Mexico's All-Inclusive Resorts Thrive Amid Economic Challenges

Mexico’s all-inclusive resorts are seeing robust growth and steady bookings, distinguishing themselves from other segments of the tourism industry that are facing economic challenges, as noted in recent industry reports.

According to Hyatt Hotels Corporation, its all-inclusive properties in Mexico and the Caribbean have significantly outperformed domestic U.S. leisure travel in the first quarter of 2025. Revenue per available room (RevPAR) for these properties rose by over 4% compared to the previous year, with April revenues increasing 9% year-over-year.

This strong performance contrasts with the slowing demand for leisure travel in U.S. resort destinations. Hyatt’s CEO, Mark Hoplamazian, described the all-inclusive sector as “very solid” in a recent earnings call, highlighting that 88% of the company’s second-quarter all-inclusive business is already booked.

Factors Contributing to Resilience

Several factors are credited for this resilience:

The predictable pricing model of all-inclusives appeals to budget-conscious travelers.
With most expenses prepaid, visitors can avoid unexpected costs amidst economic uncertainty.
Shifting travel patterns, with some Americans opting for Mexico and the Caribbean over European destinations, due to concerns about overtourism and political tensions.

Canadian travelers have also significantly contributed to this increase, with Hyatt reporting a rise in bookings from Canada to Mexico and Caribbean all-inclusive properties. This trend started earlier in 2025 amid trade tensions between Canada and the United States.

Emerging Trends and Observations

While travelers appear willing to spend on premium all-inclusive experiences, there is a noted increase in price sensitivity. Guests are conducting more comparative research before booking, even for luxury properties.

For travelers planning vacations in Mexico, this trend implies continued investment and focus on quality within the all-inclusive sector, potentially with more competitive pricing and promotions as resorts vie for bookings in the upcoming months.

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