Mexico Gains Prominence as a Luxury Hotel Market as Segment Evolves

Travelers Seek More Experiences, Sustainable Practices

(In Photo) Expedia Group’s Carrie Wilder (left) and Accor’s Nicolás Martínez speak on a panel about luxury and lifestyle hotels at the HVS’ 2024 Mexico Hotel and Tourism Investment Conference. (Bryan Wroten)

By Bryan Wroten
Hotel News Now

February 12, 2024 | 8:10 AM

MEXICO CITY — The luxury and lifestyle hotel segments in Mexico have been changing to adapt to new guest expectations and financial requirements.

A generational shift is driving the changes in what guests expect from a luxury experience, said Carrie Wilder, senior director of market management, Mexico and Caribbean, at Expedia Group, on a panel at HVS’ Mexico Hotel & Tourism Investment Conference.

“The privilege and the marble is out,” she said. “What’s in is being sustainable and being inclusive. That’s a different type of property.”

So many digital nomads traveled to Mexico during the pandemic and showcased inspirational travel through their social media channels, Wilder said. As a result, guests now crave unique experiences from luxury hotel stays.

Mexico “has been recognized a very, very long time by the high-end luxury traveler in North America as being a luxury market, and that’s evidenced by the high performance in these resort markets,” said Phil Keb, senior executive of luxury brand growth, Americas, at IHG Hotels & Resorts.

In 2023, some of the highest performing hotels in Cabo and Puerto Vallarta had higher average daily rates and revenue per available room than some luxury hotels in Maui and Southern California, Keb said.