Small hotels in Playa del Carmen anticipate a drop in occupancy in May and June

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The smaller hotel industry in Playa del Carmen faces a worrying scenario after failing to reach the 90% occupancy target during the recent holiday period, barely exceeding 80%. While this figure is high in absolute terms, it reflects a drop compared to the sector’s own expectations.

The president of the Small Hotels Association, Offner Arjona, acknowledged that the result fell short during one of the key seasons of the tourist calendar, raising concerns about the recovery capacity in the following months, which are traditionally weaker.

The performance of domestic tourism has been crucial in preventing a greater collapse, as the majority of guests in these establishments come from the domestic market, partially offsetting the decline in international visitors and maintaining acceptable operating levels.

For the remainder of April, confirmed reservations are maintaining a degree of stability in occupancy, although optimism is tempered due to the lack of new bookings that would push the month to close with figures closer to the sector’s original projections.

Projections for May show a significant decline, with occupancy estimates hovering between 40 and 45%, a level that jeopardizes the profitability of small hotels, especially in a context where operating costs continue to put pressure on business owners.

The outlook worsens for June, with reservations barely reaching 20%, foreshadowing a more severe low season than usual if demand isn’t revived in the coming weeks through promotions or rate adjustments.

This concern is not new. Since March, the sector has been reporting occupancy rates above 85%, but with declining rates eroding profits, demonstrating that the problem isn’t solely one of tourist flow, but also of profitability in an increasingly competitive market.

This double blow—lower projected occupancy and depressed prices—places small hoteliers in a vulnerable position compared to large chains and lodging platforms, forcing them to rethink their strategies to survive a season that threatens to extend beyond the summer.

Source: tribunademexico