1. Travel & Leisure Forum
Miami, FL
Feb. 25, 2011
Mario Gonzalez Lafuente / Marina Suarez / Gabriel Emanuelli
Executive Director Chief Marketing Officer Director Sales & Marketing
Puerto Rico Tourism Co. PRTC North-America PRTC

2. AGENDA
 Challenge Overview “How to increase a more Profitable Sale”
 Market – Industry Trends
 Open Forum – Discussion
 Participants Input - Feedback
 What are we (Puerto Rico) doing to Improve (ROI):
 Target Markets “Surgical” approach / Segmentation
Demographically / (A / B / C) Air Gtwys priority / Aligning Product with
Target = Luxury / 4 Stars, 3-2, etc. / Dist. Efforts based on priority
(80/20) / Better Sales Channel Mix = % Direct Consumer / Groups, etc.

3. Forum Topic
 How to increase a more ‘Profitable’ $ALE!
$ALE
 Equals = Improved “Rev–Par”, Positive
Contribution to local economy $$$
 Together with a steady Volume Increase

4. Industry Trends
 Global Economic “Crisis”
– Lessons learned–Economy Value Cost $ “Savings”
– US workplace / lay-offs, Un-employment = resulted on
Less vacation time / Last minute Vacations
– Value $ driven Consumer (Coupons / deals are In)
– Rates (Value) more Important than Brands (loyalty
programs) hotels-Airlines, etc.
 Shortened Booking window (Less 10 day’s)
– Increased Hotel Competition, deals / offers to Impact %
Occupancy #

5. Industry Trends
 Internet / Technology / Educated Consumer
– Enhanced Tools for “Shopping-Pricing $
Comparison”
> OTA’s % growth double digit past 5 years ( %
Com.)
> 46% of ALL 2010 Vacations were week-end only
> 59% Traveler’s state will have “Cruise’ Vacation
Stayed In
next 2 yrs. = All Inclusive Value12 Months:
Last
perception
Condo –22%
Home –20%
Interested:
Condo –46%
Home –44%

7. Founded 2008, key strenght! Will do the DEAL
Comparison for you! Hotels / Flights / compares
Kayak / Priceline /Travelocity / Hotel plrs. / Expedia, etc.

8. Founded 2007 / Yapta conducts daily price checks on specific
Flight segment, hotel destination, alerts when Prices drop below Avg.
Even helps customers request Airline refund if rates drop after you Booked!

9. Founded 2009, Based on the Concept of Viral Marketing / Users share DEALS with Friends
& Fa.! And as more persons Book! The lower the Deal Price gets and everyone recieves
Messages showing savings! ONLY a 2-Night Min. stay is required!

10. Founded 2010, A-List Accom. + Top Brands / Limited time
Offers, Members only! A TripAdvisor Co.!.

11. Founded 2008 / Members ONLY / Over 1,000 employees /
Daily Deals via e-mail / earn $ for inviting Friends / Print
voucher ! Enjoy savings! Spa / Rest. Hotels, etc.

12. AGENDA
 Challenge Overview “How to increase a more Profitable Sale”
 Market – Industry Trends
 Open Forum – Discussion
 Participants Input - Feedback
 How can we (Puerto Rico) Improve (ROI):
 Target Markets “Surgical” approach / Segmentation
Demographically / (A / B / C) Air Gtwys priority / Aligning Product with
Target = Luxury / 4 Stars, 3-2, etc. / Dist. Efforts based on priority
(80/20) / Better Sales Channel Mix = % Direct Consumer / Groups, etc.

13. OPEN FORUM

14. AGENDA
 Challenge Overview “How to increase a more Profitable Sale”
 Market – Industry Trends
 Open Forum – Discussion
 Participants Input - Feedback
 What are we (Puerto Rico) doing to Improve (ROI):
 Target Markets “Surgical” approach / Segmentation
Demographically / (A / B / C) Air Gtwys priority / Aligning Product with
Target = Luxury / 4 Stars, 3-2, etc. / Dist. Efforts based on priority
(80/20) / Better Sales Channel Mix = % Direct Consumer / Groups, etc.

15. OPPORTUNITIES
 POSITIONING CONCEPT:
 Puerto Rico is truly “Unique” because it is the ONLY destination that offers
Visitors the excitement of an “Urban” Vacation in the Caribbean due to its
Cosmopolitan City. The culture, cuisine, music, diversity, shopping and
nightlife ALL contribute to the infectious energy of the city and, therefore,
contribute to the most unique vacation experience in the Caribbean.
 TARGET MARKETS:
 Adults 40+ years of age, Living in the PRIMARY (non-stop) SJU-Gateway cities
For US & Canada, Annual household income of >$85k, Plus selected vertical
Markets including bridal and epicurean as defined above.

16. OPPORTUNITIES
Sales Channel MIX / OTA’s / Traditional Wholesaler’s /Travel Agents / direct consumers
Groups / (small) – Weddings / advanced Bookings! Providing + “Occupancy” Base
 ROI / More efficient Marketing investments – market segmentations, ideal
Targets, demographics / 1st. Tier Gtwys (North east / east coast US / Central)
Large % “In-transit” visitors? Board a home port Cruise? Airline Hub Caribbean? Etc.
visitors
 Targeted promotions / Pre-post Cruise Pkgs. Offer’s.
.
 One Shoe Size fits ALL > NOT!
 Align Our Products to the correct Targeted Consumer
 Luxury (5 star +) / 4 Star / 3 – 2 / Small Inns – Paradors

17. OPPORTUNITIES
Number of Vacation
Days Per Year
Italy 42
France 37
Long Term: Germany 35
-Balanced MIX, Origin Visitor’s Vs 90% US
Great Britain 28
- International Mkts. (Airline agreements)
Canada 26
- Stronger Currency = Better Value
Japan 25
(Euro), USA 15
@ Source: WTO, 2009

18. OPPORTUNITIES
Potential Target?
(Hispanics in US)
Puerto Rico official language is
both!
English & Spanish
Racial Group
2009 2043
White (NH) 66% 46%
Hispanic 15% 30%
Black 13% 13%
Asian 4% 8%
Other 2% 3%

19. OPPORTUNITIES

21. OPPORTUNITIES

25. OPPORTUNITIES Luxury / Upscale Market
St. Regis Bahia Beach Resort W Retreat & Spa - Vieques Island
Ritz Carlton San Juan Condado Vanderbilt

26. http://www.puertoricoluxe.com/

27. OPPORTUNITIES

28. OPPORTUNITIES

30. “Who will survive 2011’s
“Who will survive 2011’s
CHALLENGING MARKETING
CHALLENGING MARKETING
TIMES?
TIMES?