Destination Day Mexico GMS

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Destination DayMexico GMS
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Market Overview

• Official Name United Mexican States
• Land area 1,972,550 sq kms (almost 3 times the
  size of Texas)
• Population 104,959,594 (2003)
• Population growth 1.8 (average)
• Fiscal year Starts January 1st
• Currency Mexican peso (Ps) Ps 13.50 US1 (Jan
  2009)
• Political division 31 States and the Federal
  District
• (Mexico City) States are divided into
  municipalities.

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MARKET OVERVIEW
Five states reported the highest population
increases in the last decade Mexico, Jalisco,
Puebla, Baja California and Nuevo Leon..
Mexico is divided in three main demographic
regions NORTHERN REGION CENTRAL
REGION SOUTHERN REGION
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Market Overview

• Mexico is a leading player in the International
  Economy, ranking as the Eighth World Exporter
  and Second Trade Partner of the U.S.
• According to TIAs research, Mexico generates
  nearly 160 billion dollars annually and provides
  employment to more than 200,000 Californians.
• According to CIC Research, 1,878,000 Mexican
  visitors arrived by air in 2007(up 9.6 from
  2006). 428,000 (22.8) visited California.
• Airlines dramatically reduced airfare, thus
  creating a competitive environment in the market
  place. Both Mexicana and Aeromexico are
  discounting up to 50 on both, local and
  international fares.

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Economic Trends

• Mexico's GDP growth will slow sharply. We
  currently forecast a rebound to 3 in 2010. An
  estimated year-end inflation of 7.1 in 2008.
• It is expected a much weaker peso, in the
  short term it will impact on the economy and
  travel patterns. Almost 40 devaluation in
  January 2009.
• CHALLENGING TIMES CREATES NEW OPPORTUNITIES AND
  NEW DEVELOPMENTS
• Over 4,000 travel agencies throughout the
  country. Travel Agents are the main distribution
  channel.

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New Research Data

• Air travelers from Mexico represents one of the
  largest international markets for California with
  approximately 428,000 visitors to the state in
  2007 and 7.4 million by land. Collectively
  visitors from Mexico arriving to California by
  air spent approximately 389 million.
• Mexican Tourists can be classified into four
  categories based on the purpose of the trip to
  California Vacation, business, attending
  conventions, visiting Relatives being this, one
  of the main reason on why the Mexican market
  travels more often to the southern region of
  California.
• Attracted to the wide range of activities
  Shopping, Theme Parks, Recreational Activities,
  Cosmopolitan Cities.
• In Mexico everything is about relationships
  visibility and leadership is key!

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New Research Data
PURPOSE OF TRAVEL
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New Research Data
MEXICANS WHEN TRAVELING ARE ATTRACTED TO
SHOPPING
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New Research Data

• Nielsen research found the main concerns for the
  next six months are Economy, job security,
  Political stability and balance between work and
  life. This will directly affect on the consumer
  spending on travel/vacation, use of credit cards,
  entertainment, among others.
• Approximately 4,200 travel agencies throughout
  the country. Travel agencies and tour operators
  are very influential in the consumers
  decision-making process.
• Define travel drivers per season based on key
  dates for the Mexican market such as
  Easter/March-April, Bridal Seasonality/April,
  Summer Vacations/July-August, Independence
  day/September, and others.

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New Research Data
TRAVEL AGENCIES, KEY IN THE RESERVATION PROCESS
Last Minute Market
WE DECIDE WE WANT TO TRAVEL , NO PLANNING
INTERNET USE MAINLY AS AN INFORMATIONAL TOOL
THERE IS NO MUCH PLANNING AHEAD OF TIME
CHECK FINANCIAL SITUATION
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New Research Data
MEXICO SEASONALITY TRAVEL DRIVERS
EASTER/ MARCH-APRIL
SUMMER/ JUNE-JULY
WEDDING MONTH/ MAY
INDEPENDENCE DAY/ SEPTEMBER
ALL SAINTS/NOVEMBER
CHRISTMAS/DECEMBER
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Market Strategy

• CTTC Mexico appointed in late 2008. Key
  objectives are
• Strength and reinforced relationships within
  market
• Focus on the seasonality aspect of the
  traveler- Easter (March/April), Summer
  (July/August), Independence Day (Sept) other
  travel periods and optimize the markets short
  booking patterns.
• Establish a dedicated Spanish language Web site
  which offers planning and resource tools for
  travelers visitacalifornia.com.mx
• Emphasis on travel trade outreach and
  ongoing education. Showcase the depth of the
  statewide product to the industry.
• Demonstrate leadership for California within
  the market and in the CTTC and industry framework

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2009 - 2010 Marketing Plan
12 month/ongoing TRAVEL TRADE INITATIVE PROGRAM
Groundbreaking incentive promotion in Mexico
market LETS START TO BE THE INFLUENCER with
creation of a Direct Communication campaign
(electronic and physical) Begin April 09
Industry involvement - Need prizes, fun facts,
etc.
THOUSAND THINGS TO DISCOVER
MILLIONAIRE
CALIFORNIA, WINE NOT?
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2009 - 2010 Marketing Plan
UPCOMING EVENTS CTTC Booth Space available for
industry

• EXPOVACACIONES March, 2009
• Most important Tradeshow in Mexico City- CTTC
  sponsoring lunch which offers high visibility
• ARLAG, May, 2009. Guadalajara
• Tradeshow

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2009 2010 Marketing Plan
SHOP CALIFORNIA
We will intensify our Shop California in Mexico
and the on-line presence through very key
initiatives A California Fashion and lifestyle
month in Mexico Spring 2010 at Palacio de
Hierro department store (the most influential
department store in Mexico)
www.SpanishShopAmericaTours.com/California
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2009 2010 Marketing Plan
CONSUMER PROMOTIONS

• This is a direct consumer promotion in which
  we will place California electronic banners
  linked to our website in Spanish
• This is a great opportunity to create
  California product awareness for both VISA and
  Master Card to over 102 million card holders,
  combined.
• Mailing campaign to American Express card
  holders and banners campaign through retail
  outlet stores.

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2009 2010 Marketing Plan
GDS CAMPAIGN WITH SABRE
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2009 2010 Marketing Plan
TRAVEL TRADE

• Available to offer customized, tailored discount
  and packages available for each region. MPP will
  solicit industry to obtain special offers and
  info
• Banners will be displayed on Mexicana, Volaris
  and Aeromexico web pages
• This will entice consumers to travel to
  California when booking a reservation with either
  carrier

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2009 2010 Marketing Plan
TRAINING SEMINARS
CTTC Mexico office will develop an educational
product campaign through a training seminars to
key travel agencies before key travel months
throughout the country. These seminars will
update industry partners on our product and will
keep them informed on new developments. 2
trainings in Mexico City in February,2009 2
trainings in Guadalajara in May,2009 2 trainings
in Monterrey in May,2009 2 trainings in Mexico
City in October,2009
PR INITIATIVES Media fam trips, wine tasting
events, distribution and follow up of press
releases, special event coverage
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2009 2010 Marketing Plan
NEW TRADE AND P.R. E MAGAZINE
Opportunity for industry to provide fun facts and
educational information Ongoing email campaign
for both media and travel trade 10,000 emails
will sent monthly
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WHERE AND WHY TO PARTNER WITH CTTC
Mexico is the second largest source of visitors
to the USA, after Canada. California remains the
top. Mexico operates on a short planning cycle
(30-90 days) which offers good opportunities for
CA partners to see quick results and
ROI Proximity and Relationships - Mexicans are
attracted to the wide range of activities
California offers New air service - Aeromexico
will add a nonstop service from Mexico City to
San Francisco, Interjet and Volaris (a low cost
carrier) expected to add service to California.
Increased use of Tijuana airport. Very low
airfares (some half price from last year)