Market Update Presentation by Siobhan Chretien: Market Updates: Brazil, Mexico, India, Japan, South Korea at Rendez-Vous Canada 2013 in Ottawa

1. Market Updates
Brazil, Mexico, India, Japan, S.Korea
Siobhan Chretien, Regional Managing Director

2. UPDATE ON BRAZIL
Sheila Nassar, Account Director - Brazil GSA

3. Steady
Growth &
High Spend
TRAVELLER CHARACTERISTICS

7. CHALLENGES
 Low destination awareness
 Lack of seasonal and direct air capacity
 Visa Process
 Fierce competition
 Total outbound travel growing faster than
Canada’s share

8. MARKET OPPORTUNITIES
 Travel Trade keen to sell Canada
 Strong brand perceptions and travel intentions
 Increased air access all year
 Online visa process
 Strong media exposure
 Dynamic growth in social media use
 #1 for students

9. TOP PRIORITIES 2013
1. Key Account Marketing
2. Signature Experiences Collection promotion
3. Trade and media integration
4. Consumer campaigns with media diversification
5. Canada Specialist Program
6. Student Market
7. B2B marketplaces

10. 2013 MULTI-CHANNEL APPROACH
Trade
Coop Marketing
Training nationwide
CSP development
FAM Trips
Trade fairs
POS material
New product
development (SEC)
Showcase Brazil
Media
Fam Trips lifestyle
Fam trips trade media
Releases all year
Pitch stories
Consumer
Social Media channels
Consumer marketing
campaign on print,
digital media
New website

11. WHO IS ATTENDING RENDEZ-VOUS?
 Brazilian Tour Operators Association
members (Braztoa)
 Non-Braztoa members
 Trade Media

12. THINGS TO KEEP IN MIND ABOUT BUYERS
 Time-stressed
 Responsible for more than 5 countries
 Need certainty and flexibility
 Clear and direct communication a must

13. BUSINESS TIPS
 Keep your Receptive in the loop
 Provide relevant sales benefits
 Show your strengths compared to Canada’s
international competitors
 Show how selling your experience will make their
business more profitable
 Make it Win-Win

14. BUILD THE RELATIONSHIP
 Start with key accounts that fit your business
 Focus on good communication
 Provide relevant information in Portuguese
 Approach RTOs with special deals for your key
accounts
 Stay committed

15. Thank you!
Merci beaucoup!
Obrigado!

16. UPDATE ON MEXICO
Jorge Morfin, Managing Director - Mexico

17. THE STORY OF A RESILIENT MARKET
140 148 161
132
169 179
202
230
257
161
116 125
142
160/e
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Total Overnight (,000s)

18.  Overnight revenue from the Mexican
market was up nearly 13% in 2011 to
$177.3 million
 Average spend per person: $1,424

19. MARKET OPPORTUNITIES
 Build confidence in travel agencies to support sales
 Continue developing joint strategies between the
provinces and the CTC to keep our leading position on the
market
 Support wholesalers and airlines’ activities
 Become more creative in positioning the destination
among potential travelers

20. MARKET OPPORTUNITIES
 Continue working with the Canadian Embassy to
facilitate the acquisition of visas
 Reinforce strategies in social networks that will
contribute to a positive communication of the
destination
 Maintain the privileged position among the media

21. TOP TEN PRIORITIES
Partnerable
consumer campaigns
Industry and
corporate
communications plan
Young Adult/Student
development
Airline and Tour
Operators Co-ops
Canadian Signature
Experiences
B2B Marketplaces
Canada Specialist
Program
Canada Receptives
and Tour Operators
Celebrity/Influencer
and broadcast MR
Embassy relations

22. HOW TO DO BUSINESS IN MEXICO
SEC
Consumer
RTO
Wholesaler Consumer
Retailer Consumer
OTA Consumer

23. HOW TO DO BUSINESS DURING RVC
 Start building relations with RTOs
 Understand your business case
 Local operators place high value on
personal relations
 Materials translated in Spanish are preferred

24. UPDATE ON INDIA
Tina Singh, Account Director – India GSA

25. FIRST THINGS FIRST
 Canada enjoyed a record
132,000 overnight Indian arrivals in 2011
 CTC has forecast arrivals growth of 5% in
2012 and 2013
 2011 revenue: $139 Million (10% growth)

26. SOME FACTS
Source: India Market Profile, CTC. 2013

27. WHEN DO THEY VISIT?

28. THE INDIAN TRAVELLER TO CANADA
 Educated
 Affluent with desire to travel
 Age: 35-55+
 Seasoned travellers
 English speaking
 Want extraordinary experiences
 Experiential & soft adventure products are appealing
 Love to shop

29. THE INDIAN MARKET
 Ranked in top five for % growth potential for outbound travel
(10-15%)
 Growing and affluent middle class has a desire to
travel, especially to new destinations like Canada
 Average stay per trip: 23 nights
 Experienced, sophisticated travellers with history of long-haul
travel
 UNWTO: estimates 50 million outbound tourists by 2020

30. THE INDIAN MARKET
 A high-end niche market seeking luxury travel (up to 3 weeks) . A
popular itinerary: cruising plus Rockies using Fairmont Hotels.
 Metropolitans: Mumbai & Delhi have been main traffic producers but
much growth is seen from Tier II cities and CTC is expanding its
sales network to reach them

31. BUSINESS THROUGH
TRADE
 It is important for
Receptives to be in touch
with Indian travel partners
 Why? 80% of the Indian market
purchase tickets for international
travel through a Travel Agent

32. DRIVERS OF DESTINATION CHOICE
 Weather
 Advocacy / Word of Mouth
 Experience / New product
 Opulence: Luxury / Lifestyle
 Shopping
 Visiting Friends & Relatives
 Scenic Beauty
 Entertainment / Children friendly (Family destination)

33. A GLIMPSE OF 2012

35. MARKET BARRIERS
 Competition / Big Spends
 Long-haul destination
 Air Access / Rising airfares
 Strict Visa Perception
 Brand USA
 Rising Dollar Prices (25%)

36. WHY INVEST IN THE INDIA MARKET
 Continued annual growth driving the economy
 Growing middle-class
 Potential long-haul outbound travel robust
 High-end niche market seeking luxury travel
 Canada arrivals growing
 FIT / GIT strong
 Strong VFR
 Deep trade ties

37. 1. Develop and increase number of key accounts
2. Launch SEC: Oct 2013
3. Deliver trade education and marketplaces in Tier I & II cities
4. Develop co-op programs with tour operators and Canada
Specialist training with top-performing agents
5. Expand Visa Preferred Agent Program
MOVING FORWARD: 2013 PRIORITIES

38. MOVING FORWARD: 2013 PRIORITIES
6. Further develop media relations to include a
stronger tour operator call to action
7. Road shows / B2B marketplaces
8. Leverage dual nation (US) itineraries to
overcome direct air access barrier in the short-
term

39. HOW TO DO BUSINESS WITH IN
BUYERS AT RVC
 Build relations with trade partners
 Ask about their issues and hear them out
 Massage their ego’s, Indians love it!
 Go the “extra-mile”
 Business could change hands for $5 per
head

40. BEYOND RVC
 Stay committed and be flexible
 Maintain a consistent presence
 Prepare a range of itineraries

41. Merci, Thank you.

42. Update on Japan
Maureen Riley, Managing Director - Japan

43. JAPAN BY THE NUMBERS
0
100,000
200,000
300,000
400,000
500,000
2005 2006 2007 2008 2009 2010 2011 2012
Lehman Shock
3/11

44. ARRIVALS IN COMPETITOR DESTINATIONS
2006-2011

45. MARKET OPPORTUNITIES
Tour operator partnerships / Team Canada
Increased interest in FIT options
Increased travel with younger demographic
Air access
Strong Media Exposure
Creative in positioning of Canada
Dynamic growth in social media use

46. INTEGRATED MARKETING ACTIVITIES
Trade
Media
Trade
Campaign
• Multi-tiered, fully integrated
media visits
• Social Media
• Co-op marketing
• Trade Campaigns
• New product and market
development
• Enhanced airline partnerships
• Tour operator education
• Multi-tiered, fully integrated
trade campaign

47. MAXIMIZING RVC ROI
Focus on:
 What does this buyer need?
 How can I fulfill that need?
 What makes me unique?
 Who is this buyer’s RTO?
 Follow up!!!

48. Thank you!
Merci beaucoup!
ありがとうございました!

49. SOUTH KOREA UPDATE
Don Byun, Managing Director - S. Korea

50. VALUE AND POTENTIAL OF THE MARKET
Strong outbound travel market in Korea
2007 2011 2012
Outlook of Koreans to Canada
• Strong leisure driven market
• Average spend per person per trip is
$1,593 (ranks 3rd after Australia and Brazil
among CTC’s Int’l Markets)
• 1.2 M Korean travelers seriously consider
holidays in Canada in next 2 years
Source : CTC’s Annual Report 2011 & GTW 2012
13.3M
13.7M
New Record

51. VISITORS TO CANADA FROM KOREA
-
50,000
100,000
150,000
200,000
250,000
2004 2005 2006 2007 2008 2009 2010 2011 2012

52. ARRIVALS IN COMPETITOR DESTINATIONS
Europe: Not available
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
USA Australia Canada New Zealand
2006
2007
2008
2009
2010
2011
2012
US VISA Waiver
NOV 2008

53. KEY TRENDS FOR OUTBOUND TRAVEL IN 2013
• Outbound volume continues to grow but mainly to short-hauls with LCC
• Huge growth of Low Cost Carriers going overseas (95.6% increase over 2011)
• Continuing growth of Foreign Independent Travellers with increasing number of
experienced travellers and less language barriers
• Online travel agents where travellers can individually arrange
flight, hotel, transportation and attractions are booming
• Fierce competition among destinations
• Influencers : TV, Internet & blog(words of mouth), Product Placement and trendy
travel/life guidebooks

54. TOP 3 TIPS TO BOOST BUSINESS
•Koreans value personal relationships - Persistent visits help
•Best Timing for Sales call - Spring(March-April) or Fall(October-
November)
Relationship
•Learn local business practice
•Be flexible with market
•Korean translator will bring more effective communication
Understand
•No invest, no earn: No the attitude to see the results first
•At least prepare ‘product information, promotional idea, special
discounted rates’ for the business meetings
•Develop Korean marketing materials
Invest

55. INTEGRATED MARKETING ACTIVITIES
Trip to Canada
Winter
FallSummerSpring
Trade
Media
Social Media
Consumer
• Korean information
(website, brochures)
• Online Campaign
• Travel Exhibition
• E-newsletter
• Star Blogger Program
• Facebook(43K fans)
• Twitter
• Youtube
• Canada Specialist Program
• Trade Co-op promotion
• Airline Campaign
• Market Place
• Sales Call
• Media Visits (TV & Print)
• Media Co-op Promotion
• Celebrity Program
• Media events
• Press Release

56. INTEGRATED MARKETING ACTIVITIES
CANADA
Online
campaign
Bloggers
FacebookPR Activity

57. SHOW TIME: 3 MIN
VIDEO
Sample of CTC Korea’s integrated
market approach