How Will Mexico Timeshare All Inclusive Resorts Fare Into The Future?
The new trend in Mexico Timeshares is the conversion to the All Inclusive Plan. Most new resorts being built are all inclusive resorts. Most older resorts that are for sale are being purchased by big all inclusive hotel chains. And, many existing popular Mexico Timeshare resort operations have now added the all inclusive plan in spite of the loud uproar from many in it’s existing database of owners. What are the factors that is motivating this major change? How will it affect the mature tourist destinations? What will become of the Mexico Timeshare Industry in the years to come? If you have just recently purchased a Mexico Timeshare All Inclusive Resort Contract this article will also provide additional points that will help to further analyze whether the purchase was truly a sound investment or not.
What Is The Factor That Is Motivating This Major Change?
The factors that are motivating this huge shift is the drive to maximize profits in an industry where hotel costs have flat lined since the 2008 global crisis, meanwhile the supply of hotel rooms in Mexico continues to grow. Yes, hotel costs have not been steadily increasing since the world economy stalled, but other costs to operate the hotel operations have been increasing which is putting pressure on the developers bottom line. It is normal business practice for all inclusive operations to sell their inventory to travel agents in what they call travel marts. It is where wholesalers buy the hotel rooms at a deep discount and then resell them at a profit to various travel agent companies. Travel agents(online or in-person)will then market up the price and resell the room at a per person rate and then add the food and beverage price and airfare and wrap it into a “package deal”. So now, it becomes more clear that hotel owners do not make as much profit off the room as most travelers would imagine! Voila! The all inclusive per person price must have become the new solution for staying in the black! It for certain is not too far-fetched to think when the current range of all inclusive pricing is $75 to $200 dollars per person per day! Yes, $137.50 is the average spent per person, per day!
In the European Plan, the hotel is not guaranteed that the client will eat on site. So, to entice the client to stay the hotel must spend money and marketing on Top Chefs and Restaurants that offer exceptional food and ambience. But, due to human nature AND being on vacation it is normal to try out different restaurants in the area so the hotel may only get your business for a few breakfast, lunch and dinner orders. In the end while they lose out on your business they hope guests from other hotels will come to the hotel to enjoy their upscale restaurant. In the past that’s exactly how it worked and in the end the money was distributed in more areas. But what does one hotel owner do when his/her neighbor hotels have now switched to all inclusive and their guests no longer come to the hotel and his/her own hotel guests are leaving and spending their money elsewhere, what should he/she do? What’s the old adage…if you can’t beat them then you must join them! So you make the switch to all inclusive!
Now the hotel is prepaid food and beverage each day for EVERY guest that is staying at the hotel. Imagine that, each and every guest, all year long! The all inclusive plan also allows for the hotel to cut costs drastically and minimize waste on top of it due to serving a set menu of food and beverage. Due to all of the above factors and more the all inclusive plan has struck a chord with Mexico Hotel Developers and it doesn’t look to slow down anytime soon. With this new model the hotel can almost give away the room which helps to motivate the travel agents in filling the room with people. And, the more people….the more all inclusive daily money!
How Will It Affect The Tourist Destinations?
To answer this question we looked to other all inclusive tourist models which are mainly in the Caribbean in order to gauge the overall effects that all inclusive has had in their respective countries. In our estimation, the all inclusive model ultimately creates an imbalance to the touristic area. It for certain brings more money to the hotels and excursion operators. The hotels make out with the additional all inclusive pricing and having their guests spend much more time within the hotel compound. The popular, commercial excursion operators also do well mainly due to the representatives of the travel agency promoting their services and making a commission in return. Due to this deliberate “passive guiding”, businesses that may have been found due to a clients sense of adventure are no longer found. Excursions operators that cannot afford to pay the same commission as the commercial operator end up having to make difficult decisions. It now becomes harder for the off-the-beaten-path business to survive. So, in the end most of those businesses simply close their doors and the surrounding areas of the touristic destinations begin to lose their artistic charm and artist creativity gives way to commercial interests and operators in the creation of their newly built retail centers where the tourist begins to realize that they are now “the cow carrying the cash”.
What Will Become Of The Traditional Mexico Timeshare Industry?
The traditional Mexico Timeshares is giving way to the new Mexico Timeshare All Inclusive Resort concept. In the past, Mexico Hotel/Resort Developers looked to the Timeshare Sales primarily to bolster huge profits. Today, the primary focus has become all inclusive pricing that has served to bolster huge profits and timeshare sales have now become secondary. There will always be a market for the traditional Mexico Timeshare that offers 1/2/3 bedroom units and operates under a European plan but it for sure is becoming less and less apparent in Mexico. It is our estimation that within the next 10 years, almost all of Mexico Timeshare Resorts will be all inclusive operations. The world’s current mentality is quite different from even 10 years ago, in that, the current mentality is to not want to have to think while on vacation about anything and that is what the all inclusive hotels are catering to. In the traditional Mexico Timeshare, you think about going to get your groceries, what you will eat that day, who will cook the next meal that is eaten inside the suite, etc. Since most couples work equally as hard, the above decisions and tasks are no longer wanted by many people on that well deserved vacation. As for the older retired couple who is saying we timeshare vacationed all our lives with the kids, and now its our time to sit back and be served for a chance! Or one of latest comments I’ve been hearing from ladies is….if there’s a kitchen I’m not going honey! It for certain is a new day and Mexico Timeshare Resorts are taking notice and now making the switch from European meal plans to Mexico Timeshare All Inclusive Resorts even despite the rumblings in the existing database that bought into a European meal plan vision.
If You Have Just Purchased A Mexico Timeshare All Inclusive Resort What Factors Should You Consider?
If you have just recently purchased an All Inclusive Mexico Timeshare Contract then it is important to look at the following factors:
- Will you be traveling to Mexico every year?
- When traveling to Mexico, have you researched the complete cost of using the program?(airfare, accommodations and food & beverage.)
- Does your contract have mandatory maintenance fees?
- How much will you pay to deposit your week for exchange with an exchange company?
- Have you been told that you can reserve any size unit with the exchange company?
- Will you have to pay for two weeks to make a one bedroom unit for deposit?
- Will you have to pay for three weeks to make a two bedroom unit for deposit?
- Does the resort you purchased at have the appeal to attract other timeshare owners?
- Will all inclusive pricing be MANDATORY for other timeshare owners who wish to exchange to your resort?
- Is the timeshare the main vision of the property or is the travel agency the main vision?
- Will it make more sense to spend the contract cost money upfront? How many years will it take to get your ROI in savings?
- Will you truly realize a savings after booking the package separately?
- Do you wish to exchange to non all inclusive properties outside of Mexico too? Will your all inclusive get that non all inclusive property in Colorado or Hawaii? Will it get you that top Disney Resort?
- Why do the exchange companies have extra weeks for various Mexico Timeshare All Inclusive Resorts that they can sell to other timeshare members without those members needing to deposit one of their own resort weeks or points first?
- If I already own a timeshare, is it possible for me to book all inclusive resorts via the exchange company’s travel agency or via bonus and/or last minute weeks. Do I really need to spend the extra money to get a resort that I can already reserve into?
- Just because the Mexico Timeshare All Inclusive will take my older traditional timeshare and Eliminate My Ongoing Maintenance Fees, is it worth me for me to buy and spend thousands of dollars in upfront money or is it also an option to sell the older timeshare for $1 dollar and use the upfront money to buy future vacation packages and/or rent timeshare weeks from other owners?
If You Have Decided To Cancel Your Mexico Timeshare All Inclusive Contract What Is The First Step?
Your very first step is always to read your contract thoroughly and find where it states the Necessary Steps to Cancel. In this clause should also be found the address where your Cancellation Letter should be mailed to. We also highly recommend our Free E-Report Resource Download, “How To Cancel Your Mexico Timeshare”. This E-Report will give you everything needed to know, in a step-by-step manner, in order to cancel your contract. It will also provide tips to take in case the Mexico Timeshare All Inclusive Resort has informed you that upon you cancelling you will forfeit your deposit! Click Here to Download!
To Find Out More Information About Mexico Timeshare Advocate and The Services We Offer To Assist You In Your Timeshare Needs. Call Us Today and Receive Your Free Consultation From A Qualified Agent. Call Today to 1800 947-3761.