Market Overview
The United States is the number one destination for Mexican travelers. In 2008, an estimated 13.5 million Mexicans traveled to the United States, representing over a quarter of the total foreign arrivals to the country. Mexico is the second source of international travelers to the United States after Canada.
In 2007, spending by Mexican travelers in the U.S. totaled $9.5 billion. Approximately 75% of this amount is tied to the 1.9 million Mexicans who traveled to the United States by air.
The current USD/Mexican Peso exchange rate has made U.S. destinations more expensive and this is expected to impact travel and vacation decisions. In fact, preliminary figures for 2008 show a 6% decrease in travelers from Mexico to the United States. This reality makes more compelling the need to actively promote U.S. destinations.
Best Products/Services
It is important to differentiate between land and air Mexican travelers to the United States. Mexican land tourists usually travel to the southern states for a short time period in order to visit relatives or friends and do shopping. On the other hand, air travelers do visit family but also make pleasure trips. These tourists are particularly lucrative since they are the ones who generate most of the travel and tourism receipts to the United States. Air travelers usually stay longer and buy packages that include transportation, lodging, shopping, and recreational activities.
Market Opportunities
Mexicans are drawn to the United States because of its destination diversity, infrastructure and excellent travel and tourism services. In particular, Mexicans enjoy destinations that offer shopping, gambling, entertainment, amusement parks and a cosmopolitan environment. Natural parks and other outdoor destinations are typically not as attractive for Mexicans. Skiing is the notable exception – Mexicans flock to resorts in Colorado and New Mexico in the winter months to ski.
Wholesale operators continue to be the most important distribution channel in the Mexican travel and tourism market. Wholesalers sell their packages to the travel agents who provide their services to the end consumers. Mexicans prefer to make their traveling arrangements through a travel agent, since they are not confident about providing their credit card information through the Internet.
Resources
Office of Travel and Tourism Industries
Travel Industry Association of America (TIA)
Market Research
Incentive Travel in Mexico
According to the travel and tourism professionals in Mexico, over
two thirds
(69%) of the travel wholesalers, operators, and agents offer
incentive travel
packages. Moreover, most of the travel wholesalers and operators
who specialize
in incentive travel make a difference between this market segment
and group
travel. In order to increase incentive travel sales, Mexican tour
operators work directly with companies. The based in Mexico trade
indicated that during 2004 incentive travel registered an
increase of nearly 65% compared to last year. In 2005 incentive
travel is expected to grow by and additional 30%.
Incentive travel companies have mentioned their biggest clients
in Mexico are
local and multinational companies in the following sectors:
pharmaceutical and laboratories, insurance, automotive, travel
and tourism services, direct sales companies, financial
services.
Utlilizing Mexican Tour Operators to Jumpstart Your Business
To tap into this lucrative market, working with Mexican
wholesalers and tour
operators is crucial. Although independent travel and internet
research are on
the rise in Mexico, Mexican travelers typically rely on the
traditional methods
of approaching travel agents and tour operators for travel
options and to book
their travel plans.
The following tips will help U.S. receptive tour operators obtain
access to the
Mexican market:
1) In-country promotion
2) Personal relationships are crucial
3) Tailor your packages to the Mexican clientele
4) Speak Spanish whenever possible
5) Realize that Mexicans are last-minute travelers
6) Distinguish yourself by specializing in what you
know
Trade Events
Upcoming Events in Mexico
International Pow Wow 2009: May 16 – 20, 2009 – Mexico City
International Pow Wow is the travel industry's premier international marketplace and is the largest generator of Visit USA travel. With three days of intensive pre-scheduled, computer-generated business appointments, international delegates can meet with targeted suppliers from more than 1,000 U.S. travel organizations from every region and segment in the U.S. The U.S. Commercial Service in Mexico will organize a delegation of qualified travel professionals to meet suppliers at this show. For more information please contact: Juan Carlos Ruiz.
Upcoming Mexican Buyer Delegations to the U.S.
La Cumbre 2009- The Americas Travel Summit: September 2 – 4, 2009 - Miami, FL
La Cumbre - The Americas Travel Summit, is the premier marketplace for travel professionals from throughout the Americas. La Cumbre hosts approximately 1200 delegates including suppliers/exhibitors, buyers, the travel press, principals of Visit USA Committees in Latin America, leading air carriers and general sales agents. More than 30 countries are represented and activities include three days of pre-scheduled business appointments, seminars and networking opportunities. The U.S. Commercial Service in Mexico will organize a delegation of qualified travel professionals to meet suppliers. For more information please contact: Juan Carlos Ruiz.
Further Information, Comments and Questions
If you wish to write us regarding these reports, please contact Juan Carlos Ruiz, Trade Specialist on Travel and Tourism in the Mexico Sector of the US Commercial Service Mexico City Office.