2012
September October
Digital »Feature Neuroselling…
Neuroclosing?
»Industry Personal Data Protection
And its impact on the Hotel Industry
Working for Mexico’s Tourism:
XXVI
Annual Convention and
25th Anniversary of Amdetur
Publication of:
www.amdetur.org.mx
» Enterprise LEED and its Benefits for the Tourist Real-Estate Industry
» Amdetur: Progress Toward our Work Program
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 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
2012
September October
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digital
AMDETUR
Working for Mexico´s Tourism 26th Annual Convention and 25th Anniversary of Amdetur
AMDETUR held its 26th Annual Convention in June, with the theme: “Working for Mexico’s Tourism,” in which leading figures in the Mexican tourism industry shared data, experiences, and their valuable opinions about the current situation and possible alternatives for accelerating growth.
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Rosa de Jesús Lugo Dorantes
Progress Toward our Work Program
As part of our work program, there have been taken a number of actions and introduced new projects for pursuing the common goals of our industry more efficiently and effectively.
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
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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. / Lic. Fernando Madero Irízar, Asociación de Clubes Vacacionales de Sinaloa, A.C. / Lic. Claudio Balderrama González, Asociación de Desarrolladores y Operadores Turísticos de Ixtapa y Zihuatanejo, A.C.
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INDUSTRY
Personal Data Protection and its Impact on the Hotel Industry
The Mexican legislation that regulates the protection of personal data held by private parties, which is covered by the Federal Law on Protection of Personal Data in Possession of Private Parties (LFPDPPP) and Its Regulation -in effect since July 2010 and December 2011 respectively, protects the right of every individual to access, rectify, cancel and object to the treatment of their personal data (known by these initials as ARCO Rights). Users of that information are obliged to strictly control and manage access to this data.
17 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
LEED and its Economic, Social and Environmental Benefits for the Tourist Real-Estate Industry
In contrast to conventional methods, sustainable construction (Green Building) seeks to make more efficient use of both energy and land and to conserve natural resources, improve the environment and quality of interior and exterior air, and increase the use of recyclable or renewable materials or supplies.
TRANSLATION Elizabeth Collins Morrison elizcollins@mac.com Fotography Amdetur
Enterprise
feature
Neuroselling… Neuroclosing?
The object of Neuroselling is to study the “how” and the “why” of our clients’ decision-making, and to develop high-impact sales presentations to favorably influence their choice of our products and/or services.
or download it directly : issuu.com/notitur
www.amdetur.org.mx
» AMDETUR Working for Mexico’s Tourism 26th Annual Convention and 25th Anniversary of Our Association
At the opening ceremony, Romárico Arroyo Marroquín, Chairman, Amdetur (center), was accompanied at the podium by Luis Coppola Joffroy, President of the Senate Tourism Committee at the time; Bernardo Altamirano Rodríguez, head of the Federal Consumer Protection Agency; Luis Alberto Lugo Platt, Under Secretary of Tourism Operations; Pablo Azcárraga Andrade, President of the National Tourist Business Council; and Enrique Carrillo Lavat, Director of the National Tourism Promotion Fund.
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MDETUR held its 26th Annual Convention in June, with the theme: “Working for Mexico’s Tourism,” in which leading figures in the Mexican tourism industry shared data, experiences, and their valuable opinions about the current situation and possible alternatives for accelerating growth. This year also marked the 25th anniversary of our Association, as an organization that brings together, supports and represents one of the most developed segments of the tourism sector. In his welcoming speech, Romárico Arroyo referred to participation in the Vacation Property industry as a fundamental component of both the development of growing tourist resorts, and the fortification of already consolidated destinations, because this is a segment that builds loyalty in visitors and generates demand for travel to Mexico. “More than 1 million people find substantial value and a high level of satisfaction through our products, September / October 2012
which makes them positive spokespersons for the promotion of our country,” he said. Among the highest rated presentations of the event were: Panel on “Tourism: Attainments and Future.” The panel’s constituents voiced valuable opinions about the actions that should be taken to expedite the growth of Mexican tourism. Among them, the need for a government focused more on facilitating than regulating the industry, which enables it to develop sustainably, and backed by a truly strengthened Ministry of Tourism. They also urged actions to diversify assets and destinations, in order to improve our country’s ranking in global travel, and the concerted action of the country’s entire political system, with the support of a genuinely capable and professional group of business leaders like those present in this industry. 01
» AMDETUR Panel on “21st Century Communication with Members and Customers.”
Panel on “Tourism: Attainments and Future,” moderated by renowned communicator Carlos Puig, and made up of Pablo Azcárraga Andrade, President of the National Tourist Business Council; Rodolfo López Negrete, Adjunct General Director of the Mexican Tourism Promotion Council; Romárico Arroyo, President of Amdetur; Luis Alfonso Lugo Platt, Under Secretary of Tourism Operations; Enrique Carrillo Lavat, Director of the National Tourism Promotion Fund; and Luis Coppola Joffroy, President of the Senate Tourism Committee at the time.
New digital channels for contact have opened much more effective windows of communication to consumers. This is obvious from the fact that today, in Mexico, e-mail marketing is the number one tool for promoting products and approaching clients. This and other aspects were mentioned in a panel of experts in this field, who stressed the opportunities offered by each of the electronic media, among them the possibility of measuring a client’s activities in order to tailor more productive strategic plans, or offering consumers a site where they can share their experiences and opinions, and keep them informed through the social media. Digital technology is becoming more widespread everyday, even among groups that in the past showed the greatest resistance to it. This is why it is so important to create the right content for each of these groups, and to use the right selection for each target group.
Panel on “Vacation Ownership Industry in Mexico.” In this panel, leading vacation property developers shared their experiences, and commented on strategies they had taken to confront the problems that have arisen in Mexico in recent years. Their solutions included restructuring debt, streamlining administration and lowering operating costs or outsourcing some services. Always keeping an unshaken optimism and attitude of creativity for the future, seeking paths to new opportunities, like service innovation to create more attractive packages for travelers, bearing in mind that today more than ever, the industry needs to apply the right marketing to offer the right products to the right markets.
September / October 2012
Panel on “Vacation Ownership Industry in Mexico,” moderated by Ricardo Montaudon, President and Executive Director of RCI Latin America, with the participation of Pablo González Carbonell, President of Royal Holiday; Ernesto Coppel, President of Hotelera Pueblo Bonito; and Roberto Chapur Duarte, President of the Legendary Vacation Club.
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» AMDETUR Panel on “21st Century Communication with Members and Customers,” moderated by Gerardo Llanes Álvarez, Executive Director of Marketing at CPTM, with the participation of Brad Pennington, Director of Online Marketing Channel Development at RCI; Camilo Olea, Web Marketing, Royal Resorts; Miguel Velasco Lazcano, Founding Partner and Director of Strategy and Innovation, Out of the Box; David Matos, Senior Manager of Marketing, Interval International.
Keynote Speech on “Changing Crisis into Opportunity,” presented by Jeff Myers, Executive Vice President and General Director of Sales and Marketing, Wyndham Vacation Ownership.
Keynote Speech “Changing Crisis into Opportunity.” The head of one of the largest hotel chains in the world discussed what companies can do to weather difficult times by making firm and clear decisions and, more importantly, seeking out new paths to success. In a time of crisis, we need to go over every product and every process in order to consider what real benefit each of them offers under the circumstances at that moment, but all as part of a new strategy, business plan, and the direction toward which everything must be focused. We need to redefine our concept of success and have a clear and specific focus on every action taken. In the specific experience of Wyndham, the company found it useful to work more closely with affiliate resorts, seeking out new ways to do business together.
September / October 2012
Panel on “Mexico Brand: A 360° Vision,” moderated by respected journalist Carlos Mota (center) accompanied by Carlos Velázquez, a reporter specializing in tourism; Francisco Madrid, Director of the Anáhuac Norte University School of Tourism; Kemil Rizk, CEO of Royal Resorts; and Gerardo Llanes, Executive Director of Marketing at the Mexican Tourism Promotion Council.
Panel on “Mexico Brand: A 360° Vision.” This panel addressed some basic but crucial aspects, like defining the nature and owner of the “Mexico” brand, balancing out its positive and negative attributes, and ways to improve our country’s image in the world. Panel members coincide that, as Mexicans, we must all work together and commit to changing the perception the world currently has of this country. They also commented on the apparent disconnect between a Brand at the country level, and its appeal for 03
» AMDETUR 25th Anniversary of AMDETUR
Presentation of recognitions to former AMDETUR Presidents: John McCarthy (1993-1994), Raúl Sánchez Rucobo (1996-1998), Mario Muro Aguirre (1998), Manuel Niembro Tapia (1998-1999), Jorge Pallas Cáceres (2000-2001), Pablo González Carbonell (2000-2001) and José Carlos Azcárraga Andrade (2008-2009). In the photo, accompanied by Juan Ignacio Rodriguez, Senior VP Development Mexico and CA Business, RCI; Romárico Arroyo, Chairman of AMDETUR, and Ricardo Montaudon, President and Director Executive, RCI Latin America.
tourism. Interestingly, one of the comparative studies by CPTM on the strength of different brands around the globe showed that Mexico is viewed in a very positive light in many aspects, but where it is seen as most lacking is tourists’ perception about cleanliness, order, and other aspects that go well beyond tourism, and have to do with the quality of life in this nation.
University-Enterprise Liaison Program
The Convention was also the forum for the University-Enterprise Liaison Program, attended by 109 students and faculty of four tourism schools. In the panel, which included renowned industry experts, the audience was provided with a broad description of the basic concepts of 25th Anniversary of AMDETUR Vacation Property, like its size, different products, legal aspects, sales process, growth in Mexico In celebrating the 25th anniversary of AMDETUR, and, in general, the advantages it offers not only to we were accompanied by some of our former consumers but to those who work in the industry, presidents, whose work has been essential to the which is in constant growth and evolution. consolidation and strength of our Association. Based on the success of this initiative, AMDETUR has committed to extend its scope to reach more students and more educational institutions. On July 12 of this year, a first work meeting was held with several universities and tourism schools, both private and public, in which it was defined September / October 2012
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Âť AMDETUR to develop a proposal for each one of them accordingly to their academic requirements, which could range from a diploma to complete courses, seminars or simply participation in talks on a regular basis. To this end, it was agreed to make a general presentation on Vacation Property in order for the educational institutions to learn more in depth about the most important features of the industry, and have the tools they need to decide on what courses they would like to give. This presentation will take place in Mexico City at the IESTUR (Instituto de Estudios Superiores de Turismo) campus on September 26. Remember that you can consult the presentations from the 26th Convention at: www.amdetur.org.mx
September / October 2012
Podium of the University-Enterprise Liaison Program, led by Leonel Matiz, Managing Consultant in Real-Estate Oriented Tourism (TORE) for RCI; David Fuentes, Director of TORE Assistance and Consulting, RCI; AngĂŠlica Vela Zarzavilla, Manager of Post-Sale and Member Services, Royal Holiday; Gonzalo Maqueda, Executive Director for Mexico, Interval International; and Miguel Osuna, Senior Executive Supervisor of Marketing, Unlimited Vacation Club.
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» AMDETUR Progress Toward our Work Program
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s part of our work program, there have been taken a number of actions and introduced new projects for pursuing the common goals of our industry more efficiently and effectively.
In order to work more purposefully toward the goals established by this Association and its affiliates, we have created six Work Committees made up of enthusiastic collaborators who are experts in different fields, to develop specific, concerted actions toward the objectives for which each of them was created. The six committees are: • Marketing and Sales • Outsourcing Companies • Legal • Educational • Financial • Affiliations The purpose of these committees is to publicize the industry, encourage an active participation in tourism-related education, strengthen our involvement in the legal issues affecting us, and take actions that can bring benefits for the tourist industry in general and for our business in particular.
September / October 2012
From left to right: Training seminars conducted by officials of the Federal Consumer Protection Agency (PROFECO) for the July 10 and August 7, respectively. Last photo, Carlos Trujillo Balmaseda, Executive President of AMDETUR in the World Youth Forum, Student World Congress 2012 in Cancún, Quintana Roo
On July 9, a first meeting was held on the creation of a Mixed Committee of AMDETUR and the Mexican Chamber of the Construction Industry (CMIC), in order to decide upon the kind of agreement we need to encourage the collaboration between the two associations and to find new ways to promote Vacation Property in Mexico.
On July 10, at AMDETUR’s offices a Training Seminar was given by the Federal Consumer Protection Agency (PROFECO) functionaries: José Eduardo Ramos Mejía, Director of Verification; Carlos Meneses, General Director of Standard-Form Agreements; Johana Pérez Silos, Head of the Department of Verification of Official Mexican Standards; Abraham Sánchez Fuentes, Chief of Economic Studies; and Viridiana
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» AMDETUR Martínez, Director of Advertising. The seminar dealt with the most important aspects of StandardForm Agreement Registry and the new Verification scheme, as well as advertising on timeshare tourist resorts. For more information on this topic visit: http://rcal.profeco.gob.mx/
On July 16, a meeting was held with the head of the Federal Consumer Protection Agency, Bernardo Altamirano Rodríguez, reaching various agreements like laying the groundwork for the “Civil Surety Bond Contract Project,” for the registry of standard form agreements in this industry, which after an intense process of collaboration was approved on July 25, with the consensus of more than 90% of the industry. Based on this, on August 7 a new seminar was held at AMDETUR’s offices, given by PROFECO functionaries: Yuri Emiliano Cinta Domínguez, General Director of Verification and Oversight; Eduardo Ramos Mejía, Director of Verification; and Johana Pérez Silos, Head of the Department of Verification of Official Mexican Standards. On that occasion, officials described the components of the Verification Guide, as well as differences in the verification of a resort under the old and new Official Mexican Standards (NOM). Attorneys and other individuals were able to attend the event both virtually and in person, and received the corresponding training and answers to any questions they might have.
On July 18, the Educational Committee, represented by David Fuentes, Director of TORE Assistance and Consulting, and Carlos Trujillo Balmaseda, Executive President of AMDETUR, took part in the World Youth Forum, World Students’ Congress 2012, in Cancún, Quintana Roo. The forum was attended by 250 students, and it was made a presentation on the Vacation Property industry and the UniversityEnterprise Liaison Program.
September / October 2012
Now you can follow us on Facebook! In addition to this Association’s activities and achievements, we will be posting news of interest and encouraging closer communication with all the friends that make up our industry.
Follow us at: Amdetur
You will shortly have access to more information and better services on our website, which we’re redesigning to offer you more modern, clear and efficient service, and be in closer contact with you.
In our ongoing effort to enrich this publication, we will be including new contributions from industry participants and, as always, your support is welcome if you have any ideas or material to share.
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» ENTERPRISE LEED And its Economic, Social and Environmental Benefits for the Tourist Real-Estate Industry
By Alberto Silva, Head of the Environmental Department, Goodrich Riquelme y Asociados, and Héctor Uribe, Senior Consultant, URVISERV Consultores
Economic benefits
One of the biggest challenges about LEED certification is attracting the attention of investors and mutual funds to these projects as valuen contrast to conventional methods, sustainable generating alternatives. After banking, real estate construction (Green Building) seeks to make development is one of the most popular vehicles more efficient use of both energy and land for investment. Decisions about a project’s and to conserve natural resources, improve the viability are often made based on the performance environment and quality of interior and exterior air, of generally accepted business metrics: return on and increase the use of recyclable or renewable equity, cash flow generation capacity, net present materials or supplies. value, weighted average capital cost, operating margin, asset turnover, leverage, etc. Faced with the pressing need to address the environmental and social issues involved in So establishing logical and quantifiable ratios conventional construction, the international for investors regarding the benefits of LEED organization US Green Building Council created certification is crucial for firms that want to attract an international certification called “Leadership funding to their real estate projects. These benefits in Energy and Environmental Design (LEED),” oblige us to adapt the current financial language to which entails a series of economic, social and include innovative performance metrics like those environmental benefits for the builders who adopt explained below. it. Experts estimate that retail and residential buildings consume the most electrical energy in Financial benefits for investors who countries like the United States and Mexico, so introducing the LEED system can bring significant decide on a real estate project with LEED certification savings, in addition to tax advantages. According to the Green Building Finance Consortium (a group of companies that have come together to investigate the various levels of investment for green buildings), a Green Building involves additional costs, depending on the level of LEED certification it is seeking. According to their
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September / October 2012
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» ENTERPRISE Primary Benefits (those which are direct and have an immediate and/or evident financial impact, like savings on energy consumption, access to better credit conditions, etc.); and b) Secondary Benefits (those which have an indirect impact, like an increase in the productivity of the building’s occupants, reduction in carbon footprint or reduction of legal risks in the environmental area).
Bio Hotel, Bogotá, Colombia.
research, the lowest level increases the cost by 0.8% over typical initial investment; LEED Silver certification raises the cost by 3.5%, LEED Gold by 4.5% and LEED Platinum by 11.5%. From the financial standpoint, this additional investment will make sense provided it also implies an additional return. In other words, to the extent that the project generates value, it will make sense to opt for additional investment over the conventional methods of planning, constructing and operating a building.
Sustainable net benefit index, and cost/benefit ratio
The Sustainable Net Benefit (SNB) index measures the sum of the savings in costs, expenses and added value post-construction over an extended period of time (generally equal to the service life of a building, for example 25 years). Some examples of the benefits derived from LEED criteria focused on energy efficiency include: savings on electrical energy consumption and improved air quality within a building. The SNB methodology measures the net present value of the savings, over a projection period equal to the useful life of the building, at a discount rate equal to the weighted average capital cost. This is segmented into two types of benefits: a) September / October 2012
It is also possible to segment the net sustainable benefits based on different areas of credit in the LEED certification, although this segmentation is complicated by the fact that some certification areas add value to others. The cost/benefit ratio (CBR) is determined as the ratio of net present value of the SNB and the incremental costs mentioned above. A CBR of higher than one indicates that a project is effective over its useful life in terms of the added investment. On the other hand, a value of less than one indicates that the incremental costs outweigh the benefits. In a financial analysis, it is interesting to calculate CBR in three scenarios: 1) with only the primary benefits; 2) with only the secondary benefits; and 3) with both benefits. In this analysis, we can see the evolution of the financial language commonly used to determine a project’s viability. Typically, financial analysis exclude the secondary benefits, which over time become more important for two main reasons: an increasingly demanding legal framework requiring investors to put more into environmental care, and an increasing demand on a limited supply of resources like energy, water, land, service infrastructure, etc.
Social Benefits
The LEED system makes local communities a priority issue, because it promotes, among other things, the development of projects that benefit 09
Âť ENTERPRISE
them by acquiring local materials and supplies and respecting the regional environment. This is highly important for tourist real estate projects, in which the community plays a significant role in the project’s success. Achieving harmony between host communities and the tourist real-estate project is inevitably a complex task, given the different interests and needs prevailing in the host community. The economic needs of the community are not the only obstacle to a real estate development; there are also ethnic, religious, human rights and environmental aspects that must be taken into consideration at the right time, or they could jeopardize the entire project.
Environmental Benefits
Introduction of the LEED system is synonymous with the rational and sustainable use of natural resources and the environment, to meet the productive and economic needs of a tourist real estate project. So much so that one of the goals of the LEED system is to make maximum use of materials that are sourced locally, avoiding those that do not come from the region and might damage its ecosystems.
In addition, reducing consumption and use of water, lowering emissions of greenhouse gases, and saving energy are just some of the priority goals of the LEED system. In the United States and some countries of Europe, Green Building certification is broadly regulated by government This is why it is so important for developers and legislation, and developers are legally obliged tourist resort operators to introduce social policies to obtain this certification, which also makes in new or existing projects, where in addition to them eligible for major tax benefits. In Mexico, involving the community in the supply, collection there are voluntary certification programs like or manufacture of local products from the region, the Sustainable Building Certification Program they also guarantee the generation of direct and (PCES), and an Official Mexican Standard (NOM) indirect jobs. This will mean benefits to the extent in this area is being developed. that it satisfies the communities need at the same time it creates a direct and transparent relationship with inhabitants. September / October 2012
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» ENTERPRISE Alberto Silva » Head of the environmental department of Goodrich, Riquelme y Asociados
Alberto Silva
Héctor Uribe
Alberto has a Master’s Degree in International Environmental Law (LLM) from the University of Nottingham, England. He is an active member of various committees, like the Environmental Rights Committee of the Asociación Nacional de Abogados de Empresa, Colegio de Abogados, A.C. (ANADE), and the Environmental Law Committee of the Asociación International de Jóvenes Abogados (AIJA). His professional practice is focused on national and foreign enterprises representation and advisement in environmental matters. asilva@goodrichriquelme.com Héctor Uribe » Senior Consultant, URVISERV Consultores Héctor is a Senior Consultant at URVISERV, a financial consultancy firm specializing in investment projects. He has a degree in Civil Engineering and an MBA from IPADE (Instituto Panamericano de Alta Dirección de Empresa). He has more than 15 years of experience in the business and has been in charge of coordinating the financing, legal structure, commercial strategy and tax and operating aspects of various real-estate projects in Mexico. hectoruribe@urviserv.com
us
Advertise with
And reach for government agencies and private companies in the Tourism and Vacation Ownership industries of Mexico and the world.
Contact and information Aurora Martínez aurora@amdetur.org.mx t. 01 55 5488 - 2028 to 31
www.amdetur.org.mx
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Âť INDUSTRY Personal Data Protection and its impact on the Hotel Industry by Arturo MĂŠndez Islas, CPA, partner at PWC MĂŠxico
T
he Mexican legislation that regulates the protection of personal data held by private with the specific distinction regarding sensitive parties, which is covered by the Federal Law personal data, which are considered as: on Protection of Personal Data in Possession of Private Parties (LFPDPPP) and Its Regulation Data regarding the most intimate aspects of the -in effect since July 2010 and December 2011 individual, or whose improper use could result in respectively, protects the right of every individual to discrimination access, rectify, cancel and object to the treatment Data whose improper use could pose a serious of their personal data (known by these initials risk to the individual as ARCO Rights). Users of that information are obliged to strictly control and manage access to this data. Specific data considered sensitive are those dealing with racial or ethnic origin, present The referred legislation stipulates that any private or future state of health, genetic information, individual or corporation must treat personal data religious, philosophical or moral beliefs, union appropriately, excepting parties whose activity affiliation, political opinions, sexual preference, involves the management of credit information, and others. and those who hold information solely for personal purposes. It is doubly important for the hotel and timeshare industry to properly control, safeguard, manage and assume responsibility for the information they possess, because they must meet the provisions of this legislation for every commercial relationship they operate, regardless of its characteristics, including each of their guests and service users.
Personal data
Personal data is defined as any information regarding an identified or identifiable individual,
September / October 2012
Consent for the use of personal data
All use of personal data is subject to the consent of the individual entitled to these rights. Consent is defined as the expression of intent by the individual to whom the personal data correspond, regarding their treatment. This consent is express when proffered verbally, in writing, by electronic media, optical media or any other technology or unequivocal signs. It is therefore highly important to bear in mind that individuals tacitly expressed their consent on the treatment of their personal
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Âť INDUSTRY data when they have been presented with a privacy notice regarding the use of their data and do not object to it. Personal financial or property information requires, in all cases, the express consent of the individual to be distributed to anyone other than those authorized by that individual.
Exceptions for obtaining individual consent
Individual consent for the treatment of personal data is not necessary in the following cases: a) When dictated by law. b) When the personal data of the individual appear in publicly accessible sources. c) When personal data are subject to a prior procedure of disassociation. d) When they are intended to comply with obligations resulting from legal relationship between the individual and the party holding the data. e) In emergency situations in which an individual’s safety or property is in danger. f) When they are indispensable for medical attention, prevention, diagnosis, or management of health services, if the individual is not in a position to grant consent, under the terms established by the General Law on Health and other legal provisions that may apply, and the treatment of the data is handled by a person subject to the equivalent professional privilege or obligation. g) Upon ruling by the competent authority.
Treatment of personal data in the Hotel Industry
Hotel and time-share management must only use the personal data of the individuals with whom they establish commercial relationships, including their guests and service users, for the purposes provided for in the respective privacy notice.
September / October 2012
If the holder of the personal data intends to use them for a different purpose that is incompatible or in conflict with purposes established in the privacy notice, they must once again obtain the individual’s consent. The treatment of personal data, for these purposes, is defined as obtaining, using, distributing or storing the information by any media. Use incorporates any type of access, management, exploitation, transfer or disposal of personal data. Because of the high volume of information and the fact that much of the data handled are sensitive in nature, in the hotel and timeshare industry there is a particular need for special controls.
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Âť INDUSTRY Hotel privacy notices
Hotel and time-share management is directly responsible for the treatment of the personal data of their guests and service users. For this reason, they must provide the respective privacy notice, which is a physical, electronic or other document that is placed at the individuals disposal through print, digital, visual, sound or other technological formats, prior to the treatment of their personal data. The notice must contain, as a minimum, the following: a) The name and address of the hotel or facility collecting the information. b) The purpose and treatment of the information. c) The options and means offered by the hotel or facility to the individuals to limit the use or dissemination of their information. d) The media by which the individual can exercise his or her ARCO rights, in accordance with the LFPDPPP. e) Any transfer that may be made of the information. f) The procedure and media by which the hotel or facility will notify the individual of any changes in the privacy notice, in accordance with the above mentioned Law. In the case of sensitive personal data, the privacy notice must indicate expressly that it deals with this type of data.
September / October 2012
Responsibility for the handling of personal data
Responsibility for the handling of guests and service users’ personal data lies with individual who on behalf of the hotel management decides upon their treatment, who must ensure that the principles of protection are respected, adopting any necessary measures to apply them. This applies even when the personal data are treated by a third party at the request of the party holding them, in which case the individuals may exercise their ARCO rights with the hotel management. The party responsible for handling the data must take necessary and sufficient measures to guarantee that the privacy notice presented to guests and users is respected at all times by him/ her and by any other third-party with which it has some legal relationship. The responsible party or any third parties involved in any phase of treatment of the personal data, must maintain information in strictest confidentiality. This obligation persists even after the conclusion of commercial relationships between the guests and service users, and the hotel or timeshare in question.
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» INDUSTRY Security measures
The management of the hotel or timeshare facility, or the party responsible for the treatment of guest and user data, has certain obligations to ensure that they are protected against damage, loss, alteration, destruction, use and access or unauthorized treatment. These security measures can be grouped into three categories: • Administrative Limit the number of individuals who use the personal information. • Technical Introduce passwords to identify the people accessing the information. • Physical Designate secure spaces for storing information.
blackout period will be equivalent to the expiration term of the actions resulting from legal relationship in which the treatment is based, under the laws applicable in this regard.
Opposition: The individual has the right to oppose the treatment of his/her information, at any time and for legitimate cause. If this opposition is ARCO Rights admitted, the responsible party may not handle For better understanding of these rights, the the individual’s data. It is very important to bear in following is the definition of each of them as it mind that the management of hotels and timeshare pertains to the individuals entitled to personal data facilities must at all times recognize the ARCO rights, on the understanding that the exercise of rights of their guests and service users, or risk any one of them is neither a prerequisite nor does incurring the sanctions established by law when it preclude the exercise of another: there is evidence that they have violated them. Access: The individual’s right to access his/her THE IFAI own personal data held by the responsible party, The Federal Institute for Access to Information and and to be given a Privacy Notice regarding their Protection of Data (IFAI), referred to in the Federal treatment. Law on Transparency and Access to Public Government Information, was created to raise Rectification: The individual has a right to rectify awareness of the right to protection of personal the data when they are inaccurate or incomplete. data in Mexican society, to promote the exercise of these rights, and to oversee the due observance of Cancellation: The individual has the right to the provisions of the respective laws. Accordingly, cancel the personal data held by a third party at IFAI is the agency that sanctions any violations of any time. Cancellation of personal data will result law, as stipulated by the LFPDPPP. in a blackout period after which the data will be suppressed. The party responsible may keep the data exclusively for the purpose of complying with the responsibilities relating to their treatment. The
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» INDUSTRY Infractions and Sanctions
The law describes the following infractions and corresponding sanctions: INFRACTION
SANCTION
Treating personal data in violation of the Fine ranging from 100 to 160 times the Daily principles established in the LFPDPPP. Minimum Wage in Effect in Mexico City (SMGDF) Failure to provide a privacy notice with the Fine ranging from 100 to 160 times the elements stipulated in the LFPDPPP. SMGDF Collect or transfer personal data without Fine ranging from 200 to 320 times the the express consent of the individual, in the SMGDF cases in which this right is enforceable. Failure to obligations.
comply
with
confidentiality Fine ranging from 200 to 320 times the SMGDF
Substantially changing the original purpose Fine ranging from 200 to 320 times the of the treatment of the data without new SMGDF consent by the individual. Transferring data to other parties without Fine ranging from 200 to 320 times the extending to them the privacy notice that SMGDF contains the limitations the individual placed on the dissemination of his/her data. Misrepresentation or fraud in the collection Fine ranging from 200 to 320 times the of data. SMGDF
CONCLUSIONS
The management of hotels and time-share facilities face new obligations in the protection of personal data, regarding the commercial relationship they create with their guests, service users and other individuals with whom they operate, such as time-share owners, their officers and employees, independent workers, and suppliers of goods and services. To ensure proper adherence to the law, each company must have a plan of action for the protection and treatment of personal data, as well as an evaluation of the controls and security measures that hotels and time-share facilities have created for this purpose. It is also indispensable to generate and retain sufficient evidence of compliance with the provisions of the LFPDPPP, as implemented by the management of the hotels and time-share facilities.
September / October 2012
C.P.C. Arturo Méndez Islas, Partner of PwC México Leader of Tourism Industry, Sustainability and Climate Change Specialist in Corporate Taxes and Real-Estate Developments
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» FEATURE Neuroselling... ¿Neuroclosing? By Alejandro A. Carrillo Ruiz Director of the BECOME Sales School
T
he object of Neuroselling is to study the “how” and the “why” of our clients’ decisionmaking, and to develop high-impact sales presentations to favorably influence their choice of our products and/or services. Today, intense competition for consumers’ attention obliges us to enter the arena of the human mind and to understand how the decision-making process takes place.
Why does a client say yes or no? Can we influence them to say yes? “The Arena Where Decisions Are Made Is the Battleground of Neuroselling” The arena where decisions are made is the human brain: the last frontier of human knowledge. For a company, understanding how the brain works from the decision-making perspective is fundamental in developing the right strategies. Amid increasing pressure to improve returns and profits, sometimes companies bring in technologies that are expensive and cannot, on their own, actually improve efficiency or closing percentages. The implementation of any technique must be done September / October 2012
from various angles, all of them with an eye to “how the human brain works.” Very few companies invest in the study and understanding of their presentation processes, the impact they have on the human brain, and the people who represent them in these processes: their sellers. Many companies think that it is easier to just buy the technology and wait for it to work miracles on its own. Today, for sellers, the line between the past and the incredible future ahead is razor-thin. More than ever, companies need sellers who are trained and prepared to apply the new knowledge that science brings to us every day. Neurology and Economics have opened up a new field of knowledge called Neuroeconomics (the study of decision-making), which has given way to Neuromarketing, which uses functional magnetic resonance imaging (FMIR) and electroencephalogram (EEG) techniques to precisely measure the places in the brain where decisions are made, and the processes followed to make them. This is what Richard Dooley (consultant on this new concept, with decades of expertise in marketing) calls “the black box of psychology.” Neuromarketing already offers us highly effective tactics not just to attract the client’s attention but 17
» FEATURE to favorably influence their preferences through our advertising campaigns and communication strategies. Neuromarketing is in turn giving rise to Neuroselling, and we want our industry to be a pioneer in the application of these discoveries, as well as the creation of new strategies and sales tactics that can complement or replace those we use today, but which were created in the 1980s.
Why Neuroselling?
Why do we use two brains or two systems?
• Little or no available information In reality, it is impossible to have the full array of information needed to guarantee that every decision we make is the right one. The brain therefore developed “shortcuts and prejudices” as a response strategy to deal with “urgent” or “rapid” decisions. System 1 provides a procedure for making automatic, swift and largely unconscious decisions. Shortcuts and prejudices are culturally or genetically installed programs in the human mind to resolve problems (make decisions) practically and quickly.
Around 97% of what our clients think–and thus the decisions they make–originate in the old brain, the archicortex or “Emotional Brain.” The seller many times operates without a conscious “strategy” to execute the sales presentation, but when we have a seller that applies a developed, learned and practiced “strategy”… we are talking about a A Neuroseller must be familiar with these programs, Neuroseller or a Neurocloser. because their ultimate goal is to establish effective communications to be able to deliver their message In reality, and to simplify explanations in this article, and influence decision-making. when we talk about the human brain we are not talking about one system… we are talking about • Laziness two brains in one; or, in the words of Nobel prize- System 2 is notoriously lazy and reluctant to winning economist Daniel Kahneman, System 1 become involved in decision-making… unless and System 2. there is something novel, an emergency, or if System 1 detects danger. A sales presentation, a “Neuropresentation” must be developed taking into account three undisputed Take a moment to analyze what you just read and truths: you can see the implications that these processes 1. We have two brains in one. have in sales presentations, closings, and the way 2. 97% of the time we are selling with System 1, in which we create and project the information that and we are selling to System 1… but we need the client receives. System 2 to close. 3.Sales presentations must be created with an awareness of the nature of the purchasing brain. DECISION MAKING System 1: Old Brain, System 2: New Brain, Archicortex Neocortex Emotional System Rational System Fast, Imprecise Slow and deliberate Automatic System Voluntary System Alert to Danger or Novelty Little participation except Manages Attention when called
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» FEATURE • Time Pressures There is not enough time to analyze all the options when we make decisions. That’s why we rely on shortcuts and prejudices, which are the automatic programs created by System 1.
The Neuroseller
To be a Neuroseller, it is vital that we pay attention to the two systems that participate in the client’s decision-making. This means being aware of:
The following is a simplified chart of a “Neuropresentation.” Hearing Seeing Smelling Touching Tasting
SYstem 1 Emotional Brain
IMAGINE / IDEA
EMOTION
“The shortcuts and prejudices the human mind uses to make decisions. For example: to buy or not!”
• How can we establish effective communication with System 1; learn and dominate the symbolic language of System 1 (body, gestures and voice)? September / October 2012
V
CONDUCT
V
SYstem 2 Thinking Brain
V
Shortcuts Prejudices
V
If there is:
Novelty Emergency Danger
Logical Reason
• How can we use neural paths (which are genetically and culturally imprinted) to make our message attractive (creating novelty, emergency and danger) and capture the attention, interest and cooperation of System 2?
Sadness Fear Anger Disgust Joy Happiness Hate
FEELINGS
MEMORY
• What are mental shortcuts? How do they work and how can we use them to inspire a preference for one option over another? How can we influence decision-making?
97%
3%
REALITY
The fundamental thing for a Neuroseller is to know that the human brain processes 97% of sensorial information (senses and imagination), at the System 1 level, and 97% of what happens in the human mind takes place without our clients being aware of it (unless we trigger the activation of System 2). The decision-making system is complex, so it requires a set of knowledge and guided training 19
» FEATURE to turn sellers into Neurosellers. Once we have done this, it is possible to make strategic and ethical use of the paths that genetics and evolution have already implanted in the human being. In the future, the environment where Neurosellers will emerge will be companies that understand their historic role, and where their vision of the future is not atrophied from so much clinging to the past. Bibliography •Brainfluence, 100 ways to persuade and convince consumers with neuromarketing, Roger Dooley •The buying brain, secrets for selling to the subconscious mind, Dr. A.K. Pradeep •Thinking fast and slow, Daniel Kahneman
Alejandro A. Carrillo Ruiz has an undergraduate degree in Business Administration. He has worked in the Vacation Club industry for 20 years and has collaborated as instructor, trainer, and closer for more than 17 years. In his professional career he has created new systems for selling, presenting and closing. He has been Sales Manager for Moon Palace Sunrise and for Cancun Palace, as well as Corporate Sales Manager for Legendary Club. He is currently Director of the BECOME Sales School, and is developing the concept of Neuroselling and Neuroclosing. aacarrillo@gmail.com
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September / October 2012
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