July August

AmDETuR Welcome to our XXVII Annual Convention

TEChNOlOgy: The Influence of Technology in 21st Century Tourism

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»Statistics Business Analytics. Part 4 of a 5 Article Series / A Competitive Advantage for Sales and Marketing Executives

»In this issue Curtis Knipe Experience and Innovation

Driver of a NewSocioeconomic model

TOURISm:

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BOARD OF DIRECTORS

CHAIRMAN Romárico D. Arroyo Marroquín Grupo SunsetexeCutIve Carlos trujillo Balmaseda pReSIDeNt AmdeturSeCReARy Gerardo Rioseco Orihuela Fiesta Americana vacation ClubtReASuReR C.p. Jaime Márquez vargas / Royal HolidayLeGAL Lic. Gerardo Freyre Fregoso DIReCtOR vera y Carbajal

COuNSeLORS Juan vela Ruiz / Grupo velasRicardo Montaudon Corry / RCIJuan Ignacio Rodríguez Liñero / RCIKemil Rizk / Royal ResortsMarcos Agostini / Interval InternationalJorge pallas Cáceres / promotora Cancún Sunset ClubsGustavo Ripol Bermúdez / presidente Club de viajesFrancisco Aranda Bezaury / Club Real ResortGibrán Chapur / palace ResortsJorge Herrera Rivadeneyra / unlimited vacation Club

DIReCtOR Rosa de Jesús Lugo Dorantes

NOTITuR

CHAIRMAN Romárico D. Arroyo Marroquín Grupo SunsetexeCutIve Carlos trujillo Balmaseda pReSIDeNt AmdeturpuBLISHeR Aurora Martínez v.DeSIGN KeMCS Diseño y Marketing www.kemcs.compRINteR LitográficaJM,S.A.deC.V. tel. (55) 5581 8229 y 5582 9370tRANSLAtION elizabeth Collins Morrison elizcollins@mac.com pHOtOGRApHy José Mata / www.pbase.com/ppmata AMDetuR Cel. (04455) 1885 8581ADveRtISING Aurora Martínez v. aurora.martinez@prodigy.net.mx

LOCAL ASSOCIATIONSLic.PatriciadelaPeña,AsociacióndeClubesVacacionalesdeQuin-tanaRoo,A.C./Lic.AlejandroLemusMateos,AsociacióndeDe-sarrolladores yPromotoresTurísticosdeTiempoCompartido,A.C.(puerto vallarta) / Dr. JorgeTéllez Landín,Asociación Sudcalifor-niana deDesarrolladores deTiempoCompartido,A.C. / Ing. José LuisCenteno,AsociacióndePromotoresdeClubesVacacionalesdelEstadodeGuerrero,A.C./ Sr.FernandodeLeeuwSantiago,Asocia-cióndeClubesVacacionalesdeCozumel,A.C./ C.p. Fernando Ala-nizCárdenas,AsociacióndeClubesVacacionalesdeSinaloa,A.C./ Lic.ClaudioBalderramaGonzález,AsociacióndeDesarrolladoresyOperadoresTurísticosdeIxtapayZihuatanejo,A.C.

NOTITUR is a bimonthly publication published by the Mexican Resort DevelopmentAssociation(AMDETUR),withfivedigitalversionsandoneprintversionayear.WTC,Montecito#38,Piso32,Oficinas11–14,Col.Nápoles,México 03810, D.F. Telephones and fax: (55) 5488 2028 to 31. Printed atLitográficaJM,S.A.deC.V.,Sur111#622,Col.SectorPopular,México09060,D.F. Certificate ofValidTitle no. 3856, datedApril 19, 1989; Certificate ofValid Content from the Comisión Calificadora de Publicaciones y RevistasIlustradasno.3172datedApril19,1989.ReserveCertificateNumber04-2005-030817343600-102fromtheInstitutoNacionaldelDerechodeAutor,MinistryofPublicEducation.PostalPublicationRegistryNo.PP09-0427authorizedbySEPOMEX.AMDETURisnotresponsiblefortheadvertisementsoradvertorialspublished in NOTITUR. NOTITUR complies with federal regulations oninformationprivacy,accordingtotheFederalLawonProtectionofDataHeldbyPrivateParties.Formoreinformationonthisissue,visitourwebpageatwww.amdetur.org.mx NOtItuR JuLy-AuGuSt 2013

NOTITUR / CONTENTJuly / August 2013

www.amdetur.org.mx

AmDETuR ReCeNT AMDeTUR ACTIvITIeSThankstothesupportofourmembersandparticipationofthecommittees thatmakeupAMDETUR,wecontinue toachieve significantadvances thatbenefitour industryandtourism in general.

ACADEmESeCOND TIMeShARe DIpLOMA pROgRAMTheSouthernCaliforniaAssociationofTimeshareDevelopers(ASUDESTICO), incollaborationwith theUniversidaddelGolfodeCalifornia,offereditssecondTimeshareDiplomaPrograminBajaCaliforniaSur.

TEChNOlOgyThe INfLUeNCe Of TeChNOLOgy IN 21ST CeNTURy TOURISMInstatistics,70%ofcellphonesearchesendinapurchasewithin one hour, while searches on desktop or laptopcomputersendinapurchasewithinaperiodofonemonth.

INDuSTRyCURTIS KNIpe, expeRIeNCe AND INNOvATIONNow, with new flights that offer better connections toMazatlan, and following a record number of visitorsin November and December last year, prospects arebrighteningforthisdestination.

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IfyouwouldliketoreceivethedigitalversionofNotitur,inEnglishorSpanish,youcanrequestit:aurora.martinez@prodigy.net.mx

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12 TOuRISm: DRIvER OF A NEw SOCIOECONOmIC mODElTheeconomiceffectsof thisactivityareunmistakable,because these tourist flows mean employment,accountingforoneoutof12jobsinthetouristindustry,andgenerating30percentofserviceexports.

STATISTICS PART 4 OF A 5 ARTIClE SERIES:Business Analytics, a Competitive Advantage for Sales and Marketing executivesToday, there areBusinessAnalytics solutions that arepresentedaspre-fabricatedcontentabouttheTimeshareindustry.Theseout-of-the-boxsolutionssavecostsandenablecompaniestogenerateimmediateprofits.

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July / August 2013DEAR READERS:Iwarmlywelcomeyou to the27thAnnualConventionof theMexicanResortDevelopmentAssociation (AMDetuR).

TheMarketingandSalesCommittee,whichwasresponsiblefororganizingthisevent,hasbeenabletobringtogetherasetofnationallyandinternationallyrenownedspeakersandpaneliststodiscussthelatesttopicsandissuesinourindustry,andI'msureparticipantswillfindthishighlyinterestinganduseful.

Onceagain,ourConventionincorporatesactivitiesrelatingtoourUniversity-EnterpriseLiaisonProgram,inresponsetothewarmacceptanceithasreceivedinpreviousyears.Thisprogramhashelped us to invite students who are enrolled in tourism degree programs at various universities tobecomefamiliarwiththebenefitsandadvantagesofworkinginthisindustry.Throughtheseactions,AMDETURanditsassociatesareactivelypromotingahigherlevelofeducationandamoreprofessionalvacationownershipindustry.

I'dliketotakeadvantageofthisopportunitytothankoursponsors,presenters,speakers,panelists,eventorganizersandallofourassociatesfortheirvaluableparticipationinthisConvention.

I'malsoverysatisfiedtowelcometouristindustryauthoritiestothisforum,andlookforwardtodialoguingaboutpoliciesandworkprogramsthatcansupportthedevelopmentoftouristactivityin Mexico.

TheMexican tourist industry isclearly showing signsof recovery,butwemust redoubleoureffortstoencourageastrongerpaceofgrowth.Iinviteyoutocontinuededicatingyourselftothisgreattask.OnlythroughtheconcertedeffortsoftheauthoritiesandprivateenterprisecanMexicoachievetheplaceitdeservesintheworldofTourism.

Cordially,ROmáRICO D. ARROyO mARROquíNChAIRmAN OF ThE BOARD OF DIRECTORS

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Recent AmDETuRactivities Thankstothesupportofourmembersandparticipationofthecommittees thatmakeupAMDETUR,wecontinuetoachievesignificant advances that benefit our industry and tourism ingeneral,aswehavesharedinpreviousissuesofNOTITUR.Inthis issue we will report on our activities in the third two-month periodof2013.

COLLege Of ARChITeCTS CONgReSSAMDETURparticipated in theCongressofSpecializedSocieties,organized byCAM-SAM (TheMexicoCity College ofArchitectsandSocietyofArchitectsofMexico),onMay2and3ofthisyear.Themeetingwas attended by organizations of architects, urbanplanners, appraisers and specialists in the areasof tourism, civilprotection and health, and discussed public policies that mightbe applied to increasing the competitiveness of Mexican cities.OurindustrywasrepresentedbyGabrielSantoyoofGrupoSunsetWorld–HaciendaTresRíos,inapanelentitled“Infrastructureandequipmentforsustainabletourism.”

CONSULTINg fORUMS fOR The NATIONAL DeveLOpMeNT pLANOnMay9,AMDETURwaspresent for the“ProsperousMexico”citizen consultation forum, held to support the drafting of theNationalDevelopmentPlan for2013-2018,headedbyPresidentEnriquePeñaNieto.ThePresidentsaidthathisadministration“hadreceivedmore than 200,000 proposals and suggestions that arebeinganalyzedandalignedwiththefivenationalgoalsthathavebeensetforth:achievingaMexicoatpeace;aninclusiveMexico;a Mexico with quality education for all; building a prosperousMexicoandmakingMexicoagloballyresponsibleagent.”

Additionally, AMDETUR took part in two industry work tableswithin the National Development Plan. The first of these waswiththeMinistryofTourism(SECTUR)andfocusedonfacilitatinginvestment and financing for the industry, and the second waswiththeMinistryoftheEconomyandtheNationalTrustFundforTourismDevelopment(PROFECO),entitled“ConsumerRights.”

SeCTUR SUB-COMMITTee 228Sub-committee 228, organized by the General Department ofRegulatory Improvement of theMinistry ofTourismmet onMay9,whereAMDETURparticipatedinadialogueonstandardizationofthesystemsinvolvedintheindustry,throughISOcertification.The main purpose of this Sub-Committee is to promote themodernization of tourist activity by learning about, participatinginandanalyzingnewinternationaltrendsinthefieldoftourism.

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ThIRD MeeTINg Of COpARMex TOURISM COMMISSIONOnMay17theEmployersConfederationoftheMexicanRepublic(COPARMEX)organizedthe3thmeetingofitsTourismCommittee,inwhichCarlosJoaquínGonzález,OperationUnder-SecretaryatSECTUR,invitedtourismentrepreneurstojoinindiagnostictablesthat will take place in June and July. He added that work tables wouldalsobeheldonidentifyingstrategicdestinations,segmentsandsub-sectors,whichwillsupportinimprovingcompetitiveness,innovation and sustainability.

SeCOND TIMeShARe DIpLOMA pROgRAM IN LOS CABOSBetween April 16 and June 12 the Southern CaliforniaAssociation of Timeshare Developers (ASUDESTICO) organizedits SecondTimeshare Diploma Program, with the collaborationof theUniversidaddelGolfodeCalifornia.Within that diplomaprogram, on May 21, AMDETUR participated in module 3,“ResortDevelopers,” inwhich it spoke of the characteristics ofvacationownership tourist projects, post-sale services (includingreservations and collections) and other aspects like making the sale linkedtothelegalverifier.

AMDeTUR-CMIC MIxeD COMMISSIONFollowing up on the meetings AMDetuR has held with the Mexican Construction Industry Chamber (CMIC) and within the framework of the 2013 National Tourist Infrastructure Meeting,organizedbyCMICandheldonMay22-25inMazatlán,Sinaloa,the two organizations signed an integration agreement to create a MixedCommission,whose objectives, among others,will be topromotethedevelopmentoftouristprojectandsharebestpracticesin tourism-related construction activities.

AMDetuR also participated in the meeting in a panel entitled “OverviewofTourisminMexico,”whereitstressedtheimportanceof the vacation ownership industry to Mexico, as well as thisAssociation’s interest in collaborating with institutions active in the industry,liketheCMIC.Additionally,duringthevisitinMazatlánaproductiveworkmeetingwasheldwithmembersoftheMexicanAssociationofSinaloaVacationClubs.

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UNIveRSITy-eNTeRpRISe LIAISON pROgRAMAnother activity in our university-enterprise Liaison program took place on May27attheUniversidaddelCaribeinCancun,QuintanaRoo,throughadayof talksonTimeshare. Participants includedGerardoFreyre,LegalDirectorat AMDETUR, Jane García, Executive Manager for Marketing and HumanResourcesatRoyalResorts, JesúsCalahorra,BusinessDevelopmentDirectorfor theMayanCaribbean at RCI andCarlosTrujillo, Executive President ofAMDETUR.Closingouttheeventwasacelebrationofthecareerachievementsof Miguel Osuna, General Director of AM Resorts for the Caribbean.ParticipantsreceivedaparticipationdiplomafromProfessorMirnaGuadalupetorres Aragez.

ThIRD SALeS AND MARKeTINg vACATION CLUB fORUM Of The AMeRICASAMDETURattendedthe3rdforumorganizedbytheQuintanaRooVacationClubAssociation(ACLUVAQ),heldonMay28-29onthetheme“Productivity:Aracewithoutlimits.”TheeventwasledbyextraordinarymotivationalspeakerslikeChristopherGardner,whoauthoredthebookbasedonhisownlife(andlatermadeintomovie)“ThePursuitofHappyness;”andJosédeJesús,a.k.a.“Chucho”Ramírez,ProfessionalCoachandformerCoachoftheMexicanSub-17 youth Soccer Selection.

During the same forum another panelwas held, entitled “Productivity:TheVisionofNewGenerations,”madeupofFernandoAzcona,VillaGroup,asmoderator; JorgeTéllez, Corporativo Solmar; DanielArroyo, SunsetWorld;GibránChapur,GrupoPalaceResorts;ArmandoMillet,GrupoRoyalResortsandSalomónArroyo,SunsetWorld.◄

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1. and 2. College of Architects Congress / 3. Mixed Commission AMDetuR-CMIC where JorgeHerreraCaldera,GovernoroftheStateofDurango,CarlosTrujilloBalmaseda,ExecutivePresidentofAMDETUR,RobertoCalvetMartínez,ExecutiveCoordinatorofTouristInfrastructureandEduardoRamírezLeal,ExecutiveVicePresidentofDelegationsandSocialSecurityfortheCMIC,participatedinthepanel“OverviewofTourisminMexico”/4. COpARMex 3th tourism Committeemeeting,JoseAlfonsoBayón,SECTUR;RobertoZapata,COPARMEX;CarlosJoaquínGonzález, SECTUR;ManuelGutiérrez,NationalChamberof theRestaurant andCondimentIndustry; Armando Uribe Valle, Mexican Hotel-Motel Association / 5. Professor MirnaGuadalupeTorresAragezoftheUniversidaddelCaribe,deliveringrecognitionstopresentersatthe university-enterprise Liaison program.

Onceagain,industryparticipantsplayedanimportantroleinenriching knowledge among those who work in vacation OwnershipinBajaCaliforniaSurandencouragingcloser

communicationwiththeteachingstaffofthevariousuniversitiesinLos Cabos that teach courses on timeshare.

Thanks to the efforts of members of the Southern CaliforniaAssociation of Timeshare Developers (ASUDESTICO), incollaboration with the Universidad del Golfo de California, theSecondProgram inTimeshare forBajaCalifornia Surwasgiven,contributingsignificantlytotheprofessionalizationofourindustryin the region.

ThissecondacademiceffortwasformallybegunonApril16,withthe support of Jorge E.Téllez Landín,Vice President, and JavierOlivares, Director of ASUDESTICO; and with the support andconfidenceoftheresortdevelopersaffiliatedwiththisassociation.

This important event was attended by Rubén Reachi, BajaCaliforniaSurSecretaryofTourism,andYolandaRazo,RectoroftheUniversidaddelGolfodeCalifornia,whichacceptsthisDiplomaProgram,uniqueinMexicoandLatinAmerica,forcoursecredit.

Theprogramconsistsoffourmodules,coveringthemainconceptsthatunderliethisindustry:

2Nd TimEsharE diplOma prOgram

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MODULe I. TOURISM-ORIeNTeD ReAL eSTATeDifferent types of vacation ownership; evolution of products;market characteristics and indicators; status of the industry inMexicoandinLosCabos;technologyandsocialnetworksappliedtotheindustry,amongothers.

MODULe II. LegAL fRAMewORKInternational laws governing Timeshare; Official MexicanStandards affecting theTimeshare industry; legal regulations inMexico;municipalregulationsinLosCabos,proceduresinvolvingPROFECO; standard-form agreements; and handling advertisingand complaints. MODULe III. DeveLOpeRSHow to create a hotel and Timeshare project; permits andconstruction; financing and co-backers; Timeshare serviceoperations; maintenance fees; exchange company; collections;commercialagencycontract;post-sale.

MODULe Iv. MARKeTINgPersonnelrecruitment;hiringandtrainingpromoters;prospectingprogram;dutiesofsupervisorsandmanagers;typesofconverters;management; managing check-in situations; budgets, sales,outsourcing.

Programs like this are a clear example of actions being takenby leaders of the Timeshare industry to support its evolutionand the observance of its own principles and regulation, andconsolidate the bases on which this expansion can continue. ◄

The Second Timeshare Diploma Program consisted of four modules, covering the main concepts that underlie this industry.

JavierOlivares,Director and JorgeTéllez, President ofASUDESTICO,withRubénReachi,SecretaryofTourismforthestateofBajaCaliforniaSur.

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Social networks, corporate and institutional communication and newtechnologies have something in common that can be used to benefittourism inMexico. For example, cellphoneadvertising is expected to

resultin11.4billiondollarsinprofitsin2013,19%morethanin2012,1 and usingthistosupportthelocaltouristindustrycouldbeoftremendousbenefitforthecountry.

InMexico,tourismisahighlyprofitableactivity,generatingjobsandaccountingforcloseto9%ofGDP.

Today, new technologies have transformed the way we approach clients.Throughthesetechnologies, travelerscannowresearchandpurchaseatrip,almost entirelyon the Internet. Lookingat the statistics,70%of cellphonesearches end in a purchase within one hour. Searches on desktop or laptop computersendinapurchasewithinaperiodofonemonth.2 transactions are becomingmoreandmorerapid,asignificanttrendinthetourismindustry.

Thebiggestchange,however,hasbeen inourknowledgeabout the tourist.Today,itispossibletoknowmorepreciselywhat,whenandhowtheysearch,what theybuy,howfrequently,howfar inadvanceandhoweachpurchasewilltakeplace.Allofthisinformationcanbeobtainedatarelativelylowcost.

the important thing today is to have strategies that enable us to reach the right consumer,notawidernumberofprospects;thechallengeisinapproachingthosewhomeettheprofileofthetravelerwhowillvisitMexico,inotherwords,lead them directly to our destinations. Incentives like coupons are important to maintainingadestination'spositioning;couponssentbycellphoneareused10timesmorefrequentlythanprintedcoupons.3

The Influence of Technology

in 21st Century TourismContributed by CpTM

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Sources:

1Source:http://www.socialnomics.net/2013/04/08/mobile-marketing-

which-social-network-will-win-your-advertising-dollars/

2Source:http://www.socialnomics.net/2013/03/25/mobilenomics-video/

3Source:http://www.socialnomics.net/2013/03/25/mobilenomics-video/

Making use of these technologies has the potential to generategreaterconsumptionfortheindustry.

However,thesetransactionshavetheirownrisks.Thereisanexcessof information, and thismakes itmore difficult to communicatewithpotentialtourists.Itiscommonforthem,whensearchingfortraveldestinationsontheweb,tocomeacrossreferences,remarksandsuggestionsofallkinds,andtouristsshouldbeabletoidentifythosethatarethemostrelevantfortheirpurposes.LatinAmericanconsumersareparticularlywaryabouttheuseofonlinepaymenttools,aphenomenoncommoninMexicoandintheregionatlarge,which should be taken into account.

UndertheleadershipoftheMinistryofTourism,wehavestartedoutthisnewadministrationwithavisionof renewal, innovationandgrowth.Wehavedefinedvery specific strategicprioritieswhich,togetherwithnewtechnologies,shouldenableustoincreaseourmarket share in various issuing countries. the strategic lines will followareintendedto:

•INCREASE economicflowandgenerategreater economicbenefitforourdestinations.

•PuBlICIZEthelargestnumberofdestinationsinthegreatestnumber ofmarkets, in order to diversify our tourist products.To mention a few examples: there are a great many culturaldestinations available in Mexico, as well as the tremendouspotential to receive convention tourism and international conferences.Wecanalsomaintainourpresence inourmainmarkets,liketheUnitedStatesandCanada.

•ACCElERATE ourmarket diversification.The internationalmarketforMexicocomes50%fromtheUnitedStatesand50%fromotherinternationalmarkets;increasingourpresenceintherestoftheworldwouldbegoodforMexicoineveryway.

• STRENgThEN AND EXPAND our trade alliances with industrymembers,whichare increasinglyusing technologytooffertheirproductsandservices.

•ATTRACT TOuRISTSwhoarenotyetfamiliarwithMexico.Weknowthecapacitywehavetofulfillandexceedexpectationsofinternationaltourists.Technologywillenableusmorewidelydisseminateexperiences,attractingmore“first-time”tourists.

technological tools can also help us accelerate the development ofthedomesticmarket,helpingMexicantravelerstofindthebestdestinationsforthem.

tourism industry is working to make these new technologies our closestalliesinpromotinganddiversifyingdestinations,andtousethem as best we can to continue developing this important industry.◄

We are grateful for this collaboration of the Mexico Tourism Board (CPTM) in the publication of NOTITUR.

of cell phone searches end in a purchase within one hour. Searches on desktop or laptop computers end in a purchase within a period of one month.

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Morethan25yearsofexperienceintheTimeshareindustryhavemadeCurtisKnipeanameforhimselfinthesalesandmarketingfield,especiallybecauseofhisfamiliaritywiththeUSmarket,whichissoimportanttoMexico,andhisabilitytocombinethese

typesofexpertisetopromoteMexicanTimesharenationallyandinternationally.

WeinterviewedKnipeaboutthechangesinthesetwoaspects,aswellasthebeginningsofarecovery in the vacation ownership industry in Mazatlan.

whAT ChANgES hAvE RECENTly OCCuRRED IN TERmS OF SAlES vOlumE?Fromthetimeofmyarrival toMexicoin2007,salesvolumehasbeenverystable,but therehavebeena lot of challenges for all of us in recent years andwehave seenabroad-basedcontractioninvolume,forreasonswe’reallwellawareof.Onthispoint,I’dliketostresshowdifferentmarketshavehaddifferentoutlooksintermsofthearrivaloftourists,forexample,indestinationsasdiverseasCancunandCozumel,comparedtoMazatlan,whichcontinuestofacemajor challenges even today.

IN yOuR OPINION, whAT wERE ThE REASONS FOR ThIS DEClINE, ESPECIAlly IN mAZATlAN?I thinkmainly it’s the impact of reports and foreignmedia about problemswith violence inMexico,particularlyMazatlan,andhowthisnewsareperceivedintheUnitedStatesandCanada.

whAT REACTIONS hAvE ThESE ChANgES hAD IN STRATEgIES OF lEADS gENERATION?In2009,westartedofftheyearfairlystronglyintermsofprospectgeneration,butstartingin

CurTisKNipE, Experience and Innovation

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Apriloccupancyratesdeclinedatanunprecedentedpace,duetothisperceptionofviolence,asImentioned.AlthoughtherewerenospecificcasesofthistypeinMazatlan,theseperceptionscontinuedthroughout 2010 and into 2012.

Cancunrecoveredfairlyquicklyfromtheseeffects,butinthecaseofMazatlancreativitywasadecisivefactorinattractingprospects,even creating strategic alliances with other resorts, which wasunthinkable in the past, or at least it was kept very secret.Wecreated a much more efficient and effective marketing process,whichsofarhasresultedina12percentglobalincreaseinleadgeneration.

whAT IS ThE OuTlOOk ON mAZATlAN AS A DESTINATION?Mazatlanhasagreatfutureaheadofit.Ithaseverythingatouristcanwant--warm,friendlypeople,uniqueculturaltreasures,greatweatheralmostyear-round,andmilesandmilesofbeaches.Also,ithasawidelyvariedcuisinethatisoneofthebestintheworld.Thefishingisexcellent,andit'sagolfer'sparadise.HistoricdowntownMazatlanisauniqueplaceamongMexico'sbeachdestinations—whichmakesitabeautifulcolonialcitywithabeach!

Now,withnewflights thatofferbetterconnections toMazatlan,andaftertherecordnumberofvisitorswehadinNovemberandDecemberlastyear,prospectsarebrighteningforthisdestination.ThisispartlybecauseofanimprovementintheperceivedimageofMazatlan.

hAS ThE SEllERS' PROFIlE ChANgED?No, the sellers' profile is the same, but they've had to bemoreefficient,throughimprovementsintheirprograms.Thishashelpedthemtoincreaseclosingvolume,whichmakesupforthedropinthenumberofvisitorsandsaleswehadlastyear.

ANy COmmENTS ON ThE uPCOmINg OPENINg OF ThE mAZATlAN-DuRANgO hIghwAy?I'mveryexcitedaboutit,becauseIthinkitwillbegoodnotonlyforMaztlanbutforallofthesouthernpartofthestate,evenNayarit.Itwillbringadramaticchangeinthemixofthedomesticmarket,from10to15percentpreviously toasmuchas40percent,andtherewillalsoprobablybeasubstantialincreaseinthevolumeofmiddle-class tourists. ◄

Now, with new flights that offer better connections to Mazatlan, and after the record number of visitors we had in November and December last year, prospects are brightening for this destination.

Curtis Knipe is originally from the city of Boise, Idaho.He studiedCivil engineering at Oregon State university. He has more than 25 years ofexperienceintheTimeshareindustry,andbeforehecametoElCidResorts,hewasVicePresidentforSalesatTempusResortsInternationalInc., Sales Director atWestgate Resorts, andVice President for Salesat Island One Resorts. He is currentlyTimeshare Director for El CidVacationsClub,apositionhehasheldforfiveandahalfyears.

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NOTITuR 2013

FEATuRE

por Carlos vogeler Ruiz/DirectorRegionalparalasAméricas,OMT

tTrendsatthestartof2013seemedtoconfirmaslowingofglobaleconomicgrowthandgrowinguncertainty,sparkingjittersininternationalmarkets.Arecent report by the World economic Forum pointed out the gap between

richandpoorandtheunsustainabilityofpublicdebtastwoofthebiggestrisksfacingtheworldthisyear.

Let’s be realistic: the global economic situation remains fragile, and instabilityin many regions of the world, especially the euro zone, is having seriouslynegativeeffectsonstandardsof living formanymembersof society,whohavebeenlosingjobssincethe2008financialcrisisbrokeout.Morethan200millionpeople became unemployed in that time. According to the International Labor Organization,theworldmustnowcreate600millionnewjobsinthenextdecadetomaintainthepaceofeconomicgrowthandsocialstability.

Although in this world economic context there are also disparities between regions,andnotallofthemareinthesamesituation,certainforcesareemergingthat,iftakenadvantageof,cantransformthatglobaloutlookandshapeabetterworld.Among these forcesare the traveland tourism industry,andamong theregionswiththestrongestprospectsfordevelopmentareAsiaandtheAmericas,and particularly Latin America.

ThE FORCES ThAT mOvE A glOBAlIZED wORlDMajor transformations have takenplace in recent decades that have created aglobalizedworld, a complex, interlocking and interdependent network, acrosswhichthereareflowsofgoods,capital,ideas,informationand,certainly,people,whoaremovingfasterthaneverbefore.Thisglobalizationprocesshastwodrivingforcesthatarenotjusttheresultofamoreglobalizedworldbutitsveryengines.these are two long-term trends that have not been swayed by the global economic

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crisis.

ThE FIRST ONE is information technology and communications, which haveundergone a revolution that enables us to communicate and process informationdigitallyinrealtimeinawaythathasneverbeenpossibleupuntilnow,helpingtotransformourlivesandsubmergingusinadynamicofunceasingchangethatforcesus to remain more alert and up-to-date.

ThE SECONDistheglobalflowofmigration,thefruitofwhatwenowcall“theageofdisplacement,”whichhaswitnessedthemovementofmillionsofpeoplewithintheirowncountriesandacrossbordersinsearchofdifferentopportunitiesandexperiences.Theworldisquicklybecomingurban,andmorethanhalfoftheworld’spopulationtodaylivesinmetropolitanareas.Bytheyear2030,thisnumberisexpectedtorisetoalmost 5 billion.

Theopportunitiescreatedby these twoforces—technologyandmobility—havenotdiminished,andsuggest that theworldeconomymayonceagainbeabletoreturnto the path of prosperity. Travel and tourism activity has also become anotherglobalizationmegatrend,whichoftengoesunnoticed,despitethefactthatitinvolvesagrowingglobalpopulationand,ifdisrupted,couldturnaroundagoodpartoftheevolution accomplished.

TOuRISm AS A PIllAR OF PROgRESSAswithtechnologyandmobility,tourismisamajordriverofournewsocioeconomicmodel.Sufficeittorecallthedazzlingevolutionoftravelfrom1950,when25millioninternationaltouristswereregistered,to2012,whenthenumbersurpassedthesymbolicone-billionmilestone,towhichwemustaddanother5billion,approximately,whotravel within their own countries. Studies by the World tourism Organization project anincreaseinthisnumbertoanastonishing1.8billioninternationaltouristsin2030,closeto250millionofwhichwillbeintheregionoftheAmericas.

The economic effects of this activity are unmistakable, because these tourist flowsmeanemployment,accountingforoneoutof12jobsinthetouristindustry,andinexports,generatingabilliondollarsinrevenuesforhostcountries,or30percentofservice exports.

Intheyear2012,theregionoftheAmericasalonereceivedmorethantwohundredfifteenbilliondollarsfrominternationaltourism,alittlemorethan20percentoftheworld total,and in thecaseofLatinAmerica,projectedgrowth in thenext twentyyears exceeds the global average.

14

LatinAmericainparticularhasneverseensuchaprolongedperiodofpoliticalstabilityandsocioeconomicprogress,despitesocialdisparitiesthatcontinuetoexistinthesub-region.Inthiscontext,tourismhasbecomeafundamentalpillar of progress and a key element for combating poverty and inequality,something thatmost governments of the region understandwell, includingMexico, which has applied important government policies for developingtourism.

Therearefivekeyreasonswhytourismshouldbecomeastrategicpillarofanytrulysustainablefutureeconomicgrowth.

1 TOuRISm CREATES JOBS more rapidly than many other industries. It isnotjustoneoftheproductiveactivitiesthatcreatesmorejobs,butit is

capableofcreatingthematacomparativelyhigherrate.

2 TOuRISm hAS A mulTIPlyINg EFFECT on the economy,which isreflectedinotherproductivesectors.Inanageinwhichmanyeconomies

are facing a contraction of domestic consumption, international tourismnot only contributes direct revenues from exports but also has an indirecteffect across its extensive value chain.Tourism is fairly resilient in adversesituations,aqualitythatisespeciallycriticalforfacingcurrentchallengesanddemonstratesitstremendousflexibilityandcapacityforadaptationtochangingmarket conditions.

3 TOuRISm REDuCES POvERTy AND CONTRIBuTES TO DEvElOPmENT. Itaccountsfor45%ofexportsofdevelopingcountries

andisoftenoneoftheindustriesinwhichthesenationsenjoyacompetitiveadvantageover their developed counterparts, due to their abundant naturalandculturalresources.Inthissense,tourismisanincreasinglyimportantandeffectivetoolforcontributingtodevelopment.

4 TOuRISm IS ONE OF ThE PRImARy CONTRIBuTORS TO A SuSTAINABlE ECONOmy fromanenvironmentalstandpoint.Arecent

UnitedNationsreportshowsthattourismwasoneofthe10vitalsectorsfor“greening”theworldeconomy.Withtherightamountofinvestment,tourismcan be a primordial agent of change toward a green economy, because itpromoteseconomicgrowthandcreates jobswhile improving theefficiencywithwhichresourcesareused,minimizingenvironmentaldeteriorationandcontributingtotravelers'awarenessabouttheenvironment.

5 TOuRISm BRINgS CulTuRES ClOSER TOgEThER, because it joins peopleofalloriginsandconditionsandhasgreatpotentialforpreventing

conflictsandresolvingcrises,becominganessentialfactorforunderstandingbetween people and contributing to world peace.

Of course, greater political recognition is a basic condition for takingadvantageofthetruepotentialtourismoffersus,incorporatingpublicpoliciesthat stimulate tourist development and supporting public-private alliances.

Global leaders who met into major summits last year, the United NationsConference on Sustainable Development (Rio+20) and the G20 Summit,agreedon the important role that tourismcanhave in light ofmanyof themostpressingglobalchallenges. In the importantconferenceonsustainabledevelopment,heldevery10years inRiode Janeiro (Rio+20),world leadersaffirmedthattourism“canhaveahighpositiveimpactonthethreedimensionsof sustainable development, has close linkageswith other sectors, and cancreatedecentjobsandgeneratecommercialopportunities.”

Travel and tourism activity has become a globalization megatrend, which, if disrupted, could turn around a good part of the evolution accomplished.

FEATuRE

NOTITuR 2013

15

In the samemonth, leadingworld economic powersmet inMexico atthe G20 Summit to chart the course for global recovery. In their finaldeclarationworld leaders recognized, for the first time in the 13 yearsoftheG20'shistory,“theroleoftravelandtourismasavehicleforjobcreation,economicgrowthanddevelopment.”

Tourismis,littlebylittle,receivingtherecognitionitdeservesfromthosewhoarecharting thecourse towards sustained,equitable recovery,andas theauthoritieswork tocreate theeconomicorderwerequire for thefuture,itwillbecomemoreobviousthata“neweconomy”istakingshape,withindustriesliketourismattheheartofit.

The term “new economy” was coined in the 1990s, to describe theevolution from a manufacturing-based economy to a service-basedeconomy.

Today,weareexperiencinganewversionofthe“neweconomy”inwhicha new wave of services and human activities is flourishing, which nolongermeetsthecommondefinitionofaservice-basedeconomy.

Tourism,culture,sports,creativeactivitiesandtechnologyaretheservicesofthenew“neweconomy”andwillbesomeofthemoredynamicandmostsignificantenginesofeconomicgrowthofthedecade.

Despiteitsexplosiveexpansion,therenaturallycontinuetobeobstaclesforsustainedgrowthintourism.Complicatedproceduresforobtainingvisascontinuetoobstructtravelbymillionsofpeople,therearestillpoliciesthatsignificantlyrestrictthedevelopmentofairtransport,increasesintourismtaxesareall too frequent, andcurrentfinancial circumstances limit theinvestmentcapacityofboththepublicandprivatesectors.

However, theseobstacles innoway reduce theextraordinarypoweroftourismtotransformthecurrenteconomicscenario, if leadersofall theworldmakeitastrategicpillaroftheircountry'sfuture.◄

Tourism is, little by little, receiving the recognition it deserves from those who are charting the course towards sustained, equitable recovery.

Carlos vogeler Ruiz isRegionalDirector for theAmericas for theUnitedNationsWorldTourismOrganization.Amongotheractivities,heistitularprofessorinthedepartmentofBusinessEconomicsattheUniversidadRey JuanCarlos inMadrid, Spain,where he teachesundergraduate and postgraduate classes in tourism. He has been PresidentoftheAffiliateMembersoftheWorldTourismOrganization,representingthenongovernmentalsectoroftheOrganization,andafoundingmemberoftheSpanishAssociationofScientificExpertsinTourism(AECIT)andamemberof the InternationalAssociationofScientificExpertsinTourism(IASET)headquarteredinSwitzerland.

CARlOS vOgElER

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NOTITuR 201318

STATISTICS

IS yOuR DATA mAkINg yOu mONEy?

Intoday’serraticsalesandmarketingenvironment,analyticsisthepredictableanswer forwinningsalesandmarketing teams.Today’sSalesandMarketingDirectorsaremovingfromspeculativedecision-makingtofact-baseddecision-making.

Are you currently generating additional revenue from your tour flow, bymaximizing the sales and marketing data you are collecting? Sales and MarketingPerformanceAnalyticsmust beperformedquickly andwithdatathatisrelevantandactionable.Accessingvaluableinformationondemandiscritical.

Should marketing and sales executives and management be making “key”businessdecisionsbasedonoutdatedpractices,wheninthisdayandagewehavenewreliableapplicationstoprovidebetterinformation?Howlongcanyouaffordtoweakenyourbottom-linewithoutplayingtoyourstrengthsinaproactive capacity?

”An Analytical Competitor is an organization that uses analytics extensively and systematically to outthink and outexecute the competition.“

BuSINESS ANAlyTICS FINDS yOuR hIDDEN STRENgThS –AND wEAkNESSES:

Business Analytics tools assist in diagnosing where exactly the profitableadjustmentsinthesalesandmarketingstrategiesneedtobemade,andwherethe leaks in your budget are.

BusinessAnalyticsaimstoanswerquestionsrelatedtowhathappened,howmany,andhowoften(whichiswhattraditionalreportingdoes).Italsoanswersquestionslikewhyisthishappening,whatifthesetrendscontinue,whatwillhappen next (prediction) and what is the best that can happen (optimization).

By Jesús Betanzos / Director Latin America Business DevelopmentandConsulting,forTrackResultsSoftware

Business Analytics A Competitive Advantage for Sales and marketing Executives Part 4 of a 5 article series

STATISTICS

19

“Business analytics solutions that come with prebuilt timeshare industry content “out of the box,” are currently available. These industry targeted solutions allow for saving costs and immediately profiting from their immediate use. Vacation clubs can then focus on their area of expertise, which is sales and marketing, instead of focusing on how to collect and process their data.”

vACATION OwNERShIP CluBS ARE BECOmINg ANAlyTICAl COmPETITORS

An Analytical Competitor becomes an organization that systematically and continuously improves its Key PerformanceIndicators(KPIs)andcapturesalargermarketshareby:

A)Increasingthequantityandqualityofthetours.B) Reducing cost per tour (Cpt).C) IncreasingClosing%.D) Increasing the Average Deal Size.E) Increasing the Cash Collection Rates.F) Decreasing the Cancellation Rates.

With the use of Business Analytics tools, Sales and MarketingDirectorsbecomeproactivetotheresultsinsteadofreactive,andtheyachievesoby:

A)Quicklyidentifyingwhereexactlytheareasofopportunityare,onanunlimitednumberofever-changingsituations.B)Applying the corrections and the right combinations, on thevariablesthattheycancontrolorinfluence.

"We use Business Analytics tools to dissect our operation and determine areas of opportunity. The versatility it yields in measuring performance is extremely beneficial in enhancing our ability to be successful." - Paul Little, Marketing Director at Villa del Palmar Cabo Region.

RE-ENgINEER yOuR SAlES AND mARkETINg PROCESS uSINg mulTIPlE vARIABlE COmBINATIONS

Traditional reporting is usually performed on a single variableandcanonlyreportonpastperformance.Thislimitsthedecisionmakersastheycanonlyseeonesliceofthepieatatime,missingthe opportunity to evaluate the relationship between all the variables in the marketing mix.

Proper BusinessAnalytics instead, allows for obtainingmultiplevariable comparisons at will, in an unlimited number of reportcombinations.

Herearesomeexamplesofsimple,easyanalytics:

1.SegmentinggroupsofbestperformersbasedonTourtypes.2. Optimizing tour days and tour times based on performancemetrics.3. Matching the marketing sources with the best sales agents combinations.4. RunningefficienciesincludingorexcludingCourtesyTours.5. Evaluating individual performance by cross referencing salesandmarketingagentswithtourqualificationsanddemographics.

whAT IF –DESCRIPTIvE vS. PREDICTIvE SCENARIOS

Sales and Marketing Analytics can produce both Descriptive and predictive scenarios in which certain variables are changed using empirical data, toproduceorsimulatedifferentoutcomes.

”Different predictive scenarios can be produced within seconds, in order to observe the best possible outcomes. Once a satisfactory prediction is obtained, leadership can then prescribe the solution to the sales and marketing teams.“

PROFITABlE DECISION mAkINg

Sales and Marketing managers know where the obvious problems lie. Analytics will show the not so obvious situations by measuring activities that are being overlooked.There isanabundanceofprofitbeing lost in thedetails.This iscritical to long term improvementandVPG lift.BusinessAnalyticsprovidesempiricaldatatovalidatedecisions.Thiswillovercomethatlingeringfeelingin thebackof yourhead that says "something iswrong,but I can’tputmyfingeronit."

“Fine-tuned sales and marketing teams that have adopted the culture of analytics, have increased their efficiencies on average by $800 per tour.”

NOTITuR 201320

STATISTICS

RETuRN ON INvESTmENT

Proper analysis leads down the path to change and improvement. 67% oftheFortune500companiesmandate theuseofAnalytics for theirsalesandmarketing departments. While some companies in the vacation ownership industryarecontinuouslyseekinganimprovement,manyremaincomplacentor limited to 20th century tools.

VeryfewtimesharecompanieshaveestablishedBusinessAnalyticsprocesses,in order to systematically achieve higher results. those companies that place simpleanalyticaltoolsdirectlyintothehandsofteamleaders,haveadistinctadvantageoverthosecompaniesthatremainforcedtorelyonthepureintuition(guesses,hunches,theories,experienceandtradition).

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Thetimeinvestedinrunninganalyticsisreturnedatovera100:1ratio,meaningthatonehourinvestedinproperanalyticsreviewcanpreventweeksofunderperformanceinsalesoronlowperformingmarketingprograms.WithouttheproperBusinessAnalyticstools,thousandsofdollarsarebeingleftonmarketingeffortsandsalestables every day.

Inclosing,SalesandMarketingAnalyticsisaboutgivingexecutivesthe ability to empower their team leaders with profitable andactionable information. Inorder to efficiently track and improveyourresults,liketheysaythesedays,"There’sanappforthat.”◄

JESÚS BETANZOS

Jesús BetanzosisDirectorofLatinAmericaBusinessDevelopmentandConsultingforTrackResultsSoftware.TrackResultsconsultsinthefieldofBusinessAnalyticsforthevacationownershipindustry.jesus@trackresults.net

STATISTICS

“In God we trust. All others must bring data.” – Professor and Consultant W. Edwards Deming.

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