Despite a slowing economy in the United States, the largest tourist market for Los Cabos, the region continues to attract travelers and remains a popular vacation destination.
That is according to the June passenger numbers for Los Cabos International Airport.
Although the number of international passengers at the airport fell slightly year-on-year, total numbers for the year are still above 2023 figures.
Delay in Los Cabos
International passenger numbers at Los Cabos airport in June were down slightly compared to last year, according to Grupo Aeroportuario del Pacífico, SAB de CV, the airport’s listed operator.
There were 404,800 international travelers using Los Cabos International Airport in June, compared to 407,600 in June last year.
Despite the decline in June numbers, the number of passengers for the entire year has increased slightly compared to last year. More than 2,607,800 international travelers used Los Cabos Airport this year, compared to 2,603,700 in the same period last year.
Interestingly, reported numbers at Puerto Vallarta International Airport, operated by the same company, were actually higher in June and for year-to-date periods.
While passenger numbers in Puerto Vallarta increased 7.8 percent year over year, Los Cabos still had more international travelers than Puerto Vallarta. Puerto Vallarta has welcomed 2,441,500 international travelers to the airport so far this year.
What’s behind the delay?
At this point, travelers may be wondering why passenger numbers at Los Cabos airport have dropped while Puerto Vallarta, another travel hotspot in Mexico, seems to be holding its own.
It’s easy to blame economic conditions in the United States. Some of the factors currently impacting travel purchases include the slowing economy, high credit card interest rates, declining spending and even the restart of student loan payments.
These have all contributed to travel consumers having less money to spend on a vacation to Los Cabos.
The problems go deeper
However, it goes deeper than that. Los Cabos has itself created a number of additional problems that cause travelers to visit elsewhere, such as Puerto Vallarta.
First, the focus on the luxury travel segment in Los Cabos has caused nightly room rates for Los Cabos resorts and hotels to rise to high levels.
With less income to spend, travelers will often find cheaper accommodations elsewhere that fit within their travel budget. Some have complained that even the price of food and drinks in Los Cabos is excessive.
Finally, tourists have lately been dissatisfied with the cleanliness and safety in Los Cabos tourist locations such as downtown Cabo San Lucas and the marina areas.
The Los Cabos Municipal Police Department recently announced plans to increase patrols in the area. In addition, entrepreneurs in the center are calling for a complete redevelopment of the area to combat declining sales.
Until these issues are resolved, the numbers will likely be weak when it comes to travelers in Los Cabos.
New marketing campaign
The Los Cabos Tourism Trust recently announced a new marketing program to demonstrate greater value for vacationing in Los Cabos.
Their new campaign will focus on the differences between Cabo San Lucas and San Jose del Cabo, promoting Los Cabos as two cities and one destination.
The idea is that travelers can enjoy two holidays for the price of one.
The timeline for the rollout of the new marketing initiative has not been announced.
What travelers need to know
Despite some travel headwinds, Los Cabos still remains a popular travel destination for vacation getaways. However, the options just got better for budget-minded travelers.
Chances are that travelers will now, or very soon, see more deals on travel to Los Cabos and that hotels will be more inclined to be flexible with their nightly room rate.
Go ahead and lock in your Los Cabos room rate now, but make sure it can be canceled if rates drop or better deals appear later.
As summer progresses, travelers can certainly find that Los Cabos will become a more affordable travel destination.
