Ad Nova Competitive Intelligence Report No. 10 February, 2020

Competitive Intelligence Report Mexico’s International Travel Industry No. 10 / February, 2021

Mexico Economic Outlook Latest Sociodemographic Panorama of Mexico December 2020

TERRITORIAL DISTRIBUTION Area

Population Density

Main outbound markets in Mexico

44.9 % with 56,582,412 inhabitants Population 2020 16,992,418.00

162,238.00

Con tecnología de Bing © Microsoft, TomTom

Source: Sociodemographic Panorama of Mexico 2020, National Institute of Statistic and Geography (INEGI).

Mexico Economic Outlook

MEDIAN Variation Forecast

Gross Domestic Product

December

January

2021

3.44

3.50

2022

2.60

2.50

Source: Survey on Expectations January 2021, Bank of Mexico

MEDIAN

Annual General Inflation Rate

December

January

2021

3.60

3.66

2022

3.50

3.50

Source: Survey on Expectations January 2021, Bank of Mexico

Global Indicator of Economic Activity (IGAE) Total

% Variation compared to the previous month 0.9

November 2020 Variation% with respect to the same month of the previous year -3.5

Primary Activities

0.2

8.9

Secundary Activities

1.1

-3.3

Tertiary Activities

1.1

-4.5

Source: National Institute of Statistic and Geography (INEGI).

Global Indicator of Economic Activity

General Inflation Rate

Gross Domestic Product

EXCHANGE RATE USD 02/02/2021 03/02/2021 04/02/2021 $20.17 ppusd $20.19 ppusd $20.44 ppusd

CAD 02/02/2021 03/02/2021 04/02/2021 $15.74 ppcad $15.80 ppcad $15.90 ppcad

EURO

YEN

02/02/2021 03/02/2021 04/02/2021 $24.26 ppeuro $24.26 ppeuro $24.51 ppeuro

02/02/2021 $0.19 ppyen

03/02/2021 04/02/2021 $0.19 ppyen $0.19 ppyen

Source: Bank of Mexico

Mexico Government Updates

01

Mexico's economy could surprise with a growth up to 7.5% this year, according to Moody’s Analytics. "If US growth is 5 percent, as estimated by the IMF, then the Mexican rebound would be 7.5 percent," commented the Latin America director of the analysis firm.

02

The International Monetary Fund expects a faster recovery for Mexico thanks to the vaccine. Mexico will contract by 8.5% in 2020 due to the pandemic and will grow by 4.3% this year, an improvement over previous projections.

COVID-19 Confirmed cases 1,899,820 February 3, 2021

03 04

The Employers Confederation of the Mexican Republic (Coparmex) in Mexico City launches a platform to provide loans of up to 5 million pesos ($250,000 USD) to companies in the face of the economic crisis.

COVID -19 • Mexico publishes decree for governors and private sector to buy vaccines against COVID • Mexican airports install modules for COVID-19 tests: ü Benito Juárez International Airport of Mexico City (AICM) ü Queretaro International Airport (AIQ) ü North Center Airport Group (OMA): Acapulco, Culiacan, Chihuahua, Durango, Mazatlan, Monterrey, San Luis Potosi, Tampico, Torreon, Zacatecas and Zihuatanejo ü Pacific Airport Group (GAP): Guadalajara, Tijuana, Los Cabos, Puerto Vallarta, Guanajuato, Hermosillo, Mexicali, Morelia, La Paz, Aguascalientes, Los Mochis and Manzanillo.

The Antigen test costs is around 34 usd and the result is delivered in 15 minutes, while the PCR test costs around 125 usd and is ready in 24 hours.

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

71,170

Active Suspicious

434,882

Recovered

1,461,011

Deaths Death Incidence Rate

162,922 8.57%

Latest World Economic Outlook Growth Projections WORLD PRODUCT 2020

2021

2022

5.5

6.0

4.2

4.0 2.0 0.0 2020

-2.0 -4.0

2021

2022

-3.5

WORLD ECONOMIC OUTLOOK GROWTH PROJECTIONS REAL GDP, ANNUAL % CHANGE

8.0 6.0 4.0 2.0 0.0 -2.0 -4.0 -6.0 -8.0 -10.0 -12.0

UNITED STATES

CANADA

MEXICO

BRAZIL

AR GENTINA

COLOMBIA

CHILE

UNITED KINGDOM

GERMANY

FRANCE

ITALY

SPAIN

JAPAN

2020

-3.4

-5.5

-8.5

-4.5

-10.9

-6.9

-6.3

-10.0

-5.4

-9.0

-9.2

-11.1

-5.5

2021

5.1

3.6

4.3

3.6

4.5

3.5

5.3

4.5

3.5

5.5

3.0

5.9

3.1

2022

2.5

4.1

2.5

2.6

1.9

3.7

3.1

5.0

3.1

4.1

3.6

4.7

2.4

Source: International Monetary Fund, World Economic Outlook Update, January 2021.

Forward-looking Scenarios for 2021-2024 International Tourist Arrivals in 2021-2024 In the outlook beyond 2020, international arrivals are expected to rebound in 2021, based upon the assumption of a gradual slow down of the pandemic, the release of a COVID-19 vaccine, significant improvement in traveler confidence and major lifting of travel restrictions by the middle of the year.

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

The expected rebound is also a consequence of the large pentup demand after months of closed borders and travel bans.

The extended scenarios presented here are in terms of yearly totals, not growth.

Travel Industry Updates Given the implementation of fast tests for Covid-19 in tourist destinations, Despegar added to its product offering the performance of PCR tests from Cancun, Playa del Carmen, Riviera Maya and Tulum. This important OTA becomes one of the few agencies, together with sister companies Best Day and Viajes Falabella, to offer this service. The PCR test can be purchased through the Despegar website and mobile application. The traveler can choose if he wants the team of specialists to come to his hotel or prefer to go to the corresponding laboratory to take the exam. Source: Pasillo Turistico (Trade Media).

The Binational Cross Border Xpress (CBX) bridge, which connects San Diego directly with the Tijuana International Airport (TIJ), turned 5 years in last December, exceeding 10 million passengers. Upon arriving at the CBX, passengers will be able to count with the security provided by compliance with standardized protocols worldwide, both health and hygiene and operations in accordance with the recommended regulations for airports, based on local risk levels. As part of these protocols, the expansion of the lobby was completed with a construction of 335 meters. Source: Pasillo Turistico (Trade Media).

KAYAK, the world's leading travel search engine, reveals that Cancun is one of the destinations in Mexico with the greatest signs of recovery and that week by week it showing a growth in the percentage of searches carried out by national and international tourists. In the current context of the pandemic and the new normality, there are many destinations that have maintained very restrictive entry policies for foreigners, however Mexico has been one of the only countries that has kept its borders open and that has generated a slow but persistent recovery of searches in key destinations such as Mexico City, but especially Cancun.

Source: KAYAK

The guest acquisition platform SiteMinder, presented the list of the main distribution channels that generated the highest reservation revenue during 2020, specially since the global reestablishment of hotel reservations began in April. The results obtained include the strengthening of local and regional distribution channels, such as PriceTravel, Best Day and Despegar.com, as a result of restricted international travel, as well as the growing popularity that Airbnb took as a distribution channel for hosting providers, especially since April. Source: Pasillo Turistico (Trade Media).

According to the report by the World Tourism Organization (UNWTO) published in December 2020- 58% of destinations worldwide have chosen to request a negative PCR test upon the arrival of international tourists. In the specific case of the United States, it is noted that it is the favorite country for Mexicans given its proximity, cultural diversity, natural landscapes, which make it an unrivaled tourist attraction and endless adventures that can be done in large cities.

Among the destinations preferred by Mexicans are New York, Las Vegas, Los Angeles, Miami, Chicago and Houston. Source: NITU (Trade Media).

During a working meeting between health diplomatics of the WTO and Mexican tourism authorities, to analyze the bio sanitary and migratory measures for the tourism sector in Mexico, it was stated that it is necessary to have harmonized protocols worldwide, because there are cases such as Europe, where they are taking action without looking to other regions. In this regard, Miguel Torruco, Federal Secretary of Tourism, proposed to convene a summit of the continent's Ministers of Tourism with businessmen, to carry out the first evaluation meeting on sanitary protocols, with the aim of achieving safe standards for travel. Source: Pasillo Turistico (Trade Media).

Consumer Media Update

The group continues with only digital editions, even though some of them have resumed printing in January 2021.

Source: Direct contact with media.

Mexico´s Media Overview Trade Media Content Trade media has increased its content due there is new and continues information about travel restrictions, destinations, airlines operations, travel promotions and different activities to promote tourism reactivation.

Airlines

Destinations (Attractions)

25%

19%

Tourism Health Measures

9%

General Tourism Information

Tourism Economic Situation

12%

12%

Hotels

9%

Promotions

8%

Webinars

4%

Cruises

1%

Reopenings

1%

Sample: 1527 clips Source: Trade Media Newsletters (LADEVI, Viajando Travel, Travel Times, Invertour, Pasillo Turístico, Publitur, Rèport México, Tráfico Magazine, Conexión Turística, Turistampa, Vidalturismo, Travel Report, Travel News, Reportur and Trade News)

flights

Fir s

Se co n

dF or

tn igh tJ tF un or e2 tn Se 02 i co gh 0 nd tJ u Fo ly r tn 20 Fir igh 20 st tJ Fo u r tn ly Se 20 co igh 20 nd tA Fo u Fir gu r tn st st igh 20 Fo t 20 r A t Se nig u gu co ht s nd t2 Se 02 Fo pt 0 r tn em igh be r t Fir 20 Se st 20 pt Fo em r tn Se be igh co r2 nd tO 02 0 Fo cto r tn Fir b er igh st 20 Fo tO 20 r tn Se c t ob co igh nd e tN r2 Fo ov 02 r tn em 0 igh be Fir tN r2 st ov Fo 02 em r tn 0 Se igh be co nd r tD 20 Fo ec 20 r tn em igh be r2 tD Fir 02 st ec 0 Fo em r Se tn be igh co r 20 nd tJ 20 an Fo ua r tn Fir r igh y2 st tJ 02 Fo an 1 r tn u ar igh y tF 20 eb 21 ru ar y2 02 1

igh

tn

Se co n

tF or

Fir s

Se co n

dF or

tn

igh

tJ

un

e2 02 0 tJ dF u ly or 20 tn Fir igh 20 st t Fo Ju r tn ly Se 20 co igh 20 nd tA Fo u Fir gu r tn st st igh 20 Fo tA 20 r tn Se u i g gh co u st tS nd 20 ep Fo 20 te r tn m igh be r2 tS Fir 02 ep st 0 te Fo m r Se tn be igh co r2 nd tO 02 0 Fo cto r tn Fir b e igh st r2 Fo tO 02 r tn Se 0 c to co igh b nd er tN 20 Fo ov 20 r tn em igh be Fir t r2 st No Fo 02 ve r tn 0 Se m i b co gh er nd tD 20 Fo ec 20 r tn em igh be r2 tD Fir 02 st ec 0 Fo em r tn Se be igh co r2 nd 02 tJ an 0 Fo ua r tn Fir ry i g st ht 20 Fo 21 Ja r tn nu ar igh y2 tF 02 eb 1 ru ar y2 02 1

Recovery of air supply available to the first half of February 2021: Mexico

seats

Source: Infographic Cicotur 17/21, Anahuac University - Tourism Competitiveness and Research Center.

Airlines Update Canadian Airlines Canadian Prime Minister Justin Trudeau has announced that flights to Mexico and Caribbean countries are suspended until April 30. The Prime Minister said that people arriving at Canadian airports will have to undergo mandatory PCR testing in addition to presenting a negative test result before they board their flight. Under existing rules, people entering Canada are required to self-isolate for 14 days.

Source: Mexiconewsdaily.com (News Site).

Volaris During 2020, Volaris was the domestic airline that obtained the best results, despite the fact that it was a year marked by the health crisis, the drop in the demand for air travel and strong uncertainty in the market. According to Monex Financial Group data, Volaris had an operating recovery of 102% in terms of capacity in December 2020, this compared to the same month of the previous year, placing it as the best performing in the country. During the year the airline had the highest volume of passengers mobilized, with 14.7 million, a figure higher than that of Aeroméxico (9.4 million) and that of Viva Aerobus (8.1 million). Source: El Economista (Newspaper).

Viva Aerobus During the crisis caused by the pandemic in 2020, the airline Viva Aerobus transported 8 million 122 thousand 815 passengers, despite the high rate of infections. The number of passengers who traveled in 2020 reflected a decrease of 32% compared to 2019, although it registered more than 1.1 million passengers.

It is worth mentioning that during the past year it became the first operator on the American continent to resume 100% of its operational capacity, however several months after the flights were reduced.

Source: Debate.com.mx (News Site).

Aeromexico The Mexican airline remains on the path of restructuring its debts calculated at around 5,000 million dollars, including financial debt, plus aircraft rentals. Practically at the last minute of the deadline, the Mexican flag carrier managed to restructure the collective bargaining agreements with the flight attendants and pilots’ unions. Based upon the savings package represented by the renegotiation of labor contracts, which at least in the case of pilots will represent an amount of $ 350 million dollars, they will have access to the complete financing package for 1 billion dollars that they agreed with the Apollo Investment Fund and of which it has pending about 700 million dollars.

Source: El Financiero (Newspaper).

International Flights and Frequencies Status

(January 4 – February 4)

American Airlines

,

M on (2), (2), Tue Th u W e d (2 ) ( Sat 2), Fri ( , (2), 2), Su n (2)

M (5 on ( Th ), W 5) Sa u (5 e d , Tu e t ( ), 5) Fr (5), ,S i( un 5), (5 )

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Fr

Sa nA

ng

el

as

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eg

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Viva

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M ex ico Ci ty

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to n

De n v

er

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M on (2 (2), W ), Tue Thu ( ed (2), 2) Sat (2 , Fri (2), ), Su n (2)

M ex

ico C

i ty

M on at, hu, S T , e Tu Su n

N

o rk ew Y

te rre

y

H ou

s to n

M on (2), W (2), Tue (2), F ed, Thu ri ( 2 ) Sun , Sat, (2)

at, F ri , S Su n

Tue, Wed, Thu, Fri, Sun

Th u ,

n gel e Lo s A F ri , S a S u n t,

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Th u ,

Dallas

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San F

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Ch

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San

Jo Ca s e d e bo l

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M ( o Th 3), n (3 Sa u ( W e ), T t ( 3) d ue 3) , F (3 , S ri ) , un (3) (3 , ) H

Mo (2) n (2) Th , W e , Tu e u Sat (2), d (2) (2) Fri , , Su (2) n( , 2)

Mon (2 ), T (2), We ue d (2), Thu (2), Fr Sat (2), i (2), Sun (2) lphia

ri ,

ranci

,F

San F

ed

W Mo e n i ( d , T , Tu 2) h e Su , Sa u ( , n t 2), (2 (2 ) ),

,W

Guad

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te rre

Puerto Vallarta

on

to n

to

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M on

eles

M W on (2 e (2) d, T ), Tu , S hu e, at, , F S u ri n

M on , sco Wed, Tue, Th u ( F ri ( 2 2 ), Sat ), ( 2 ), Su n ( 2)

M

H ous

us

to n

Philade

y Ci t ico ex M am i Mi

Mon (3 ), T (3), We ue d (3), Thu (3), Fr Sat (3), i (3), Sun (3)

F ri

ue (2), T Mon d (2), e (2), W i (3), 2), Fr Thu ( , Sun (3) ) Sat (3

Ho e Tu , ), 3) , (4 d ( (5) ) o n e ri ( 5 M ), W ), F u n (4 (4 ), S u Th t (5 Sa

(2), , Tu e Mon hu (2), ,T Wed (2), Sun at S F ri ,

H ous

Ang

Viva Aerobus

United Airlines

M on (2 (2), W ), Tue Thu ( ed (2), 2) Sat (2 , Fri (2), ), Su n (2)

Da lla s

ue, M on, T hu, Fri, Wed, T un S Sat (2),

Mo (2) n (4) Th , W e , Tu e u Sat (4), d (2) (4) Fri , , Su (5) n( , 4)

un

Lo s

Mon (4), Tue (4), Wed (4), Thu (3), Fri (4), Sat (4), Sun (4)

, F ri u, n Th n , , Su Mo t (2) Sa

O rl a ndo

i, S

, ed W n , Su n

, , Tu e M o n Su n Th u ,

Mon, Thu, Fri, Sat, Sun

M on (2 F ri , S ) , T h u , at, S un

Fr

e Tu ), (5), ), 5 ( d 5 on e i ( ) M ), W ), Fr n (5 (5 (5 , Su u ) Th t (5 Sa

s lla Da

Phoenix

u,

Sa nJ o Ca s e bo de l

go ica

Th

Mo co cis

Ch

F ri ,

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M W on Sa e d , T , Tu e t (2 h u , ), S , F u n ri , (2)

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Ch

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ica go

ty

at tl

n, W

Qu e

Dallas

S f ro u sp th m e n d ro F e e ug b d 30 h A 10 pr

Va nc ou

ve

r

Mo

n tr

eal

Toronto

Ci

Se

l

Mo

ico Las V

Denver

ue Lo , T 2), ) 2 ( , ( ) on ed (2 M ), W , Fri n (2) (2 (2) Su u ), Th t (2 Sa

sA

e ng

les

CharlotteDouglas

Monterrey

Thu, Sat

s

un nc a C

Maz atla n

Miami

Tu e (2), 2), n o ( M ), Wed (2), ), Fri (2 ) 2 2 ( ( Th u ), Su n 2 ( t Sa

on

e Tu ), (3), ), 5 ( 5 on ed i ( ) M ), W ), Fr n (5 (3 (4 , Su u ) Th t (5 i Sa Tu e iam (7), 7), n M o ( M M on (7), (7), Thu t Wed i (7), Sa r F ) as (7), Sun (7 Dall (7),

Cozume

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y

Le

enix

llo

Mon, Tue, Fri, Sat, Sun

Dallas

M

Pari

Ph o

o si

n

Seul

k Yo r

rm

Houston

y

nded Suspe rch a until M 21 0 2 31,

a ar

Lo n d o

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kyo

nix

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j ala ad

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M (2 on ( ) Th , W 2) Sa u (2 e d , Tu e t ( ), 2) Fr (2), ,S i( un 2), (2 ) Da lla s

Ph

les

sco

sn o

Gu

Sacram

Ne w Dail

nci F ra

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

San

M on, W e d , Tu e , Fri, Sa t, Su n

Lo s A n g e

Sat go ica

F re

Su s f ro p e n d m e th r F e b d oug 10 h 30 Apr

hu, Ch

e, T Sat hu, F , S u ri , n

ily Da

n, T , ue ,T n o n Su M hu, T

Tu

Daily

Mo

Daily

S u sp e n d ed from Feb 8 through Apr 30

Aeroméxico

Source: Direct contact with Airlines

International Flights and Frequencies Status Th u , F S u n ri ,

n to

d

Ph

oe

nix

tlan

un u, S , Th M on as Veg

Mo Thu n, Tue Sat , Fri, , , Su M n on ,W Sa e d t, S , u n F ri ,

Tu e , io n to n

Po r

Las

us M (2 on ( ) Th , W 2) Sa u (2 e d , Tu e t ( ), 2) Fr (2), ,S i( un 2), (2 Ho )

Mon, Thu, Fri, Sat, Sun

Miami

to n

r H ous

nve

All flights to and from Mexico suspended until April 30th, 2021

e Tu ), ), (4 (4 4), on ed i ( ) M ), W ), Fr n (4 u (4 4 u ( ), S Th t (4 Sa

M o F r n ,W i, S e at d, T ,S h un i,

San Fra ncisco Mon, We d, Fri, Su n

Atlanta

s

De

Mo n Th u , W e d , , Sa t, S u n Mo n Sat , We , Su d , n

), Tue Mon (6 d (6), (6), We (6), F ri Thu (6), n (6) u S ), Sat (6

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

, Th u Sat, S , Fri, un

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

F ri

M on

r

ele

Da lla s

nve

ng

n

Mon (2), Tue (2), Wed (3), Thu (4), Fri (2), Sat (4), Sun (3)

Sat

, Th u S u n , F ri ,

De

Chicago

o

Su

do

n

Th u

Wed, Fri, Sat

Tu e

ica go

nt

ri ,

Ch

lan

,

sA

go ca hi

Da lla s

v er

n

Th u , Su

Or

F ri u, h T n, un Mo Sat, S

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Mexico City

les

o and

,F

De n

alif

on

H o u s to

Oakland

ily Da

M

San A

Los Angeles

me cra Sa

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d

Mo n Fri (2), , Sa Th t, S u , un

Mexico City

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Morelia

ele Lo s A n g

ri , d, F

ua sca lie

Fr

Or

Le o n

e, Calif

Chicago

ed, M on, W n Sat, Su

Denver

Tue, Sat

Ag

s

nix

San Jos

ele

a Chihuahu can Culia o ang Dur ca xa Oa

Ch i c ago

ica go

s

ng

ele

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F ri

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Ch

Sat

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Ch i

Lo

ri

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hu,

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at,

n, T

,S

Mo

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San Jose, Calif

ed

We

on

Delta Airlines Tu e (3), 3), ( M on Wed i (3), (3), Fr (3), (3) Th u ), Su n (3 Sat

Mon, Thu, Sat

Su n

Th u

W M

Daily

Volaris (January 4 – February 4)

All flights to and from Mexico suspended until April 30th, 2021

International Flights and Frequencies Update (January 4 – February 4)

100 90

94

80

New Flight Frequency Adjustment Suspended

70 60 50 40 30 20

20

10

0

0 Frequency Adjustment

New Flight

Suspended

Source: Direct contact with Airlines

Performance Competitive Index

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

1

Weighted Performance Indicators

1

Packages by Regional Packages – 15% Coverage (15%) Web Traffic (15%)

2

Social Media Campaigns – 15%

3

Distribution Channel Website Structural SEO––10% 10%

4

Product Product– 10% (10%)

8.4

5.3

Sales Strategies (10%)

5

Sales Strategies – 10%

6

SEO Segmentation SEO– 10% – 10%

7

Social Media Tools Social Media Campaign– 10% (10%)

# Packages (10%)

8

# International webinars Travel Window – 10% (10%)

9

Webinars by Regional Social Media Tools – 5% Coverage (5%)

10

# In kind social media Post Webinars – 5% (5%)

2

3

Travel Window (10%)

4.9

8

9

4.4

5.1

6

7

4.6

6.2

4

5

5.0

9.0

10

4.5

11

4.1

12

13

3.8

3.1

18

19

2.7

3.7

16

17

3.0

3.9

14

15

3.3

4.2

2.8

20

Source: Trade Media and TOs’, Wholesalers’, GDS’, OTAs’ Social Media & e-mailings Methodology: Sample 79 tourism companies; compound index based on 10,303 data

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

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

PE-TRA Operadora Mega Travel Viajes El Corte Inglés Viajes Fama JuliáTours Creatur Mundo Joven Travel Shop Geo Travel Travel Viajes Group Sierra Madre Operadora Imacop Punta del Este Viajes Intermex Prisma Operadora La Casa del Viaje Viajes Panorama Opesa Garin Mayorista Regio Operadora Record Vacations TravelInn Viaje y Punto Consolid Viajes Legrand Dream Destinations Nefertari Travel PriceTravel VICA Operadora Viajes Palacio

Jan 21 – Dec 20

Nov – Oct

Oct – Sep

6.8 8.4 6.2 6.2 5.3 5.1 5.0 5.0 4.9 4.6 4.5 4.4 4.4 4.2 4.1 3.9 3.9 3.8 3.8 3.8 3.7 3.7 3.3 3.1 3.0 3.0 2.8 2.7 2.7 2.7

4.9 6.5 6.8 3.4 4.8 4.0 6.3 5.4 2.8 5.6 4.1 6.0 3.9 3.8 2.9 4.7 5.3 2.8 3.1 3.4 3.7 2.9 5.9 4.4 5.6 2.0 2.9 3.7 2.9 3.9

4.2 7.3 5.7 3.1 4.3 3.9 6.9 5.4 3.0 5.3 4.9 3.6 4.2 3.9 4.3 4.4 4.2 3.3 2.8 3.8 3.1 3.1 6.2 4.9 3.8 2.5 4.0 4.2 3.1 4.0

Position Increase position Same position Decrease position

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

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

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

PE-TRA Operadora Mega Travel Viajes El Corte Inglés Viajes Fama JuliáTours Creatur Mundo Joven Travel Shop Geo Travel Travel Viajes Group Sierra Madre Operadora Imacop Punta del Este Viajes Intermex Prisma Operadora La Casa del Viaje Viajes Panorama Opesa Garin Mayorista Regio Operadora Record Vacations TravelInn Viaje y Punto Consolid Viajes Legrand Dream Destinations Nefertari Travel PriceTravel VICA Operadora Viajes Palacio

Jan – Dec 9.0 8.4 6.2 6.2 5.3 5.1 5.0 5.0 4.9 4.6 4.5 4.4 4.4 4.2 4.1 3.9 3.9 3.8 3.8 3.8 3.7 3.7 3.3 3.1 3.0 3.0 2.8 2.7 2.7 2.7

Nov – Oct Oct – Sep 4.9 6.5 6.8 3.4 4.8 4.0 6.3 5.4 2.8 5.6 4.1 6.0 3.9 3.8 2.9 4.7 5.3 2.8 3.1 3.4 3.7 2.9 5.9 4.4 5.6 2.0 2.9 3.7 2.9 3.9

4.2 7.3 5.7 3.1 4.3 3.9 6.9 5.4 3.0 5.3 4.9 3.6 4.2 3.9 4.3 4.4 4.2 3.3 2.8 3.8 3.1 3.1 6.2 4.9 3.8 2.5 4.0 4.2 3.1 4.0

Position Increase position Same position Decrease position

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

Packages

Region Offer by Tour Operator

SAMPLE: 409 packages

33%

3%

25% +

8%

2%

14%

15%

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

North America

2

Mega Travel – 19% Viajes El Corte Inglés – 14% Regio Operadora – 11% Viajes Intermex – 8% PriceTravel – 6% Euromundo – 4% Mundo Joven – 4% Prisma Operadora – 4% Sierra Madre Operadora – 4% Consolid – 3% Punta del Este – 3% Record Vacations – 3% Creatur – 2% Carmen Travel – 1% GoesGo – 1% Imacop – 1% JuliáTours – 1% Viajes Marplay – 1% Viajes Panorama – 1% PE-TRA – 1% Sevilla Sol – 1% Tac Tours – 1% Travel Shop – 1% Travel Viajes Group – 1% Viaje y Punto – 1% Viajes Fama – 1% Viajes Palacio – 1% Viajes Premier – 1%

• • • • • • • • • • • • • • • • • • •

Europe

3

Garin Mayorista – 23% PE-TRA – 19% Mega Tarvel – 9% Nefertari Travel – 8% Sierra Madre Operadora – 6% Travel Shop – 6% Viajes El Corte Inglés – 6% Viajes Palacio – 4% Mundo Joven – 3% Regio Operadora – 3% Creatur – 2% Travel Viajes Group – 2% Viaje y Punto – 2% Viajes Fama – 2% Geo Travel – 1% Imacop – 1% JuliáTours – 1% Opesa Mayorista – 1% Turismo Travel – 1%

6 • • • •

• • • • • • • • • • • • • • • • • • •

4 Middle East

South America JuliáTours– 12% Mega Travel – 10% Punta del Este – 10% Mundo Joven – 8% Viajes El Corte Inglés – 8% Sierra Madre Operadora – 6% Travel Shop – 6% Viajes Intermex – 6% VICA Operadora – 5% Viaje y Punto – 5% Viajes Fama – 5% Consolid – 3% Geo Travel – 3% Record Vacations – 3% Carmen Travel – 2% Creatur – 2% Imacop – 2% Oporto Mayorista – 2% PE-TRA – 2%

Asia Garin Mayoristas – 65% Mega Travel – 14% Viajes Fama – 14% Imacop – 7%

Mega Travel – 19% Nefertari Travel – 9% Prisma Operadora – 9% Sierra Madre Operadora – 9% Travel Viajes Group – 9% Creatur – 7% Mundo Joven – 7% Punta del Este – 5% Garin Mayorista – 4% JuliáTours – 4% Travel Shop – 4% Viajes El Corte Inglés – 4% Geo Travel – 2% VICA Operadora – 2% TourMundial – 2% Viaje y Punto – 2% Viajes Leonarwill – 2%

• • • • • • • • • • • • • • • • •

7 • • • • • • •

5

Caribbean and Central America

• • • • • • • • • • •

Viajes Fama – 28% Record Vacations – 12% Travel Shop – 12% Imacop – 9% JuliáTours – 9% Punta del Este – 8% Mega Travel – 6% Travel Viajes Group -6% Carmen Travel – 3% PE-TRA – 3% Regio Operadora – 3%

Africa y Oceania Viajes El Corte Inglés – 23% iUmira – 13% JuliáTours – 13% Viajes Legrand – 13% Sierra Madre Operadora – 13% Travel Viajes Group – 13% Viajes Intermex – 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 – 12% • • • • • • • •

National – 45%

USA – 43%

Mega Travel – 38% Viajes El Corte Inglés – 19% Consolid – 13% Viajes Marplay – 6% Mundo Joven – 6% PE-TRA – 6% Travel Shop – 6% Travel Viajes Group – 6%

• • • • • • • • • • • • • • • • • •

n=16

• • • • • • • • •

Mega Travel – 25% Viajes El Corte Inglés – 15% Regio Operadora – 10% Viajes Intermex – 9% Sierra Madre Operadora – 9% Record Vacations – 6% GoesGo – 3% JuliáTours – 3% Viajes Fama – 2% Carmen Travel – 2% Creatur – 2% Imacop – 2% PE-TRA – 2% Prisma Operadora – 2% Sevilla Sol – 2% Tac Tours – 2% Travel Viajes Group – 2% Viaje y Punto – 2%

PriceTravel – 13% Regio Operadora – 12% Viajes El Corte Inglés – 12% Euromundo – 10% Mundo Joven – 8% Mega Travel – 7% Prisma Operadora – 7% Punta del Este – 6% Viajes Intermex – 6%

• • • • • • • •

Consolid – 3% Creatur – 3% Viajes Palacio – 3% Imacop – 2% Viajes Panorama – 2% Sierra Madre – 2% Travel Shop – 2% Viajes Premier – 2%

n=60

n=58

% of Room Nights Offer by Region

• • • • • • •

36 %

45%

1-5 nights

1-10 nights

National – 39% North America – 29% South America – 16% Central America & Caribbean – 10% Middle East – 4% Asia – 1% Africa & Oceania – 1%

• • • • • • • •

Europe – 27% South America – 21% North America – 17% Middle East – 15% Central America & Caribbean – 11% Asia – 5% Africa & Oceania – 3% National – 1%

11%

6%

1-15 nights • • •

Europe – 60% Middle East – 34% Asia – 6%

1-20 nights • •

Europe – 83% Middle East – 17%

+ 20 nights = 2% (Europe – 57% Middle East 43%)

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 December 2020

Volaris

(Thousands)

3,768

Viva Aerobus

2,935

1,350 810

Despegar

448 219

PriceTravel

37% 35%

40%

51%

Ya Vas

96 39

59%

Mega Travel

78 43

45%

Travel Inn

50 39

23%

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

4,660

3,120 2,028

Aeromexico

34%

5,710

0

1,000

Source: www.similarweb.com

2,000

3,000

Total Visits

4,000

Real Visits

5,000

6,000

Bounce Rate

Travel Window

Room Nights Average by Season 75 packages 67 packages 38 packages 38 packages

Not Specific Date 7.5

Semana Santa 2021

Winter 2020 5.1

7

18% 16% 10 packages 9 packages

Summer – Fall 2021

16.2

2%

Winter 2020 – Summer 2021

6.3

2%

*Room nights average

9%

Summer 2021 12.6

9%

31 packages 29 packages 26 packages 24 packages 19 packages Open 18 packages Spring Winter 2020 – Spring – 2021 redemption Spring – 2021 Spring 2021 Fall 2021 date Winter 2021 5.6

8%

6.4

6.8

7%

6%

10.8

6%

4.9

5%

10

3%

8 packages

8 packages 7 packages 6 packages 3 packages 3 packages Spring 2021 – Winter 2021 – Winter 2020 Fall 2021 Spring 2022 Spring 2022 2022 Winter 2021 Fall 2021 8.2

2%

12.1

2%

9.7

2%

11.8

1%

10

1%

6.3

1%

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 (Monthly)

Viajes Viajes PalacioPalacio Viajes El Inglés Corte Inglés Viajes El Corte PriceTravel PriceTravel LASENLASEN TravelTravel Viva Aerobus Viva Aerobus Operadora PE-TRAPE-TRA Operadora

Interest Free Installments

Creatur Creatur VolarisVolaris y Punto Viaje yViaje Punto

Non-cost changes/Cancellation Special rates

Travel Travel Viajes Viajes Sierra Madre Sierra Madre

Special exchange rate

Operadora PrismaPrisma Operadora OpesaOpesa

Changes and cancellations facilities

MundoMundo Joven Joven Despegar Despegar Ya VasYa Vas

Discount off 2x1

Vica Operadora Vica Operadora Leonarwill Viajes Viajes Leonarwill

Payment Facilities Free nights

Travel Travel Shop Shop Regio Operadora Regio Operadora

2 passenger with special rate/discount-off

Vacations RecordRecord Vacations Oitsa Oitsa

Free kids

Nefertari Nefertari JuliáTours JuliáTours Imacop Imacop

Commision Others

Goesgo Goesgo Geo Travel Geo Travel Garin Mayorista Garin Mayorista Euromundo Euromundo 0

0 0.5

0.5

1

1

1.5 1.5

22

2.52.5

3

3 3.5

3.54

4.5 4

4.5

Sample: 61 promotions 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 Comparative Periods 16 14 12 10 8 6 4 2

No nco st

on Co m m

Sp ec ial

ch an ge

isi

ra te

lat io n

ex ch an ge

Sp ec ial

Fr ee

an d

Ch an ge s

w ge r 2

pa s

se n

s/ Ca nc el

ra te s

Ot he rs

ni gh ts

s cil iti e fa

ca nc el

at e/ lr sp ec ia ith

lat io ns

di sc ou nt -o ff

2x 1

ds Fr ee

ki

tie s en tF ac ili

Pa ym

lm en ts eI ns ta l

In te r

es t

Fr e

Di sc ou nt of f

0

Jul-Aug

Aug-Sep

Sep-Oct

Oct-Nov

Dec 20-Jan 21

Disney

Dream Destina tions Walt D isney World

Fam a

Via jes Disn ey

Jap an

Ar ge So nt ina ut h Am II er ica

Delh i II

De lhi I

l pa Ne

any rm Ge

Pa ra da ise C

PETRA

Fr en ch

oles Nap

Ital y

an Jap

ia rn fo i l Ca

Alberta

s ur o T liá Ju

oa st

Q. R oo

La Ca Vi sa d aje e l

Artic, Antartic

l Mega Trave te del Es a t n u Rep P n nican elIn Domi Trav O ndo JNT Orla Egypt

, Kenya nia Tanza

• Tamaulipas • San Luis • Zacatecas

Varana si

Uruguay

Creatur

o xic M e i ty C

• Chihuahua • Coahuila • Nuevo Leon

• Queretaro • State of Mexico

Colombia

Greece

Monterrey – 1

• Mexico City • Morelos • Puebla

Brand U SA

Opesa

Mexico City – 36

• Michoacan • Nayarit • Sinaloa

aI ric e Am th u So ada Can eums s Mu 2 USA

USA

82%

Guadalajara – 7

• • • •

Monterrey 2%

• Quintana Roo • Yucatan

Le Grand

Cancun – 3

• Campeche • Chiapas • Tabasco

16 %

Abie ga

a ja r

• Queretaro • San Luis Potosi

l

a la

• Aguascalientes • Guanajuato

oT rav e

ad

Bajio - 0

p Imaco

Ge

Gu

Cal ifor nia

Hawaii, Alaska

Aguascalientes Colima Guanajuato Jalisco

nd n/Finla

Qu ito

Fran ce

Geographical Reach

jes Via ama or Pan

y Ci t

a a ism or Pr rad e Op

ico ex

o sc i l Ja

Headquarters/ No. Webinars 44

ona Ariz

tish Bri mbia lu Co

ba Cu

M

n

ala em at Gu

Leon Nvo.

jio Ba

gio Re

Aspen, Tahoe, Vail

S we d e

Tour Operators Webinars by Region

Khajurao

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

Tole do Cz e ch rep ubl ic Mo ng oli a

M ar ke ts

Source: Facebook and e-mailing

9%

14%

5%

9%

12% 13%

2%3% 33% 3 3

0

Mundo Cruceros Nefertari Oitsa Pema Tours Sierra Madre

1 1 1 1 1 1 1

Voiash

1

Viva Aerobus

1

Viajes Premier

1

Viajes Palacio

1

Viajes Leonarwill

1

Viajes Intermex

1

Valero Viajes

1

La Casa del Viaje

2

Grupo Travel

2

Goesgo

3

Operadora 365

PriceTravel

3

JuliáTours

4

Carmen Travel

4

Abiega Operadora

4

Travel Shop

5

LASEN Travel

5

iUmira

6

Mega Travel

6

Dream Destinations

7

Legrand

56

La Tienda del Viaje

7

Record Vacations

8

Navitur

9

Viajes Fama

10

Viajes Panorama

11

Imacop

12

Creatur

13

Punta del Este

14

Viajes El Corte Inglés

14

Viaje y Punto

15

Despegar

15

Viajes Marplay

20

Consolid

21

Mexico Kanko

20

Contravel

Mundomex

30

Aeromexico

38

Travel Point

Travel Viajes Group

40

Mundo Joven

Garin Mayorista

In Kind Trade Social Media Destination Campaigns

60

Sample: 454 posts

50

38 34

27

20

11

Source: Facebook and Instagram

In Kind Trade Social Media Destination Campaigns Europe

USA

Asia

South America

Central America & Caribbean

Canada

Middle East

Multi Region

Antarctic, Africa & Oceania

% Post by Region

Source: Facebook and Instagram

South America

Cruises Product

Norwegian Holland

Mediterranean

Princess MSC Regent Norwegian Celebrity Norwegian

Europe

Silverseas Royal Caribbean Regent Celebrity

Caribbean

Norwegian Royal Caribbean

Bahama Bahamas Asia s Baltic

Celebrity Princess Disney Cruise Line Norwegian

Alaska

Royal Caribbean Norwegian Celebrity

Sample: 44 packages

0 Operadora 365

1

2 Creatur Viajes

3

4 5 Mundo Cruceros

Pema Tours

Viajes El Corte Inglés

Vica Operadora

Viajes Palacio

Viaje y Punto

Viajes Marplay

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

6

Methodology • Mexico´s Media Overview: Based upon the result of direct communication with the Media and monitoring of 1,527 clips 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 10,303 data from 79 companies (tour operators, OTAs, GDS, wholesalers and travel agencies) available in the cloud, gathered into 10 indicators. The index is built using Principal Component Analysis (PCA) and Parallel Analysis (PA). Each indicator has a specific average weighted based on the interest that our customers (tourism destinations) have in each topic. The data was processed using the statistical program Stata.16 • Mexico’s Performance Competitive Index Comparative : Comparative performance of top 20 companies vs. previous periods.

• Packages, North America Offer by Tour Operator, % of Room Nights Offer by Region: Review of 409 international travel packages 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.

• 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 ("bounce") rather than continuing to view other pages within the same site.

• Travel Window: Review of 409 international travel packages 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 43 webinars and virtual tours of international destinations published in e-mailings and social media of tour operators, wholesalers and airlines.

• Sales Strategies: Compilation of 61 of promotions to international destinations and Mexican beaches published in trade media, e-mailing and social media of companies.

• In Kind Trade Social Media Destination Campaigns: 454 posts published on Facebook and Instagram • Cruises Product: Compilation of 44 cruise packages published in trade media, e-mailing and social media of the companies.

www.adnova.com.mx

@AdnovaComunicacion

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