Hotels in Mexico have been reducing prices to stimulate demand, and that idea has seemed to work.
During an Apple Leisure Group event Funjet Vacations president Ron Jacobs and Apple Vacations president John Tarkowski noted that resorts have been aggressively discounting.
Hotel occupancy in Mexico is down 3% to 4%, Tarkowski said, and rates have dropped about 15%.
“We are starting to see the positives of those rates going down,” Tarkowski said. “The last eight weeks or so, we are seeing Mexico bounce back, which is great news. I think all the [ALG] brands are starting to see that after a relatively tough winter.”
Source: Travel Weekly