Cabo San Lucas and San José del Cabo (Los Cabos) have been coveted tourist destinations for years. However, like any market, their dynamics are subject to change. In this post, we delve into analyzing the first quarter of 2024, examining the trends shaping the short-term rental landscape in this region and our predictions for the next quarter.
The first quarter of the year has left its mark on Los Cabos, with a significant 12% decrease in occupancy compared to the same period last year. This decline is attributed to a market imbalance caused by a substantial increase in unit supply, while demand has seen a decrease in booked nights.
A key factor is a slight change in international travel preferences, favoring more budget-friendly destinations like Oaxaca or Manzanillo. This shift is propelled by the strengthening of the Mexican peso, which has appreciated by 11% compared to the previous year.
The supply of units in Cabo has maintained an upward trend, despite a slowdown in growth during the first quarter.
With an 11% year-on-year increase, this ongoing expansion puts pressure on occupancy rates, contributing to the decline in demand.
On the other hand, international tourism shows post-COVID adjustments, and the strengthening of the Mexican peso has negatively impacted the purchasing power of these tourists, reflected in a 4% decline in the arrival of international tourists to Cabo.
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