UK

1
UK IRELAND MARKET OVERVIEW FOR CANCUN
CONVENTION VISITORS BUREAUBY AXIS SALES
MARKETING
2
Welcome to WTM 2008

• Your Team!
• Clemencia Wiese Managing Director
• Emma Cashmore Account Director
• Luisa Uruena PR Marketing Manager
• Susie Fairfax PR Director

3
The Economy

• Economic uncertainty
• Interest Rates
• Inflation increased by 3
• Housing crisis panic!
• Building industry slump

4
As a Result

• Negative media
• Tour operators are changing tactics
• Consumer is economising
• The collapse of many travel brands
• Carbon Footprint and Fair Trade

5
Food for Thought.

• Malcolm Preston of PWC said at the recent ABTA
  convention, that the Economic Crisis can be
  related to a Grand Prix Analogy..
• This downturn is like a pit-stop and those
  companies that make the best repairs will be the
  ones that succeed.

6
UK Ireland Trends

• British Europeans continue to travel
• Consumers will still take on average 1 -2
  holidays
• Consumers looking for more from leisure time
  more rewarding / indulgent experiences
• People are saving harder to get this indulgent
  experience
• Market is price conscious, but will pay for
  quality service
• Consumers are looking for destinations that offer
  great value for money! Cancun is perfect!

7

Consumer Trends

• What Consumers Buy
• Safety Security in destination
• Easy access
• Quality consumers want a luxurious experience
• Culture and Heritage
• Wellness and Relaxation
• Key focus on lifestyle interest holidays
• Spa
• Diving
• Golf
• Activity
• Culture

• - Romance
• - Family
• - Relaxation
• - Learning holidays (culinary, crafts etc.)

8
Travel Distribution

• The Big Two Thomas Cook Group, TUI Travel UK
• (They own all elements of distribution Tour
  Operator, Airline, Travel Agent, TV Channels,
  Hotels, Car Rental Destination Services)
• High Street Agent Multiple Miniple
• B2B Tour Operators (via travel agent) though most
  have increased their direct sale channels of
  distribution via the web include Gold Medal,
  Kuoni, Virgin Holidays, Travel 2/4 Gullivers
  (GTA)
• B2C Direct Sell Operators include Trailfinders,
  Airline Network (Part of Gold Medal), Virgin
  Holidays, Ebookers, Lastminute.com, Opodo,
  Expedia etc.
• Independent Travel Agent Consortia
• Global Travel Group, Advantage, Worldchoice,
  Elite tour operation product, dynamic packaging
  ability.
• Home Workers - include Travel Counsellors, Future
  Travel, Hays Travel

9
The Internet

• Dot.com travel businesses are showing growth
• Online companies are tweaking their models to
  stay ahead
• Most Tour Operators have a good online facility
  Traditional Tour Operators are improving online
  facilities They realise the potential!
• Some 59 of Britain's use the internet regularly
• Number of Internet Users has increased to 38.5
  million (63.8 of the population!)
• 16 million households in GB have internet access
  (Increase of 8)
• Adults under 70 with a good education are most
  likely to have an internet connection in their
  home
• Silver Surfers Time and money to spend on the
  internet
• Mobile Phone Technology now offers information
  on flights, video technology

10

Tour Operator Update

• TUI Travel UK
• Collectively they own 106 travel companies, but
  continue with an aggressive acquisition programme
• Thomson Holidays has been market leader for 30
  years plus
• Focusing heavily on internet - First Choice does
  around 30 of its business online while the
  figure for Thomson's UK operations is just over
  50
• TUI Travel / First Choice have the greater
  capacity into Cancun out of the big two.
•  Target mass market

11

Tour Operator Update

• Thomas Cook Group
• Thomas Cook - the most famous name in travel
  worldwide organised package tours for 152 years
• The retail name has been extended to its charter
  airline and mainstream tour operation
• Continuing with an aggressive acquisition
  programme recently acquired Elegant Resorts to
  diversify and offer niche products
• Collectively the group now own over 21 travel
  companies
• Sources believe one of the big two is poised to
  swoop, with Thomas Cook hotly tipped to snap up
  Medhotels from lastminute.com.

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Tour Operator Update

• Funway Holidays Plan to do a major push to
  Cancun, as they are the largest wholesaler
  offering product (Mark Travel Group)
• Elite Advantage have unveiled a tie up
• GMT Signs TUI Travel Deal
• Expedia to be sold on high street
• Bedbanks such as Hotels4U are expanding
• New companies on the scene such as Chase Travel
• YouTravel.com to expand accommodation option in
  Caribbean / Mexico area from 30 hotels 400
  hotels.

13
Airline News

• Mexicana just announced launch of new direct
  service LGW MEX connections to CUN opening
  up the market!
• Following launch of Cosmos charter with Monarch
  they plan to continue in 2009
• Continental Airlines focusing on their regional
  airports (EDI, BRS, BHX, GLA) to Central America
  destinations

14

Tour Operator Trends

• Consolidation / Mergers Resulting in
  diversifying product offering niche product
  whilst increasing market share
• Dot.coms Continually developing to become the
  leader competition is now other operators!
• Homeworkers continues to grow, low overheads,
  staff are commission only paid

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Key Tour Operators

• Abercrombie Kent
• Audley Travel
• Best at Travel
• Black Tomato
• Caribtours
• Cathy Matos Tours
• Cosmos
• Dive Worldwide
• Ebookers
• Elegant Resorts
• First Choice
• Funway Holidays
• Gane Marshall
• Geckos Adventures
• Global Travel Group

• Gold Medal Travel
• Gulliver's Travel
• Hayes Jarvis
• Highlife Holidays
• Iglu.com Ltd
• ITC Classics
• Jetlife (Caribworld)
• Journey Latin America
• Kuoni Travel
• Lastminute.com
• The Lotus Group / Dial A Flight
• My Travel
• North American Travel Service
• Q Holidays
• Real Deals Travel
• Scott Dunn

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Key Tour Operators

• Select Worldchoice Limited
• Seligo
• Solos Holidays
• South American Experience
• Sovereign
• Sunset Faraway Holidays
• The Holiday Place
• Thomas Cook (Charter Signature brand)
• Travel 2/Travel 4 Ltd
• Trailfinders
• Thomson Worldwide (TUI)
• Veloso Tours
• Virgin Holidays

We need to make sure Cancun are top of their
list!!
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Tour Operator Trends

• Operators report that sales are flat to all
  destinations because of the current climate
• Biggest competitor to Cancun in the region is
  Cuba, Dominican Republic, Florida and Riviera
  Maya
• Main long haul destinations which are in
  competition to Cancun are Cuba, Dominican
  Republic, Goa
• Operators are heavily discounting and offering
  value adds to draw in bookings
• Social Networking Sites becoming very popular for
  tour operators to start blogs
• Eco-friendly Holidays are the rising trend
• UK Taxi Campaign has created great awareness, in
  addition we have secured exceptional coverage in
  trade media

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Airlift from UK

• Mexicana LGW MEX
• Via USA
• Continental Airlines
• Delta Airlines
• American Airlines
• Virgin Airlines
• United Airlines
• US Airways
• Air Canada
• British Airways
• Continental Airlines
• Delta Airlines
• American Airlines
• Virgin Airlines
• United Airlines
• US Airways
• Air Canada
• British Airways

• Charter Services
• Direct Service from UK Ireland
• Monarch Airlines
• Thomsonfly
• Thomas Cook Airlines

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Benefits of WTM

• At WTM 2007 over 45,000 travel professionals
  attended representing 202 countries and regions
  attended
• Approx 28 billion worth of business was
  conducted at the event
• Increase your business at this Unique Global
  Forum
• Meet new and existing Key Contact Players
• Extend your networking opportunities
• Keep abreast with latest industry trends
• Opportunity to visit the Hotel Platforms make
  contacts and understand how they buy

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WTM 2008

• Email sent to over 250 key trade contacts to
  advise of Cancun CVB and Partners Attendance
• Follow up telephone calls made to key contacts
• Close liaison with key Press contacts regarding
  interviews and photography

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Show Information

• Opening Times
• 1000 - 1800 (except for Thursday which closes
  at 1700). Meridian Day is just on Tuesday 11th
  November
• Stand Location
• Stand Number AS7480
• Travel Information
• The Jubilee Line is recommended as the quickest
  route to ExCeL London. At Canning Town change to
  the DLR (upstairs on platform 3) for the quick
  two-stop journey to Custom House for ExCeL
  Station.
• Please note there is some engineering works
  going on, on the DLR, so allow extra time

22
Contact Information

• Emma Cashmore
• - Mobile [phone]
• Luisa Uruena
• Mobile [phone]

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• WE WISH YOU AN ENJOYABLE AND SUCCESSFUL WORLD
  TRAVEL MARKET AND FOLLOWING THAT A SUCCESSFUL AND
  BUSY 2009!!