Playa Del Carmen Hotels Slash Prices

In Playa Del Carmen city center, small hotels have been compelled to decrease their prices by up to 30% to manage their running costs. This is due to an excess supply on vacation rental platforms. Offner Arjona, president of the Association of Small Hotels of Playa del Carmen, stated that no associated hotel has had to cease operations so far. However, they have had to take out loans to meet their monthly expenses.

“We are gradually reducing our rates to cover as much of the operating costs as we can, hoping for an increase in occupancy and rates during the summer months,” Arjona said. Despite efforts to avoid debt by cutting costs and implementing saving strategies, some hoteliers are still unable to cover payroll and tax expenses.

Arjona noted that the city’s small hotels have maintained an average occupancy rate of 45% to 55% this month, which is lower than the usual low season. He highlighted that the competition from holiday rentals, which typically offer lower rates with fewer services, has significantly increased, impacting the competitiveness of small hotels.

Additionally, the disorderly operation of bars and nightclubs, which stay open late without proper soundproofing, has also affected the occupancy of downtown hotels. This has led to cancellations and tourists opting for other locations.

Arjona expressed optimism about continuing proactive work with the elected municipal president, Estefanía Mercado, similar to their relationship with the current administration. He mentioned that they have already initiated contact with Mercado’s team to schedule a meeting and discuss key issues for the upcoming month.