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"People Talk"
Dear colleagues, hello
Something unprecedented is happening this week in Moscow
Mexican troops landed in Moscow
Owners and Executives of 16 hotels came here for a business meeting with Russian tour operators
There are organizer of that event Armina Wolpert (CEO of Arminas Travel) and Juan Vela (Vice President of Velas Resorts) in our studio
Hello coleagues
Armina, you know, I heard a lot about you
and I am very glad to meet you in person
I heard that you were the first of incoming mexican companies for Russiam market
I have been working in this market for over 15 years
Arminas Travel opened 7 years ago
This is a very considerable period of time, given the history of the development of tourism between Russia and Mexico
Now you have rallied a group of Mexican hoteliers, competitors in general
You established an Association to support tourism ties between Russia and Mexico
And you and all the Mexican delegation arrived to Moscow
Tell us what the purpose of these actions
The point is Mexico is represented on the Russian market in a fairly limited concept
Certainly there are historical programs, hotels and destinations. Some hotels are independently came and participated in various tourism exhibitions
We feel that is need to joining forces and getting closer to the Russian market in a different aspects
It is the business format, the format of tour operators, through distributors who can sell this product for travel agencies
This is a professional and dynamic form of interaction. That is what we want to do in our events
Do you expect to see only professionals, i.e. tour operators?
Yes, sure
The event will consist of different kinds of business meetings
As workshops, presentations
The event is targeted and directed exclusively at Russian tour operators
These companies work with Mexico or plan to start doing it, to dilate their business
Russian tour operators prefer in one single day to force communications with managers, directors, owners of major products of the Mexican market
For them and for us, it must be very effectively
Because these meetings are aim oriented and I think it will be a big success
Right now we can see how the market reacted your initiative
Firstly, Mexican market reacted very wonderful
And I'm very grateful for that
Because anxiety and dissatisfaction accompanied our previous trips to Russia
In the past we have organized successful seminars
But when we participated in the main international exhibitions
Each time I felt frustration
And I found out that the other participants of previous exhibitions have experienced similar feelings also
And then I appealed to my colleagues and hotels
And I suggested to create something more suitable for our business
Then our colleagues immediately responded and strongly supported me
Just one month 40 Mexican providers entered into association
It is Association of Mexican providers, and it is called "Mexico Link Travel"
That is Mexico, which unites in tourism for representation on the Russian market
And it gave me major boost to manage it to right way
I hope that it will
I was pleased to the answer of Russian tour operators
Already registered more than 100 tour operators for each event
All visitors will have the opportunity to personally interact with the exhibitors
There are owners, CEO's.
They are able to make decisions on the market
And as a result it should be effectively
Armina, your company is known in the luxury segment
Does it mean that a group of hoteliers, came to Moscow, also specializes in the same niche?
You know, in a natural way, as I took this initiative
the first hotels that responded, and the first one was "Grand Velas Riviera Maya" which is owned by Sr. Vela
Yes, of course, the first hotels work in the premium segment
Nevertheless, we are interested that project would include all market segments
Also there are a number of good non-luxury hotels that came with us
From not only the coast, it's Mexico city for example, also tourism boards joined the Association
Sure, it's not specialization of Arminas Travel
We are just one of the members of the MLT, no more
Mr. Vela, I have a question for you
You are the first and one of the most active participants of Mexico Link Travel
Why are you so interested in the Russian market?
I see the big growth of Russian market for last 2 or 3 years
It is important to know about a large selection of wonderful hotels in this market
That's why this project is very interesting for me
We unite all our efforts in this format
Mr. Vela, I checked the information about your company
And I realized that one of your hotels works in unusual concept
Please tell us about that concept of service
The concept is "all inclusive", but it's not original, because usually it offers for mass tourism
Our product for such tourists who choose "Four Seasons" or "Ritz Carlton" usually
It means for tourists who never stay in "all inclusive" hotels
One of the elements that is very important is high level of comfort of our rooms
More than 100 sq.m., all the suits and fantastically chic
Secondly, I want to mention the culinary theme
We must meet the expectations of tourists who would never have used "all inclusive"
Those customers who can afford to dine at the best restaurants around the world
In our hotel we fully meet the expectations of the most discerning clients
At first, it's the restaurants formats of "menu" and "buffet"
But in any case this level differs from standard "all inclusive" hotels
The second point when you just woke up, you can have breakfast in the informal way, but in the evening everything is changing
In the evening there are restaurants with own top level chefs from all over the world. It completely changes the atmosphere
You do really choose the level of the restaurant, which can be compared on an equal footing with the best restaurants in the world
Another two very important points
Usually room service much worse than in hotel restaurants
There is exactly the same level of room service and restaurant service in our hotel
There is premium class drinks only. And the same drinks are available in the room. All of its is a part of our "all inclusive"
But the most important thing is service
Everything else can be brilliant, but if the service is bad, everything goes down the drain
Our hotel is part of "Leading hotels of the world"
And part of the "AAA". And there are only two "Five Diamonds" hotels - "Grand Velas Riviera Maya" and "Four Seasons"
Yes, I think that format all inclusive for gourmets will be popular in Russian market, I am sure almost
What is your plan about Russia?
What percentage of clients you want to get out of our country?
Today the Russian market 0.5% of our revenue
I want to triple it this year
Colleagues, I wish you success, but there is a problem last time
The image of the Mexican tourism is changing
I think the reason is that direction goes into the mass market
After the appearance of direct charter flights, a lot of new DMC has arisen
Sometimes rather doubtful
Armina, do you feel that competition?
Sure
Actually there is no competition, it's just a trend
I can very well think of myself, but I still think that there is no competition
There is different segments
And companies in different segments should be presented on the market. Low-budget segment should has their own incoming companies.
The important thing is complying according to Mexican legislation
It is necessary that the service would be at a good level deserving Mexico
It is barely another segment
And if these companies provide their services in social networks and are not registered...kind of chaos
Yes, some people work in that way
Semilegally and disorganized
It is sad, because it is unsafe
Those "guides" have no any insurances and licenses
The law is quite strict in Mexico, especially in tourism
And these people have ignored these laws
This cannot continue forever
Regulators have begun to monitor such activities
In case of extraordinary situation there is no legal support
I recommend to refrain from such services
For example, by law, a tourist can only go in the car with tourist drive plates
And to get these drive plates, you need to pass a rigorous certification
The driver have to obtain special license and so on, It's not easily
I think that regulators will start to control it
We make every effort to ensure that this problem has been recognized by the authorities
Ok, Armina, it is true that many Mexican DMC's do not receive money for their services to Russian operators?
This is a scheme of cash-back. Incoming dmc operators pay money to Russian tour operators to get the client and make a profit from optional tours.
This is true
It's not only Mexican companies. Russian companies also use it
They have opened the own offices in Mexico
This trend appeared after launch of charters
It's very common. But I don't know the details, because our company doesn't use this scheme
we have no one to haggle over the bonuses
5 dollars or 100 dollars per person...
That's why I am not an expert in details of that scheme
But we can say with certainty that this model is used in the market
Armina, you are the pioneer of Mexican market
How do you see the further development of your company?
I chose a line of conduct about all of this
I ignore it, I go my way
I try to expand the product
That's why at the request of the Los Cabos Tourism Board we have taken over their official representation
We are engaged in the positioning of this new destination of Los Cabos
Soon we will launch many excursions on new routes
I see an alternative to mentioned mass tourism
Historical and anthropological tourism
Much more diverse in geography
We pay great attention to service and qualification of our tour guides
People realize what product they buy
I can not haggle
I don't try to get closer to the prices of competitors
Market participants are well aware of all the features
Market is just divided into the segments
You have found your niche and develop in it
Absolutely, I am kind of outsider, sure
But I see that it works. I see that price is not a main parameter in some niches
Armina, can you say, do you feel support from official Mexican structures?
Actually we definitely feel support in migration issues
Introduction of electronic visas is part of government support
MLT is a brand new project
There are just a few months actually
But we mention progress already, definitely
I consider that finally it will have the interest of authorities
I hope so, trend is visible
Ok, how do you assess the current season?
You know, I feel big separation between mass and luxury segments
Contrast is increased
Rich tourists are more rich
I have a feeling that the middle class has decreased
We have big variety of group programs for middle-class and it works well
But these tourists seem more rich then earlier
And I guess that thanks to cheap charter flights increased flow of low-budget tourists
I really feel that polarization this season
So, Armina, you came to Russia to become more understandable for the middle class
Sure, absolutely
If distributors and operators will have more information at their disposal
The more information they can convey to the travel agents and final customers
So, I think that this presence of Mexican companies in Moscow
This 100% Mexican exhibition will benefit for everybody, for all the segments, DMC's, tour operators and customers
Armina, where you go after Moscow?
Is it true that you going to revolutionary Kiev?
Yes. We have a plan. At first it is exhibition in Moscow
Then Feb.28 the event in Saint Petersburg
And 3rd of March is Kiev
There were many doubts
I was amazed the attitude of Mexican colleagues
Usually occidental people would never go there
All the opposite happened
The entire delegation would go to Kiev
They said: "It's so cool, we will bring a feast!"
And it's true, it's a real feast
It will not be a typical boring tourism event
There are music
Mexican cuisine and drinks
Dances and all the stuff...
Also prize draws
So we do not want to deprive colleagues it. It would be unfair
And the situation in Kiev seems to be normalized
That's why I hope that all events will be held
Thank you for the interview, dear colleagues. I wish you success
Dear viewers, thank you for your attention
You watched the show "People talk" on channel Tourdom TV
It was an interview with Armina Wolpert (CEO of Arminas Travel) and Juan Vela (Vice president of Velas Resorts)
We are waiting for your comments on the Tourdom TV.