Share the article
Mexico continues to be one of the world’s most attractive vacation destinations for American travelers.
In 2019, the last year before the pandemic, some 40 million Americans visited Mexico.
Now, the demand for travel to Mexico continues to increase and many airlines are scheduling new flight routes to Mexico to meet this demand.
But as demand continues to rise, traveling to Mexico has become much more expensive for American travelers.
This is because the Mexican economy and the value of the peso is currently skyrocketing against the US dollar. At the time of writing, $1 USD is valued at 17.21 Mexican pesos.
The value of the peso is now at its strongest rate against the US dollar in just over seven and a half years. In the last year, the Mexican peso has strengthened by approximately 12.6% against the dollar.
The peso has not been as strong against the dollar since December 2015.
Here’s what this means for travelers planning to visit Mexico for their next vacation:
The high value of the weight
In real terms, when the value of the Mexican peso is high, it means that your dollar will buy less on your vacation. Your dollar will have less purchasing power, and therefore you should expect to spend a little more on typical tourist purchases on your Mexico vacation.
This may come as a surprise to many US visitors because historically the US dollar has been very strong against the peso.
Top 5 Travel Insurance Plans for 2023 from $10 per week
While many budget travelers visit Mexico because it is an affordable vacation destination, this change means that Mexico’s top tourist destinations are noticeably more expensive.
In terms of prices, many of these Mexican destinations are now on par with the most popular vacation destinations in the United States.
What does this mean for travelers?
In recent years, the Mexican currency has mostly hovered around 20 pesos to the dollar, but now each dollar is worth only 17 pesos.
That number may not sound significant, but it will make a world of difference to your money spend.
For example, the average cost of a taxi ride from the Cancun airport to downtown Cancun is 1400 pesos. At the lowest exchange rate, that cab would have cost you $70. Using the new enhanced rate, you’ll pay $82.
The price of a cocktail in a club in the center of Mexico City is around 185 pesos. Last year this cocktail would have cost $9.25. Now that same cocktail would cost you $10.80.
And this will apply to everything you pay in pesos.
The average price per night for a stay in a luxury hotel in Mexico is 3,700 pesos per night. So last year this would have been $185 per night. But thanks to the skyrocketing value of the peso, you can now expect to pay $217 a night.
A post-pandemic surge
The value of the peso is not the only reason why vacationing in Mexico is more expensive than ever.
In an attempt to stimulate their economy after the pandemic, more and more destinations in Mexico are investing in the development of luxury hotels and resorts instead of focusing on mid-level tourism.
This means that prices, particularly for hotels and resorts, will continue to rise.
Furthermore, the number of people choosing Mexico as a vacation destination has only grown since the pandemic.
When American travelers couldn’t travel any further, they headed to Mexico and found it to be a beautiful, historic, and welcoming vacation destination.
Whenever the demand is high, the prices go up. And this is certainly true in Mexico, where travelers are paying higher prices than ever for their vacations.
traveler alert: Don’t forget travel insurance for your next trip!
↓ Join our community ↓
He Travel Off Path Community FB Group It has the latest news, talks, and Q&A on the reopening every day!
SUBSCRIBE TO OUR LATEST PUBLICATIONS
Enter your email address to sign up for the latest travel news from Travel Off Path, delivered straight to your inbox.
This article originally appeared on TravelOffPath.com