Cancún’s popularity among U.S. tourists appears to be waning, with many setting their sights on other destinations.
Recent data from the U.S. Department of Commerce’s International Trade Administration indicate a dip in U.S. travelers opting for nonstop flights to Cancún — a long-time leading Caribbean resort area — compared to the previous year.
Overall, U.S. visitors to Mexico fell this spring in what Ryan Hymel, chief financial officer of Playa Hotels and Resorts, referred to as “destination fatigue” during a recent earnings call, according to The Wall Street Journal.
This is a turnaround from early in the pandemic when many U.S. tourists were flocking to Mexico, where there were no entry requirements such as proof of vaccination or a negative COVID test. Cancún and neighboring areas like the Riviera Maya remained highly popular in 2021 and 2022.
Yet as Matt Klein, Spirit Airline’s executive vice president and chief commercial officer, noted, Spirit flights had sold out in April, but the “demand just fell off” in June, according to the WP.
Experts in the tourist industry say demand for hotels and resorts has also declined.
For instance, Viceroy Riviera Maya had a 15% drop in U.S. bookings last quarter year over year, Tulio Baruch, the upscale resort’s director of sales marketing, told the WP.
Many, like Playa Resorts CEO Bruce Wardinski, explain this drop as the result of travelers having more options — including Europe, Japan, and other Caribbean spots like the Bahamas — available to them this season.
Safety concerns have also had an impact on travel, with Cancún recently figuring on a list of the top 50 most dangerous cities in the world, compiled by the Citizen Council For Public Security and Criminal Justice.
Cartel-fueled violence in parts of Mexico even led to the U.S. Department of State issuing its top alert for certain regions this spring, strongly advising citizens against going there, as The Dallas Express reported.
Khayla Morris, 28, is a content creator from Charlotte who has been to Cancún three times in the past five years.
“I’m kind of Mexico-ed out,” she told the WP.
Morris also cited concerns over inflation: The value of the Mexican peso has surged, rising to an eight-year high against the U.S. dollar and making vacations more expensive for travelers.
“If I’m gonna spend this kind of money, I’m gonna go somewhere I really want to go,” she said, citing a preference for Turks and Caicos.
The tourist sector in the Cancún area has responded to the falling demand by slashing prices.
For instance, average airfare prices have fallen 10% year over year to $424 for a roundtrip economy flight, according to travel data from Kayak.
Resorts have also been offering enticing deals to lure guests, with Baruch from Viceroy Riviera Maya reporting that U.S. travelers to his resort recently paid about $626 a night, $45 cheaper than a year prior.
Yet many are betting on Cancún to bounce back.
For instance, Christine Hardenberger, from the Virginia-based travel agency Modern Travel Professionals, pointed out that Cancún’s all-inclusive resorts offer tourists more value for their money than other destinations, according to the WP.
More of these luxury resorts are also opening up, increasing the supply and forcing hotels to lower their rates even more.
Air carriers have also shown optimism by expanding their U.S.-Mexico service.
For instance, American Airlines bumped up the number of flights serving routes from Dallas-Fort Worth International Airport to Mexican cities like Acapulco, Huatulco, and more, as previously reported in The Dallas Express. It plans to add Cancún routes this winter.
Similarly, another industry giant United Airlines has proceeded with plans to introduce larger Boeing 777-200 aircraft to service Cancún routes in late October.
