outlook MEDIAN Variation Forecast OCTOBER NOVEMBER -9.31 -9.00

Gross Domestic Product 2020 2021

3.20

3.34

2022

2.20

2.50

Source: Survey on Expectations November 2020, Bank of Mexico

Gross Domestic Product

Annual General Inflation Rate

MEDIAN

2020

OCTOBER 3.95

NOVEMBER 3.64

2021

3.58

3.60

2022

3.50

3.50

Business Expectations in the Commerce Sector (travel services are considered within the commerce sector)

Seasonally Adjusted Figures INDICATOR

NOVEMBER 2020

DIFFERENCES IN POINTS WITH RESPECT TO: 1/ Previous Month

Same Month Previous Year

NUMBER OF CONSECUTIVE MONTHS ABOVE OR BELOW 50 POINTS

a) Net sales

53.9

0.1

0.7

6 above

b) Consignment and / or commission income

53.7

0.1

1.1

6 above

c) Net purchaes

52.6

(-) 0.7

0.6

6 above

d) Inventory of merchandise

50.7

0.6

0.4

3 above

e) Total occupied personnel

51.3

0.4

(-) 1.2

2 above

Note: The indicators are generated with the data referring to the month prior to the month of the interview, with the exception of the last data in the series, which refers to the month in which said interview occurs

Source: Survey on Expectations November 2020, Bank of Mexico

1 / The differences in points are obtained from the respective indicators considering all their decimals Source: National Institute of Statistics and Geography

General Inflation Rate

USD 01/12/2020 $20.05 ppusd

02/12/2020 $20.04 ppusd

CAD 03/12/2020 $19.90 ppusd

01/12/2020 $15.47 ppcad

02/12/2020 $15.50 ppcad

03/12/2020 $15.44 ppcad

EXCHANGE RATE Source: Bank of Mexico

EURO 01/12/2020 $24.00 ppeuro

02/12/2020 $24.16 ppeuro

YEN 03/12/2020 $24.14 ppeuro

01/12/2020 $0.19 ppyen

02/12/2020 $0.19 ppyen

03/12/2020 $0.19 ppyen

Economic Updates

01 02

Current account recorded historical surplus in the third quarter, equivalent to 6.9% of Gross Domestic Product. The income of $10.67 billion dollars from remittances, an annual increase of 9.1%, contributed to the highest surplus on record, in contrast to the deficit of 0.1% in the third quarter of 2019. Source: Banco de México Third Quarter Report, 2020.

During the third quarter of the year, the economy managed to rebound 12.1% compared to the immediately previous period, the strongest increase recorded for a quarter, according to the seasonally adjusted data of the Gross Domestic Product (GDP) published by the National Institute of Statistics and Geography.

COVID-19 Confirmed cases 1,144,643 December 3rd, 2020 401,202

Recovered

843,231

Deaths

108,173

Death Incidence Rate

03

49,622

Active Suspicious

9.45%

Sales during the “Buen Fin 2020” have reported an increase of 20% with $ 7.1 billions USD ($141.6 billion pesos) over those of 2019, despite the fact that the pandemic brought great havoc to the economy and therefore to consumption.

During this “Buen Fin 2020”, the duration period was extended from 4 days to 12 to avoid crowds in stores and shopping centers and the best-selling items were clothing, footwear, alcohol and technology products (mainly screens) .

31% of consumers made their purchases with their savings, 24% (less than expected) used credit methods and the rest made use of immediate resources.

Source: Ministry of Health & Main National Newspapers (El Economista, El Financiero, Excélsior, Milenio, Reforma, Universal).

International Inbound Tourism International Tourist Arrivals (%change)

International tourist arrivals (overnight visitors) declined 70% in the first eight months of 2020 over the same period of last year, amid global travel restrictions including many borders fully closed, to contain the ongoing COVID-19 pandemic.

Source: World Tourism Barometer October 2020, World Tourism Organization (UNWTO)

Bookings made for International Travel by Departure Region January 6 to October 11, Year on Year variations

Data from ForwardKeys indicates a 97% year-over-year drop in international air bookings made between January 6th and October 11th, 2020 for travel in any period of the year. The data shows slightly more new bookings than cancellations.

Forward-looking Scenarios for 2020 International Tourist Arrivals in 2020 YTD Results and Scenarios (Y-o-Y monthly change, %)

Considering that international tourist arrivals declined 81% in July and 79% in August (compared to the same months of 2019) and that recent data points to an estimated drop of 75% in September, international tourism results currently stand between Scenarios 1 and 2

Source: World Tourism Barometer October 2020, World Tourism Organization (UNWTO)

Evaluation of UNWTO Panel of Tourism Experts UNWTO Confidence Index: World

Domestic tourism is driving the recovery of several destinations but in most cases only partially, as it is not compensating for the drop in international demand

Is domestic tourism driving the recovery in your destination?

The UNWTO Confidence Index continues at record lows. Most UNWTO Panel Experts expect a rebound in international tourism by the third quarter of 2021 and a return to prepandemic 2019 levels not before 2023 Source: World Tourism Barometer October 2020, World Tourism Organization (UNWTO)

Evaluation of UNWTO Panel of Tourism Experts What are the main factors weighing on the recovery of international tourism?

Experts consider travel restrictions as the main barrier weighing on the recovery of international tourism, along with slow virus containment and low consumer confidence.

Source: World Tourism Barometer October 2020, World Tourism Organization (UNWTO)

Recovery on Flights and Seats Scheduled 2020 vs 2019 in Mexico Despite an environment of uncertainty, the recovery trend in air supply scheduling continues

Source: OAG

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

Source: Infographic Cicotur 59/20, Anahuac Tourism Competitiveness and Research Center.

Travel Industry Updates According to the latest survey conducted by Kayak, 74% of Mexicans plan a trip in the next six months, focusing mainly on the end of the year holidays.

Due to factors such as the uncertainty of the closure of borders and measures of each country, Mexicans have focused their travel preferences mainly on local tourism. International tourism is the one that has lost the most Mexican travelers, since 23% would be willing to travel within the continent and only 10% to another. Source: KAYAK According to the forecasts of the National Tourism Business Council (CNET) and the AnĂĄhuac Tourism Research and Competitiveness Center (Cicotur), recovering the levels that tourism had in 2019 will take at least until 2023. The Anahuac Panel revealed that 31.6% of those consulted see recovery by 2023 and even 19.3% until after this year. The CNET commented that it is confident in the recovery of the tourism sector as it has in other circumstances, however, it is emphasized that they must work in a coordinated manner with the government to make a common front in defense of the sector.

Source: NITU (Trade Media).

The use of technology will provide peace of mind to people, which translates into a rapid recovery of the tourism industry, this according to research conducted by Amadeus the Global Distribution System. In the study, 84% said that digital increases their confidence to go out in the next 12 months, while 42% of those surveyed said that mobile apps that provide notifications about localized outbreaks and changes in the measures applied by the government are totally useful. Source: Invertour (Trade Media).

Despegar confirms the drop in more than a third of prices compared to 2019, with average rates in the period from July to September 2020 of $ 278 USD compared to $ 433 USD in the third quarter of the previous year. The total number of transactions during the third quarter was 600,000, compared to 1.1 million in the third quarter of 2019. Despegar completed the purchase of Best Day in October of this year, for which it paid $ 136 million dollars.

Source: Reportur (Trade Media).

Home office is nothing new and today it has become in to a norm. Now not only companies have found the advantages around this form of employment, the workers themselves are interested in this form of work. In the case of the Mexican market, views of job offer promoting the home office are forecast to be 3.72 times higher now, compared to March, and applications for these positions have increased by 287%. The top 3 benefits of this type of work are less time and money allocated to commuting (74%), increased individual responsibility (53%), and better work-life balance (48%).

The truth is that as ironic as it may seem, it is the younger generations who are having the greatest problems adjusting to the home office. It is the generations, Baby Boomers and Generation X, that are managing to adapt more easily to the new conditions of this new professional life.

Source Merca2.0 (Marketing Specialized Media).

Airlines Update CBX & Volaris

IATA

Cross Border Xpress (CBX), the bridge that connects Tijuana International Airport (TIJ) with San Diego, and Volaris, the airline with the largest presence at TIJ, recently announced the launch of a major technological upgrade developed by both companies, which will allow real-time connectivity between the systems of the two companies, thus favoring all passengers who buy their CBX ticket at the time of purchasing their Volaris ticket. Source: Aerolatinnews (News Site).

The International Air Transport Association (IATA) has announced that it is in the final phase of development of the IATA Travel Pass, a COVID-19 digital health pass that will contribute to a secure reopening of borders.

IATA and International Airlines Group (IAG) are cooperating on this solution. They will soon carry out a test to show that this platform, in combination with COVID-19 tests, is the key to reopening international travel without quarantine measures.

Source: Business Travel Magazine (Business News Website).

Viva Aerobus

It celebrated its 14th anniversary leading the reactivation of the sector by becoming the first Mexican airline to grow its operational capacity compared to last year, with an increase of 10% compared to December 2019. In this sense, Viva offers 128 routes this end of the year (103 national and 25 international), an increase of nine routes compared to those operated at the end of 2019. Source: Aerolatinnews (News Site).

Volaris and VivaAerobus With its ultra-low-cost model and 80 aircrafts in operation, Volaris ranked as the leading airline in the recovery of the airline industry on scheduled flights in Mexico. During October it presented an increase of 13.8% compared to the previous month in its attention to national and international passengers, according to figures from the Communications and Transportation Ministry (SCT).

The second airline with the most customers was Viva Aerobus, with an increase of 20.8%, with its 39 aircraft. Source: El Economista (Newspaper).

The International Air Transport Association (IATA) considered that Mexico and Brazil are the two success stories in Latin America due to the measures and the fastest recovery they register, of approximately 50% in December, and which they have shown in the face of the Covid pandemic -19. IATA executives foresee that

by December Mexico will have a recovery in air reservations of 52%, while in Brazil it will be 45%. Source: Milenio (Newspaper).

Interjet Faced with the suspension of routes and recurrent cancellations of flights, among other problems that hinder the operation of Interjet, the Federal Consumer Protection Agency (Profeco) issued an alert in which asks consumers to assess the risk of buying tickets with the airline. Its offices are temporarily closed and until further notice, so buying tickets through its website or establishing a business relationship with that company represents risk. Source: El Universal (Newspaper).

Mexican airlines

The Mexican airlines Grupo AeromĂŠxico and Volaris are preparing for the eventual transport of vaccines against covid19, through certification processes and negotiation with the authorities, the companies confirmed.

Grupo AeromĂŠxico is in the process of obtaining the Center of Excellence for Independent Validators in Pharmaceutical Handling (CEIV Pharma) certification, issued by the International Air Transport Association (IATA), for the handling of pharmacological merchandise with the required specifications.

Volaris indicate that it is in conversations with the authorities to work together once it is time to transport the covid-19 vaccines throughout the country.

Source: Aerolatinnews (News Site).

International Flights and Frequencies Status

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(October 16 – December 3)

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Source: Direct contact with Airlines

International Flights and Frequencies Status

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Source: Direct contact with Airlines

International Flights and Frequencies Status

(October 16 – December 3)

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International Flights and Frequencies Updates

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120

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Performance Competitive Index

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

1

Weighted Performance Indicators

1

Packages – 15%

2

SocialWeb Media Campaigns Traffic – 15% – 15%

3

Buen Fin – 15% Distribution Channel Website Structural SEO––10% 10%

4

6.5

2

3

Product– 10%

5

Sales Strategies – 10%

6

Social SEOMedia Segmentation Campaigns – 10% SEO– 10% – 10%

7

Social Media Tools – 10% Social Media Campaign– 10%

8

TravelWindow Window––10% 5% Travel

9

Post – Tools 5% – 5% Social#Media

10

Webinars – 5%

6.0

5.6

8

9

5.1

5.9

6

7

5.4

6.3

4

5

5.8

6.8

10

5.3

11

4.8

12

13

4.4

4.0

18

19

3.7

4.3

16

17

3.9

4.7

14

15

4.1

4.9

3.8

20

Source: Trade Media and Airlines’, TOs’, Wholesalers’, GDS’, OTAs’ Social Media & e-mailings Methodology: Sample 79 tourism companies; compound index based on 13,768 data

Mexico’s Performance Competitive Index (Comparative Score) International Travel Company 1 2 2 3 4

5 6 7 7 8 9 10 11 12 12 13 14 15 16 16 17 18 18 19 19 20 20 20 20

Oct – Nov

Sep – Oct

Aug - Sep

Viajes El Corte Inglés Aeroméxico

6.8 6.5

5.7 6.1

6.3 4.5

Mega Travel Mundo Joven Imacop Viaje y Punto Volaris

6.5 6.3 6.0 5.9 5.8

7.3 6.9 3.6 6.2 5.3

7.0 6.5 6.4 5.8 4.6

Le Grand Travel Viajes Travel Shop Viajes Panorama Travel Impressions

5.6 5.6 5.4 5.3 5.1

3.8 5.3 5.4 4.2 3.8

3.0 5.3 5.7 3.8 2.6

PE-TRA Despegar JuliáTours La Casa del Viaje Consolid

4.9 4.8 4.8 4.7 4.4

4.2 5.3 4.3 4.4 4.9

3.9 3.8 3.7 2.8 3.0

Pema Tours Sierra Madre Viva Aerobus Creatur Punta del Este

4.3 4.1 4.1 4.0 3.9

2.7 4.9 4.9 3.9 4.2

2.6 3.3 3.4 3.9 3.9

Viajes Palacio Contravel Viajes Intermex Lasen PriceTravel

3.9 3.8 3.8 3.7 3.7

4.0 4.0 3.9 3.9 4.2

4.0 4.0 2.8 3.8 2.5

Record Vacations Viajes Marplay

3.7 3.7

3.1 3.4

4.0 3.3

Color’s number code Increased position Same position Decreased position

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

Region Offer by Tour Operator SAMPLE: 590 packages*

29%

5%

25% +

7%

1%

13%

20% 5 1 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

North America

2

Viajes El Corte Inglés – 11% Mega Travel – 10% Mundo Joven – 7% Regio Operadora – 7% PriceTravel – 6% Viajes Palacio – 6% Euromundo – 5% Record Vacations – 5% Sierra Madre Operadora – 5% Travel Viajes Group – 5% Contravel – 4% YaVas – 3% La Casa del Viaje – 2% PE-TRA – 2% Riviera Operadora – 2% Travel Shop – 2% Viaje y Punto – 2% Viajes Intermex – 2% Carmen Travel – 1% Consolid – 1% Creatur Viajes – 1% Evolution – 1% Imacop – 1% JuliáTours – 1% Viajes Le Grand – 1% Viajes Marplay – 1% Viajes Panorama – 1% Pema Tours – 1% Sevilla Sol – 1% Turismo Travel – 1% Viajes Fama – 1% Viajes Leonarwill – 1%

• • • • • • • • • • • • • • • • • • •

Europe PE-TRA – 31% Garin Mayorista – 12% Contravel – 8% Viajes El Corte Inglés – 8% Mega Travel – 7% Travel Impressions – 7% Travel Viajes – 5% Viaje y Punto – 5% Nefertari – 4% Viajes Palacio – 3% Pema Tours – 2% Creatur – 1% LASEN Travel – 1% Mundo Joven – 1% Opesa – 1% Sierra Madre -1% TCD/Navel Traveling – 1% Travel Shop – 1% Viajes Fama – 1%

3

South America

• • • • • • • • • • • • • • • • • • • • • • • • •

Mega Travel – 16% Viajes El Corte Inglés – 10% Viajes Fama – 10% Punta del Este – 6% PE-TRA – 5% Contravel – 4% VICA Operadora – 4% Viajes Panorama – 4% Turismo Travel – 4% Viaje y Punto – 4% Consolid – 3% JuliáTours – 3% La Casa del Viaje – 3% Mundo Joven – 3% Record Vacations – 3% Travel Shop – 3% Travel Viajes Group – 3% Viajes Le Grand – 2% Pema Tours – 2% Prisma Operadora – 2% Viajes Palacio – 2% Carmen Travel – 1% GoesGo – 1% Oporto Mayorista – 1% Sevilla Sol – 1%

4 Middle East • • • • • • • • • • • • • • • • • • • • • •

Viajes El Corte Inglés – 14% Mundo Joven – 11% Nefertari – 8% Mega Travel – 6% Travel Viajes Group – 6% Contravel – 5% Imacop – 5% Viajes Panorama – 5% Pema Tours – 5% Sierra Madre – 5% Travel Shop – 5% Viajes Marplay – 4% Prisma Operadora – 4% Garin Mayorista – 3% Viajes Le Grand – 3% PE-TRA – 3% Viaje y punto – 3% JuliáTours – 1% La Casa del Viaje – 1% Punta del Este – 1% Travel Impressions – 1% Viajes Leonarwill – 1%

• • • • • • • • • • • • • • •

6 • • • • • • • • • •

7 • •

* Includes “El Buen Fin” Period

Caribbean and Central America Punta del Este – 34% Record Vacations – 10% JuliáTours – 8% Travel Shop – 7% Carmen Travel – 6% Consolid – 5% Imacop – 5% Mega Travel – 5% Viajes Panorama – 5% Viaje y Punto – 5%k Viajes Le Grand – 2% Oitsa – 2% Operadora 365 – 2% Travel Viajes Group – 2% Viajes El Corte Inglés – 2%

Asia Imacop – 30% Garin Mayoristas – 17% Contravel – 10% Viajes Panorama – 10% Travel Viajes Group – 10% Mega Travel – 7% Viajes El Corte Inglés – 7% JuliáTours – 3% Mundo Joven – 3% Mundomex – 3%

Africa, Oceania, JuliáTours – 67% Viajes El Corte Inglés – 33%

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 – 15% • • • • • • • • • • • •

National – 48%

USA – 37%

Viajes El Corte Inglés – 24% Contravel – 16% Mundo Joven – 12% PE-TRA – 12% Travel Shop – 8% Consolid – 4% Mega Travel – 4% Viajes Panorama – 4% Pema Tours – 4% Record Vacations – 4% Travel Viajes Group – 4% Viaje y Punto – 4%

• • • • • • • • • • • • • • • • •

n = 25 Packages

• • • • • • • • • • •

Mega Travel – 21% Viajes El Corte Inglés – 19% Record Vacations – 11% Travel Viajes – 11% Regio Operadora – 9% Contravel – 3% Imacop – 3% Viajes Le Grand – 3% Viajes Marplay – 3% Sierra Madre – 3% Carmen Travel – 2% JuliáTours – 2% Pema Tours – 2% Riviera Operadora – 2% Viaje y Punto – 2% Viajes Fama – 2% Viajes Intermex – 2%

PriceTravel – 14% Mundo Joven – 12% Viajes Palacio – 12% Euromundo – 10% Regio Operadora – 9% Sierra Madre – 7% YaVas – 6% Mega Travel – 5% La Casa del Viaje – 4% Riviera Operadora – 4% Viajes El Corte Inglés – 4%

• • • • • • • • • •

Travel Shop – 3% Viajes Intermex – 2% Consolid – 1% Creatur Viajes – 1% Evolution – 1% Viajes Panorama – 1% Sevilla Sol – 1% Turismo Travel – 1% Viaje y Punto – 1% Viajes Leonarwill – 1%

n = 48 Packages

n = 64 Packages

% of Room Nights Offer by Region*

• • • • • • •

38 %

46%

1-5 nights

1-10 nights

National – 35% North America – 24% South America – 19% Central America & Caribbean – 10% Middle East – 7% Europe – 4% Asia – 1%

* Includes “El Buen Fin” Period

• • • • • •

Europe – 29% South America – 27% Middle East – 17% North America – 13% Asia – 7% Central America & Caribbean – 7%

11%

4%

1-15 nights • • • •

Europe – 66% Middle East – 19% Asia – 12% South America – 3%

1-20 nights • •

Europe – 95% Middle East – 5%

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

Note: + 20 nights = 1% (Europe 50% / Middle East 50%)

Room Nights Average

By Season

151 packages 74 packages 64 packages 55 packages

Not Specific Open Date redemption date 7.1 6.7

26% 12%

Winter 2020

Spring 2021

5.5

7.5

10%

43 packages 37 packages 34 packages 24 packages 22 packages 18 packages Summer Winter 2020 – Spring – 2021 Fall Fall – 2021 Fall 2021 Spring 2021 2020 Winter 2020 6

7%

8%

9.9

11.2

5.7

5%

5%

4%

15 packages 14 packages 9 packages 6 packages 5 packages Fall 2020 – Spring – 5 packages 5 packages Summer Summer Winter 2020 – Winter 2020 – Spring – Spring 2021 – Fall 2021 Summer 2021 2021 Fall 2021 2021 Winter 2021 Spring 2022

5.3

12.7

3%

2%

6.2

2%

7.8

10.8

9.6

1%

1%

1%

3 packages Fall 2020 – Fall 2021

7.4

4%

4.3

5.3

3%

3%

3 packages Summer 2021 – Fall 2021

4.6

1%

*Room Nights average

3.1

15 packages Fall 2020 – Spring 2021

10.6

1%

1%

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

y

oa

n

Ira

n

Ita

ly

Ital

L i sb

Afric

a

Spain

erica South Am

Ira

Pe - Tr a

Q. R oo

ia

nd rla tze i Sw an Jap

don

Was

h in g

ep, Czech R Austria, Hungary , ia k Slova

Madrid

Opesa

Turkey

Abiega d Consoli el a r T v Mega el Este

o Walt Disney World

Viaje y P unt Amazonas

Falls

ec

um

s

II

I

ds

a

Iguazu

nd

u se

l

ld or

as

nd

nM

g

W

Qu eb

rla n

gl a

Po r tug a

da

Ve g

gl a

do

ur bo m

ey

a

ana

drid

ndo

La s

th e

xe Lu

sn

Ju liá To ur s On e2T rav el Trav el Re port

En

&

Di

a

Ne

Li m

tar

En

tC

Ma

Orla

Pa n a m

Europe

Qa

Lo n

ium

m er

Spai n

Ca Via sa de je l

Ea s

So ut hA

La

a lt

az

Ci ty

W

Am

on

as

rdan

Italy

lg Be

ru Pe

ls

s ga

4%

a ic

ru

M ex ic 7 o

e ort El C s jes Via Ingle

Pe

Jam

n

niv a

a Jap

Israel, Jo

TCD hop S vel lInn a r T ve r Tra tu a e Cr

ar

ca

Europe

Isarael, Jordan

ta d

nC

i ta R Co s

Pu n

ru

Peru

ica

epublic

Pe

Iran Czech R

ton

Italy

Turkey

• Tamaulipas • San Luis • Zacatecas

lu c

Lo n

Travel Impressions

• Chihuahua • Coahuila • Nuevo Leon

A

a nd

Egypt

Ve

• Queretaro • State of Mexico

a tri

terrey Mo4n%

• Mexico City • Morelos • Puebla

• Michoacan • Nayarit • Sinaloa

Regio

cun Can4%

Aguascalientes Colima Guanajuato Jalisco

Kissimmee

O elD Hot

• Quintana Roo • Yucatan

s Au

Gu ada la 18 jara %

Prism a

Eg y p t

Bahamas

rks

Pa no ram a

b ia

a

e y Pa

ba

la

b ia

Jamaic

Di s n

Cancun – 3

• Campeche • Chiapas • Tabasco

Monterrey – 3

b ia

Bajio - 0

• Queretaro • San Luis Potosi

Mexico City – 55

l

Peru

• Aguascalientes • Guanajuato

Guadalajara – 13

ca

l xJ a Me orto t Op rge Ta

om

ma

om

lom

rsa

Ri

Aru

Co l

Co

ate

i ve

sta

in

Gu

Co l

Geographical Reach

• • • •

na

Un

Peru

Headquarters/ No. Webinars 66

izo Ar

Co

do

y Ci t

ell

o sc i l Ja

ed

ico ex

M

M

n

lan Or

Leon Nvo.

jio Ba

gio Re

Vegas

Tour Operators Webinars by Region

Source: Facebook and e-mailing

Viaje y Punto Mega Travel

Sales Strategies*

PriceTravel Viajes Palacio Viajes El Corte Inglés Viaje y Punto Travel Impressions Mega Travel Sevilla Sol PriceTravel Mundo Joven Viajes Palacio LASEN Travel Viajes El Corte TravelInglés Shop Travel Impressions Sierra Madre Operadora SevillaOitsa Sol Mundo Joven Intermex LASEN Travel Volaris Travel Shop Viva Aerobus Sierra Madre ViajesOperadora Panorama Oitsa Nefertari Intermex JuliáTours Volaris Imacop Viva Aerobus Despegar Viajes Panorama Creatur Nefertari Consolid JuliáTours YaVas Imacop Vica Operadora Despegar Travel Inn Creatur Record Vacations Consolid Punta del Este Operadora LeYaVas Grand Vica Operadora Interjet Vacations Travel Inn GoesGo Record Vacations Geo Travel Punta del Este Operadora Euromundo Le Grand Travel Viajes Group Interjet Vacations TourMundial GoesGo System Operadora Geo Travel Riviera Operaora Euromundo Regio Operadora Travel Viajes Group Prisma Operadora TourMundial PE-TRA System Operadora Pema Tours Riviera RivieraOperadora Operaora Opesa Regio Operadora Operadora 365 Prisma Operadora Mundomex PE-TRA Mundo Cruceros Pema MexJal Tours Opesa Viajes Marplay Operadora 365 HotelDo Mundomex Evolution Tour Operator Mundo Cruceros Carmen Travel Services MexJal Aeroméxico Viajes Marplay 0 HotelDo Evolution Tour Operator Carmen Travel Services Aeroméxico

(Monthly)

0

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

1

2

2

3

3

4

4

5

5

6

6

7

7

8

8

Sample: 181 promotions * Included “El Buen Fin” Period

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

Sales Strategies Periods Comparative 30

25

24

23

20

14

15

12

14

14 12

11

10

10

10 8

7

8

8

7 7

6

8

7

6 4

5

5

6

5

6 4 4

4

2

6

4

3

2

6

6 4

3

5

3

3

2 2

3

2

1

4

3 3 1

1

3

2

on m m Co

le xc

ha ng e

i si

ra te

n

ha ng es /C st c

No n

-c o

Sp ec ia

lr Sp ec ia

an ce ll a tio

at es

er s Ot h

Fr ee

el la ca nc

an ge sa nd

ith w

ni

ac i li ti o

ns f

/d isc o at e Ch

sp ec ia lr

Jul-Aug

Aug-Sep

Sep-Oct

Oct-Nov

2

pa ss en ge r

gh ts

s tie

ff un t-o

2x 1

s ki d Fr ee

es li t i Fa ci en t Pa ym

In

te r

es tF

re e

Di sc ou

nt

In st al lm en

of f

ts

0

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

Website Traffic October 2020 (Thousands)

Volaris

3,114

Viva Aerobus

2,182

Aeromexico

1,507

Interjet PriceTravel

Real Visits = Total Visits – Bounce Rate Bounce rate: percentage of visitors who enter the site and then leave the site ("bounce") rather than continuing to view other sections within the same page.

715.47 422.13 538.63 280.09

-32% -33%

-38% -41%

-48%

Mundo Joven

67.72 30.47

-55%

YaVas

66.47 25.26

-62%

Mega Travel

66.11 46.94

-29%

Travel Inn

59.98 48.58

0 0.00

-32%

3,210

2,250

1,020 632.40

Despegar

4,580

-19%

500 500.00

1,000 1,500 2000.00 2,000 2,500 3,000 3500.00 3,500 4000.00 4,000 4500.00 4,500 5000.00 5,000 1000.00 1500.00 2500.00 3000.00 Total Visits

Real Visits

Bounce Rate Source: www.similarweb.com

4 2 2 2 2 1 1 1 1 1 1 1

La Tienda del Viaje

Navitur

Almundo

Contravel

La Casa del Viaje

Opesa

Travel Inn

Viva Aerobus

Volaris

Operadora 365

Abiega Operadora

Turismo Travel

iUmira

Mega Travel

Naturleon

Navel Traveling 1 1 1 1 1 1 1

Viajes Marplay

2

Viajes Fama

2

Target

2

Pema

3

PE-TRA

3

Oporto

3

Oitsa

3

JuliĂĄTours

0

3

GoesGo

4

Dreams

Voiash

4

Viajes Leonarwill

5

Viajes El Corte Ingles

5

Record Vacations

7

Le Grand

7

LASEN

7

Imacop

8

Consolid

8

Panorama

9

Mundo Cruceros

11 10 9

Travel Shop

Creatur

10

Viaje y Punto

13 13 13

Punta del Este

Viajes Palacio

Mexico Kanko

Despegar

20

AeromĂŠxico

Mundomex

28

Travel Viajes Group

30

Travel Point

40

Mundo Joven

Garin

Social Media Campaigns

Paid Organic

Source: Facebook and Instagram, Facebook Ads Library

In Kind Trade Social Media Destination Campaigns Sample: 365 posts

60

51

50

36

26 23 20

Source: Facebook and Instagram

In Kind Trade Social Media Destination Campaigns % POST BY REGION

4%

3%

Europe USA

3% 3%

Asia

6%

36%

South America Central America & Caribbean Canada

15%

Middle East 14%

16%

Multi Region Antarctica, Africa & Oceania

Source: 335 Facebook and Instagram

Cruises Product

Mediterranean

Middle East Norway

Number of packages Royal Caribbean

1

*N/A

1

Holland

1

*N/A

1

MSC

2

Costa

1

Norwegian

2

Celebrity

2

Caribbean

Europe

Norwegian

1

1

AmaWaterway

4

Celebrity

1

*N/A

1

Norwegian

1

2

1

10 4

Baltic

Celebrity

2

Princess

1

Royal Caribbean

1

Alaska

Bahamas

Norwegian

Cruise Line is not specific in those packages

** Included “El Buen Fin” Period

1 1

2 1

1

2

1

5

3

1

2

4

1

1

1 2

Celebrity

1

Disney Cruise Line

1

Royal Caribbean

1

Princess

1

Royal Caribbean

1

Norwegian

1

Holland America Line

1

Celebrity

*

1

Royal Caribbean MSC

Sample: 109 packages**

1

2

2

1

1

2 1 7

0

2

5

6

10

2

15

3

1

20

25

30

Operadora 365

Mega Travel

Mundo Cruceros

Mundo Joven

Pema Tours

Viajes El Corte Inglés

Vica Operadora

Mega Travel

Viajes Palacio

Viajes Le Grand

Viaje y Punto

Creatur Viajes

Viajes Intermex

Viajes Marplay

Dream Destinations

35

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

% Packages by Region

Asia

Africa

Canada Central America & Caribbean

Europe 8%

USA

5%0%

5%

33%

8% 11% 11%

19%

Middle East

South America

Sample: 226 packages

National

Packages by Company 45 40 35

39 32

31

30 25 20 15 10 5

15

14

12

10

10

10 6

6

5

5

5

4

3

3

3

2

2

2

2

1

1

1

1

1

ou sL rs eo na rw ill

aT

tsa Oi

Vi

aje

Pe m

Vi

aje

PE sE -T lC RA or te In glé s Co Tr av nt el ra ve Vi aj l es Vi gr aje ou sP p Tr an av or el am Im a pr e Pu ss io nt M ns ad eg el aT Es ra te ve Op l er ad Vi or aje a yP Vi un aje to sL e Re Gr gi an o d Op er ad or a Ju liá To ur Pr s i c Pr i s m eT r av a el Op Ri er v ie ad ra or a Op er ad M or un a do Jo ve Tr n av el Sh Vi op ca Op er ao Eu ra ro m La un Ca do sa de lV ia Sie je rr aM ad Vi re aje sP ala cio Im Vi ac aje o sM p ar pl ay

0

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

Mexico´s Media Overview Trade Media Content

% mo Info 7.4 ral

Ge

ne

s ure eas hM alt 7.2% He %

i Cru

ses

4

in en op Re 1%

gs

% 20 % es s 17 % lin ion n 14 Air inat uatio

st Sit % De mic s 9.7 .6 % tel no Ho rs 9 Eco a 9% bin ns tio We

Pro

This period trade media included different travel promotions as the Buen Fin 2020 took place in Mexico between November 9th to 20th. Hotels, airlines, wholesalers, and travel agencies promoted special offers for the holidays and other seasons.

Points achieved in the 10 topic value chart Sample: 1259 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, and Turitips)

Consumer Media Update

New multi platform (print, radio, TV, podcast and online) supplement focused on national and international tourism for Heraldo Newspaper.

UMV – 26,9M OPEN TV – 25M PAID TV- 15M PRINT – 98k

Susana Moscatel, a recognized opinion leader in Mexico, is now also colaborating in W Radio at Así las Cosas radio show.

Source: Direct contact with media.

Methodology • 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 13,768 data from 79 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 590 international travel packages (included packages launched during ”El Buen Fin”) and top domestic beaches for international tourism (Cancun, P. Vallarta, Bacalar & Mahahual, Riviera Nayarit, Riviera Maya and Los Cabos) published in the trade media, e-mailing and social media of the companies.

• Tour Operators Webinars by Region: Compilation of 74 webinars and virtual tours of international destinations published in e-mailings and social media of tour operators, wholesalers and airlines.

• Sales Strategies: Compilation of 181 promotions to international destinations and Mexican beaches (included promotions launched during “El Buen Fin”) published in trade media, e-mailing and social media of companies.

• Website Traffic: Compilation of the results obtained using www.similarweb.com. Qualification based upon: Total Visits, Bounce Rate and Real Visits. If the company does not appear in the graphic, does not have enough data to be analyzed. (Real Visits = Total Visits – Bounce Rate). Bounce rate: percentage of visitors who enter the site and then leave the site ("bounce") rather than continuing to view other sections within the same page.

• Social Media Campaigns: Compilation of 365 posts on Instagram and Facebook and active ads on social media during the period October 16 – November 20 available in Facebook Ads Library • In Kind Trade Social Media Destination Campaigns: 365 posts published on Facebook and Instagram • Cruises Product: Compilation of 109 cruise packages published in trade media, e-mailing and social media of the companies.

• Buen Fin: Review of 226 international travel packages and top competitive domestic beaches for international tourism (Cancun, P. Vallarta, Bacalar & Mahahual, Riviera Nayarit, Riviera Maya and Los Cabos) and 108 promotions published in the trade media, e-mailing and social media of the companies during the period November 7 – 20.

• Mexico´s Media Overview: Based upon the result of direct communication with the Media and monitoring of 1,259 hits from the specified Media during this period.

• Trade Media Content: Analysis of 1,259 hits from 19 media published during a period of one month, gathered into 10 indicators. Qualification by calculating the compound simple average of each indicator.

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