Ad Nova Competitive Intelligence Report No. 4 / July 03, 2020

Ad Nova Competitive Intelligence Report Mexico’s International Tourism Industry No. 4 / July 03, 2020

World’s Economic Outlook WORLD PRODUCT

5.4

6.0 4.0

2.9

2.0 0.0 -2.0

2019

2020

2021

-4.0 -6.0

-4.9

WORLD ECONOMIC OUTLOOK GROWTH PROJECTIONS REAL GDP, ANNUAL % CHANGE

10.0

5.0

0.0

-5.0

-10.0

-15.0

2019 2020 2021

UNITED STATES 2.3 -8.0 4.5

CANADA

MEXICO

BRAZIL

1.7 -8.4 4.9

-3.0 -10.5 3.3

1.1 -9.1 3.6

ARGENTIN A -2.2 -9.9 4.4

ARGENTINA COLOMBIA

3.3 -2.4 3.7

CHILE 1.1 -4.5 5.3

UNITED GERMANY KINGDOM 1.4 0.6 -10.2 -7.8 6.3 5.4

FRANCE

ITALY

SPAIN

JAPAN

1.5 -12.5 7.3

0.3 -12.8 6.3

2.0 -12.8 6.3

0.7 -5.8 2.4

Source: International Monetary Fund, World Economic Outlook June 2020.

Mexico’s Economic Outlook Exchange Rate (USD) In May, 2020 the National Consumer Price Index (INPC) grew up 0.38 percent compared to the previous month.

Monthly May 2020 0.38 %

Accumulated Jan-May 2020 0.22 %

Annual 2020 2.84 %

Source: National Institute of Statistic and Geography INEGI.

The National Consumer Price General Index

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

July 3, 2020 Target Rate 5.00

Interbank Equilibrium Interest Rate 1 Day 5.05

28 Days 5.26

91 Days 5.23

01/07/2020 $22.80 ppd

02/07/2020 $22.52 ppd

03/07/2020 $22.41 ppd

182 Days 5.05

Source: Bank of Mexico.

Representative Interest Rate Annual Percent

So far this year, the peso / dollar exchange rate reports an average level of $ 22.29 ppd and an accumulate loss of $ 4.07 pesos per dollar ( 21.56%).

Mexico’s Government Updates

01

On June 29, the Official Gazette of the Federation published the Decree Promulgating the Protocol Replacing the North American Free Trade Agreement (NAFTA) with the Agreement between Mexico, the United States and Canada (T-MEC ).

02

On June 29, the Senate approved the Federal Law for the Protection of Industrial Property; the first of the package of five laws that are modified for the implementation of the T-MEC.

03

Among the various benefits that T-MEC generates for Mexico are: 1.- Facilitating trade in goods and services by preventing, identifying, and removing unnecessary technical barriers to international trade, improving transparency, and promoting good regulatory practice.

2.- New trade provisions that ensure greater transparency and certainty in the application of non-tariff measures that avoid trade restrictions.

3.- Promote the growth of digital commerce and strengthen consumer data protection.

4.- Adapt the agreement to the evolution of the telecommunications sector, optimizing the infrastructure and free market conditions necessary to encourage its future development.

5.- Greater access to financial services and more opportunities for Mexican financial institutions in the region's markets.

04

The Supreme Court of Justice of the Nation (SCJN) granted the suspension requested by the Federal Commission on Economic Competition (COFECE) against the Agreement that issues the Policy of Reliability, Safety, Continuity and Quality in the National Electric System, published by the Ministry of Energy (SENER) last May.

05

The Spanish company Iberdrola cancelled an investment of $ 1,200 million dollars for the construction of a thermoelectric plant in Tuxpan Veracrúz, after the Federal Electricity Commission (CFE) did not authorize the supply of gas that the plant needed to function.

The Government of Mexico will assume the investment of a combined cycle plant.

06

For the week of June 29, Mexico City managed to reduce the hospital occupancy rate and moved to a new phase at the Orange Epidemiological Alert Traffic Light, which will allow the vast majority of businesses to reopen gradually and reactivate an important part of the service sector

COVID-19 confirmed cases 245,251 July 3, 2020

Active

26,063

Suspicious

77,750

Recovered

147,205

Deaths

29,843

Death Incidence Rate

12.16%

Reopening of Activities Calendar / Mexico City June 29

Retail, sports clubs, and individual outdoor activities

June 30

Historic Downtown with special program

July 1

Restaurants and hotels at 30 - 40% of capacity

July 2

Tianguis, street markets and bazaars

July 3

Beauty parlor and hair salons with appointments

July 6

Department stores and shopping malls

Source: Main National Newspapers (El Economista, El Financiero, Excélsior, Milenio, Reforma, Universal)

Travel Industry Updates The OTA Despegar, has detected through an analysis among its main clients the 5 new travel trends for the short and mid term in domestic tourism, which are: road trips, beaches and magical towns, outdoor activities, short stay trips and tourist services with sanitary measures. Source: Pasillo Turístico (Trade Media).

PriceTravel Holding is preparing for the revival of the tourism sector, confirming that it has obtained the Safe Travels Stamp granted by the World Travel and Tourism Council WTTC. With this, it confirms that it has all the hygiene and sanitation protocols established by the body. Source: Invertour (Trade Media).

The prompt recovery of the tourism sector and the countries economies will depend on the coordination of public-private actions, the approval of health protocols and the support provided by the authorities to the industry, said Gloria Guevara Manzo, President and CEO of the World Travel and Tourism Council WTTC. Therefore, WTTC promotes global protocols in the different sectors of the travel and tourism industry: hospitality, outdoor shopping, airports, airlines, tour operators, restaurants, cruises, car rentals and recreational parks, among others. Source: WTTC. According to the latest study by the World Tourism Organization, the eruption of Covid-19 is causing unprecedented damage to the industry. The entity calculates that the losses are around $ 195 billion USD, and that last April the movement of travelers in the world contracted 97%.

Source: Ladevi (Trade Media).

The National Tourism Business Council (CNET) and the Anáhuac Tourism Research and Competitiveness Center (CICOTUR) delivered the “Legislative Package to Address the Emergency in the Tourism Sector #SOSTourism” to the Tourism Commissions of the Chambers of Deputies and Senators. This document contains a list of 15 proposals that would contribute to the rescue of the tourism industry in this deep crisis. Source: Ladevi (Trade Media).

Competitive Destinations

Destinations that are opening to receive international tourism In South Korea, although the borders are not closed, foreigners are required to maintain 14 days of quarantine upon arrival in the country, so any trip or stay in this Asian country must take into consideration these two weeks in confinement.

Source: La Vanguardia (Newspaper).

Universal Studios, the Island of Adventure and the Volcano Bay in Florida received visitors again after three months closed as a result of the pandemic. The new normality requires the use of masks, social distance and virtual shopping. Source: infobae.com (Digital Media).

Disneyland Resort had announced a proposed phased reopening of their theme parks for July 17.

The State of California has now indicated that it will not issue theme park reopening guidelines until sometime after July 4th. Therefore the company has no choice but to delay the reopening of their theme parks and resort hotels until they receive the official approval form the State Government. Only the Downtown Disney District will reopen in July 9th as announced with the safety and health protocols in place for cast members and quest. Source: Disney parks News Twitter

Starting on July 1, the European Union reopened its borders to 15 countries and maintains the veto to 150 countries, including the United States, Brazil, Russia and Mexico. Source: El País (Newspaper).

Italy withdraws from the general European Union opening of borders that is taking place around the continent and maintains rigid measures such as the quarantine of 14 days upon arrival to the country and the health surveillance of all tourists from countries outside the Schengen area.

Source: Invertour (Trade Media).

On June 21, the Minister of Tourism, Caroline Proul presented Bonjour Québec, which is the evolution of QuébecOriginal, representing an invitation to discover various attractions, when the time is right. The minister pointed out that although it is not yet possible to travel freely, it is time to reconnect with Québec with a simple gesture: Bonjour! Source: Invertour (Trade Media).

Destination British Columbia was one of the sponsors of the Canada Day Virtual Celebrations. During the event the DMO had a special mention of the Canada Ambassador in Mexico, Mr. Graeme C. Clark, during his welcome and farewell speeches. Also an exclusive tab for BC was featured where attendees were able to see 2 different destination videos. Source: Canada Embassy in Mexico

Airlines Update Viva Aerobus

Interjet

Aeromexico

It increases its offer of international routes to Chicago, Houston, Los Angeles, New York (JFK) and San Antonio for June and July according to current demand and connectivity needs from Mexico. In the first week of July, it will reactivate the Mexico City - New York [JFK] routes (Thursday and Sunday), Guadalajara - Houston (Monday and Friday) and Guadalajara – Chicago. Source: Pasillo Turistico (Trade Media).

The airline lowered its operations by up to 95%, so it maintained in these months flights to very few cities or destinations, however its plan to return to all the cities or destinations that flew starting gradually from July 1, 2020. Source: Pasillo Turistico (Trade Media).

Grupo Aeromexico S.A.B. de C.V (“Aeromexico” or the “Company”) (BMV: AEROMEX) announced today that it and certain of its affiliates have filed voluntary Chapter 11 petitions in the United States to implement a financial restructuring while continuing to serve customers. The Company intends to use the Chapter 11 process to strengthen its financial position and implement necessary operational changes to address the impact of the ongoing COVID-19 pandemic and create a sustainable platform for the future.

Source: Airline Press Release.

Volaris Volaris announced the opening of five new routes that come to strengthen the offer of the 74 routes it offers in Mexico. They will start operating between July and October 2020, originating in Mexico City and destined for cities in the Gulf and the north of the country.

Source: Pasillo Turistico (Trade Media).

The airline proposed to charge the Covid-19 test in the price of tickets, since they have been evaluating the possibility of being able to provide it to their customers.

The way, as they mention it, would be through IATA, recommending that the agency put the cost on flight tickets, which the passengers themselves would have to pay as if it were another tax, but IATA did not approved.

Source: Ladevi (Newspaper).

KLM / Air France

The group supported its travelers at all times, since it did not suspend services between Europe and Mexico. So from July 6, 2020 it will increase its flights to 7 weekly between Mexico and France, just as it originally did. It is important to mention that resuming the usual service will depend on the lifting or extension of the current travel restrictions. Source: Invertour (Trade Media).

Air Canada Announced the indefinite suspension of 30 domestic regional routes in Canada, as well as the closure of eight stations at regional airports. This measure is part of a larger group of procedures to reduce the impact of covid-19 worldwide. In the first quarter of 2020, Air Canada reported a net loss of C $ 1.05 billion, including $ 688 million in March alone.. Source: Aerolatinnews (News Site).

Aeroméxico has closed a deal for the $ 100 million USD loan to come from PLM Premier, the operator of its loyalty club Club Premier. The airline noted that an additional advance of $ 50 million USD was made, which is in addition to a previous transaction for the same amount. As part of the agreements of this capital injection, the airline agreed with the Club Premier operator a 30-year extension in the contract to expand and strengthen the loyalty program. Source: Aerolatinnews (News Site).

American Airlines The airline said it expects to raise around $ 2 billion through an equity offering and the sale of debt to boost its bottom line, to deal with weak travel demand for the coronavirus crisis. The airline plans to offer 74.1 million ordinary shares at $ 13.50 each, a price that represents a 15.6% discount compared to the closing on Friday, June 19. Source: Pasillo Turistico (Trade Media).

IATA

(IATA) rated Mexico as “one of the region's airport leaders”, both AICM and all airport groups have worked closely and jointly to help reduce additional costs for airlines, however it is mentioned that the only one pending is ASUR, an airport group that maintains the primary airport of Cancun. Source: Pasillo Turístico (Trade Media).

INTERNATIONAL AIR PASSENGER TRAFFIC BY MAIN AIRPORTS (thousand)

12,354.5

-47.3 -40.1 -45.2 -36.6 -44.9 -46.1 -45.0 -34.7 -38.1 -48.3 -33.7

-9,718.6

Jan-May 2019 vs Jan-May 2020

-44%

-44.0

Top ten airports by international air passenger traffic Jan-May 19 vs Jan-May 20 (thousand)

Source: SCT, SST, AFAC, DDE. Information provided by the airports group. / Note: Transit and general aviation passenger traffice are not considered.

1,317 873

137 71 Querétaro

Others Otros/Others

169 105 Morelia

Aguascalientes

79 52

2020

1,542 847 San Jose del Cabo

San Jose Del Cabo

537 289 Monterrey

2019

285 157

3,689

6,996

8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0

Ciudad De Mexico City México/…

27 1.8 Querétaro

167 7.2

35 1.9 Morelia

Others Otros/Others

18 2.0 Aguascalientes

2.6

289 San Jose del Cabo

119 3.1 Monterrey

56 5.0 Bajio

197 5.1 Puerto Vallarta

2020

San Jose Del Cabo

1,327 7.4 Cancun

368 30.7 Guadalajara

51.5

2019

% var

-3,306.6 -680.6 -3,429.5 -630.5 -127.8 -247.4 -694.7 -27.4 -64.6 -66.2 -443.4

Bajio

22,073.1

var

3,689.3 1,014.5 4,165.5 1,090.7 156.7 289.4 847.4 51.7 104.9 70.8 873.5

1,721 1,091

-97.1

Jan-May 20

Puerto Vallarta

-3,943.3

6,995.9 1,695.1 7,594.9 1,721.2 284.6 536.8 1,542.1 79.2 169.4 137.0 1,316.9

4,165

118.3

Jan-May 19

-96.5 -91.7 -99.4 -97.4 -91.0 -97.4 -99.1 -89.1 -94.4 -93.4 -95.7

7,595

% var

-1,407.0 -337.3 -1,319.7 -191.6 -51.1 -116.4 -286.4 -16.2 -32.8 -25.2 -159.6

Top ten airports by international air passenger traffic May 19 vs May 20 (thousand)

México/…

CiudadCity De Mexico

1,600 1,400 1,200 1,000 800 600 400 200 0

var

51.5 30.7 7.4 5.1 5.0 3.1 2.6 2.0 1.9 1.8 7.2

4,061.6

1,458

Total

May 20

Cancun

1,458.5 368.0 1,327.0 196.7 56.1 119.5 289.0 18.2 34.7 27.0 166.8

1,695 1,015

May 19

Guadalajara

Top 10

Mexico City Guadalajara Cancun Puerto Vallarta Bajio Monterrey San Jose del Cabo Aguascalientes Morelia Queretaro Others

llarta Los Angeles

Dallas

Charlotte -Douglas

Puerto Va

Guad alaja

ra

l

Coz um e

s

Phoen ix

Daily

Daily

Daily

Daily

June 1

June 1

1

Jul

1

June 1

Ju ne 22

Ju ly

1 Ju ly 4t

im

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2t

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2d

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N/

N/

A

Aug ust 1

A

Au gus t1

A

Au gu st

A

ily

Au gu st

Au gu st

Ju ne 1

1

1

1

1

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N/

Aug ust 1

1

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N/ A

1

1 ne Ju

Da i l y

Da i l

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me

July

1 ne Ju

1 ti

N/ A

tr o it

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1

July 1

1 ne Ju

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Da

July 1

Da i l y

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N/

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June

June

June 1

June 1

June 1

June 1

June

Daily

y

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Yor

July 1

Daily

es

Da

Daily

ago

e

Da

August 1

im

im

a ily

Jun e1

N/A

y

Jun e1

July 1

San Francisco

e

Da

July 1

August 1

im

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Da l l a

as

Dou gla s

Cha

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Da l l

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3 times

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Da

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2 time

3d

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2 daily

Ju ne 1

De

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Ju ne 1

ago

Da

Da l l

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Miami

Los Angeles

1 ne Ju

Dallas

1 ne Ju

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36% M

s

Da

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s

Da

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s

Da ily

5 ti m

1

N/A

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Da

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Mexico City

P

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ix en ho

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Ca

D

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la s

34%

Los

July

N/ A

Salt Lake City

N ew

ey

Qu er e B a ta r o jio

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1 ust Aug

N/ A

as

Chic

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Da

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Sacramento

nJ

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1 ust Aug

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Fresn o

o Baji hua hua o i h C g r a n llo Du osi r m lc o e H n a tu Hu atla az ida M er M

lla

D

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Austin

s

on te or rrey Qu el i a e Sa n L r e ta ro uis Tor Poto r eo si n

s

Da l l

N/

Ba rce

ra

1

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Los Ang eles

s

Da l l a

Agua

y

Amsterdam

M

nd

ente s c a li

a il

on nd Lo l es ge n sA s Lo ga Ve s a L on ust Ho ve r De n

21%

lla

Portla

Da i l

rid ad

Guadalaja

Ontario

Da i l y

m

ia M

ty Ci

6%

lajara

st gu Au 2d

Da l l

Seattle

s

al

M

on tre

Ne

w

Yo rk

la n do

is Pa r

ex ico M

2%

lia

1

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jara

jio

San Jose

5 time

y

4t

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3t oni o

Ant

Or

City

a dal

Mexico City

Mexico

y terre Mon

Gua

ca Ba

Guada

Sacramento

3 times

es

im

6 ti

es

me

s

N/ A

N/ A is c o Fran c

Sa n

Sa n

tl e Se a t

Seul

Tokyo

Toronto

Vancouver

Toronto

Vancouver

rk N e w Yo

on

nio Anto

Houst

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Za or e

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s 2 time

s

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1

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Oakland

4 times

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July

6

Aug ust 1

Octo ber 1

July 1

July 1

June 22 2 times

2 times

3 times

Daily

2 times

2 times

4 time

2 ti m

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s

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M

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6 times

J

go

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July 1

1 June

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Ch ic a

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July 1

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Fre s

lot

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De

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Ch ic a

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June 15

ic a Ch

Ch ar

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ily

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2 ti

Da

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2 dail

July 1

me

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im

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June 1

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2t

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July

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2t 5t

Jul

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Jul

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June 3

3

1

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6 June 2

July

July

July

6 e2 Jun

Jul

ly Ju st gu Au ly Ju Ju ly

June 15

International Weekly Flights’ Status

Source: Direct contact with Airlines

Performance Competitive Index Mexico’s International Tourism Industry (Airlines, TO, Wholesalers, GDS, OTAS) 1

2

3

5.7

4

5

5.4

4.6

3.7

18

19

3.6

3.8

16

17

3.6

4.0

14

15

3.7

4.0

12

13

3.8

4.2

10

11

4.0

5.4

8

9

4.2

5.6

6

7

20

1

Regional Presence

2

Sales Strategies

3

Webinars

4

Packages

6.2

3.6

Weighted Performance Indicators

7.0

7.7

5 6

(10%)

(5%)

(5%)

(15%)

Travel Window (10%)

Product (10%)

7

Distribution Channel

8

Social Media Campaigns

9

Social Media Tools

10

(10%)

(10%)

(10%)

# Posts (15%) Source: Social Media, Trade Media, e-mailings Methodology: Sample 68 tourism companies; compound index based on 3,758 data

Bi-Weekly Index Comparative June 1-15

June 16-30 10.0

1.Mega Travel 2.Mundo Joven

1.Mega Travel 2.Viajes El Corte Inglés

3.Viajes El Corte Inglés 4.Aeromexico 5.Viaje y Punto 6.PETRA Operadora

3.Viaje y Punto 4.Mundo Joven 5.Aeromexico 6.PETRA Operadora

7.Travel Point 8.Travel Shop 9.Julia Tours

7.Prego Viajes 8.Travel Point 9.Despegar

10. Travel Viajes Group 11. Viajes Marplay 12.Volaris

10.Travel Shop 11.Consolid 12.Imacop

13.Abiega Operadora 14.Prego Viajes 15.PriceTravel

13.Travel Impressions 14.Panorama 15.Travel Viajes Group

16.Euromundo 17.Imacop 18.GoesGo 19.Prisma Operadora

16.Euromundo 17.Prisma Operadora 18.PriceTravel 19.Sierra Madre

20.Travel Impressions

20. Volaris

9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0

M eg Vi M a Tr aje u n av s E do el l C Jo or v e te n Ae In g ro lés Vi m e PE aje xic TR y o P A Op un t er o Tr ado av el ra Tr Po av int el Tr av Ju Sho el l i a p T Vi aj ou e Vi s G r s aje r s M oup ar pl Ab a ie g a Vo y Op l a r e is Pr rad eg o r a o Vi Pr aj ice es Eu Tra ro vel m un Im do ac Pr ism G o p o Tr a O esG av pe O el r Im ado pr r es a sio De ns sp eg Co ar n Pa solid n Sie o ra m rr aM a ad re

0.0

June 1-15

Source: Social Media, Trade Media, e-mailings Methodology: Sample 68 tourism companies; compound index based on 3,758 data

Region Offer by Tour Operator 1 • • • • • • • • • • • • • • • • • • • • • • • • • • •

North America Mega Travel – 25% Viajes El Corte Inglés – 9% Contravel – 8% Record Operadora – 6% Ya Vas – 6% PriceTravel – 5% Euromundo – 4% Despegar – 3% Interjet Vacations – 3% Target – 3% Viaje y Punto – 3% Consolid – 2% Imacop – 2% PETRA– 2% Prego – 2% Regio Operadora -2% ServiceTour – 2% TourMundial – 2% Travel Shop – 2% Voiash – 2% La Tienda del Viaje – 1% Mundo Joven – 1% Prisma Operadora – 1% Punta del Este – 1% Sevilla Sol – 1% 6 Sierra Madre – 1% Travel Viajes – 1% • • •

June 16-30

Total: 235 packages

40% 15%

1%

3%

4 Middle East 5 Asia

Caribe and Central America Punta del Este – 67% PETRA – 17% Record Vacations – 7%

• •

Mega Travel – 50% Viajes Fama – 50%

• • • • • • • • • •

South America

• • • • • • • • • •

Mega Travel – 41% Punta del Este – 15% Prisma Operadora – 12% Consolid – 8% Viaje y Punto – 6% Viajes El Corte Inglés – 6% Nefertari – 3% PETRA – 3% Travel Viajes Group – 3% Viajes Fama – 3%

3

14% 14%

2

Mega Travel – 29% Prisma Operadora – 24% Nefertari – 21% Mundo Joven – 6% Punta del Este – 6% Garin – 3% PETRA – 3% Prego – 3% Viaje y Punto – 3% VICA – 3%

• • • • • • • • • •

Europe Mega Travel – 39% PETRA – 16% Garin Mayorista – 9% Mundo Joven – 9% Travel Shop – 9% Sierra Madre – 6% Nefertari – 3% Opesa – 3% Viaje y Punto – 3% Viajes Fama – 3%

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

North America Offer by Tour Operator

USA – 23%

Canada – 13% • • • • •

• • • • • •

Mega Travel – 50% Contravel – 25% Prego – 13% Mundo Joven – 6% PETRA – 6%

Mega Travel – 29% Record Vacations – 29% Target – 14% ServiceTour – 11% Viajes El Corte Inglés – 11% Despegar – 6%

Room Nights Average by Travel Window and Season

National – 64% • • • • • • • • • • •

Mega Travel – 19% Viajes El Corte Inglés – 10% Ya Vas – 10% Contravel – 8% PriceTravel – 8% Euromundo – 6% Interjet Vacations – 5% Viajes El Corte Inglés – 5% Consolid – 4% Regio Operadora – 4% Despegar – 3%

• • • • • • • • • • •

Imacop – 3% PETRA – 3% TourMundial – 3% Travel Shop – 3% Voiash – 3% La Tienda del Viaje – 1% Prisma Operadora – 1% Punta del Este – 1% Sevilla Sol – 1% Sierra Madre – 1% Travel Viajes Group – 1%

FALL-SPRING 3.8 2%

SUMMER-FALL

FALL-WINTER

WINTER-SPRING

3.4

6.9

N/A 0%

13%

2%

SUMMER 13%

FALL 21%

WINTER 14%

6

9

7

SPRING 3%

3% SUMMER-WINTER

NON-SPECIFIC DATE 13%

3.8

5.1

9.8

28% OPEN REDEMPTION DATE *Room Nights average

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

% of Room Nights Offer by Region

• • • • •

47 %

36%

1-5 nights

1-10 nights

National – 65% North America – 21% South America – 7% Middle East – 4 % Central America & Caribe –3%

• • • • • • •

10%

3%

1-15 nights

South America – 31% North America – 24% Middle East – 20% Europe – 18% Central America & Caribe – 4% National – 2% Asia – 1%

1-20 nights

Europe – 63% Middle East – 37%

• •

Europe – 67% Middle East – 33%

• •

*Not specific nights 3% (National) +20 nights 1% (Europe and Middle East)

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Tour Operators Webinars by Region

Brazil

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

Source: Facebook and e-mailing

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In Kind Trade Social Media Campaigns

Note: The missing 14% corresponds to the companies with less than 3 posts Source: Facebook and Instagram

In Kind Trade Social Media Campaigns # Posts by Company 30 24

25

20 16

16

15 11

10

10 6 5

3

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0

Source: Facebook and Instagram

Promotion’s Sales Strategies Ya Vas Interest-free monthly installments

Volaris Viva Aerobus

Non-cost changes

Viajes El Corte Inglés

Special rates

Viaje y Punto

Special exchange rates

Travel Shop

Discounts

System Operadora

2x1

Regio Operadora

Payment facilities

Prisma Operadora PriceTravel

Free nights

Nefertari

Others (e.g. Kids free and full refund)

Naturleon Mundo Joven Mega Travel Interjet Vacations Interjet Imacop Euromundo Despegar Consolid Aeromexico 0

1

2

3

4

5

6

Source: Trade media (Boletín Turístico, LADEVI, Pasillo Turístico, Publitur and Turitips) TO´s Facebook, e-mailing

Promotion’s Sales Strategies Others 7%

ts e fre en st- llm re sta te In ly in 1% th 3 on m

Free nights 11%

Payment facilities 9%

2x1 4%

Non -cos t cha 7% nges Discounts 15%

Special exchange rates 7%

tes al ra i c e Sp 9%

Source: Trade media (Boletín Turístico, LADEVI, Pasillo Turístico, Publitur and Turitips) TO´s Facebook, e-mailing

Travel Wish When would you travel at the end of the pandemic?

I NMEDI ATLY IMMEDIATELY

1-2 MONTHS

12%

33%

6 MONTHS

36%

1 YEAR

TOTAL RETURN I N 1 YEAR

DO NOT RETURN I N THE NEAR FUTURE

14%

95%

5%

Source: IATA Economics 2020, May-June passengers survey

Mexico´s Tourism Media Overview Trade Media When & How

VS Consumer Media Where & What Trade Media is focused in sharing dates and all the details for the destination reopenings while consumer media is focused in sharing the different destination options and experiences that travelers can enjoy while visiting a destination once it reopens.

Trade Media Content 32% 28% 26% 7% Tourism Destinations 6% Reopening Destination Attractions

Webinars

Tourism Economic Situation

Health Measures

Sample: 273 Hits Source: Trade Media (Pasillo Turístico, LADEVI, Publitur, Invertour, Réport Mexico, Travel Times, Tráfico Magazine, Travel News, Factor Meetings)

Destinations Reopening Content National Destinations TOP 3 • Mexican Caribbean • Los Cabos • Puerto Vallarta

67%

33%

International Destinations TOP 3 • Bahamas • Dubai • Walt Disney World Resort

Sample: 273 Hits Source: Trade Media (Pasillo Turístico, LADEVI, Publitur, Invertour, Réport Mexico, Travel Times, Tráfico Magazine, Travel News, Factor Meetings)

Destinations Reopening Content 13%

31%

10%

Destinations

46%

Hotels Entertainment Airline´s routes and flights

Sample: 273 Hits Source: Trade Media (Pasillo Turístico, LADEVI, Publitur, Invertour, Réport Mexico, Travel Times, Tráfico Magazine, Travel News, Factor Meetings)

Consumer Media Content 65% 3% Tourism Economic Situation

15% Tourism Health Measures

17% Destinations Reopening

Destinations Attractions

Sample: 65 hits Source: Consumer Media (Caras.com, Hola.com, Nat Geo Traveler LATAM, Milenio and Periódico Viaje).

Destination Attractions Content International Destinations TOP 3 • Europe • Florida • Indonesia

63%

37%

National Destinations TOP 3 • Mexican Caribbean • Los Cabos • Mexico City

Sample: 65 hits Source: Consumer Media (Caras.com, Hola.com, Nat Geo Traveler LATAM, Milenio and Periódico Viaje).

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