Mexico Sales Mission
May 12-15, 2014
Mexico City & Guadalajara, Mexico
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Market Update

Market Overview

Mexico is the leading source of international travelers to the state, with 6,9 million visitors in 2012. Air travel from Mexico alone accounted for 504,135 travelers to California in 2012, registering an increase of 6% YOY, and collectively air visitors spent $498 million in California and overall spend is an impressive 2,6 billion US that same year. Leisure trips from Mexico are projected to grow 4.1 percent in 2013.

Mexico is a growing economy, with a strong aviation industry and a growing middle-class consumer market. Inflation is decreasing, making outbound travel more attractive. Additionally, stable currency and low unemployment continue to make Mexico a strong market for California.

Mexico has the region's second largest online retail market in Latin America, with US$1.2bn in sales per year, and the fastest-growing internet penetration rate in the region. As more Mexicans obtain internet access, online sales are projected to nearly triple to U$$4.4bn by 2016. (AT Kearney's retail e-commerce index).
Air capacity to California has increased during 2013 with the addition of new frequencies to the existing routes with Aeromexico and Volaris, mainly from secondary markets, such as Guadalajara and Leon.
Travel agencies continue to have a very important presence in the consumer’s travel decision and purchase process, while adapting to a more demanding market and online world in order to keep themselves competitive and increase business as well.

Key Market Strategies

•    Develop and maximize consumer platform in market to reach potential travelers and the growing middle class and family segments through the Visit California family campaign and consumer programming.
•    Leverage celebrity spokesperson Jacky Bracamontes cross-platform for travel trade, consumer and media.
•    Leverage California Advisory Board (CAB) Program to increase sales and visitation to the destination.
•    Expand product knowledge nationwide and grow California’s market share.
•    Targeting the AB/C+ audience, which is the affluent target (top 15-25 percent of Mexico population).
•    Promote visitation during peak travel seasons, in particular Easter break and the summer.