09

PROVAC

Vacation

Properties

In an environment in which digital economy turns around complete industries, innovation and consolidation of strategic alliances becomes essential for market permanence; it has been through these that the vacation property industry has sustained continuous growth.

In Latin America, Mexico continued to lead; of the 473,000 weeks sold in the region, approximately 250,000 were sold in Mexico. This represents $4,700 MDD in sales, of which the Cancun corridor is the main sales point with a 60% share, also being the number one destination in the country with an offer of 38,779 rooms only in timeshare.

And of course, PROVAC POSADAS has an important participation in these figures; we have 24 points of sale in Mexico that offer our products and making us an industry leader.

PROVAC en 2018

The year was a successful one for the Company; we closed with more than 74,000 members and travelers.

For fifth consecutive year we had historic sales: $155 MUSD, exceeding our own goal by 18% with respect to 2017 and making 2018 one of the best years in the history of PROVAC.

Moreover, we applied our PROVAC evolution model to different levels of the organization: pre-arrival, security, bell boys, reception, sales/hospitality stands, and concierge.

This was due to several strategic activities:

  1. 6X4 Program. We created six marketing programs for selling 4 products: Kivac, Live Aqua, Re_set, and Fiesta AmericanaVacations Club.
  2. We created a commercial certification area and a training program for qualified PROVAC executives; this increased business unit sales by 35% and will generate 354 million pesos in 2019.
  3. Marketing of experiences through which we offer our guests tailor-made, unique moments; this was reflected in a 3% increase in in-house penetration.
  4. Product: We improved the FADC member satisfaction index (24 points recommendation; 14 satisfaction, 12 repurchase)

In addition to the above, we carried out different actions that allowed us to achieve and exceed our goals; one of those actions, the renovation of the websites of all our products, increased the website reservation process by 30 points and communication by 14.

We improved our Customer Attention Call Center ending the year with 350,000 received calls, 150,000 reservations, 280 million reserved points, USD10 million incremental sales and 98% comprehensive attention.

From the maintenance fees of our members, we invested $172 million pesos on the remodeling of different properties: Fiesta Americana Los Cabos All Inclusive Golf & Spa ($67 Million pesos), Fiesta Americana Cancun Villas ($ 35 Million pesos), Fiesta Americana Cozumel All Inclusive ($12 Million pesos), and Fiesta Americana Acapulco Villas ($58 Million pesos).

74,000 Members

historic sales $155 MUSD

18% increase vs. 2017

Live Aqua Private Residences Los Cabos

Our

Products

+386

room nights under the Posadas system

Live Aqua Residence Club

$551MDP net sales

+48% growth

872 active members

In 2018, we added to our inventory four exclusive Live Aqua residences in Huatulco Celeste and launched the liveaquearesidenceclub.com website, through which our members can make reservations for hotel, tours and activities, generate hotel bills, and browse the members-only event schedule.

$1,279MDP net sales

+16% growth

29,900 active members

Fiesta American Vacation Club has been in the market for 20 years, an indication of the consolidation of our product and the satisfaction of our clients. In only three years we have managed to increase our indexes of recommendation, satisfaction and repurchase.

Kívac

$1,122MDP net sales

+4% growth

42,700 travelers

Our pre-payment plan continues to grow and consolidate sales. We currently have over 42,700 travelers in the program, which speaks of its excellent acceptance.

We created Kivac Xpand -the perfect complement for the Kivac point packages- in order to encourage its use by travelers; 365 days to more than 10,000 international destinations, with no restrictions.

Re_set

$59MDP net sales

656 active members

Re_set is the discount plan we created to respond to the need of engaging new consumers through the existing digital and technological platforms. With a different vision, it represents a more profitable business scheme for the Company

Live Aqua Private Residences Los Cabos