Notitur digital / January - February 2013

2013

January February

usive l c x E ata d he on t stry! indu

Digital »Statistics

Business Analytics

Part 2 of 5 – Business Analytics for Marketing Departments.

»Industry Strengths and

Opportunities of our Industry.

The best place to

Invest in a

Tourist Resort

Publication of:

www.amdetur.org.mx

» Amdetur Activities in the last two

» Industry A Solution for Aligning

months of 2012.

Sales and Operational Efforts.

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

digital

Jannuary February

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AMDETUR

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enterprise

Activities in the last two months of 2012.

In the last two months of 2012, Amdetur followed up on projects like the Collaboration Agreement with PROFECO and the University-Enterprise Liaison Program; the last meeting of the Board of Directors for this year, held in Los Cabos, and participated in the meeting of CNET with Minister of Tourism Claudia Ruiz Massieu.

Avoid Risks and Take Control of your Business

Protecting your company from threats can bring benefits like the long-term survival of the business.

Rosa de Jesús Lugo Dorantes

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Notitur CHAIRMAN Romárico D. Arroyo Marroquín

Grupo Sunset executive Carlos Trujillo Balmaseda president Amdetur publisher Aurora Martínez V. DESIGN KEMCS Diseño y Marketing www.kemcs.com TRANSLATION Elizabeth Collins Morrison elizcollins@mac.com Fotography Amdetur

2013

If you would like to receive the electronic version of Notitur in Spanish or English, you can request it at: aurora.martinez@prodigy.net.mx or download it directly : issuu.com/notitur

Strengths and Opportunities of our Industry.

Today, the ability of our professional sales personnel is being put to the maximum test, and never before has the quality of our customer service been so important for continuing the growth of this industry.

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José Mata / www.pbase.com/ppmata Cel. (04455) 1885 8581

ADVERTISING Aurora Martínez V. aurora.martinez@prodigy.net.mx

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

INDUSTRY

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INDUSTRY

INTEGRATED TEAM

To address the problems that often arise between the sales and hotel operation teams, Propiedades Vacacionales Posadas (PROVAC) created an innovative operating scheme called “Integrated Team” that aligns the processes of both of these activities.

FEATURE

THE BEST PLACE TO INVEST IN A TOURIST RESORT Today, investors must design strategies based on a new reality. A good investor must weigh numerous factors to choose the right property for a tourist resort, like connectivity and the site’s tourist vocation; but there is one more element that should be considered a priority.

Part 2 of 5 /STATISTICS Business Analytics, A Competitive Advantage for Sales and Marketing Executives 3 step guide for monetizing your marketing information, and turning your Marketing Analytics into profitable decisions.

Notitur Digital is a bimonthly online publication, published by the Asociación Mexicana de Desarrolladores Turísticos, A.C. (Amdetur), WTC, Montecito # 38, Piso 32, Oficinas 11 – 14, Col. Nápoles, México 03810, D.F. Phone and fax (55) 5488 2028 to 31. It is a sister publication to the printed magazine Notitur, whose registry numbers are: Certificate of Valid Title no. 3856, dated April 19, 1989; Certificate of Valid Content from the Comisión Calificadora de Publicaciones y Revistas Ilustradas no. 3172, dated April 19, 1989; Reserve Certificate Number 04-2005-030817343600-102 from the Instituto Nacional del Derecho de Autor, Ministry of Public Education. Amdetur is not responsible for the advertisements or “advertorials” published in Notitur Digital. Notitur treats personal information on its subscribers accoridng to the privacy standards of the Federal Law on the Protection of Data Held by Private Parties. For more information on our privacy policy, visit our webpage at: www.amdetur.org.mx.

www.amdetur.org.mx

» AMDETUR An Active Close to 2012

I

n the last two months of 2012, AMDETUR continued its work on projects like the Collaboration Agreement with the Federal Attorney’s Office of Consumer (PROFECO), through the signing of the Execution Riders of the agreement subscribed on November 8; the University-Enterprise Liaison Program, with two more presentations to students and teachers of leading university campuses; and the last meeting of the Board of Directors for the year, in the city of Los Cabos, Baja California Sur. AMDETUR also took part in the meeting of the National Tourism Business Council (CNET), where the guest of honor was the Mexican Minister of Tourism, Claudia Ruiz Massieu.

The following riders were signed:

Rider A

Promote and encourage AMDETUR members who are involved in the sale or marketing of timeshare services to register their standard form agreements with PROFECO, in keeping with the obligations contained in the Federal Consumer Protection Law, official Mexican standards and other applicable provisions. PROFECO will handle verification and oversight of that obligation.

Rider B

Define and implement mechanisms to immediately address consumer claims.

Signing of Execution Riders with Rider C PROFECO Define advertising recommendations for the Following up on the Collaboration Agreement signed between the Mexican Federal Attorney’s Office of Consumer (PROFECO) and AMDETUR, early in November we signed the riders to that agreement that determine the mechanisms for coordination and collaboration between the two entities, in order to ensure fairness and legal security for vendors and consumers, and to promote tourist development in Mexico.

2013 January / February

timeshare industry to conform to the Federal Consumer Protection Law and other applicable regulations.

Rider D

Ensure that AMDETUR personnel and members are aware of the legal provisions that apply to timeshare service providers, as well as consumers’ rights in this business.

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» AMDETUR Rider E

Promote the “10 Commandments for Timeshare Service” among AMDETUR members and encourage them to follow these guidelines in their provision of timeshare services.

Other panelists that brought their expertise in tourism to the event were Marisela Martínez García, Consultancy Coordinator for the Under-Secretary of Tourism Planning for the Ministry of tourism; Lázaro Dibut Toledo, General Project Coordinator for the Sistema de Información Turística de las Californias (SITCA); and Guillermo Heredia Cabarga, Executive President of the National Air Transport Chamber (CANAERO).

All the panelists were grateful for the welcome given them by Martín Lagarda Ruiz, Congressional Delegate for Cabo San Lucas, and the hospitality of UGC’s Rector, Yolanda Razo Abundis.

In another effort relating to the UniversityEnterprise Liaison Program, David Fuentes, Director of Consultancy in Tourism-Oriented Real Estate, RCI; Rubén D. Rangel, Sales Manager for Royal Holiday, and Carlos Trujillo, Executive President of AMDETUR, made a presentation University-Enterprise Liaison Program participation in Los on vacation ownership to the students of the Cabos. Some of the panelists: Lázaro Dibut, SITCA; Juan Ignacio Rodríguez, RCI; Marisela Martínez, Sectur; Carlos Universidad del Valle de México (UVM), Texcoco Trujillo, AMDETUR; and Guillermo Heredia, CANAERO. Campus, on November 16. It was hosted by Professor Gisela Sánchez Fuentes, Coordinator University-Enterprise Liaison Program of the Undergraduate Program in Tourist Business Carlos Trujillo, Executive President of AMDETUR, Administration and Professor Alejandro Moncayo was a panelist at the sixth International Tourism of the same program.

Congress at the Universidad del Golfo de California 2012, held on November 8 in Los Cabos, Baja California Sur. Mr. Trujillo was there as part of AMDETUR’s University-Enterprise Liaison Program, to get the word out about job opportunities in the Vacation Ownership industry for graduates of tourism programs.

Speaking before students and teachers of the Undergraduate Program in Tourist Business Administration of that university, Jorge Téllez, President of the Southern California Association of Timeshare Developers (ASUDESTICO) and Juan Ignacio Rodriguez, Senior Vice President for Business Development, Mexico and Central America, RCI, also spoke on topics of interest to the industry.

2013 January / February

Panelists Carlos Trujillo, David Fuentes and Rubén Rangel, accompanied by Jaime Ramírez, Training Manager for AMDETUR, and students of the tourism program, following the presentation at UVM.

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» AMDETUR Víctor Manuel López, Recruitment area of Royal Holiday’s Human Resources Department was also present at the event, and gathered information from soon-to-be-graduates, encouraging them to sign up for the job bank and apply for professional internship programs that this company has with a number of educational institutions. 

AMDETUR Board of Directors meets in Los Cabos

The Board of Directors of AMDETUR held its last meeting of 2012 in Los Cabos, Baja California Sur on November 22, where it had the hospitality, support and participation of the Southern California Association of Timeshare Developers (ASUDESTICO), and it was also the occasion for a press conference to highlight the benefits that the vacation ownership industry brings to the region.

Speaking before representatives of the local press, ASUDESTICO President Jorge Téllez spoke of the importance of Timeshare to this region, which is home to 40 resorts, or 10.8% of the total number of tourist resorts operating under this model in Mexico’s leading beach destinations–totaling a supply of 5,051 units. Of these, 64% are in Cabo San Lucas, 21% are in the Tourist Corridor and 15% are in San José del Cabo. Also, 25% of the resorts are still in the active sales phase, and 99% of them are affiliated with that association.

Among other key facts and figures, Dr. Téllez reported that Timeshare presents an annual occupancy rate of 85%, with a density of 3.7 persons per unit, and an average stay of 8.3 days.

Of the total number of weeks sold in 2011, 21.7% were acquired in Los Cabos, and 90.67% of the buyers were from the United States, 3.52% were Canadian and 5.19% were Mexican.

In the evening there was a working dinner meeting in which the Minister of Tourism of Baja California Sur, Rubén Reachi Lugo, spoke of the importance of this industry to the state and shared information with reporter Abraham Ramirez from Grupo En Concreto, Mexico.

Working dinner with the Ministry of Tourism of Baja California Sur, Rubén Riachi Lugo, accompanied by Jorge Téllez, President of ASUDESTICO and journalist Abraham Ramírez.

Fourth and last 2012 meeting of CPTM’s Board of Governors, held on November 28.

2013 January / February

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» AMDETUR Fourth Meeting of the Board of Governors of CPTM in 2012.

On November 28, AMDETUR took part in the fourth and last meeting of the Board of Governors of the Mexican Tourist Promotion Council (CPTM) of 2012, in which participants highlighted the advances made in promoting Mexican tourism nationally and internationally -during the past presidential administration, which establish the goals to continue this progress in the coming years.

Webinar: ”Your Personal Image = Sales Success”

On December 5, Jaime Ramírez, Trading Manager at AMDETUR, organized a webinar on the importance of projecting an excellent image to influence sales decisions, which was enlivened by the renowned experience of John Fisher, founder of the consulting firm TopLine Growth Consulting, and Ana Barreiro Arcelus, founding partner of Impacta Consultoría en Comunicación e Imagen Pública.

CNET’s Meeting with Claudia Ruiz Massieu

On December 11, AMDETUR took part in the last 2012 meeting and year-end dinner held by CNET, attended by guests of honor Claudia Ruiz Massieu, Minister of Tourism, Héctor Gómez Barraza, General Director of the National Trust Fund for the Development of Tourism (FONATUR) and Rodolfo López Negrete, Joint Director of the Mexico Tourism Board (CPTM).

John Fisher, Ana Barreiro and Jaime Ramírez after the webinar on “Your Personal Image = Sales Success”

During the meeting, leaders of Mexico’s tourist industry communicated their vision of the industry to Ms. Ruiz Massieu, a vision that is set down in the document entitled “Tourism: 7 Guidelines,

First working meeting between members of CNET, the new Minister and Mexican tourism agencies, in which the leaders of both public and private spheres shared their vision and proposals.

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» AMDETUR Proposals and Commitments,” prepared by CNET Congratulations to Fernando Alaniz to support the growth of tourist activity in Mexico. for his appointment During the recent General Meeting of the Sinaloa The document was delivered by Pablo Azcárraga, Association of Vacation Clubs, Fernando Alaniz CNET President, to then president-elect Enrique was appointed Executive President for 2013.

Peña Nieto, and on this occasion to the Minister of Tourism, presenting all of the proposals by Fernando Alaniz is originally from Mazatlán, members of this Council, based on their own Sinaloa, where he completed his undergraduate knowledge and experience, on the most pressing work and later moved to the state capital of San areas of action to promote a more vigorous tourism Luis Potosí, where he earned a degree in public industry in Mexico. accountancy from the state university. He has worked as an accountant and auditor for firms like Productividad SC and Industrial Minera México. In the early 1980s, he began in the tourist industry as “front to back” at Paraíso del Mar and Paraíso Mazatlán, where he also held executive positions, and worked in the El Paso office, covering the markets of Eastern Canada, the United States and Mexico. He was sales manager at Islas del Sol, and later took the opportunity of opening marketing for La Concha Beach Resort in La Paz, Baja California Sur. He has worked for Fiesta Americana, opening its Puerto Vallarta property, and at Cerritos Resort and El Cid Resorts in Mazatlán. In December 2003 he was appointed Manager of the Timeshare Resort Association of Mazatlán, and was promoted to Director as the organization grew into what is Mazatlán, México. now the Sinaloa Association of Vacation Clubs, where he is currently Executive President. ◄  Remember that you can find more information about all these topics on our FB page.

FERNANDOALANIZ New Executive President of the Sinaloa Association of Vacation Clubs, A.C.

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Âť ENTERPRISE Avoid Risks and Take Control of your Business

By JesĂşs GonzĂĄlez / Partner for Risk Management Consultancy Services at KPMG Mexico.

C

omprehensive risk management is something that few organizations fully achieve. Aspects like a lack of management in strategy, scope, structure, and other factors, prevent companies from promptly identifying internal or external factors that could affect them.

Protecting the company from threats can bring benefits like stability, growth, and the long-term survival of the business.

The risks a given company faces depend on numerous aspects, like the industry in which it works, the maturity of the organization, the type and level of competition, the type of product, the regulatory climate, dependence on outside companies and/or technology, or the available organizational structure.

Risks usually do not occur in isolation, but result from the value chain where there is an interrelationship between processes/activities, technology, and the people and structure of the organization, as well as other aspects critical to the company.

2013 January / February

Risk management must: focus on critical aspects of the business.

CONDUCT in advance, well reasoned assessment of the balance between the cost and the tolerance or acceptance of a certain level of risk.

Be constantly monitored alongside other metrics.

Ensure stability in the company.

Provide peace of mind and confidence to management, the Board and the shareholders.

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Âť ENTERPRISE

hedges and derivatives; and other organizations visualize the entire business when considering risk.

In the past, risks were assumed to be a natural condition of businesses or the economy; they were associated with fate, luck, and good or bad fortune.

Now, when the entire structure of the business is under the microscope, and the margin of error is Risks Stalking your Company A risk is any internal or external factor that could increasingly narrow due to intense competition jeopardize the future and expectations of an and demanding markets, these issues deserve to organization. External factors, which are more be treated as real risks to be managed. difficult to predict, are the most damaging to the business because of the speed of their impact.

This type of factor poses new challenges and opportunities to entrepreneurs. Few people could Manage Risk in have foreseen the fall of the Twin Towers in New York or the avian flu crisis in Mexico in 2009. In these cases, the impact on businesses can be Comprehensive vision: This focus catastrophic. understands the organization as a fully In developed organizations as well as those that interrelated entity; it does not isolate the areas that are in the process of growth, the concept can vary generate financial, fiscal or market information. a great deal. Sometimes it refers only to incidents The organization generates or maintains wealth that can be covered by insurance policies through the value chain, and if the risk management (accident, theft or fire). In other cases, it might process is divided up by business area, it creates include financial aspects, like foreign-exchange vulnerability.

How to

your Company.

1

2013 January / February

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» ENTERPRISE

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Internal and external vision: This vision should encompass not only matters that occur within the organization, but external factors that have a substantial impact on the business.

Jesús González is Partner for Risk Management Consultancy Services at KPMG Mexico. He worked for two years in KPMG’s office in New York and has led projects in Spain, Cuba and Chile. He has advised companies in various industries in process improvement, reducing time and costs, and introducing efficiency and control systems, all with a focus on the value chain and financial reporting. He has assisted a large number of companies in Process Reengineering, Risk Management, Internal Control, Self-Control Processes, Sarbanes-Oxley, Corporate Governance, Sustainable Development, and Design and Implementation of Business Process Management (BPM) Systems, among others. asesoria@kpmg.com.mx Visit: www.delineandoestrategias.com

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Connect risk management with strategy: It is important to link risk management to the global strategy of the business.

It should not be a transactional issue that is satisfied through tables or documentary evidence. It should be linked to the objectives of the business, involve the highest levels of management to permeate all echelons of the organization with specific processes, operations and transactions.

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A focused, educated and sufficient staff: A company needs personnel to directly manage the effort, educated suppliers of information who are informed in the field, and supervisory and governance bodies that demand quality, to take advantage of the results of the business’s day-to-day operations.

JesúsgONZÁLEZ

The world brings an increasing number of challenges, and the competition is unforgiving.

Today the company cannot survive on a trial-anderror basis. It would be too expensive. Manage your risks. Manage your future. You decide where you are heading and what your future will be. ◄

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» INDUSTRY

Strenghts and Opportunities in our Industy

By Colette Ann Comeau / General Director of Krystal International Vacation Club.

H

as there been a more challenging time for our industry? I can’t recall one. The current recession is creating such uncertainty that people are reluctant to make long term vacation investments. Defaulting has increased, and in addition Mexico continues to suffer from negative press reports that exaggerate our problems and discourage tourism.

The skills of our professional salespeople are being tested to the limit. Never before has customer service, of a consistent and high quality, been so vital to our continued success.

Nowadays any dissatisfied consumer has the ability to hit us where it hurts. Allegations posted on the internet may or may not be justified, but nevertheless they cause irreparable damage to our credibility. I have known many cases in which complaints have proven completely unfounded.

However, the unfortunate reality is that posting any form of rebuttal on the internet will simply increase traffic to the damaging report. Independent sources will begin reading from the start, and may never grasp the full picture. The damage is already

2013 January / February

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» INDUSTRY “Our industry has a fabulous

tradition of benefiting local communities, attracting investment and encouraging economic development ”.

so that the number of dissatisfied customers is kept to an absolute minimum. We must give no cause for complaint. done, and search engines can highlight the most alarming words.

Our Strenghts

Ours is a demanding industry. There is a relentless drive to improve sales performance, and occasionally we hear of professionals succumbing No matter how mischievous or malicious the report, to the pressures and engaging in some disreputable it can prove very difficult and laborious to secure activity in order to secure a sale. No matter what its subsequent removal from the public domain. the temptation, there is simply no room for that Even national governments are struggling to deal type of behaviour within our industry, and this is with this type of modern challenge on the internet. particularly so in the present day.

Although our position may remain vulnerable for some years to come, I am confident that every leader in our industry will share my personal determination to limit the damage. I believe this can best be achieved by working together to promote and maintain the highest professional standards,

2013 January / February

Modern consumers can be suspicious, and some have even used sophisticated recording devices as a safeguard. That is symptomatic of the credibility issues we face. We are under the spotlight, and every one of us must demonstrate absolute integrity. Strategically, we simply cannot afford to do otherwise.

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» INDUSTRY Not only must we ensure totally professional conduct within our own salesrooms, we must also demand that similar standards are upheld by our partner companies. Reputable partners can make a great contribution to increase our sales. Value added to the overall package can enhance and compliment our own business.

However, our association with other companies can be perceived by our customers as an endorsement of all their working practices. Partners may be regarded as representing ourselves. We owe it to our members to ensure that only the most reputable companies are able to enjoy this privilege. It is a position of trust.

There is no need or justification for the discreditable conduct that has caused our industry such unwelcome notoriety in the past. We offer high quality vacationing products that can stand on their own merits, and I am certain they can endure beyond the present financial crisis.

Already we have stood the test of time, and there is so much we can be proud of in this industry. We have been responsible for generating sustained levels of tourism that can be projected years into the future. Our resorts have a fabulous tradition of benefiting local communities, attracting investment and encouraging economic development. We have a vital role to play, and a great many people, both directly and indirectly, depend on our survival.

Colette Ann Comeau is the General Director of Krystal International Vacation Club, with successful operations in Cancun, Ixtapa and Puerto Vallarta. Originally from Montreal, Canada, Colette graduated from the prestigious McGill University with a Bachelor of Arts and a Major in Modern Languages.

She speaks four languages and has worked successively in Canada, Puerto Rico, Dominican Republic and California, USA, having gained wide experience in both consumer relations and sales. She is a member of the board of ADEPROTUR, Puerto Vallarta and Riviera Nayarit’s local timeshare association, where she is the treasurer as well.

Our past success has resulted from the expert talent, vision and resourcefulness of our industry leaders. AMDETUR provides an opportunity to come together and utilize that diversity of experience. In the present crisis, we are effectively all on the same side. Let us put aside competition, remain professional, and support one another with respect. Working together, I am confident we can rise to the challenges. ◄ Colette AnnComeau

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» INDUSTRY

Integrated Team

By Enrique Escalante / Sales Director, Fiesta Americana Vacation Club.

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ne phenomenon often seen in resorts that sell vacation ownership, is problems between the team that handles the sales effort and the team that handles hotel operations.

This is because they work separately, each without fully understanding what the other group does, and generally with perceptions that obstruct communication and prevent them from working together for mutual benefit.

In order to bridge this gap, PROVAC Posadas (Propiedades Vacacionales Posadas) created an innovative operating scheme called “Integrated Team,” which works to establish common objectives and align processes to empower the results of both areas of the business, safeguarding standards of operation and reaffirming the positive impact that is reflected in guest satisfaction.

When analyzing the various situations that arise from this lack of interaction, the following situations were found:

2013 January / February

Problems for the hotel:

• Complaints by guests and hotel management, regarding the prospecting process.

• Guests believe that the service in general has a commercial purpose, and perceive it as a deception.

Problems for sales:

• The call on the room is bothersome, inefficient and impersonal.

• Check-in is the only certain point of contact with the clients, but they arrive tired and in a hurry to begin their vacation, and thus feel harassed by the promotion.

• The airport is already heavily prospected by timeshare companies.

For this reason, the decision was made to consolidate both purposes–promoting sales and pursuing operating excellence–in the same department: Concierge.

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» INDUSTRY The General Manager is responsible for merging the two operations (sales and operations) through the Chief Concierge, together with the Concierge Manager, the Senior Concierge, the Junior Concierge and the e-Concierge, performing a triple mission: • Impressing the guest with a high quality service and exceeding his expectations through a process called “hi-touch.”

• Promote the PROVAC program to qualified prospects.

• Generate additional revenues for the hotel by promoting and selling services (spa, onsite restaurants and outside restaurants for allincusive resorts, etc.).

All of this on the understanding that the Chief Concierge works hand-in-hand with the Concierge Manager (formerly called the in-house marketing manager), who in turn guides a team of Senior Concierges (previously Vacation Consultant / Prospecting), supporting the concierge (service) work but prioritizing the invitation to a presentation.

General Manager Chief Concierge

Concierge Manager

3 Junior Concierge

3 Senior Concierge

e-Concierge

Common objectives and process alignment are the secret to a perfect cycle of commercial and operating activities.

At the same time, the Chief Concierge has a team of Junior Concierges who assist in the task of inviting couples, but placing more importance on the service effort; and finally, the e-Concierge handles the very important job of making pre-contact in person through e-mail, and calling future guests in order to anticipate any need in advance, and identify

2013 January / February

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Âť INDUSTRY their tastes and preferences, while providing any The benefit is immediate for all. First, guests information the guests may require about the receive excellent attention and service that makes them feel at home, which means, for the company, destination. a high likelihood that they will become members, The e-Concierge channels guest requests to the and if not, at least ensures they will speak corresponding areas, and if they are qualified favorably of the hotel to family and friends. The prospects, informs the Concierge Manager, so hotel benefits by saving on the cost of personnel that a Senior Concierge can be assigned to watch that offer this service, because these positions are for their arrival and attend to them throughout their subsidized by the vacation club; and at the same stay in order to ensure their complete satisfaction, time, the image of the company is favored by the prospecting process through excellent service. while promoting the vacation Club.

Finally, the marketer benefits in two ways: One is that when guests are contacted in advance, it prevents them from being invited by other resorts, and the other is that the presentation becomes substantially more successful. As a result, the gain is much greater, with reduced operating costs and increase percentages of closing and Value per Guest (VPG), completing a perfect cycle.â—„

ENRIQUEESCALANTE

Enrique Escalante Ă lvarez has a 22 years trajectory in the timeshare industry. Since he first started out at Conrad Vacation Ownership, he has acquired experience in resorts like Royal Resorts, Club Regina, Casa Maya and Palace Resorts in the Marketing and Sales areas. His constant advancement and empathy with all areas involved have led him to the position he currently occupies, Sales Director for the Fiesta Americana Vacation Club, where he has just celebrated his 10th year of success.

2013 January / February

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The world is witness of our leadership.

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Âť FEATURE

The best place to invest in a tourist resort

By Gerardo Freyre Fregoso / Director of the CancĂşn Office of Vera & Carvajal

A

good investor weighs various factors when choosing the right property for building a tourist resort, such as connectivity, infrastructure, the tourist vocation of the site, legal status, cost of the lot, neighboring communities and even the political relationship with the current government; but there is one more element that must be considered as a priority: The environmental aptitude of the project.

Whether investing in a traditional hotel, or building a complex resort that includes hotel, timesharing, recreational areas and real-estate sales, to ensure the success of the investment, investors must take into account the environmental viability of the project.

Today, investors must design strategies based on a new reality. The environmental aptitude of a property is an essential element that will define a new tourist resort, not just because of the relationship between tourism and environment, but because of legal restrictions that will determine both its viability and its architectural and operating characteristics.

2013 January / February

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Âť FEATURE

Respect for environmental balance is not just a trend. It is a need resulting from environmental restrictions that have emerged in recent years.

If the tourist resort wants to be successful and viable, it must preserve natural resources and comply with zoning restrictions that are regulated by a wide array of environmental laws.

these will determine the project’s viability and vocation. This aspect has become so important that environmental policy instruments determine the very nature of a tourist resort, regulating its density, height, preservation of vegetation and even environmental improvement activities that must be carried out.

To protect investment when creating a resort, regardless of the property regime involved, in addition to ensuring that the title to the land is clear, a buyer must take into account the environmental policy instruments in effect and applicable to the property that will be developed, because

Step by step As a starting point, it is indispensable to identify whether the property is in a Protected Natural Area (PNA), which is an area of the Mexican territory where environments have not been significantly

Advertise in the best

magazine

of the industry.

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

Aurora MartĂ­nez

aurora@amdetur.org.mx t. 01 55 5488 - 2028 to 31 www.amdetur.org.mx 2013 January / February

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Âť FEATURE The surface area, zoning and listing of prohibited activities in the PNA can be found in the decrees by which they were created, as well as their Management Program. PNAs have a central zone where activities are almost totally restricted, as well as a buffer zone where usage limitations may vary.

As a second point, investors should identify the applicable environmental ordinance program that applies. There are four types of environmental ordinance programs: General, Marine, Regional and Local. These environmental policy instruments are intended to regulate or encourage a certain use of the land or productive activity in the territory, in order to protect the environment and promote the preservation and sustainable use of natural resources.

Simply put, environmental ordinances determine whether a plot of land is exploitable from the tourism standpoint, because it establishes the number of rooms that can be built, the height of the constructions, the percentage of vegetation that can be removed, and the compatibility of the activities that will be carried out there.

If the tourist resort is planned for a zone in an urban area, it will also be subject to the zoning restrictions of the corresponding Urban Development Program, whose purpose is to regulate the use of land in heavily populated areas.

altered by human activity or need to be preserved and restored. Accordingly, environmental law establishes legal limitations on the use, and in Finally, the property where the new tourist resort some cases even prohibitions on introducing any will be built may be home to endangered species listed in NOM-059-SEMARNAT-2010 or with a activity at all to the site. substantial percentage of the area covered by The restrictions on use will depend on the type mangroves, which are fully protected by article 60 of PNA in question: biosphere reserves, national TER of the General Wildlife Act. parks, national monuments, natural resource protection areas, areas of protected flora and There are three categories of endangered species: special protection, threatened, and in danger of fauna, or sanctuaries.

2013 January / February

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» FEATURE extinction. When a tourist resort may damage one of the last two categories, it will not be able to obtain the environmental authorizations and the resort simply cannot be built.

Once the three environmental factors have been taken into account (PNA, environmental ordinances/urban zoning, and endangered species), developers will have more certainty on the environmental viability of the project, can protect their investment, and then may analyze the other key elements of the tourist activity to determine whether it is economically viable.

Developers who want to avoid risking their investment should be aware that the environmental viability of the project is the first step they must take, even before buying the property, otherwise they may encounter social-environmental conflicts like those that have thwarted more than one project in this country in the past. ◄

Gerardo Freyre Fregoso is a legal counsel and litigant with a degree from the Universidad Autónoma Metropolitana.

He has specialty degrees in Environmental Law from ITAM and in tax law from the Escuela Libre de Derecho. He is Director of the Cancún Office of Vera & Carvajal, where he serves as environmental consultant for the leading tourist resorts of Cancún and the Riviera Maya; he is Legal Director of AMDETUR and Professor of Environmental Legislation and Tourist Legislation in the Department of Sustainable Tourism at the Universidad del Caribe. He also has published a number of articles on the environment, tourism and constitutional topics.

gerardofreyre

2013 January / February

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» STATISTICS Business Analytics Part 2 of 5.

A Competitive Advantage

for Sales and Marketing Executives Business Analytics for Marketing Departments

By Jesús Betanzos / Director Latin America Business Development and Consulting, for TrackResults Software.

T

oday’s Marketing Directors are moving from speculative decision-making to fact-based decision-making. The most competitive executives are generating additional revenue from their tour flow by using Real-Time Analytics, available on-demand. This is critical when facing time sensitive decisions, such as bidding for marketing locations, establishing tour qualifications, or negotiating leads on marketing contracts

Monetizing Marketing Analytics in 3 simple steps:

The following is a simple outline for turning Analytics into profitable decisions.

1

Identify the Variables you wish to measure and Implement your Analytics tools.

Whether you have state of the art Business Analytics applications, or use multiple reports with complex spreadsheets, having a reliable data collection process or system in place is a must. This will prevent falling into the “garbage-in, garbageout” trap, where incorrect or incomplete data input results in unreliable information. Incorrect information becomes a risk for the decision making process, rather than a benefit.

Variables are the specific elements within the marketing mix: Marketing Locations, Campaigns, Demographics, Lead Acquisition Dates, etc. Every element in the marketing process becomes a variable that can be influenced for better results.

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» STATISTICS An example of this is defining the best Demographics variables for specific marketing campaigns. These could include Age Ranges, Credit Scores, Nationality, Language, Relationship Status, Income Level and Ethnicity among other variables. The more specific the variables within each category, the better the targeting and the results will be for the next set of marketing campaigns or qualifications.

“We use Marketing 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.

2

Determine your Key Performance Indicators.

In addition to the general performance indicators such as VPG, Closing % and Show%, Marketing Analytics can be further monetized by using indicators such as:

problems. Costly delays can be easily avoided, such as the cost of working another batch of leads or another week of hotel check-ins with the same underperforming strategy. c) Courtesy Tours Analytics. Most reporting tools are usually unable to determine what the efficiencies are on Not Qualified (NQ) tours.

That is because generally, efficiencies are only calculated either by Qualified (Q) tours only, or by total number of shows.

Courtesy Tour analytics assists in evaluating the real performance of the NQ tours, by preserving the original NQ reason or category, even when they purchase and become Qualified. Therefore performance indicators should be easily obtained at will by specifying: 1. Only Qualified Tours.

2. Qualified Tours and Courtesy Tours (NQs) combined.

3. Only on Courtesy Tours.

a) Marketing Agents booking Analytics, which include NQ rates, Appointment Cancellations rates and Tour Rescheduling indicators. Analytics on the booking effectiveness of each particular OPC or concierge will assist in achieving a better staff management and a better lead assignation process, which results in higher show rates and higher efficiencies. b) Lead Status analytics, which show a crystal clear picture of what happened to all acquired and assigned leads during a certain date range.

The initial and final dispositions of all leads can be analyzed by type, prequalification, source, acquisition date or by any other category.

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

In addition, lead status analytics allow for quickly identifying and addressing trends or potential 2013 January / February

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» STATISTICS

3

Re-engineer your Marketing Process using Multiple Variable combinations.

days of the week (only on Saturdays and Sundays) within those particular weeks.

Traditional reporting is usually performed on a single variable and can only report on past performance. This limits the decision makers as they can only see one slice of the pie at a time, missing the opportunity to evaluate the relationship between all the variables in the marketing mix.

Analytics, rather than reporting, allows for obtaining multiple variable comparisons at will, in an unlimited number of report combinations. To illustrate this point, here are a couple of simple examples:

b) A marketing penetration report on In-House OPC teams, comparing the monthly progression of their individual OPCs booking efficiency, against checkin occupancy types (Owners vs. Non-Owners) or against different lead sources or pre-qualifications.

Historical Analytics provide a wider range of information choices on past results.

Predictive Analytics allow for the creation of “whatif” scenarios based on the historical performance.

With the combination of both, meaningful insight a) A performance report on Street Marketing can be achieved on what actions could be done in locations on different qualification levels, order to improve the results. comparing the results during specific weeks of the year (Christmas and New Year’s week) against last year’s results. Or even further, during specific “Real-Time Marketing Analytics provide us

with quick access to critical information, allowing us to make decisions that can change negative results into positive in the least possible amount of time. This way we prevent further losses in costs and we’re continuously improving the efficiencies.” – Javier Robles, National Marketing Director for Vida Vacations.

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» STATISTICS Profitable Decision Making In summary, a proper Marketing Analytics system should help determine not only WHAT happened, but WHY it happened. Marketing Directors become proactive to the results instead of reactive, and they achieve so by:

TrackResults State of the Industry KPIs (Key Performance Indicators) for the fourth quarter of 2012: • Average VPG (net processable) for Eastern Mexico, beach areas:

$4,822.67

a) Quickly identifying where exactly the areas of opportunity are, on an unlimited number of ever-changing situations. b) Applying the corrections and the right combinations, on the variables that they can control.

As the marketing results get refreshed by the minute on the Real-Time Analytics dashboard, the decision maker is enabled to opportunely and accurately re-qualify prospects, re-segment markets, re-evaluate staff, re-implement strategies or throttle up/down the tour flow for higher VPGs and lower CPTs. ◄

• Average VPG (net processable) for Western Mexico, beach areas

$5,627.10

• Average net Closing % for Eastern Mexico, beach areas:

26.4%

• Average net Closing % for Western Mexico, beach areas:

26.3%

(In USD, excludes Penders, Equities, Trade Ins).

Information powered by:

The focus of the next part of this series of articles will be on how to monetize your Business Analytics by boosting your Sales Department’s performance.

As professor and consultant W. Edwards Deming wisely stated, “In God we trust. All others must bring data.”

jesÚsBETANZOS

2013 January / February

Jesús Betanzos is Director of Latin America Business Development and Consulting for TrackResults Software.

TrackResults consults in the field of Business Analytics for the vacation ownership industry. His email is: jesus@trackresults.net

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