Los Cabos Tourism Seeing Slowdown According To June Airport Traffic

Despite a slowing economy in the United States, the largest tourist market for Los Cabos, the region continues to draw travelers and remains a popular vacation getaway destination.

That’s according to the June passenger numbers for the Los Cabos International Airport. 

While the year-over-year international passenger count at the airport was down slightly, the overall numbers for the year are still above 2023 figures.

Los Cabos Slowdown

June international passenger numbers at the airport in Los Cabos were down slightly compared with last year according to Grupo Aeroportuario del Pacífico, S.A.B. de C.V., the publicly-traded operator of the airport.

There were 404,800 international travelers that used Los Cabos International Airport in June, compared with 407,600 in June of last year.

Despite the decline in June numbers, the passenger count for the entire year is slightly up compared with last year. More than 2,607,800 international travelers used the Los Cabos airport this year compared with 2,603,700 in the same period last year.

Interestingly enough, numbers reported at Puerto Vallarta International Airport, operated by the same company, were actually up in June and for the year-to-date periods.

While the passenger counts were up in Puerto Vallarta by 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 at the airport so far this year.

What’s Behind the Slowdown?

At this point, travelers might be wondering why Los Cabos airport passenger counts are down while Puerto Vallarta, another Mexico travel hotspot, appears to be holding its own.

It’s easy to blame it on economic conditions in the United States. Some of the factors affecting travel purchases right now are the slowing economy, high credit card interest rates, declining spending and even the restart of payments on student loans.

Those all have contributed to travel consumers having less money to spend on a vacation getaway to Los Cabos.

The Issues Go Deeper

However, it goes deeper than that. Los Cabos has created some additional issues on its own that has travelers visiting elsewhere, such as Puerto Vallarta.

First, the focus on the luxury travel segment in Los Cabos has caused the nightly room rate to accelerate to high levels for Los Cabos resorts and hotels. 

With less income to spend, travelers will often find lower priced accommodations elsewhere to fit their travel budget. Some have complained that even the price of food and drinks in Los Cabos is also excessive.

Last, tourists recently have been unhappy with the cleanliness and safety in Los Cabos tourist locations such as the Cabo San Lucas center and marina areas. 

The municipal police department in Los Cabos recently announced plans to step up patrols in the area. Additionally, business owners in the center are calling for a full redevelopment of the area to combat declining sales.

Until these issues get resolved, the numbers are likely to be soft when it comes to Los Cabos travelers.

New Marketing Campaign

The Los Cabos Tourism Trust recently announced a new marketing program to demonstrate more value for a Los Cabos vacation getaway. 

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 travelers can enjoy two vacations 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 a couple of travel headwinds, Los Cabos still remains a popular travel destination for vacation getaways. However, the opportunity is even better now for budget-oriented travelers.

Chances are now, or very soon, travelers will be seeing more deals for Los Cabos travel and hotels may be more inclined to be flexible on their nightly room rate.

Go ahead and lock in your room rate for Los Cabos now, but make sure it is cancelable in the event rates go down or better deals appear later. 

As the summer progresses, travelers could definitely find that Los Cabos will become a more affordable travel destination.