GRUPO ADO SA DE CV IN

TRAVEL AND TOURISM

(MEXICO)
Euromonitor International
April 2012

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GRUPO ADO SA DE CV IN TRAVEL AND TOURISM (MEXICO)

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LIST OF CONTENTS AND TABLES

Strategic Direction ........................................................................................................................ 1
Key Facts ..................................................................................................................................... 1
Summary 1

Grupo ADO SA de CV: Key Facts ................................................................ 1

Company Background .................................................................................................................. 1

Competitive Positioning ................................................................................................................ 2

Euromonitor International

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GRUPO ADO SA DE CV IN TRAVEL AND TOURISM (MEXICO)

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GRUPO ADO SA DE CV
STRATEGIC DIRECTION
Part of the land transport operator Grupo ADO SA de CVs strategy for 2011 was advertising
travel packages to special events around the country. The company offered several packages
that included transportation, travel accommodation and entry to a concert or other event. The
company was also very active in terms of radio advertisements, billboards and social
networks. During the forecast period the company plans to continue this marketing strategy.

KEY FACTS
Summary 1
Grupo ADO SA de CV: Key Facts
Full name of company:
Grupo ADO SA de CV
Address:

Artilleros No 123 Col 7 de Julio, Mexico DF

15390, Mexico

Tel:

+52 (55) 5133 1100

www:

www.grupoado.com.mx

Activities

Operator of bus/coach transportation

Source:

Euromonitor International from companys website

COMPANY BACKGROUND
Grupo ADO SA de CV is a Mexican private company that was established in 1939; its first bus
route was Mexico City-Puebla-Perote-Jalapa-Veracruz. In the 1940s, the company acquired
modern buses with larger capacities and in the 1950s it started to build its own terminals in
the principal cities of the country. Through the 1970s, Grupo ADO expanded its coverage to
the Gulf Coast by adding the destinations of Veracruz and Tamaulipas. Throughout the 1980s
and 1990s, the company optimised its business processes by adding IT solutions to
substantially improve customer services.
The company offers bus/coach transportation, mainly through Central and Southern Mexico. It
operates a fleet of more than 4,500 vehicles and serves over 160 million passengers every
year. The group operates over 400 bus terminals and travels to 178 destinations.
In 2009, Grupo ADO launched the Platinum ADO brand. This involves 76 new vehicles that
are designed to meet the demand of an emerging economy business segment. Each bus has
25 reclining bed-type seats, an individual entertainment system (remote control and
headphones) with a choice of more than 50 films, documentaries and television series and
over 800 songs. In addition, the bus has its own Wi-Fi. Among the highlight destinations are
Playa del Carmen, Villahermosa, Mrida, Puebla, Veracruz, Tampico, Oaxaca, Matamoros,
Salina Cruz and San Cristobal.
In 2010 Mexico Citys Government confirmed that Grupo ADO would be the main shareholder
of the new Metrobus line number 3. Metrobus is the net of public transport that operates in
Mexico City. This line would be the first to be built with private investment in Mexico City.
In 2010 Grupo ADO launched a new company called Boletotal, which manages sales of
tickets for air and land transportation, travel accommodation and concerts.

Euromonitor International

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GRUPO ADO SA DE CV IN TRAVEL AND TOURISM (MEXICO)

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During 2011, Grupo ADO had a presence in Guerrero, Oaxaca, Tabasco, Chiapas, Yucatan,
Quintana Roo, Campeche, Veracruz, Tamaulipas, Puebla, Hidalgo and Mexico City. It is
considered one of the most important bus companies in Mexico due to its reach, capacity and
quality service.

COMPETITIVE POSITIONING
Bus/coach is by far the most common way to travel within Mexico, and there are almost
50,000 individual operators. This mode of transport represents the cheapest travel option and
there is a nationwide network of routes to almost every city and town in the country. Another
competitive advantage for bus companies in Mexico is that travellers do not necessarily need
a reservation as the frequency of services and seat capacity are high.
Different bus lines serve different geographical areas and offer varying levels of service.
There are four main competitors in Mexico: Grupo ADO, IAMSA SA de CV, Grupo Senda
Autotransporte SA de CV, and Estrella Blanca SA de CV. These companies have been able
to absorb small bus carriers, creating an oligopoly, alongside a strong presence of informal
carriers. Grupo ADO serves Central and Southern Mexico with different types of service
through brands such as Primera Clase (economy class), GL (semi-luxury) and UNO (luxury).
Although the bus/coach category in Mexico traditionally presents regional segmentation, the
merger and acquisition of smaller competitors during 2009 intensified the competitive
landscape. For instance, Grupo ADOs 2009 acquisition of Estrella de Oro SA de CV
increased the companys coverage in the Pacific Coast region during 2010.
Since 2005, the routes to archaeological sites and other tourist destinations located in the
southeastern area of Mexico have been highly developed by Mexican low cost airlines. Thus,
some of the passengers that Grupo ADO used to transport, primarily from Mexico City, to
these long distance destinations (a journey of up to 18 hours by bus/coach), shifted to low
cost carriers, which can reach these destinations in one hour.
During 2011 the company engaged in a lot of promotion on the radio, billboards and social
networks. Billboards included announcements about the renewed fleet of luxury buses ADO
GL and the mobile internet service on board the buses. An interesting campaign that was run
on television, radio and billboards had the slogan Because you have so many things to think
about; the aim was to encourage travellers to take the bus instead of driving or flying and use
the time to think. Grupo ADO is a consolidated company in Mexico.
In November 2011 Grupo ADO bought 49% of the stock actions issued by ITA, a strategic
stockholder of Grupo Aeroportuario del Sureste (ASUR). The latter is an airport operator that
manages nine airports located in the south of Mexico, including the Cancn airport which
carries around 13 million passengers every year. Over the forecast period there are likely to
be synergies between both companies in order to boost air and land travel transportation in
the southern region of the country.

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