Los Cabos Tourists Still Getting Fair Prices Despite Strengthening Peso

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Last Updated 1 year ago

Travelers coming to Los Cabos can still expect fair prices on hotels and other amenities despite the fact that the exchange rate between the Mexican Peso and the U.S. dollar is currently not favorable for foreign tourists heading to Mexico.

The Hotels Association in Los Cabos has been concerned about this issue over the last few months, but now its president Lilzi Orcí Fregoso says she’s gotten assurances from local hotels that prices for rooms in Cabo will remain at decent rates. 

In fact, Orci Fregoso recently mentioned that local hotels would be adjusting their prices to ensure that tourists are still getting a fair rate. In a recent interview, she mentioned, 

“At first, I asked them [the hotels] if it had affected them, and they told me no. Right now they are making adjustments within the same operation to reduce their profits but minimize the effects of the exchange rate between the peso and the dollar. We hope that we can continue like this with travelers not being affected.” 

The president of the local hotels association would go on to say that another thing that has kept tourism numbers in Cabo consistent despite the exchange rate issue is the fact that many people booked their trips well in advance.

At that time, the exchange rate sat at around 19 Mexican pesos per dollar. Currently, the rate is at around 16 pesos and change per U.S. dollar. 

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Tourists Are Advised To Pay For Hotels & Other Amenities In U.S. Dollars

In the same interview, President Orci Fregoso mentioned that another one of the reasons why tourists aren’t necessarily feeling the increase in the price of their vacation is because many things within Cabo can be paid for in U.S. dollars.

Some of the prices for local amenities that were charged in US dollars have not increased despite the exchange rate situation. 

One of the things, though, that tourists will want to be aware of is any changes to the rates of previously booked trips and activities.

As President Orci Fregoso mentioned, a lot of the hotel international hotel chains that run Cabo properties may be able to charge travelers for their rooms in U.S. dollars.

Tourists who have booked their trip to Cabo well in advance may still want to double-check with their hotel to make sure that they are getting charged the same rate that was agreed upon.

Since the exchange rate has fluctuated considerably, travelers may still find favorable rates from travel sites. For example, the price for an airport shuttle trip in Cabo costs 32 USD on Viator, and the rate in Mexican Pesos is 554.2.

That’s about a 17.3 peso per dollar rate when the official rate closed at 16.8 as of Thursday. We contacted Viator, and they mentioned that the payments for the services they sell in Cabo are typically processed in Mexican pesos even when they offer a price in U.S. dollars on the site.

This means that the price tourists see in U.S. dollars could change once the payment is processed. 

Reservations At Cabo Hotels That Were Booked, But Not Charged Could Get A Bit More Expensive 

Payment processing is what could make a Cabo vacation more expensive. One of the things that the head of the Hotels Association mentioned was that people had booked their Cabo vacations well in advance, and that’s why there hasn’t been a drop in the number of tourists that are arriving to Cabo.

That being said, if a traveler booked a night at a Cabo hotel for 500 dollars a night when the exchange rate was back around 19 pesos per dollar, but the payment won’t be processed until the arrival date, that per night rate is going to be at around 560 dollars in today’s exchange rate — assuming they booked in pesos.

As previously stated, that’s why it may be a good idea to ask the hotel what currency the payment is going to be processed in.

The president of the Hotel’s Association was not wrong when she mentioned that hotels are trying to adjust their per-night rates to the current exchange rate.

What they’re trying to avoid is the scenario that we just described. This exchange rate issue is essentially the main reason why average per-night rates at local hotels are now at 600 dollars.

Hotels have actually frozen their rates in pesos, but American tourists may still see quite a difference.