Mexico was a pandemic-era favorite, but signs point to softened demand
20.11.2023 - 15:38
/ travelweekly.com
/ Mark Hoplamazian
After years of strength during the pandemic, travel suppliers and sellers say that Mexico bookings softened this year as U.S. travel demand moved to long-haul destinations and cruises.
While the slump raised questions about whether there is some fatigue with the sun-and-sand staple that was so popular during the height of the pandemic, advisors and operators expressed confidence that the dip will be short lived and that Mexico will be back in 2024.
"Mexico's fatigued," said Jack Richards, CEO of Pleasant Holidays, who said Mexico bookings are down double-digits this year. "From 2020 to 2021, during the pandemic, it was one of the few countries open for travel. People have been there, and they decided to go somewhere else in 2023. But it's not that concerning at this point for 2024. We'll be fine."
Hyatt Hotels Corp. CEO Mark Hoplamazian said earlier this month that the company's Apple Leisure Group (ALG) arm saw more "temperate" Cancun demand in the third quarter, as the destination reverted to more regular seasonal patterns after being a "go-to market" for much of the pandemic.
This was echoed at ALG Vacations' annual ALG Ascend conference in Cancun in late October, where suppliers including ALG, whose core destination market is Mexico, said the return of long-haul international travel and cruising took share from Mexico vacations last year.
"It presented a whole new set of competition," said Ray Snisky, group president of ALG Vacations. "If I look at Europe and cruising, which were shut down earlier on [during the pandemic], there's a lag; they are where we were a year ago. There's big pent-up demand for those destinations and products."
Even the nearby Caribbean took some Mexico demand this year, some advisors say, with travelers looking for other short-haul beach vacations and finding plenty of options in the region's variety of islands.
"I feel travelers are more interested in other destinations," said Ashley Taylor, a North Carolina-based advisor with Key to the World Travel. "People are exploring other destinations in the Caribbean. My European market has picked up tremendously and so has the South Pacific and Asian markets, [where] demand is 25% higher than last year."
Clayton Reid, executive chairman of marketing firm MMGY Global, said MMGY data showed a decrease in Mexico travel interest in 2022, dropping to 20% among active leisure travelers, a five-point decrease from 2021, when interest was at its peak.
"There has been some softness," Reid said of Mexico travel this year. "It was really, really high during Covid, and that demand moved to long-haul international -- think of Europe, for example."
Reid said he believes that trend will reverse in 2024 when many of those long-haul