Market Study of Incentive Travel In Mexico

Transcription

Market Study of
Incentive Travel In
México
Research Coordinated by:
SITE MÉXICO
Researcher:
Consultores Asociados EN TURISMO, CAT
Research Funded by:
December, 2003
Market Study of Incentive Travel in Mexico
TABLE OF CONTENTS
PART I
Page
A. Introduction
2
B. Definition of Incentive Travel
3
C. Market Study - Fieldwork
4
C.1. International Incentive Travel Market
C.1.1. Research Method
6
C.1.2. Analysis of Variables and Results Obtained
7
C.2. Domestic Incentive Travel Market
15
15
C.3. Mexican Originating Market of International Incentive Travel
23
23
C.4 General variables
25
C.5 Cross-tabulation through sample stratification
29
D. S.W.O.T Analysis
33
E. Dimension of Incentive Travel Segment
36
PART II
F. Recommended Strategic Lines
39
1
PART I
A. Introduction
Tourism is currently one of the most important economic activities in the world. Its
importance for the economic development of cities, regions, or countries has been
recognized over the past few decades.
During 2002, the revenue from international tourism worldwide grew at a lower
rate than the arrivals as a result of expense cuts (shorter trips, need to be closer to home,
lower transportation and accommodation categories, etc.) and to a general pressure on
prices, resulting in an income of just 0.3% higher in 2002 than in 2001.
Despite this and considering the irregular evolution of tourism during the last few
years, for now the World Tourism Organization (WTO) is maintaining its long-term
forecast, since past experience has shown that on the short term, the periods with the
greatest development (1995, 1996, 2000) alternate with slow-growth periods (2001 and
2002). Although the growth rate until 2000 actually surpassed the WTO’s forecast:
Panorama 2020 generally expects the current downturn to be offset in the short or long
term period.
Based on this, the Mexican Tourism Promotion Board has decided to conduct a
Market Study of Incentive Travel in Mexico, thereby fulfilling its mission to promote
Mexican products and destinations integrally and competitively in national and
international markets. To this end, the Mexican Tourism Board, through combined
efforts of all those involved in tourist activities, its objectives of guiding promotion based
on the demand of the most profitable market segments for promotional investment,
diversifying tourist amenity, stressing the advantages of differential product, its unique
experience and high value of money, is being assisted by the SITE Foundation as well as
similar groups that finance research projects. The SITE Foundation is an organization
established in 1987 to develop studies and investigations that provide valuable
information on the use of incentives and incentive travel worldwide.
This study analyzes incentive travel tourism from the United States to Mexico, in
Mexico, and from Mexico to other countries. It is the first of its kind to be carried out in
this country.
2
B. Definition of “Incentive Travel”
Incentive Travel: Any travel generated and paid entirely by a
Firm or Company for its employees, salespeople, independent
sales force, suppliers, buyers or its product managers to reward
or motivate them. (*)
(*) Definition formulated by CAT Consultores in order to define and differentiate Incentive Travel from other
types of travel.
3
C – Market Study: Field Work
This is a descriptive market survey and as such possesses a seasonal component. A range
of data collection techniques was used, such as, bibliographic reviews, in-depth interviews of
certain key experts in the field, and standardized surveys.
The bibliographic reviews were performed using several studies on this topic, as well as
statistics compiled by specialized organizations and firms covering a broad spectrum of the travel
segment.
The in-depth interviews were structured or inflexible, that is, a topical guide was devised
to collect the same type of data from key informants. Given the extent of our central objective,
potential interviewees were divided into three different groups. Twenty in-depth interviews
were conducted of the Mexican Incentive Travel generating companies, ten interviews of the
Mexican Destination Management Companies (DMC) in Incentive Travel participating locations,
and ten in-depth interviews of the North American Incentive Houses as the generating market of
this type of travel.
The standardized surveys were conducted over the Internet. Four samples were intended
for different informants. Initially, it was decided to survey Mexican hotels using a stratified
model by rank, in which the hotel’s category would be the guiding variable. Only four and fivestar, deluxe, and special category hotels located throughout the country were taken into account.
Then, a group of Mexican Travel Agencies was selected from a register or list. Also on a national
level, it was decided to conduct a standardized survey of the airlines that operate in Mexico.
Finally, in order to analyze the international Incentive Travel market, a group of North American
Incentive Houses was selected from a register or list.
Given the length of the questionnaires, and in order to facilitate a response, the questions
were divided into quantitative and qualitative sections, including questions on variations from
one year to the next. Several questions can be classified as action, intention, factual or opinion in
order to cover all the requirements of the study. The questionnaire design also included open,
closed and multiple-choice questions, according to the required variables. Upon completing the
fieldwork, the open questions were tabulated by regrouping identical responses for statistical
purposes. Both questions, the closed or dichotomic ones and the ones with multiple responses
included the “Don’t Know/No Response” and “Other” remaining category, as the case may be.
4
R
U .S . T r a v e l
eA
s pgo en n
s ec P
i ee sr c e n t a g e
N o
81%
Database
The fieldwork was conducted from November 7
through December 22, 2003. It was based on the
information below, which reflects management of the
database accepted and used as a main source for
conducting the study.
The database management process was as follows:
Yes
19%
Activity
Date conducted
October 23 to November 18
2003
Database reception
Rearrangement, classification and
update of databases
Survey and interview
implementation
Information interpretation and
Strategy recommendation
October 23 to November 13
2003
November 7 to December 22
2003
December 22 to December 31
2003
Database management results:
D A TA BA SE M A N A G EM EN T
D A TA BA SES
R E C E IV E D
U SA BLE
C O N T R IB U T E D
BY CAT
F IN A L
0
683
9 ,6 9 0
683
S IT E
723
413
0
413
M E X IC A N H O T E L S
882
329
276
605
48
47
72
119
12
12
1
13
10
9
21
30
10
10
4
14
21
21
10
31
1 ,5 2 4
384
1 ,9 0 8
M PI
M E X IC A N A G E N C I E S
A IR L I N E S
U S A I N C E N T IV E
A G E N C IE S
DMCs
M E X IC A N
C O R P O R A IO N S
TOTAL
1 1 ,3 9 6
IN T E R N E T
SURV EYS
TELEPH O N
I N T E R V IE W S
PERSO N A L
IN T E R V I E W S
5
M e x ic a n
H o te ls
R esp o n se P ercen ta g e
A total of 11,396 responses were received, of which
only 1,908 were effective and used to develop this
investigation.
On December 22, 2003, the results of the surveys
and interviews were as follows:
Y e s
7 8 %
N o
2 2 %
The Internet surveys and the telephone interviews
were conducted from December 7 to December 22,
2003. The personal interviews took place from
November 24 through December 12, 2003.
The response is reflected in the following table:
RESPONSE
DATABASE
USA AGENCIES (SITE & MPI)
MEXICAN HOTELS
MEXICAN AGENCIES
AIRLINES
INCENTIVE HOUSES USA
MEXICAN DMCs
MEXICAN CORPORATIONS
TOTAL
INTERNET
211
57
3
271
M ex ica n T ra v el A g en cies
R esp o n se P ercen ta g e
TELEPHONE
414
69
12
10
503
PERSONAL
10
10
20
TOTAL
GOAL
211
471
72
12
10
10
10
794
350
450
50
12
10
0
10
882
C.1 – International Incentive Travel Market:
C.1.1 – Research Method
Yes
61%
No
39%
The data source for this segment was based on
the in-depth interviews conducted of the U.S.
Incentive Houses and of the Mexican DMCs. The
standardized surveys of the U.S. Incentive Houses
and the Mexican hotels that welcome Incentive Travel
groups also formed part of this data source.
6
The data in this segment was also obtained from
the standardized survey of the airlines that operate in
Mexico.
C.1.2 – Analysis of Variables and Results
Obtained
Five Nights or more
32%
Four Nights
26%
Three Nights
20%
Two Nights
16%
One Night
6%
Yes
Hotels in Mexico:
Average
length
of
international visitors.
stay
for
The average stay for groups accommodated in hotels
under the concept of Incentive Travel and originating
from the United States is mainly “five nights or
more” (32 %).
Number of Incentive Travel Groups
international origin during 2002 and 2003
of
No
Number of Incentive Travel Groups of
International Origin
2,220
2,500
2,000
In 2002 and 2003, the same quantity of
hotels received Incentive Travel Groups
of International origin (66% of the total).
1,486
1,500
1,000
500
2002
2003
0
Año 2002
Año 2003
The annual variation for the total number of
groups accommodated was 49.39 %.
7
Most frequent originating regions
during 2002 and 2003.
United States of America
84%
Canada
29%
Europe
23%
Central and South America
8%
Asia
5%
Other
1%
United States of America
90%
Canada
32%
Europe
28%
Central and South America
8%
Asia
4%
Other
0.04%
Most frequent U.S. originating cities
during 2002 and 2003.
California (State)
23%
Los Angeles
21%
New York
18%
Texas (State)
18%
San Antonio
15%
Arizona (State)
31%
Houston
12%
Other places in the US
11%
Los Angeles
24%
California (State)
20%
New York
19%
Other places in the US
16%
Chicago
15%
San Antonio
12%
Houston
11%
Arizona (State)
11%
In both 2002 and 2003, most of the groups
selecting a Mexican destination have
originated from California and New York.
8
Incentive Houses and Travel Agencies in the
United States:
Financial
Companies
Insurance
56%
Companies
IT and High-Tech
Companies
Direct Sales
45%
Companies
Health Club Corps
29%
53%
39%
Accommodation
46%
First-rate Hotels
24%
Air Travel
13%
Excursions and Ground
Transportation
11%
Other
6%
Food and beverages at the hotel
Excursions and GroundTransportation
Accommodation
Air travel
First-rate hotels
Meeting room
Golf
Dinner at a specific or typical
destination
Spas
Team Dynamics Facilitator
Companion activity program
Audiovisual equipment
Casinos
83%
73%
70%
56%
41%
39%
30%
24%
Percentage of each type of company
that engages in Incentive Travel.
The types of foreign companies that
organize Incentive Travel most frequently
are Financial Companies at 56%, followed
by Insurance Companies at 53%.
Services requested by clients for
Incentive Travel.
As indicated, the most requested services of
incentive houses or travel agencies for U.S.
Incentive Travel groups are accommodation at
46%, followed by first-rate hotels at 24%.
Other types of services requested as a
second option.
The diverse responses regarding the second
option are listed in the table at left.
20%
17%
15%
6%
4%
9
Criteria taken into account by the
customer
when
choosing
a
destination.
Direct flights
Variety of activities
Price / Service quality ratio
Travel Agency Recommendation
Agency
Recommendation
Climate
Other
Beach
Travelers’
preference
Season
Entirecompany
Criteria taken into account by the
agency when recommending a
destination.
Client’s specific needs
Prices
Group Size
Contact with suppliers
Popular destinations
Ease of organizing travel
Airfare deals
Available information
Hotel deals
Client decision
Other
Ra
d io
s
Different sources from which most
information is obtained.
Ne
w
sp a
per
n
isio
le v
Te
Ad
ver G
tis e r a p
m e h ic
n ts
es
M a
gaz
in
In t
ern
et
Commercial Suitability
10
Greatest difficulties in organizing
incentive travel in Mexico.
Access to
destination
Lack of information
on destination
Language
barriers
Other
Although the first-choice response ”other” had a
high percentage (34%) out of several options,
another significant response selected as a difficulty
was “access to destination.”
Room
availability
Other types of difficulties mentioned as a second
option.
DIFFICULTY
%
Access to destination
Supplier non-fulfillment
82
74
74
Room availability
Language barrier
Lack of information on destination
Local transportation
74
73
Method of payment
69
66
Admission to tourist attractions
Other
61
31
As additional options, 74% of the
interviewees selected supplier nonfulfillment, making it the second difficulty
in order of importance.
Knowledge of the existence of the 0%
VAT rate.
NO
YES
11
YES
Affiliation
Association.
to
. Name
SITE
MPI
CLIA
Conseco
Dr Pepper/Seven Up, Inc.
Envision Meetings & Incentives
IAEM, SITE, PCMA
Monsanto
MPI, SGMP
SITE ASAE NYC and Co
site mpi
SITE MPI
SITE &MPI
Virtuoso
Total
NO
Seminars and Meetings
meetings
Conferences
Expositions and fairs
Vacation and social groups
Other
specialized
Frequency
7
3
1
1
1
1
1
1
1
1
1
1
1
1
22
Percent
31.8%
13.6%
4.5%
4.5%
4.5%
4.5%
4.5%
4.5%
4.5%
4.5%
4.5%
4.5%
4.5%
4.5%
100%
2002 2003
10% 12%
Conventions
groups
Incentive travel
a
29% 31%
2%
2%
2%
2%
Participation of the Incentive Travel
segment as a percentage of the travel
industry during 2002 and 2003.
9%
2%
32% 46%
16% %4%
Number of people that participated in
Incentive Travel in 2002 and 2003.
2002
2003
81,607 persons
171,149 persons
The increase in the number of people
traveling as part of an Incentive Travel
group in the United States is significant.
The annual variation reached 109.8 %
12
Cancún
Cancún
35%
35%
San Francisco
San Francisco
31%
31%
San Diego
San Diego
27%
27%
Las Vegas
Las Vegas
23%
23%
Phoenix / Scottsdale
Phoenix / Scottsdale
Riviera Maya
Huatulco
TOTAL
11
10
5
3
2
1
Las Vegas
Las Vegas
36%
36%
San Diego
San Diego
31%
31%
Orlando
Orlando
29%
29%
New York
New York
28%
28%
69
15
8
3
2
1
98
%OF TOTAL
San Francisco
San Francisco
28%
28%
PARTICIPANTS
GROUPS
Los Cabos
Cancún
Puerto
Vallarta
Acapulco
50%
50%
19%
19%
MENTIONS NUMBER OF PARTICIPANTS
DESTINATION
Cancún
Cancún
31%
31%
Hawaii
Hawaii
MEXICAN
Most requested cities as destination in
2002 and 2003
785
5
228
478
2
74
680
52
1179
9
66.6%
19.4%
6.6%
6.3%
0.7%
0.4%
100.0%
The Mexican destinations selected by
U.S. companies for incentive travel
showed little variation between 2002
and 2003. Los Cabos, Cancun, and
Puerto Vallarta are at the top of the list,
cornering 84.5% of the total in 2003,
compared with 92.6% in 2002. The
change in the position of Acapulco as a
host of Incentive Travelers originating
from the United States is worth noting.
Mexican cities chosen most frequently
during 2002 and 2003 in number of groups
and participants.
NUMER OF
DESTINATION
Los Cabos
Cancún
Puerto Vallarta
Ixtapa-Zihuatanejo
Riviera Maya
Chihuahua
Acapulco
Monterrey
México D.F.
Guadalajara
Cuernavaca
Los Mochis
Aguascalientes
Saltillo
Oaxaca
Puebla
Tijuana
TOTAL
MENTIONS
27
29
16
3
9
1
5
4
2
2
1
2
1
1
1
1
1
GROUPS AT
TOTAL OF
PARTICIPANTS
DESTINATION
AT DESTINATION
122
86
37
17
18
0
17
5
4
2
0
0
0
0
1
2
1
312
10628
7154
3362
1150
1025
280
240
212
200
150
150
145
100
100
50
40
15
25001
% OF TOTAL
PARTICIPANTS
42.5%
28.6%
13.4%
4.6%
4.1%
1.1%
1.0%
0.8%
0.8%
0.6%
0.6%
0.6%
0.4%
0.4%
0.2%
0.2%
0.1%
100.0%
13
NUMBER OF
DESTINATION
Central America & Caribbean
South America
Europe
Asia
Canada
United States
Others
TOTAL
MENTIONS
11
1
9
1
8
18
5
53
GROUPS
33
1
23
1
18
180
5
261
NUMBER OF
PARTICIPANTS
4262
50
2535
45
1150
21696
3720
33458
% OF TOTAL
PARTICIPANTS
12.7%
0.1%
7.6%
0.1%
3.4%
64.8%
11.1%
100.0%
Traveler Profile:
Mostly men.
 41 to 50 years old.
Married.
 College educated.
Monthly income over 68,000
Mexican Pesos.
Goes on Incentive Travel 1 to 3 times
a year.
Normally accompanied by spouse.
Distribution of r expenses in order of
importance:
 Airfare
 Accommodation
 Meals
 Travels at any time of the year.
Stays at deluxe hotels.
 Mostly Sales Personnel.
Obtains most of r information
destination from the Internet and
magazines.
Prefers air transportation.
Average daily expenditure is:
 In Mexico: US$ 1,921.00
 In USA: US$ 1,646.00
 Rest of the World: $ 2,482.00
U.S. dollars.
International destinations chosen most
frequently for Incentive Travel during 2002
and 2003 in number of groups and
participants.
DESTINATION
UnitedStates
Central Ame. &Caribbean
Europe
Canada
SouthAmerica
Sur.
Asia
Other
.TOTAL
MENTIONS
40
25
25
20
5
3
3
NUMBEROF
GROUPS
906
92
90
107
8
5
4
1212
Agency’s
observations
incentive traveler’s profile:
o
o
o
o
o
o
o
o
o
o
o
o
o
NUMBEROF %OFTOTAL
PARTICIPANTS PARTICIPANTS
69285
14146
6824
5753
495
395
330
97228
regarding
71.3%
14.5%
7.0%
5.9%
0.5%
0.4%
0.3%
100.0%
the
City
Sex
Age
Marital status
Level of Education
Average annual income
Frequency of travel
Number and type of companion.
Main expenses of the incentive
traveler
Favorite season
Preferred hotel category
Traveler’s position in the company
Source by which information is
obtained of
the
existence
of
destination.
14
o
o
Most frequently used means of
transportation.
Average expenditure of travelers in
the United States, Mexico, and the rest
of the world.
C.2 – Domestic Incentive Travel market:
in-depth interviews conducted with Mexican market
generating companies and Mexican DMCs. The
standardized surveys of Mexican travel agencies and
Mexican hotels as hosts of Incentive Travel groups
were included in the data source. Also included were
the standardized surveys of the airlines as a means of
transportation for incentive groups.
C.2.2 – Analysis of Variables and the Results
Obtained
Mexican Travel Agencies
Pharmaceutical Companies
Laboratories
54%
54%
InsuranceCompanies
InsuranceCompanies
48%
48%
Tourism Companies
Tourist ServiceCompanies
40%
40%
Direct Sales Companies
Direct Sales Companies
32%
32%
Financial Companies
FinancialCompanies
26%
26%
Percentage of each type of company that
organizes Incentive Travel
Pharmaceutical companies, closely followed by
insurance companies, head Incentive Travel
generated on a national basis.
15
FIVE NIGHTS
OR MORE
FOUR NIGHTS
Average stay for groups of Mexican origin.
TWO NIGHTS
The average stay for groups of Mexican
origin is 3 nights
THREE NIGHTS
Decision of destination selection for Incentive
Travel.
Agency recommendation
There is a strong tendency for Mexican
companies to follow the recommendation made
by the travel agency when selecting an
Incentive Travel destination.
Other
Travelers’
preference
Entire company
Criteria taken into account by the customer
when selecting a destination.
Direct Flights
42%
Price/Service Quality Ratio
16%
Travel Agency Recomendation
14%
Available Information
6%
Climate
6%
Other
16%
Direct flights received 42%, in response to the
question regarding the company’s most
important consideration when selecting a
destination.
16
Client´s Specific Needs
32%
Group Size
22%
Prices
12%
Popular Destinations
8%
Client Decision
8%
Other
18%
Criteria taken into account by the agency
when recommending a destination.
The client’s specific needs are the most
important considerations for agencies when
recommending a destination.
Source from which most information on
destinations is obtained.
INTERNET
GRAPHIC ADVERTISEMENTS
NEWSPAPERS
The Internet is the most often used information
source to discover the different potential tourist
destinations for Incentive Travel.
MAGAZINES
TV
OTHER
Greatest
difficulties
when
Incentive Travel in Mexico.
MET
M
TH
HODOF
PA
P
AYM
ME
ENT
T
organizing
OTHER
ACCESS
SS
ROOM
M
AVAIL
ILA
ABBIL
IL
ITIT
YY
LACKOF
INF
FO
ORM
MA
ATTIO
IO
NN
ONTHE
DES
ST
TINAT
TIO
ION
N
Lack of information with 42% and supplier
non-fulfillment with 21% are the greatest
difficulties when organizing Incentive Travel in
Mexico.
LMPPL
ENTIER
NON FULFILSU
NON --F
UP
LP
FL
IL
MENT
SU
IELR
17
Supplier non-fulfillment
Supplier
Non-fulfillment
67%
67%
Room availability
Room availability
63%
63%
63%
63%
58%
58%
Admissions to tourist attractions
Admissions to tourist attractions
56%
56%
Access to destinaiton
Access to destinaiton
43%
43%
Methods of payment
Methods of payment
43%
43%
Once again, supplier non-fulfillment is one of
the greatest difficulties when organizing
Incentive Travel in Mexico, followed by room
availability.
Affiliation to a specialized Association.
YES
NO
Only 53% of the interviewees hold a current
membership to a specialized organization.
18
Traveler Profile:
The majority of Incentive travelers in
Mexico are men from Mexico City.
31 to 40 years old.
Married.
College Educated.
Monthly income from 12,000 to
23,900 Mexican Pesos.
Engages in Incentive Travel 1 to 3
times a year.
Usually accompanied by a family
member.
The services most often requested
are:
 Air Travel.
 Accommodation.
Travels at any time of the year.
Stays at 5-star hotels.
Mostly Sales Personnel.
Obtains most information on
destinations from the Internet.
Prefers air travel.
Average daily expenditure in
Mexican pesos is:
 In Mexico: $ 1,801.00
 In USA: $ 2,450.00
 In the Rest of the World:
$ 2,529.00.
2002
2003
Conventions
22%
18%
Seminars and meetings
5%
8%
Congresses
10%
7%
Expositions and fairs
1%
2%
Vacation and social groups
20%
24%
Incentive travel
36%
38%
Other
6%
3%
Agency’s observations about the incentive
traveler’s profile:
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
City
Sex
Age
Marital status
Level of education
Average annual income
Frequency of travel
Number and type of companion
Main expenses of the incentive
traveler.
Favorite season
Preferred hotel category
Traveler’s title in the company
Source by which information is
obtained of the existence of the
destination.
Most frequently used means of
transportation
Average expenditure of traveler in the
United States, Mexico, and the rest of
the world.
Participation of Incentive Travel
segment in comparison to other types
of travel during 2002 and 2003.
19
2002 19,791 persons
2003 42,465 persons
Number of people that participated in
Incentive Travel in 2002 and 2003.
Origin of groups in 2002 and 2003.
National Market
81%
International Market
11%
U.S. Market
8%
There is a strong tendency by Mexican
companies to participate in Incentive Travel
in their own country. 81% of the total serves
as proof of this fact.
Mexico City is the leading city of origin of
Domestic Incentive Travel groups in 2002
and 2003.
Mexico
Ciudad City
de México
(D.F.) (D.F.)
Ciudad
éxico ((D.F.)
D.F.)
Ciudad de
de M
México
54%
54%
54%
54%
Monterrey
Monterrey
Monterrey
Monterrey
38%
38%
38%
38%
Acapulco
Acapulco
Acapulco
Acapulco
25%
25%
25%
25%
Guadalajara
Guadalajara
Guadalajara
Guadalajara
21%
21%
21%
21%
Puerto
Puerto Vallarta
Vallarta
Puerto
Puerto Vallarta
Vallarta
21%
21%
21%
21%
Cancún
Canc
ún
Cancún
17%
17%
17%
17%
Ciudad de
México
(D.F.)
Mexico
City
(D.F.)
Ciudad de
Ciudad
de México
México (D.F.)
(D.F.)
60%
60%
Monterrey
Monterrey
Monterrey
Monterrey
47%
47%
Guadalajara
Guadalajara
Guadalajara
Guadalajara
43%
43%
Querétaro
Querétaro
15%
15%
Puebla
Puebla
Puebla
15%
15%
León
León
11%
11%
20
Mexican city most often
destination in 2002 and 2003.
Cities in
Mexico
Cancún
Acapulco
Los Cabos
Puerto Vallarta
Huatulco
Riviera Maya
México D.F.
Mazatlán
Ixtapa-Zihuatanejo
Querétaro
Oaxaca
Mérida
Zacatecas
Toluca
Torreón
Guadalajara
Puebla
Manzanillo
Guanajuato
Veracruz
Total
Mentions
10
7
6
6
3
3
2
2
1
2
2
1
1
1
1
2
1
2
1
1
55
# of
# of
Groups
% of Total
Participt Participants
39
3835
27%
25
2460
18%
14
2030
15%
13
1890
14%
5
740
5%
3
460
3%
2
430
3%
2
350
3%
2
300
2%
2
270
2%
2
230
2%
1
150
1%
1
150
1%
1
150
1%
1
150
1%
2
145
1%
1
80
1%
2
56
0%
1
50
0%
1
20
0%
120
13946
100%
Mexican City
Mentions
Cancú
Acapulco
n
Puerto Vallarta
Guanajuato
Los Cabos
Chihuahua
Guadalajara
Mazatlán
Mérida
Oaxaca
México D.F.
Cuernavaca
Ixtapa-Zihuatanejo
Veracruz
Zacatecas
Huatulco
León
Campeche
Manzanillo
Villahermosa
Morelia
Riviera Maya
Querétaro
TOTAL
24
21
9
7
4
1
3
5
4
1
5
1
4
3
2
4
1
2
1
1
1
1
1
# of
Groups
86
41
27
13
7
2
10
15
4
10
4
2
8
12
2
6
1
2
1
1
1
1
1
257
chosen
# of
Partici.
7586
3567
3266
1425
960
800
560
510
455
400
385
300
295
260
200
134
130
115
60
50
40
35
20
21553
as
a
% of Total
Participants
35%
17%
15%
7%
4%
4%
3%
2%
2%
2%
2%
1%
1%
1%
1%
1%
1%
1%
0%
0%
0%
0%
0%
100%
Hotels in Mexico:
Accommodation of Incentive Travel groups of
Mexican origin from the entire sample.
YES
93% of the hotels surveyed have at times
welcomed Incentive Travel groups of
Mexican origin.
NO

2002
1,486 Groups
2003
4004 Groups
Number of Incentive Travel groups of
Mexican origin during 2002 and 2003.
21
Mexico City (D.F.)
Ciudad de M éxico ( D.F.)
68%
68%
Monterrey
Monterrey
49%
49%
Guadalajara
Guadalajara
46%
46%
Quer étaro
Querétaro
10%
10%
Puebla
Puebla
9%
9%
León
León
9%
9%
City of origin of Domestic Incentive Travel
groups accommodated in hotels.
Mexico City is the most frequent originating city,
followed by Monterrey and Guadalajara.
Average stay of Mexican origin groups.
One Night
5%
Two Nights
39%
Three Nights
43%
Four Nights
10%
Five Nights and more
3%
The average stay of Mexican origin
Incentive Travel groups fluctuates
between two and three nights.
22
C.3 –Mexican Originating Market of International
Incentive Travel
in-depth interviews conducted of Mexican market
generating companies and standardized surveys of
Mexican travel agencies, as organizers of International
Incentive Travel.
Obtained
Mexican Travel Agencies:
Number of Incentive trips organized to
international countries.
None
46%
1 to 5 trips
40%
6 to 10 trips
4%
11 to 20 trips
2%
More than 20 trips
8%
During 2002, 39% of the Agencies
surveyed did not organize any Incentive
Travel, while 44% of the total organized
1 to 5 trips.
During 2003,
Durante
el año 46%
2003 ofel the
46%Agencies
de las
Agencias did
surveyed
encuestadas
not
organize
nunca any
ha
organizado un
International
Incentive
viaje Travel,
de incentivo
while 40%
al
of
the
total
organized
1
to
5
trips.
exterior, mientras que un 40% del total ha
None
39%
1 to 5 trips
44%
6 to 10 trips
4%
11 to 20 trips
4%
More than 20 trips
9%
23
International region most frequently selected
as destination.
INTERNATIONAL
DESTINATIONS
INTERNATIONAL
DESTINATIONS
MENTIONS
United States
Europe
Cntral Ame. & Caribbean
South America
Asia
Other
TOTAL
4
5
3
1
1
1
15
# OF
GROUPS
11
15
7
1
3
1
38
# OF
% OF TOTAL
TOTAL
PARTICIPANTS
PARTICIPN
1855
1390
595
200
300
135
4475
41%
31%
13%
4%
7%
3%
100
%
United States
# OF
MENTIONS
21
9
C. America&Caribbean 5
South America
2
Asia
2
Canada
2
TOTAL
41
Europe
GROUPS
29
18
13
1
1
1
63
# OF
TOTAL
PARTICIPA.
3584
1444
1240
470
230
4
6972
%OFTOTAL
PARTICIPANTS
51%
21%
18%
7%
3%
0%
100
%
24
C.4 – General variables of the three standardized
surveys:
Mexican Hotels
Mexican Travel Agencies
U.S. Travel Agencies
Obtained
Mexican Hotels:
YES
Differentiation between Incentive Travel
groups and other groups staying at the hotel.
41% of the hotels surveyed do not
differentiate between incentive travel
groups and others, such as conferences and
conventions, etc.
NO
Up to 10
people
11 to 20 people
21 to 30 people
31 to 40 people
41 to 50 people
More than 50
people
10%
17%
24%
17%
14%
17%
Average
number of
Incentive Travel group.
guests
per
YES
Existence of a preferential rate for
Incentive Travel groups staying at the
hotel.
NO
25
ACCOMMODATION
BREAKFAST
LUNCH
DINNER
GROUND TRANSPORTATION
TOURS
OTHER
100%
54%
31%
31%
9%
8%
19%
Services included in the rate for Incentive
Travel groups.
Over half of the groups (54%) request
breakfast as part of the Incentive Travel
rate.
Observations of hoteliers based on their
experience in accommodating Incentive
Travel groups.
Yes
Hotel staff is able to gain loyalty from guests due to the service they received
as members of an Incentive Travel group.
No
90%
10%
96%
4%
58%
42%
82%
18%
Presently, the Incentive Travel market in Mexico is limited.
74%
26%
The Incentive Travel market in Mexico should grow at a faster rate than
other travel segments.
92%
8%
The Incentive Travel market in Mexico is mostly national.
75%
25%
The majority of international Incentive Groups that have stayed at this
hotel have originated from the United States.
60%
40%
Hotel staff can ensure that the Incentive Travel organizing company
will request their services again in the near future.
It is unusual to have two or more incentive travel groups
organized by the same company arrive at the same destination.
Apart from the financial benefit, the hotel seeks to accommodate
incentive travel groups as a promotional strategy.
26
Average cost for Incentive Travel groups
in 2002 and 2003.
Less than $500
9%
$500 to $800
43%
$801 to $1,100
23%
$1,101 to $1,300
18%
Less than $500
7%
$1,301 to $1,600
3%
$501 to $800
41%
$1,601 to $1,900
2%
$801 to $1,100
26%
More than $1,900
2%
$1,101 to $1,300
16%
$1,301 to $1,600
3%
$1,601 to $1,900
3%
More than $1,900
4%
Mexican Travel Agencies:
YES
Differentiation between Incentive Travel
groups and other groups staying at the hotel.
NO
YES
NO
U.S. Travel Agencies and Incentive Houses:
Differentiation between Incentive
Travel groups and other groups
staying at the hotel.
27
Airlines operating in Mexico:
The data source for this project was based on responses to a standardized survey
of the 12 most important airlines that operate in Mexico.
Although we were able to contact the entire sample, only four airlines agreed to
“partially” respond to the survey. They claimed that necessary information was not
available to answer the entire questionnaire.
As a result, this partial information lacking methodological validity has not been
tabulated.
Some of the data obtained from the airlines below:
 For groups coming from the United States, the Incentive Travel generating
company contacts the airline directly and not an agency.
 For Incentive Travel groups generated in Mexico, either traveling to a national
or international destination, the Travel Agency contacts the airline and not the generating
company.
 Groups originating from the United States prefer direct flights.
 The airlines convey their promotions and benefits of Incentive Travel directly
to Travel Agencies.
 There is no particular preferred season for Incentive Travel originating from
the United States.
 Incentive Travel groups generated in Mexico prefer weekends to travel to
national destinations.
 Incentive Travel groups generated in Mexico with an international destination
prefer preferential flights and rates.
28
C.5
–
Cross-tabulation
stratification:
through
sample
To define some of the variables through
stratification
of
destination
characteristics,
destinations were classified into the categories of
Beach, Town, and City. This was done in order to
highlight the average hotel rate variation for Incentive
Travel groups in 2002 and 2003.
Destination
Beach
Less than $500
$500 to $800
$801 to $1,100
$1,100 to $1,300
$1,301 to $1,600
$ 1,601 to $1,900
More than $1,900
Less than $500
$500 to $800
$801 to $1,100
$1,100 to $1,300
$1,301 to $1,600
$ 1,601 to $1,900
More than $1,900
4
45
26
27
8
5
11
2
23
14
11
3
1
3
City
Town
1
14
15
6
1
1
1
1
8
7
7
1
1
17
71
41
17
2
3
2
12
41
18
12
1
3
Stratification by Hotel Category surveyed during 2002 and 2003.
5 Stars
4 Stars
Average Rate
$ 500 to $ 800
$ 500 to $ 800
$ 500 to $ 800
Destination
Responses ´03 / ´02
35 / 12
Beach
City
Town
08 / 05
44 / 23
Average Rate
Destination
$ 801 to $ 1 100
$ 801 to $ 1 100
Beach
City
22 / 11
10 / 05
$ 500 to $ 800
Town
26 / 17
Gran Turismo Hotels
Average Rate
Destination
More than $ 1 900 Beach
$ 1 101 to $ 1 300 City
$ 801 to $ 1 100
Town
06 / 02
04 / 04
06 / 03
29
Average Rate 2003
Average rates for the Mexican “beach”
destinations most frequently selected during 2002
- Los Cabos
and 2003.
Over $ 1 900
58%
From $ 801 to
$ 1 100
From $ 1 601 to
$ 1 900
7%
14%
From $ 1 101 to
$ 1 300
Hotel Category
21%
Average Rate 2002 -
Los Cabos
Los Cabos
Special Category
4 Stars
6%
18%
Over $ 1 900
75%
Luxury Hotels
5 Stars
35%
41%
From $ 801 to $ 1
100
25%
Average Rate 2003 -
Cancun
Average Rate 2002 - Cancun
From $ 1 101
to $ 1 300
55%
From $ 1 301
to $ 1 600
50%
From $ 500
From $ 1 301
to $ 800
to $ 1 600
27%
18%
From $ 801
to $ 1 100
50%
30
Average Rate 2003 -
Category of the Hotels
Cancún
Acapulco
From $ 500 to
$ 800
58%
Luxury Hotels
4 Stars
15%
31%
From $ 801 to
$ 1 100
Over
17%
$ 1 900
4%
From $ 1 601 to
$ 1 900
4%
From $ 1 301 to
$ 1 600
4%
Average Rate 2002 -
From $ 1 101 to
$ 1 300
5 Stars
13%
54%
Acapulco
From $ 500
to $ 800
75%
From $ 1 601
From $ 801
to $ 1 900
to $ 1 100
8%
Acapulco
17%
5 Stars
28%
Luxury
Hotels
12%
4 Stars
60%
31
Average Rate 2003 - Pto. Vallarta
From $ 801 to
$ 1 100
33%
Puerto Vallarta
From $ 1 101
to $ 1 300
Special
17%
From $ 500 to
$ 800
From $ 1 601
to $ 1 900
34%
7%
13%
8%
8%
Category
Luxury Hotels
From $ 1 301
to $ 1 600
Average Rate 2002 - Pto. Vallarta
4 Stars
5 Stars
From $1 101
47%
33%
to $1 300
50%
From $ 500
to $ 800
50%
Average rates for Mexican “City” destinations
most frequently selected in 2002 and 2003 (Mexico
City, Guadalajara, and Monterrey.)
Comparing Average Rate 2002/2003 -
City Destination
38.46
40
35.90
35
32.00
28.00
30
28.00
25
20
15.38
15
10
4
5
4.00
2.56
4.00
2.56
2.56
2.56
0.00
0
Less than
$500
$ 500 to $ 800
$ 801 to $ 1
100
$ 1 101 to
$1 300
2002
$ 1 301 to $ 1
600
$ 1 601 to $ 1
900
More than
$ 1 900
2003
32
D.
S.W.O.T Analysis
We carried out the following interviews during the period of November 24
through December 12:
I. INFORMATION ON DMC´s IN MEXICO
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Lic. Víctor Mena - CTA Los Cabos.
Sra. Kim Claphan - Terramar DMC Los Cabos.
Lic. Carlos Aramburo – AM&I DMC Los Cabos.
Lic. Georgina Jaramillo – Group Department, Hotel Royal Solaris Los
Cabos.
Lic. Alejandro Mena y Lic. Hiro Saito K. - TransCabo DMC Los Cabos.
Lic. Beatriz Chenhall – Go México DMC México City.
Lic. Angélica Rodríguez de L. - Blitz & Services - Cancún
Tropical Incentives - Arturo Aguirre - Cancún
Maritur - Laura Robles – Cancún
Internacional Incentive Travel -Gloria Luna - Cancún
II. INFORMATION ON CORPORATE INTERVIEWS IN MEXICO
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
Lic. Adriana Ezquerro Gte. De Integración y Capacitación de Philip Morris
Mexico (Mexico City)
Lic. Joaquín Carreño López, Servicios Corporativos de Viaje - Televisa S. A.
de C. V. (Mexico City)
Lic. Miguel Ángel Coutolenc – ING Seguros Bital. (Mexico City)
Lic. Alberto Cano - Betterware. (Monterrey, Nuevo León).
Lic. Mayra de la Puente – DANONE
Lic. Juan Manuel Leal – Ediciones Culturales Internacionales, S.A.
Lic. Claudia Flores – ANA COMPAÑÍA DE SEGUROS
Gustavo Salazar – YVES ROCHER
Sara Sánchez – NESTLE
Agustín Nájera – TUPPER WARE
Sr. Eddie Justiniano – AIG MEXICO
33
III. INFORMATION ON U.S. INCENTIVE HOUSE INTERVIEWS
22.
23.
24.
25.
26.
27.
28.
29.
30.
Ann Findley – SUNBELT MOTIVATION & TRAVEL – Irving, TX.
Arturo Díaz de Salas – TR INTERNATIONAL, INC. – Miami, FL.
A Fey Sobers – INCENTIVE TRAVEL & MEETINGS, INC. - Atlanta, GA.
John Mckeon – IEXPLORE - Chicago, IL.
Bill Vastine – GALACTIC, LTD - Arlington, TX.
Thomas Tuschek – GMS – Global Management Services Inc. - Chicago, IL.
Ray A. Klempp – THE PRODUCERS, INC. - Minnetonke, MN.
Miguel Angel Salazar – OLYMPUS INCENTIVES - Miami Beach,FL.
Larry Salverness – MOTIVACTION - Plymouth, MN.
We created the following SWOT matrix based on the information obtained. This
matrix presents the Strengths, Opportunities, Weaknesses, and Threats detected in
Mexico as an Incentive Travel destination participant.
Internal
Strengths
A variety of options for beach destinations:
beach-desert; beach-golf; beach-archeology
and culture; beach-nightclubs, among others.

Richness in destinations that combine
culture, traditions, archeology, anthropology,
and nature.

Mexico has a pleasant climate throughout
the year in most destinations, which is very
important for attracting international visitors
from the north.

Mexico’s exchange rate is a competitive
option for international visitors.

International travelers seem to be
interested in adventure destinations.

Weaknesses
Lack of a tourist culture that fails to bring
interest to this segment..

The 0% taxation rate expressly excludes
incentive travel.

Delay by hotels in quoting and arranging
packages that meet the needs of international
incentive travel. Lack of interest in this segment.

Lack of special packages for incentive
groups with specific service requirements

High cost of domestic flights in Mexico.

Lack of access routes and flight frequency.

Lack of collaboration between the
Convention & Visitors Office (CVO) and private
initiative is evident. The CVOs have limited
information on destinations.

34
External
Opportunities
A range of destination options for
travelers and companies, other than beaches.

Is possible that an incentive travel
generator may select the same destination if
the traveler was satisfied and travel
organization was simple.

Mexican companies believe that it is
easier to organize incentive travel within
Mexico.

Most companies do not consider U.S.
destinations due to difficulties in obtaining a
Visa.

The hotel’s quality of service and
package flexibility is the most considered
element when selecting and returning to a
specific destination.

In order to motivate companies to
engage in Incentive Travel in Mexico, it is
suggested: variety of activities, fair prices,
publicity and advertising with attractive
images, ease of access, and hotel availability.

The warmth of the Mexican people is
one of the country’s attractions.

Threats
Companies offer other incentives, such as
cash bonuses and miscellaneous items.

Mexican companies and travelers view
international travel as a better reward than
domestic travel.

The preferred dates for incentive travel
coincide with the high travel season, making
room confirmation difficult.

Foreign travelers are concerned about the
quality of the drinking water in Mexico.

Foreign travelers are concerned about
safety issues in Mexico.

35
E. Dimension of the Incentive Travel Segment
Revenue from tourism in Mexico rose to 573,481 million pesos in 2003, with vacations as
the reason for traveling having the greatest market share. Business tourism, both domestic and
receptive, represented 14.16%.
Distribution of Tourism Revenue in 2003 by reason for travel
Source: INEGI, projected information up to December 2003 does not include transportation.
Tourism Revenue in Mexico, 2003 (thousands of pesos)
Concept
2003
Percentage
$
573,481,218.00
100%
Total revenue
$
81,204,323.00
14.16%
Business
$
253,034,830.00
44.12%
Vacations
$
165,028,266.00
28.78%
Other
$
53,735,216.00
9.37%
Excursionists
$
20,478,583.00
3.57%
Outbound
During 2003, tourism revenues from the incentive travel segment in the country, both
domestic and receptive, reached 3,811 million pesos. This figure represented 4.69% of the
expenditure of business tourism in the country.
Participation of Incentive Travel Market in Business Tourism
Business Tourism Revenue in Mexico, 2003 (thousands of pesos)
Concept
Business tourism
Incentive travel
Other business tourism
$
$
$
2003
81,204,323.
00
3,811,698.
00
77,392,625.
00
Percentage
100%
4.69%
95.31%
36
Revenue from incentive travel tourism of national travel generators totaled 2,450 million
pesos in 2003, which represents 3.16% of the domestic revenue in the business tourism segment.
Participation of Incentive Domestic Tourism in Domestic Business Tourism
Concept
Business tourism
$
Incentive travel
$
Other business tourism $
2003
77,540,013.
00
2,450,922.
00
75,089,091.
00
Percentage
100%
3.16%
96.84%
The contrast in the percentage that represents revenues from international incentive travel
is significant, at a share of 37.14% of the international business tourism segment.
Participation of International Incentive Travel Tourism in International
Business Tourism
Concept
Business tourism
$
Incentive travel
$
Other business tourism $
2003
3,664,310.00
1,360,776.00
2,303,534.00
Percentage
100%
37.14%
62.86%
37
The total number of tourists in Mexico in 2003 rose to 705,478, of which 64.30% were
domestic travelers, and the remaining 35.70% were international travelers.
Incentive Travel Tourism - Traveler’s Origin
Incentive travelers during 2003
National
453,623 - 64.30%
International
251,856 - 35.70%
Total
705,478 - 100%
38
PART II
F. Recommended strategies for the development of the Incentive Travel
segment.
Based on the variables analyzed in this study, as well as on the comments from the
participants in the segment in question and the resulting S.W.O.T analysis, the following
strategies are proposed:
General:
 Include incentive travel in the benefits segment at a 0% tax rate.
 Implement an awareness campaign among customs and immigration personnel on
the economic importance of this activity to limit the entry obstacles for this group.
 Create an agency within Mexican Consulates abroad, solely, for the purpose of
arranging events and facilitate the entry of groups and materials into Mexico.
 Encourage suppliers to create new companies that are better able to satisfy the
demand that has not yet been covered.
 Create Quality Service programs to address the prevailing non-fulfillment issue.
Hotels and tourist service providers:
 Create flight-hotel packages that offer a real financial advantage for Mexican
companies.
 Obtain the support of the airlines regarding competitive airfares to domestic
destinations.
 Encourage Mexican hotel chains to create “all-inclusive” packages that meet the
specific needs of this segment.
CVOs, OCCs, OCTs and similar organizations:
 Implement a tourism awareness campaign among organizations relating to
conventions, meetings, and tourism (CVOs, OCCs and OCTs) or similar
organizations centered on the economic benefits brought by this segment to the
destinations. The average expenditure of this segment is higher than that of
conventional tourism.
39
 Generate support packages for incentive groups at the destinations with the most
appropriate characteristics for hosting this segment.
 Encourage generating companies through CVOs to organize events during the offseason.
 Market the Internet as a basic tool for promoting destinations and providing users
with timely information on hotels, suppliers, rates, tours, and weather conditions,
including links to the contacts mentioned.
Market generators.
 Emphasize the use of incentive travel as a tool for increasing employee
productivity among companies.
 Visit generating companies in Mexico to make them aware of the benefits of
organizing Incentive Travel in Mexico and the ways in which they can get support
from the CVOs.
 Design attractive publicity for destinations selected for promotion for this
segment, by creating multiple images that will spark an interest in visiting
unexplored destinations thereby leading to "awareness.”
 Target advertisements at female companions of incentive travel winners, as they
are perceived as great motivators for wanting to visit these destinations and
encouraging hard work to earn rewards.
Toward the North American Market:
 Approach agencies that organize Incentive Travel in the United States to promote
the top Mexican destinations at opportune times, using the aforementioned
publicity campaigns. Emphasize the advantages of competitive prices and yearround, warm climate.
 Organize and invite organizing agencies on excursion trips to destinations selected
to promote this segment. Market Mexico as an exotic, adventurous, culturally rich
destination, famous for the warmth of its people.
40
© 2003 The Incentive Research Foundation
This material is copyrighted and the sole property of The Incentive Research Foundation. It is not to be
reprinted or reproduced in any way without prior written approval from The Incentive Research
Foundation.
Please direct inquiries to:
Frank Katusak, Executive Director
The Incentive Research Foundation
304 Park Ave. South, 11th Floor
New York, NY 10010-4305
Telephone: 212-590-2518
Fax: 212-590-2517
Email: [email protected]
www.TheIRF.org
41

Market Study of Incentive Travel In Mexico

Transcription

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