Letter from the CEO
Dear Board Members and Shareholders:
In 2018 we continued with the consolidation of our company’s growth and its industry leadership. Tourism continues to be a strategic factor in Mexico sustaining a growth since 2015 higher than that of the economy as a whole. Currently, Mexico is ranked 6th in foreign tourist arrivals by the World Tourism Organization.
Hotel occupancy in our country is among the highest in the world. The number of arrivals keeps increasing year after year with 39 million visitors at the end of 2017 and 27.7 million in the first eight months of 2018.
Despite the fact that travel warnings for Cancun and Los Cabos issued the previous year were removed at the beginning of 2018, the arrival of international groups of the resort segment was affected throughout the year.
Since the US market is the main contributor of visitors to our country, our platform for international promotion, La Colección, has become the permanent campaign tool of our resorts at the main destinations.
With a total investment of $445 million pesos, the Live Aqua Beach Resort Cancun Hotel underwent a total remodeling of its rooms, public areas and restaurants, ending successfully early this year.
Featuring the opening of the Live Aqua San Miguel de Allende and the Fiesta Americana Mexico Satelite, in 2018 we opened 16 hotels with a total of 2,221 rooms.
With these openings we closed the year with 175 hotels in more than 60 destinations with more than 27,400 rooms. In addition, we closed 22 long-term hotel agreements with 3,162 rooms.
With these openings, we now have 49 agreements for approximately 9,300 rooms representing an increase of 34% of our total current inventory.
For 2019, our development plan considers 24 openings that will feature the Gran Fiesta Americana Oaxaca, Fiesta Americana San Luis Potosi and the Fiesta Americana Viaducto Churubusco.
Moreover, we consolidated our position as operators and owners of 12.5% of the Tulkal hotel project in the Mayan Riviera. Two hotels are being built at this development: a Fiesta Americana with 515 keys and a Live Aqua with 340 keys with a scheduled openingin the first quarter of 2021.
Permanently seeking to satisfy the needs of our guests and to interpret market tends, we continuously reinvent ourselves through the creation of new brands aimed at new segments and the consolidation of those already in existence in order to increase the attractiveness of our portfolio for investors.
Today, our portfolio has 9 brands in the hotel market and 4 in the Club Vacacional market.
We implemented the Net Promoter Score (NPS) culture as an essential indicator for measuring hotel performance on the basis of guest assessment and our customer-centered philosophy.
Marketing and Sales
In 2018, once again we achieved a record number of reservations processed through our distribution suite.
- We exceeded 3.4 million reservations (one reservation every 9 seconds)
- Our own channels (including groups) contributed 69% of the reservations.
- Our web channel grew by 17% with respect to the previous year, contributing with 7% of the reservations.
- Our voice channel remained as the most important contributor with 20% of the reservations.
- We reached 2 million followers in all our social networks.
We keep improving our platforms in order to sustain our competitive edge, improve booking cost and ensure ever greater economies of scale.