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HOSPITALITY INDUSTRY IN MEXICO General Overview The hospitality industry in Mexi

by | Sep 1, 2022 | Marketing | 0 comments


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General Overview
The hospitality industry in Mexico is a thriving industry. Being the country with the highest number of travelers in Latin America, according to the official Ministry of Tourism (SECTUR) database, the total hotel supply in Mexico registered at 22,560 properties with approximately 808,000 rooms.
The hospitality industry in Mexico is highly dominated by domestic players. Both the domestic and international brands have significantly expanded their footprints over the past decade in both the business and leisure travel segments. Mexico City, Guadalajara, and Monterrey, which are the largest three urban areas in Mexico have the presence of more branded hotels is relative with around 60% when compared to non-branded.
Key Market Trends
Mexico has been recording a growing number of visitors to the country year on year. The tourism and hospitality industry in Mexico is a third-highest contributor to GDP. Mexico has been attracting a large number of visitors and more than 65% of visitors are from the USA and Canada alone. In order to attract a great number of visitors from Asian Countries, Mexico introduced New direct flights from Asia started in early 2018. Routes include flights from Tokyo to Mexico City, Shanghai to Mexico City, and connecting travel from Seoul to Mexico City through Monterrey.
Upper Mid-Scale Segment is Dominating the Market
Mexico is recording a high number of midscale and upper mid-scale hotels followed by an upper-upscale segment of hotels. The midscale and mid-scale hotels account for more than 50% of the total market, whereas the upper-upscale segment covers more than 25% of the market. The budget and luxury segment accounts for the remaining share of the market. The economic uncertainty in the country is adversely affecting the industry and making investors be highly selective when it comes to investing in new locations.
Competitive Landscape
Even though Mexico has a high number of international chains present in the country, the hospitality industry is dominated by local players. There are around 180 international and domestic brands across Mexico. AMResorts was the leading hotel company in Mexico in 2020, followed by Grupo Vidanta and Grupo Posadas.
A. Marketing Plan
Considering that the ANGAD ARTS HOTEL (Links to an external site.) wants to expand its operations to Mexico, read the information about the hospitality industry in Mexico and create a Marketing plan for the hotel mentioned before.
You will need to…
a. Define a target market
b. Select a positioning strategy & value proposition
c. Customize or tropicalize the Marketing mix
Product (service´s features, characteristics, benefits, etc.)
Place (Description of the distribution channels)
Price (Suggested price for the product)
Promotion (Promotional mix elements that you’ll use to launch the product in Mexico)
Physical Evidence
B. International Sales
The ANGAD ARTS HOTEL wants to promote their Wedding & Catering services, using a B2B approach please…
Write a sales proposal (Use this template Download template)
Find 3 potential buyers and create a database
Write a prospecting email
C. Innovative Entrepreneurship
A service innovation changes the way a customer is served.
1. Considering the service described above, develop a service innovation. Do not forget to:
Understand stakeholder’s context and needs
Review current process
Scan future trends
Generate diverse ideas
Evaluate & Select the best option
2. Design a prototype
Please include a sketch or design that represent the important features and characteristics the new “product” has to include.
If it´s a digital “product” please describe menus, graphics, buttons & screens.
If it´s a service, please include the “new service” blueprint.

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