- The Latin American travel market was worth $72 billion in 2010 and is projected to grow significantly due to an expanding middle class and increased online booking. - Mexico has the highest online travel penetration in Latin America at 20% in 2010, compared to an average of 12% for the region. - Approximately 30% of hotels in Latin America are affiliated with global hotel chains.

1. May 5, 2011 Tourism Branding Forum Tying Latin America to the World Patricia Rasore Director, Latin America

2. Latin America: evolving from being peripheral to a powerful player in its own right.

3. Research Revelations Urban consumers, the new middle class (275M people), are fueling the travel industry - US$10 billion in new sales projected in two years Online bookings are growing at more than three times the pace of the overall market – and soon will represent one fifth of all travel sales Online growth varies widely among markets and segments; though airline websites lead, hotels and OTAs are biggest opportunities The air sector in Latin America has some of the strongest passenger growth in the world

4. Market Sizing

5. Polling Question #1 What was the size of the Latin America travel market in 2010? $39 Billion $58 Billion $72 Billion $85 Billion

6. The Latin American Online Leisure/Unmanaged Business Travel Market, Total Gross Bookings (US$B), Online Growth and Penetration, 2008-2012 Source: PhoCusWright's Latin America Online Travel Overview, 2011

7. Four Regions: Total and Online Leisure/Unmanaged Business Travel Gross Bookings and Online Penetration, 2009-2012 (US$B) Note: 2010-2012 projected. Source: PhoCusWright’s Global Online Travel Overview Second Edition, 2011 Online Penetration Total Gross Bookings +12.7% +7.1% +11.3% +5.7% +5.9% +10.2%

8. Market Share by Region, 2010 Note: 2010-2012 projected. Source: PhoCusWright’s Global Online Travel Overview Second Edition, 2011 Total Online

9. Market Share by Region, 2012 Note: 2010-2012 projected. Source: PhoCusWright’s Global Online Travel Overview Second Edition, 2011 Total 2012 Online 2012

10. Polling Question #2 What country boasts the largest online penetration? Mexico Brazil Peru Chile

11. Online Leisure/Unmanaged Business Travel Market, Total Gross Bookings (US$B), Online Growth and Penetration, for All Analyzed Countries in 2010 Source: PhoCusWright's Latin America Online Travel Overview, 2011

12. Online Leisure/Unmanaged Business Travel Market, Total Gross Bookings (US$B), Online Growth and Penetration, for All Analyzed Countries in 2012 Source: PhoCusWright's Latin America Online Travel Overview, 2011

13. Online Gross Bookings Is Not the Only Indicator Online Leisure/Unmanaged Travel Gross Bookings by Market (US$B), 2010 Note: 2010 projected. Source: PhoCusWright’s Global Online Travel Overview Second Edition, 2011 ~ $120

14. Highest Growth Rates are Found in the Latin American Region Online Leisure/Unmanaged Business Travel Gross Bookings Average Annual Growth Rate by Market, 2010-2012 Note: 2010-2012 projected. Growth percentages for European markets are based on euros to be more reflective of actual trends. Source: PhoCusWright’s Global Online Travel Overview Second Edition, 2011

15. Pockets of Opportunity Lies Where Penetration is Below 35% Online Leisure/Unmanaged Business Travel Penetration by Market, 2012 Note: 2010-2012 projected. Source: PhoCusWright’s Global Online Travel Overview Second Edition, 2011

16. Intermediaries

17. Retail travel agencies retain their stature Attributes

18. Latin American Online Travel Market (Leisure/Unmanaged Business); Direct Gross Bookings by Segment (US$M), 2008-2012 Source: PhoCusWright's Latin America Online Travel Overview, 2011

20. Payment options

22. Airlines

23. Latin American Airlines: “Simply the Best” Increases in demand as well as in efficiency Expected to continue enjoying a virtuoso moment Source: PhoCusWright's Latin America Online Travel Overview, 2011

24. Latin American Airline Total Gross Bookings (US$B) and Supplier Website Penetration (%), 2008-2012 Source: PhoCusWright's Latin America Online Travel Overview, 2011

25. Total Latin American Airline Market, LCC vs. Traditional Airline Shares (%), 2010 vs. 2012 Note: Figures may not total 100% due to rounding. Source: PhoCusWright's Latin America Online Travel Overview, 2011

26. Lodging

27. Polling Question #3 What percentage of hotels in Latin America are affiliated with global chains? 11% 30% 47% 68%

28. Lodging Source: PhoCusWright's Latin America Online Travel Overview, 2011 Low online penetration Lodging represents 44% of total travel market but only 15% of online market Early stages of revenue management practices in local/national markets

29. Latin American Hotel Gross Bookings (US$B) and Supplier Website Penetration (%), 2008-2012 Source: PhoCusWright's Latin America Online Travel Overview, 2011

30. Latin America: What´s Now, What´s Next

31. Latin America: What’s Now, What’s Next Demand for travel technology solutions accelerates 20% smartphone penetration critical mass to be reached by year end

32. Latin America: Having a Mobile Strategy (Whether It’s App or Mobile Web Led) is Now More Important Than Ever Source: International Telecommunication Union, 3G Americas, Bernstein Research Latin America: among the most “mobile” regions in world (3 units/PC) Mobile momentum in emerging and faster growing economies Brazil: sixth largest worldwide market in mobile Mobile in Brazil: second most expensive in world

33. U.S.: A Golden Opportunity to Reach Consumers During the Mobile Trip Research Phase Source: eMarketer, February 2011 12M will book a travel product in 2011 One third of smartphone users will research a trip in 2011 (25M) Mobile travel related activity will grow to 34% in 2012, from 30% in 2010 Mobile travel research will continue at a steady pace

34. Latin America: What’s Now, What’s Next Demand for travel technology solutions accelerates 20% smartphone penetration critical mass to be reached by end of 2011 Biggest opportunity in online media is social media

35. Influence of Travel Information Sources, by Membership in Online Social Networks Source: PhoCusWright's Traveler Technology Survey, 2010

36. Social Media Networks Are Not Direct Commerce Platforms Social networks are already a much larger source of traffic than news and media sites, and that gap will only grow larger Source: PhoCusWright Inc.

39. Expanded consumer market across the region

41. Conversion is delayed

43. Foster business innovation to capture dynamics of the new online audience

44. Related Release: PhoCusWright’s Latin America Online Travel Overview Go to www.phocuswright.com for more information!

45. Thank you