Page 1

2013 May June

usive l c x E ata d he on t stry! indu »Statistics Business Analytics,

Part 3 of 5: Competitive Advantage for Sales and Marketing Executives.

Digital »Industry

The Timeshare Industry


Hotel and Inn: Outlook on Business

Travel in Mexico

Publication of:

» Amdetur All Ready for the 27th Annual AMDETUR Convention!

» Enterprise Outlook on Growth in 2013

BOARD OF DIRECTORS CHAIRMAN Romárico D. Arroyo Marroquín Grupo Sunset EXECUTIVE Carlos Trujillo Balmaseda PRESIDENT Amdetur SecretarY Gerardo Rioseco Orihuela Fiesta Americana Vacation Club TREASURER Jaime Márquez Vargas Royal Holiday LEGAL Gerardo Freyre Fregoso DIRECTOR Vera y Carbajal COUNSELORS Juan Vela Ruiz / Grupo Velas Ricardo Montaudon Corry / RCI Juan Ignacio Rodríguez Liñero / RCI Kemil Rizk / Royal Resorts Marcos Agostini / Interval International Jorge Pallas Cáceres / Promotora Cancún Sunset Clubs Gustavo Ripol Bermúdez / Presidente Club de Viajes Francisco Aranda Bezaury / Club Real Resort Gibrán Chapur / Palace Resorts Jorge Herrera Rivadeneyra / Unlimited Vacation Club Director

2013 May June



All Ready for the 27th Annual AMDETUR Convention!

Our 27th Annual Convention, entitled “The New Era of Tourism Capitalizing Vacation Ownership Opportunities,” will take place on June 19, 20th and 21st at the Hotel Hilton Mexico City Reforma.



Outlook on Growth in 2013

Mexican business is optimistic, as reflected in a recent poll by KPMG entitled “Senior Management Outlook in Mexico 2013,” in which more than 600 executives share their growth estimates for this year. 75% of the group expect an economic growth of between 1% and 9%.

Rosa de Jesús Lugo Dorantes


Notitur CHAIRMAN Romárico D. Arroyo Marroquín Grupo Sunset executive Carlos Trujillo Balmaseda president Amdetur publisher Aurora Martínez V. DESIGN KEMCS Diseño y Marketing


TRANSLATION Elizabeth Collins Morrison Fotography Amdetur


If you would like to receive the digital version of Notitur, in English or Spanish, you can request it at: Or dowload it directly:

The Timeshare Industry

Our industry continues to face tremendous challenges today, where we find ourselves in an increasingly competitive market in which consumers have more tools than ever to satisfy their needs, making them more demanding clients.


Communication Between Innovators: One of the Biggest Challenges of Sustainable Coastal Tourism

84% of tourism marketers confirm that the preservation of the environment and local cultures are important criteria for consumers when choosing a destination.

José Mata / Cel. (04455) 1885 8581

ADVERTISING Aurora Martínez V. LOCAL ASSOCIATIONS Lic. Patricia de la Peña, Asociación de Clubes Vacacionales de Quintana Roo, A.C. / Lic. Alejandro Lemus Mateos, Asociación de Desarrolladores y Promotores Turísticos de Tiempo Compartido, A.C. (Puerto Vallarta) / Dr. Jorge Téllez Landín, Asociación Sudcaliforniana de Desarrolladores de Tiempo Compartido, A.C. / Ing. José Luis Centeno, Asociación de Promotores de Clubes Vacacionales del Estado de Guerrero, A.C. / Lic. Fernando de Leeuw Santiago, Asociación de Clubes Vacacionales de Cozumel, A.C. / C.P. Fernando Alaniz Cárdenas, Asociación de Clubes Vacacionales de Sinaloa, A.C. / Lic. Claudio Balderrama González, Asociación de Desarrolladores y Operadores Turísticos de Ixtapa y Zihuatanejo, A.C.






Fibra Hotel and FIBRA Inn Outlook on Business Travel in Mexico Mexico’s economic climate is propitious for business tourism, and through real-estate investment trusts (FIBRA) focused on the lodging industry.

Business Analytics: A Competitive Advantage for Sales and Marketing Executives

Are you missing “it” without specialized analytics? Is your data making you money? Sales Performance Analytics is changing the way sales teams are getting organized by providing the ability to identify exactly what works and what doesn’t, and where exactly to apply the corrections when needed. Notitur Digital is a bimonthly online publication, published by the Asociación Mexicana de Desarrolladores Turísticos, A.C. (Amdetur), WTC, Montecito # 38, Piso 32, Oficinas 11 – 14, Col. Nápoles, Mexico 03810, D.F. Phone and fax (55) 5488 2028 to 31. It is a sister publication to the printed magazine Notitur, whose registry numbers are: Certificate of Valid Title no. 3856, dated April 19, 1989; Certificate of Valid Content from the Comisión Calificadora de Publicaciones y Revistas Ilustradas no. 3172, dated April 19, 1989; Reserve Certificate Number 04-2005-030817343600-102 from the Instituto Nacional del Derecho de Autor, Ministry of Public Education. Amdetur is not responsible for the advertisements or “advertorials” published in Notitur Digital. Notitur treats personal information on its subscribers accoridng to the privacy standards of the Federal Law on the Protection of Data Held by Private Parties. For more information on our privacy policy, visit our webpage at:


# All Ready for the 27th Annual

AMDETUR Convention! 27th Annual Convention

The program for our 27th Annual Convention, entitled “The New Era of Tourism - Capitalizing Vacation Ownership Opportunities,” will cover the most up-to-date and interesting topics regarding our industry and the tourist industry in general, with the participation of renowned experts. As in past years, this event will include the UniversityBusiness Engagement Program, in which industry professionals will address professors and students from various tourism schools about the benefits and employment possibilities offered by the field of Vacation Ownership. In the panels and conferences that will make up this Convention, we will discuss key topics like: the latest tourist industry policies and programs; new ideas in marketing and brand management; emerging markets; importance of social

2013 May / June

networking; new sales trends and, of course, the latest up-to-date information about the industry. The conference will also have extraordinary speakers like Juliette Powell, an internationally renowned expert in technological trends applied to the communications media, who has been a television commentator on leading networks in the United States and Canada and has provided consultancy to organizations like Red Bull, Microsoft, Nokia, Trump International, the United Nations, and even the US Department of Justice. Alvaro Rattinger, who in 2002 launched the famous magazine Merca2.0, whose website in Spanish is the most widely read in Latin America. Rattinger has also launched and heads other websites, like, and He is a certified professor in


» AMDETUR academic institutions and trainer for companies in Re-launch of National Training Mexico and the United States like Home Depot, Observatory On March 5, AMDETUR was present for the reColgate Palmolive, Danone and Kraft Foods. launch of the National Training Observatory, Ricardo López, a.k.a “Finito,” the famous former a virtual space where the Ministry of Labor and boxer who was undefeated in 52 fights (including Social Planning (STPS) offers a wide range only one draw). López is convinced that a battle of courses and information on standards for is not won by brute force but by wits and strategy, workplace competence, as well as a channel for and he pursues personal advancement on a daily inquiries. Its content is aimed primarily at people basis by reading great writers like Gabriel García working in the tourist industry, and is intended to Márquez. Finito, former universal champion in the optimize customer service and service provision minimumweight and light flyweight categories, quality. remains today as a unique figure being a successful motivational speaker. Meal with FONATUR and CMIC Also on March 5, a lunch meeting was organized by the Mexican Construction Industry Chamber Sign up now! (CMIC) whose purpose was to share with that organization’s Consulting Council the efforts and programs of the National Tourism Promotion Fund (FONATUR) in the next six years. The CMIC also The conference will be held at the Hotel Hilton presented top executives of the Fund with the Mexico City Reforma on June 19, 20th and 21st. collaboration agreements it will shortly be signing, among them, one with AMDETUR. For more information, go to our webpage at:


Re-launch of National Training

Top: Meal held on March 5th with FONATUR (National Tourism Promotion Fund) and the CMIC (Mexican Construction Industry Chamber). Left: Re-launch of National Training Observatory by the Ministry of Labor and Social Planning (STPS)

2013 May / June


» AMDETUR Meeting of the Work Team on Industry Statistics

Mexican president Enrique Peña Nieto, during his speech on the first 100 Days of his Administration.

100 Days of Administration by President Enrique Peña Nieto

© getty images

The first meeting of this work team in 2013 was held on March 6, in order to present to the New Ministry of Tourism (SECTUR) the aims of this effort to compile statistics, as well as to go over the activities that were held in 2012 on this matter. The meeting was attended by René Juárez Albarrán, head of the Department of Information and Analysis of the Ministry, accompanied by various members of his team, as well as representatives of RCI, Interval International and the Anáhuac Tourism Research Center.

Romárico Arroyo Marroquín, Chairman of the Board of Directors of AMDETUR, was present at the speech given by president Enrique Peña Nieto about the achievements of the first 100 days of his administration. Following the event, which took place on March 10, business leaders agreed that Mexico has a strong future, among other reasons because of the strengthening of presidential power and the emergence of a political climate in which participants show increased willingness to dialogue, to reach agreements and form a common agenda. 2013 May / June

First Meeting of the Board of Governors of CPTM In 2013, attended by leading figures from the Mexican tourism industry.

First Meeting of the Board of Governors of CPTM

AMDETUR’s participation in meetings of the Mexico Tourism Board (CPTM), such as the one held on March 14, reaffirm its commitment to promoting tourism in Mexico. In that meeting, CPTM’s General Director, Rodolfo López Negrete, said that among his organization’s goals for this year are: to increase the economic flow, rather than the number of tourists, accelerate the development of the domestic market and maintain Mexico’s preferential ranking in the US market.

38 “Tianguis Turístico” in Puebla

AMDETUR was also present at the annual Tourist Market (Tianguis Turístico), held in the city of Puebla from March 17-20, where the Mexican Minister of Tourism, Claudia Ruiz Massieu, said the event had surpassed all expectations, attended by 673 buyers, 354 of them coming from 42 different countries, as well as a total of 26,288 business appointments. The event was attended for the first time by countries like Lithuania, Hungary, Thailand, the Czech Republic and Slovakia, and almost all of Latin America, except for Nicaragua. 03

» AMDETUR Work Table on Consumer Rights

AMDETUR was present at a Worktable on Consumer Rights held in April 5 as part of the activities surrounding the work on the federal government’s National Development Plan 20132018. Top: Claudia Ruiz Massieu, Minister of Tourism, at the opening of a 38th Tianguis Turístico. Puebla, Mexico. Bottom: Juan pablo Castañón, Chairman of COPARMEX, at the Third Meeting of the COMPARMEX Tourism Committee

The Worktable was organized in the offices of the Ministry of Economy and was headed by the Attorney General of the Federal Attorney’s Office of Consumer Víctor Humberto Benítez Treviño, who affirmed that the Plan will not be merely a statement of good intentions, but commitment of service to Mexico. The event was also attended by representatives of businesses and consumer organizations.

National Development Plan 2013-2018

On March 21, AMDETUR assisted a consultation forum presided by Claudia Ruiz Massieu, Minister of Tourism, as part of the work of the National Development Plan (NDP) 2013-2018. At the tourism worktable, various proposals were put forth to promote the industry, and participants reiterated the close correlation that other sectors like education and industry have.

Top: Claudia Ruiz Massieu during the Tourism Work Table for the 2013-2018 National Development Plan. Below: Work Table on Consumer Rights. Center: Attorney General Benítez Treviño.

Third Meeting of the COMPARMEX Tourism Committee

AMDETUR continues to participate actively in meetings of the Tourism Commission of the Employers Confederation of the Mexican Republic (COPARMEX), in which it has joined in the effort by this group to support the tourist industry. The meeting held on March 22 was attended by former Congressman Jorge Villanueva, who served as chairman of the Tourism Commission of the lower house of the Mexican Congress, who spoke, among other points, on the importance of Medical Tourism. 2013 May / June


» AMDETUR Annual Meeting of GATE at ARDA

The annual meeting of the Global Alliance for Timeshare Excellence (GATE), was held during the Annual Convention of the American Resort Development Association (ARDA), on April 7-11 in Hollywood, Florida. In that meeting, AMDETUR had the opportunity to present the current situation in Mexico as well as its tourist industry and the timeshare segment to members of various global timeshare organizations, while hearing about trends in other countries and networking with the leaders of those organizations.

Top: Miguel Ángel Mancera, Head of Mexico City Government (center) presides over the inauguration of the Mexico City Tourism Consulting Council. Below: First work meeting of 2013 between CNET and SECTUR. Center, Rami Filo, President of GATE; far right, ARDA president Howard Nusbaum.

First Work Meeting Between CNET and SECTUR

Romárico Arroyo Marroquín, Chairman of the Board of Directors of AMDETUR, discussed the Miguel Ángel Mancera Espinosa, Head of Mexico situation and challenges of financing for real City’s government, presided over the inauguration estate tourist developments in Mexico, during the of the Mexico City Tourism Consulting Council, first Work Meeting of 2013 between the National which will be made up of authorities and leaders Tourism Business Council (CNET) and the of associations and chambers from the industry, Ministry of Tourism (SECTUR) which took place in as well as renowned scholars, journalists and the headquarters of that institution on Presidente Mazaryk in Mexico City on April 16. entrepreneurs involved in the tourist industry. AMDETUR was present at this event, held on April 16, which marked the initiation of an organization that will promote initiatives and participate in the design of public policy that will help promote this industry.

Creation of the Mexico City Consulting Counsel

2013 May / June


» AMDETUR National Tourism Training System

In another event on April 16, AMDETUR participated in a meeting on the National Training System for the Tourism Industry (action 42), organized by the Ministry of Labor and Social Planning (STPS), where participants discussed the results of 2012 in that area and agreed on the Work Plan for 2013. During the event, Luz Argelia Paniagua Figueroa, General Director of Training for the STPS, grouped the actions of 2012 into three commitments: inform about the System to the participants of the National Training Committee of the Tourism Industry; strengthen and position it; and follow it up and evaluate it.

Seminar on Labor Reforms

Juan Antonio Baltierra Morales, Secretary of Section 27 Social Tourism of the Revolutionary Confederation of Workers and Peasants (CROC) and Luz Argelia Paniagua Figueroa, General Director of Training for the STPS.

Juan Ignacio Tejedo, of Creel, García-Cuéllar, Aiza y Enríquez; Pablo Noreña, of KPMG; and Francisco Javier Torres, of PwC during the panel on Labor Reform.

In order to conduct a practical analysis of the legal implications affecting various payment mechanisms for sector workers, on April 25, AMDETUR held a panel/ seminar entitled “Impact of Labor and Social Security Reforms on Tourist Resort Development – The Role of Outsourcing Companies.” Following a brief survey about concerns in this area by our members, panel participants Orlando Corona, of Gossler, Auditores y Consultores, a member of Crowe Horwath International; Pablo Noreña, Partner with KPMG; Francisco Javier Torres, Partner with PwC; Juan Ignacio Tejedo, of Creel, GarcíaCuéllar, Aiza y Enríquez; Francisco Colunga Hernández and Francisco Colunga Becerril, partners with Colunga Abogados Laborales, with Colunga Becerril acting as moderator, responded and shared their explanations about aspects relating to our industry. We are grateful for the support of the Outsourcing Committee in this effort, particularly its coordinator, Gustavo Ripol, CEO of the Presidente Club de Viajes, and lawyers Lourdes Hinojosa of the Presidente Club de Viajes, Gerardo Freyre, legal director of AMDETUR and Francisco Colunga, for their contributions to the extraordinary results of this panel. ◄

Far left and right: Francisco Colunga Hernández and Francisco Colunga Becerril, partners with Colunga Abogados Laborales. Center: Orlando Corona, of Gossler, Auditores y Consultores, a member of Crowe Horwath International.

Remember that you can find more information about all these topics on our FB page.

2013 May / June





Conferencistas invitados:

Capitalizando Oportunidades de la Propiedad Vacacional Temas de Actualidad

Juliette Powell

· Manejo de Marca · Mercadotecnia y Ventas · Mercados Emergentes · Actualización de la Industria · Redes Sociales

Especialista en redes sociales. Ha colaborado con organizaciones como Cirque du Soleil, la ONU y Trump International.

Álvaro Rattinger

En 2002 lanzó la revista líder en publicidad, mercadotecnia y medios Merca2.0 y dirige su sitio de internet, el más leído en Latinoamérica.

Ricardo “Finito” López

Famoso ex boxeador que enfrentó 52 peleas, ganando 51 y empatando una. Sus éxitos continúan como conferencista motivacional.

19, 20, 21 / JUNIO · JUNE 2013 HOTEL HILTON MEXICO CITY REFORMA Keynote Speakers:

Juliette Powell

Social media expert. Has collaborated with organizations like Cirque du Soleil, the UN and Trump International.

Current Trends

Álvaro Rattinger

· Branding · Marketing & Sales · Emerging Markets · Industry’s Update · Social Media

Ricardo “Finito” López

Launched in 2002 the famous magazine Merca2.0, whose website is the most widely read in Latin America.


Formex boxer who won 51 fights and had one draw out of 52 confrontations. His success continues as a remarkable motivational speaker.


Capitalizing Vacation Ownership Opportunities

27TH. ANNUAL CONVENTION · MEXICAN RESORT DEVELOPMENT ASSOCIATION Para más información · For more information Tel/Fax: (52/55) 5488 2028, 29, 30, 31


Outlook on



By Roberto Cabrera / Partner for Industries and Market at KPMG Mexico


exican business is optimistic, as reflected in a recent poll by KPMG entitled “Senior Management Outlook in Mexico 2013,” in which more than 600 executives share their growth estimates for this year. 75% of the group expect an economic growth of between 1% and 9%. KPMG conducts the survey every year in order to learn how entrepreneurs see the future of various industrial and commercial sectors of our country, including lodging and tourism.

Percepción de la Situación Económica del País y Secuelas de la Crisis

2013 May / June


 ENTERPRISE Perceptions of the Country’s Economic Situation and Aftermath of the Crisis Among the topics of the survey were the consequences that the 2008-2009 financial crisis left on the companies surveyed, broken down into ten aspects that reveal risks and opportunities for change.

creativity led the way: organizations reduced costs, strengthened their control strategies, and carried out financial and operating reorganizations.

Despite the delays, losses and costs of the crisis, we can infer that all of these measures Among the most frequently mentioned effects were successful, since 77% of respondents said were: lower revenues and higher costs, followed that their companies had preserved and even by an increase in safety issues, loss of profitability increased their returns. Balancing the responses and liquidity, etc. Fortunately, very few of the in the survey regarding costs, expense cuts and executives surveyed spoke of bankruptcy or capital restructuring, the result is that companies are flight, which proves that Mexican companies are still making a profit, although their margins have strong enough to weather a difficult situation. narrowed and their cash flow is now more limited. Asked about the measures taken to offset the consequences of the crisis, imagination and Obstacles Companies Face to Cost Reduction








8% 5% Inappropriate processes that prevent cost reduction.



Very Important Important Indifferent Little Importance





9% 4%

13% 4%


Lack of incentives to motivate cost savings.

Difficulty measuring cost savings.


Lack of transparency in the organization.

Source: Senior Management Outlook Mexico 2013, KPMG Mexico.

2013 May / June


 ENTERPRISE Organizations’ Competitiveness Strategies

When asked how their organizations will improve competitiveness in the next three years, the five top strategies mentioned by senior executives were similar to those mentioned in preceding years. Five Strategies for Improving Competitiveness





Reduce costs.

Strengthen internal control strategies.

Financial and Personnel operating cutbacks. reorganization.



8% None

Source: Senior Management Outlook Mexico 2013, KPMG Mexico.

The challenges continue to be reducing costs and maximizing capacity utilization, working on customer satisfaction and/or quality improvements, in addition to improving processes, and finally, innovation and a focus on the market. Asked about the factors that might boost profits in the short term, the responses were also substantially similar to those of earlier years: an increase in demand remains the top choice, even before innovation topics, asset utilization and improvements in information technologies. Despite obstacles preventing initiatives and investments, like safety issues and uncertainty over the change of federal demonstration, the desire to grow regionally and 2013 May / June


» ENTERPRISE globally remains a priority for Mexican businesses. Asked how important the following strategies are to guide your organization toward global regional growth in the next three years, executives answered as follows:


Believe building close relations with existing clients is very important.


Believe they need to develop new products and services.


Concentrate on creating customer loyalty and service programs.

Regional and Global Growth Strategies: The Outside World Survey responses indicate that executives are now more interested than last year in expanding their operations inside Mexico. The most frequently mentioned states for expansion were: Nuevo León, Mexico City, Jalisco, Querétaro and Guanajuato. Another sign of favorable economic climate is that 43% of those surveyed plan to expand operations outside of Mexico, 5 percentage points more than in the 2012 survey. Among the entrepreneurs who say they plan to venture outside Mexico’s borders, the most frequently mentioned destinations were the United States, Brazil and Colombia. To finance these investments, entrepreneurs intend to seek funding from financial institutions, government and venture capital funds. In light of these trends, we can conclude that problems like safety issues, the labor reform, and the change in federal administration do not seem to have dampened the entrepreneurial spirit in Mexico.

2013 May / June


» ENTERPRISE Conclusion

In Mexico, surveys show that despite some factors that may inhibit initiatives and investments–like the prevailing weakness in international markets–Mexican business remains eager and interested in continuing global and regional growth, supported by the economic and market climate in this country.◄

Strategies for Global or Regional Growth of Your Company Requirements of New Customers






New Technology






Sustainable Development




Emerging Market Expansion




Corporate Governance




Industry Consolidation




Free Trade Agreements





Opportunity Minor Opportunity




13% 6%

Minor Threat

3% 6%

15% 12%

Major Threat





increased Competition






Regulatory Changes









Source: Senior Management Outlook Mexico 2013, KPMG Mexico.

Roberto Cabrera is Managing Partner for Industries and Market at KPMG. He has more than 30 years of experience in consultancy to leading national and international organizations in finance, construction, technology and communications, as well as government. Before he came to KPMG, he worked with Andersen Consulting, and then began his own consulting firm, Grupo Corporativo de Consultoría. In 1998, IBM bought out his company and Roberto stayed on as its head until 2002. He later joined IBM as Director of Business Integration Services. He has extensive experience in Process Improvement, BI and implementation of business applications


kpmg mexico @kpmgmexico KpmgMX Visit:

Refer to the full study

2013 May / June






ur industry continues to face tremendous challenges today, where we find ourselves in an increasingly competitive market in which consumers have more tools than ever to satisfy their needs, making them more demanding clients.


By Jane García / Executive Marketing Manager, Human Resources & Training Planner Sales & Marketing, Royal Resorts

It is easy to see how much things have changed over the years, from our way of communicating and interrelating, to the very way we think and work. That is why as an industry, we need to make the necessary adjustments, not just to adapt but to keep the pace with those changes. We must remember that “time is money.” The components that surround our work must be governed by parameters that are clear and perfectly focused on the new challenges ahead. For example: In the field of marketing, our vocabulary must include the word innovation, which means a more effective focus for our products and services. It is a process of opening to new trends and/or markets, which will make us more competitive in our productivity.

2013 May / June



Sales. We need to renew the products we offer according to the needs of the market, in order to always stay one step ahead of the competition. Among these two components, marketing and sales, we must pay constant attention to benchmarking, establishing indicators by which we can measure our businesses’ efficiency and productivity. Creativity must also be part of the annual work plan, anchored in the projections that can benefit the company and the short, medium and long term. Human capital is a vital factor for all companies. Attention must be constant and the value of each member’s performance has to be regularly monitored. The training of new staff members and the recognition of those that already work in the company and have shown talent, must be part of any work plan for human development in order to keep work teams motivated and productive.

Finally, a consolidated team works and participates together in creating ideas that provide new responses for new needs, seeking to become more objective in obtaining the productivity and efficiency to business requires.◄

Jane Alexandra García is Executive Marketing Manager, Human Resources & Training Planner Sales & Marketing, Royal Resorts. Previously, Jane worked as Director General and Legal Representative for Omni Vacation Club and as Regional Marketing & Sales Director for Royal Holiday. She was also VP of the Sales Committee of the Vacation Clubs Association of Quintana Roo (Acluvaq) and collaborated in several enterprises of the industry like Club Golden Shores, Continental Villas Plaza and Plaza Las Glorias.


Leadership should be the common denominator in an organization that advises, guides, inspires and motivates its personnel–and therefore its operations––on a daily basis.

2013 May / June



Communication Between

Innovators: One of the Biggest Challenges of Sustainable Coastal Tourism By David Krantz / Manager of the CREST Program


hrough various studies carried out in Mexico and Costa Rica, Martha Honey, co-Director of the Center for Responsible Travel (CREST), has found that the implementation of sustainable solutions in coastal tourism is limited by several factors.

2013 May / June

According to Dr. Honey, the primary problem is a lack of awareness of the need for change, and an overall short-term vision of coastal projects. Beyond the need to preserve our environment, especially in fragile coastal areas, sustainable tourism projects need to meet a growing consumer demand. A 2012 report by the Foundation for Tourism (Travel Foundation and Forum for the Future States) indicates that 70% of travelers believe that the tourism industry should commit to preserving the natural environment. In addition, 84% of tourism marketers confirm that the preservation of the environment and local cultures are important criteria for consumers when choosing a destination. Developers have to take into account this growing trend or risk losing competitiveness in the longterm.


» INDUSTRY According to David Krantz, manager of the CREST program, another factor that impedes change in coastal tourism is the lack of communication between different types of actors involved in the project design and management. Developers and conservation groups often clash instead of collaborating, and radical positions on both sides may hinder dialogue. Krantz takes a pragmatic view and insists that solutions can be found when developers cooperate on non-competitive issues like sustainability. “A developer will always be more willing to listen to any recommendations if this comes from another developer” says Krantz. Pioneers, whether hoteliers, developers or architects, have spent years implementing viable and innovative solutions that generate energy and water savings, and improve the competitiveness of their destination. These companies are the ones who can teach good practices and share lessons-learned.

“Good practices will be better received and replicated if they are themselves private entrepreneurs who tout them. The recommendations of the public authorities and environmental groups must be accompanied by enterpriselevel collaborations,” says David Krantz. Unfortunately, innovators in tourism often work in isolation, sometimes “reinventing the wheel” without knowledge of the work of others in the same field. Space for communication and collaboration is needed so that those who have implemented innovative solutions in coastal tourism can share their experience with those who are beginning down the path of sustainability. These synergies are even more important when it comes to projects located in the same area.

Advertise in the best


of the industry.

And reach for government agencies and private companies in the Tourism and Vacation Ownership industries of Mexico and the world.

Aurora Martínez t. 01 55 5488 - 2028 to 31 2013 March / April

06 04 14

» INDUSTRY The social and environmental impacts of a hotel project extend beyond the area of construction and management, affecting all surrounding hotels and development. Developers based in one area must work together, or the positive impact of environmental preservation measures will be limited.

dialogue and collaboration between companies wishing to incorporate sustainable solutions in their developments. The symposium will focus on issues addressed to specific tourism products, “all inclusive” resorts, vacation homes, cruises, golf courses, marinas, community tourism and marine protected areas. The Symposium will also explore access to sustainable “green” finance and investment. Through such events, CREST and its partners want to overcome communication barriers between innovators and promote the implementation of sustainable models in the development of coastal tourism. ◄ The Symposium website is

Working Together

From the observations mentioned above, CREST decided in 2010 to organize a symposium for innovators in sustainable coastal tourism projects in cooperation with the Stanford University Center for Global Business. The event brought together more than 100 participants from different countries, with strong participation by Mexican companies. Participants included architects, hoteliers, developers, investors, consultants and other professionals interested in further “green” coastal development. Thanks to the success of the first event, and the large number of participants from Mexico, CREST has decided to organize the second symposium in Mexico. The event will take place from May 15 to 18 2013 in Los Cabos, keeping the same Business-to-Business approach, while facilitated by Stanford professors. Throughout the coming years, this initiative seeks to maintain a forum for 2013 May / June

David Krantz is the Program Director of CREST and runs a variety of projects. He consults for tourism destination managers seeking to protect their assets, and for tourism operators and developers seeking improved corporate responsibility. He has had 13 years of experience in the tourism sector with 9 of them emphasizing the provision of good sustainable practices. His experience includes work in international law, hotel management and more than two and half years backpacking through South America, Eastern Europe and Africa. He earned his ‘Masters of Tourism Administration’ of George Washington University with a focus on sustainable tourism development.





Hotel and Inn Outlook on Business Travel in Mexico

By Héctor Uribe / Senior Consultant at URVISERV


ompetitive unit labor costs, healthy public finances, a strong market share in Latin American exports, and growing foreign direct investment, all contribute to an economic climate propitious for Mexico’s future growth, placing it as a major player in the North American manufacturing industry (primarily in the automotive, aeronautical and electronics businesses).

The climate is also favored by a demographic bonus, which creates a low rate of dependence versus a high jobs growth, meaning more of the population can contribute to the country’s economic growth. All of this strengthens the outlook for business travel in Mexico.

Competitive Unit Labor Costs US$ / Hour Mexico China


Source: Bloomberg, Boston Consulting Group, ILO, JP Morgan, SHCP.

2013 May / June


» FEATURE Leading Market Share in Latin American Exports US $Billions



Other Countries

 IBRA Hotel F Real Estate Investment Trusts (whose initials in Spanish are FIBRA, similar to the US concept of REITs) engaged in the lodging business were created to acquire, own, develop and obtain revenues from the leasing of a wide range of properties destined for the provision of temporary lodging services for business travelers. For the Mexican hotel industry, lodging FIBRAs (FIBRA Hotel) represent important business opportunities, particularly for the owners of hotels that are independently operated.













Source: CEPAL

A) Contributed portfolio, consisting of 17 operating hotels and 4 hotels under development. B) Acquisition portfolio made up of 13 hotels.

The investment prospectus from FIBRA Hotel mentions that there are solid foundations for new opportunities in the urban lodging industry. For example, it compares San Luis Potosí, a fastgrowing industrial city in Mexico that currently has 1 million inhabitants, with the city of Tulsa, Oklahoma, which has a smaller population but a According to the investment prospectus of FIBRA similar industrial climate. San Luis Potosí has only Hotel, there are 1,097 hotels aimed at business one-third as many hotels as Tulsa. The prospectus travelers in Mexico, 405 of which (37%) are also points out substantial opportunities in the brand-name urban hotels and 692 (63%) are prolonged stay segment, where current supply independent urban hotels. In the United States, falls well short of market demand. in the same segments, only 35% of hotels are independently operated. FIBRA Inn For FIBRA Inn, another lodging FIBRA, its initial FIBRA Hotel issued 3.79 billion pesos in Real portfolio of properties is made up of: Estate Trust Certificates (CBFIs), backed by an initial portfolio of properties made up of: A) Contributed portfolio, which in turn consists of eight properties with a total of 1613 rooms. These properties are located in six states of Mexico, and 2013 May / June


» FEATURE Vast Majority Are Independently Operated (63%) International Hotels Regional/National Hotels Independent Hotels

% Independent Hotels

Mexico City

EUA 35%

“Part of the strategy followed by the two types of FIBRA that exist in the Mexican lodging industry is to acquire independently operated hotels.”

2013 May / June

MEX 63%

their acquisition value will be 95,882,190 CBFIs, equivalent to 1.77 billion pesos. B) Acquisition portfolio, which consists of an option to buy six properties, with a total of 971 rooms, and its estimated value is 984 million pesos. FIBRA Inn does not necessarily have to exercise its option on these properties, and may acquire others instead.  International investors are showing a strong appetite for assets in Mexico, which means this country is likely to become a common denominator in the management of private venture capital funds.



The climate is propitious for business tourism, and with real estate investment trusts focused on lodging, acting as portfolios of professionally operated assets integrators, there are increasing opportunities for the owners of independently operated hotels.◄

Héctor Uribe Héctor Uribe is a Senior Consultant at URVISERV Capital Solutions and an ENDEAVOR mentor. He has a degree in Civil Engineering and an MBA and a Postgraduate degree in High-Level Private Capital Management from IPADE. He has more than 15 years of experience in the real-estate business and is a specialist in financial planning for investment projects. / Twiter: @urviserv Blog:


2013 May / June



Business Analytics A Competitive Advantage for

Sales & Marketing Executives

Part 3 of a 5 article series: Sales Performance Analytics for Sales Departments By Jesús Betanzos / Director Latin America Business Development and Consulting, for TrackResults Software


n the previous article of this series, we reviewed some of the strategies marketing directors are currently using, in order to monetize their data through Marketing Analytics. This issue is directed towards the VP levels of sales departments who are consistently looking for the best practices in the industry.

Is Your Data Making You Money?

In today’s erratic sales and marketing environment, analytics is the predictable answer for winning sales teams. Are you currently maximizing on your ultimate resource, the sales data you are collecting? Sales Performance Analytics must be performed quickly and with data that is relevant and actionable. Accessing valuable information on demand is critical. Should sales executives and management be making “key” business decisions based on outdated practices, when in this day and age we have new reliable applications to provide better information? How long can you afford to weaken your bottom-line without playing to your strengths in a proactive capacity? Analytics finds your hidden strengths.

2013 May / June



1 2 3 4

Segmenting groups of best performers based on Tour types.

“Fine-tuned sales teams that have adopted

the culture of analytics, have increased their efficiencies on average by $800 per tour.”

Optimizing tour days and tour times based on performance metrics.

Pairing up the best liner-closer combinations.

“Empirical data means accurate, historical and reliable. ”Temperature readings” is an example of empirical data, when provided by a calibrated thermometer.”

The Goal

The goal is to diagnose where exactly the profitable adjustments need to be made, and apply them accordingly.

Action Strategies

The secret to success lies in applying the right combinations of the variables

Running efficiencies including or excluding Courtesy Tours.

WHAT IF? Descriptive vs. Predictive Scenarios

that sales management can control. Descriptive scenarios are what traditional reporting Here are some examples of simple, currently delivers. It shows WHAT happened but easy analytics: it doesn’t show WHY it happened and WHERE to apply the corrections. Sales Analytics produce both Descriptive and Predictive scenarios in which certain variables are changed using empirical data, to produce

2013 May / June


» STATISTICS or simulate different outcomes. This is critical for making educated decisions and providing actionable answers to dozens of questions such as: What increase would we gain in Closing % if we reassigned a particular sales rep to another team? What would the Cancellation Rate look like if we reassigned or matched sales reps to certain tour types or prospect sources?

“Different predictive scenarios can be produced on demand to observe the best possible outcomes. Once a satisfactory prediction is obtained, leadership can then prescribe the solution to the sales team.”

Validating Decisions

Sales managers know where the obvious problems lie. Analytics will show the not so obvious situations by measuring activities that are being overlooked. There is an abundance of profit being lost in the details. This is critical to long term improvement and VPG lift. Sales Analytics provides empirical data to validate decisions. This will overcome that lingering feeling in the back of your head that says “something is wrong, but I can’t put my finger on it”.

Power Lines vs. Smart Lines and Smart Teams

The Powerline approach is being replaced by Smart Lines in which the best performing sales agents are assigned to each particular tour source or demographic. Smart Teams are created by grouping the most effective pairings of linersclosers, regardless of favoritisms or preferences.

2013 May / June

Here are some examples of targeting specific tour types and demographics, matching them to the best performing sales agents for each case: Relationship types: Married vs. Cohabs vs. singles.

Age groups: People in their 50s vs. in their 40s vs. in their 30s.

Nationalities: American vs. Canadians vs. South Americans.

Languages and geographical regions: English vs. Spanish, East Coast vs. West Coast.

Liners-Closers combinations on all of the above, for maximum effectiveness.



Sales Analytics proves that certain sales agents are better with certain tour types, and that applied sales strategies on tour variables produce better results.

Return on Investment

Proper analysis leads down the path to change and improvement. 67 % of the Fortune 500 companies mandate the use of Analytics for their sales departments. The time invested in running analytics is returned at over a 100:1 ratio, meaning that one hour invested in proper analytics review can prevent weeks of underperformance in sales. Without these tools, thousands of dollars are being left on sales tables every day.

2013 May / June

In closing, Sales Analytics is about empowering the sales force with actionable information. All prospects become targeted by your sniper teams who are statistically proven to accomplish their mission. Whatever is needed to get the job done, like they say these days, “There’s an app for that”.


» STATISTICS Editorial Notes:

• The First Article can be found here: http://issuu. com/notitur/docs/notiturdigital_eng_nov2012/19 • Second Article can be found here: http://issuu. com/notitur/docs/notitur_digital_january2013/23 Jesús Betanzos is Director of Latin America Business Development and Consulting for TrackResults Software. TrackResults consults in the field of Business Analytics for the vacation ownership industry.


State of the Industry KPIs (Key Performance Indicators) for the first quarter of 2013: • Average VPG (net processable) on American tours:


• Average VPG (net processable) on Canadian tours:


• Average VPG (net processable) on Mexican tours:


• Average net Closing % on American Tours: 26%

• Average net Closing % on Canadians Tours: 21%

• Average net Closing %

on Mexican Tours: 24% (In USD , excludes Penders, Equities, Trade Ins). Information powered by:

2013 May / June


Never miss an issue!

Subscribe in And download all our editions in English and Spanish, to be informed about the most relevant information of the Vacation Ownership industry.

Notitur Digital / May - June 2013  

FIBRA Hotel and Inn: Outlook on Business Travel in Mexico

Notitur Digital / May - June 2013  

FIBRA Hotel and Inn: Outlook on Business Travel in Mexico