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A price war has broken out in Playa del Carmen, and travelers are set to benefit from the more intense competition.
It was bound to happen as vacation rental properties in the Mexican Caribbean took market share from the resorts and hotels in the area as they aggressively lowered prices to attract tourists.
Now the resorts and hotels are firing back, aggressively lowering their nightly room rates, as the competition over limited visitor dollars heats up in Playa del Carmen.
The best news is Mexican Caribbean summer vacation travelers are going to be the big winners in this huge price war battle.
Huge Hotel Price Cuts in Playa del Carmen
According to the President of the Association of Small Hotels of Playa del Carmen Offner Arjona, some hotels have aggressively moved to cut their nightly room rate in the region by up to 30 percent to directly compete with the vacation rental properties.
The properties involved in the price-cutting actions so far have been small hotels located mostly in the city center of Playa del Carmen.
According to Arjona, this price war has led to some of the properties dipping below profitability and having to take on loans to compete. So far, none of the local hotels have had to close as a result of the aggressive action.
“We are forced to reduce our rates to be able to pay operating costs, with the expectation placed on the summer months, where we expect occupancy and rates to increase,” Arjona said in a published story about the price war.
Slower Than Normal Low Season
Arjona said several of the hotels are looking to maintain their occupancy at about half full during the summer low season in Playa del Carmen.
The hotels are taking the risk because Arjona said they are facing a slower-than-normal low season this year.
That means travelers will most likely find that this summer is setting up to be a pretty good time to visit Playa del Carmen for a tropical vacation getaway.
Projected lower than normal occupancy with aggressive cuts in nighty room rates means travelers will enjoy getting a good deal for their hotel room with smaller crowds in Playa del Carmen this summer.
That sounds like the best of both worlds for Mexican Caribbean travelers this year.
Actions to Take Now
The extra low prices are not expected to last long as word gets out about the price war and budget-oriented travelers swoop in to get the best low nightly room rate deals in Playa del Carmen.
Tourists planning to head to the Mexican Caribbean for a vacation getaway in the sun, sand and surf should be searching for rooms right now and locking in their preferred hotel and room rate before the demand pushes prices back up.
Demand for hotel rooms across the entire region still remains high, especially in Cancun and Tulum.
It might be a good idea to consider Playa del Carmen instead of the two popular international airport cities to get the best deal for this summer.
Travelers should be warned to closely review the terms and conditions before booking these extra low special hotel room rates.
Some of them may carry some additional restrictions such as minimum night stay as well as prepayment and noncancellable reservation rules.
Last, travelers should be aware that traveling to Playa del Carmen and other regions of the Mexican Caribbean does carry tropical weather risks during the summer.
Periods of heavy rain, tropical storms, and potentially strong hurricanes are all possible during the summer months.
Travelers should consider booking trip cancellation and trip interruption insurance coverage when booking the extra low room rates.
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