Six months after swine flu first hit Mexico, Dave Richardson looks at how the country is dealing with the after effects

Big price reductions are driving demand for mass market holidays to Cancun (pictured) and the Riviera Maya, which were hit hard when the world’s first outbreak of swine flu broke out in Mexico in April. Although there were no reported cases in the area, the Foreign and Commonwealth Office advised against all but essential travel to Mexico and operators cancel charters. That advice was lifted within three weeks, but operators did not return for four to six weeks after the outbreak.

Tui UK, the biggest operator, flies to Mexico under its Thomson Faraway Shores and First Choice Tropical brands. Cancun is now the only Mexican charter gateway as Tui decided to drop flights to Cozumel island before the outbreak. Shona Swain, long-haul general manager, said: “We redeployed aircraft to Jamaica and the Dominican Republic, and as we focused on these destinations, Cancun was always having to play catch-up for summer 2009.

“By the time flights returned, all our hotels were functioning normally. Demand for winter is starting to pick up, but it is driven by competitive pricing with reductions of up to £450 per couple. “Mexico will come back strongly and become our top long-haul destination again, having been overtaken by Florida in summer 2009. “People see swine flu as a way of getting a good deal, but hotels haven’t reacted yet for summer 2010.” Tui hopes to resume flights to Puerto Vallarta on the Pacific coast, dropped a few years ago. The Boeing 787s it has on order could fly there non-stop, but delivery delays make that unlikely before 2012.

Cosmos has made even bigger reductions, with one holiday down by more than £600 per person (see panel). Sara Gelder, head of specialist products, says: “Cancun is proving a difficult sell for the remainder of summer and has been priced low thanks to offers from hotels. “We are seeing a good level of bookings for peak Christmas and Easter departures. However, the remainder of the winter season remains slow.”

The Cancun Hotel Association said occupancy was back to 80% in July, and the appeal of Cancun continues to diversify as more activities become available. A new eco-park, Xplor, has just opened. The Cancun Convention and Visitors Bureau has launched a taxi advertising campaign with 20 taxis in London and 10 in Manchester carrying images of beaches, hotels, activities and Mayan archaeological sites. 

UK representative Luisa Uruena said: “The feeling is now positive about the UK market. People are not worried about swine flu now it is a global thing.”  Supplier feedback. Specialist operators say demand for Mexico remains strong, helped by better availability of direct scheduled flights.



Supplier feedback
Mexicana: Mexicana started flying from Gatwick to Mexico City in February, and now operates four times a week. Mexicana sales account manager Frank Valle said: “The new route started well. Although we were hit by swine flu, flights were full again by June and our target is to operate a daily service.”

Kuoni: Kuoni is one of the operators using Mexicana, but says most bookings are within eight weeks of departure. Product manager Karen Walpole said: “Prices are more competitive now and we’ve had great offers in. We’ve seen signs of recovery for 2010, particularly at the top end in the Riviera Maya.”

Journey Latin America: Journey Latin America product manager Rafe Stone said: “Public confidence is returning and hotels are offering great rates. “It should also be taken into account that swine flu has spread globally. We are now better informed about who is more at risk and what medication to take, so travellers are more relaxed.”

Sunvil: Lloyd Boutcher, director of Sunvil Traveller, said: “Bookings for the lesser-known parts of Mexico have remained consistent. The swine flu outbreak has not affected the travel plans of our clients, who tend to be intrepid and adventurous.” 

Examples of price reductions on offer at time of writing:
Thomson: Seven nights at the 5T Grand Palladium Colonial Resort and Spa on the Riviera Maya, near Cancun, cost from £799 per person all-inclusive from Manchester on December 2. This is down by £225 or £450 per couple.
www.thomson.co.uk 

Cosmos: The all-inclusive Occidental Grand Flamenco Xcaret, also on the Riviera Maya, is down by £637 per person to £969 for 14 nights, departing Gatwick on November 2.
www.cosmos-holidays.co.uk 

Kuoni: Seven nights at the Cancun Caribe Park Royal Grand cost from £799 room-only, a reduction of £249.
www.kuoni.co.uk 

Journey Latin America: A 13-night tour of Mexico’s Yucatan peninsula starts from £3,307, reduced by £577.
www.journeylatinamerica.co.uk