Skip to Content

Why Hotels In This Popular Mexico Destination Average $600 A Night

Share The Article

Last Updated

Mexico is one of the most popular yet most expensive destinations for Americans going abroad. While it was historically seen as ‘cheaper', tourist prices in the Southern neighbor have gotten very close or even surpassed those of the United States.

Strangely enough, Americans keep on flocking to its paradisaical coast, particularly a trendy resort city where hotels may average $600 a night but where you'll find no shortage of tourists.

Los Cabos Resort Zone Beachfront Straddling The Azure Pacific Ocean In The Baja California Sur Peninsula Of Mexico, Latin America

You read that right; despite prohibitive prices, it is always on the brink of selling out, irrespective of the season.

It's not Cancun nor Puerto Vallarta: Los Cabos is the destination travelers are most actively looking for and where they're willing to pay as much as is required for their dream vacation. This is why:

Los Cabos Is Hugely Popular Right Now

Though it is often mistaken for a single destination, Los Cabos is in fact made up of two cities, Cabo San Lucas and San José Del Cabo, which form a contiguous development zone straddling the Southernmost tip of the Baja California peninsula.

Famous Arco de Los Cabos In Los Cabos, Pacific Coast Of Mexico

Located on the Mexican Pacific, where the sands are golden and the seas a bright azure, and the major towns themselves rarely exceed over 30,000 inhabitants, it offers guests a much-needed escape from the hustle and bustle of the modern world.

It is home to the landmark Los Cabos Arch, a jagged arched rock formation jutting out of the sea, lush marine parks inhabited by rare species, and a plethora of pristine swimming spots bounded by clear waters.

It is easily your best pick for a relaxing getaway if you're heading South of the border, but there is more to Cabo than meets the eye, though its stunning natural features already provide reason enough to visit. You do, however, get beautiful tropical beaches elsewhere in Mexico.

Top 5 Travel Insurance Plans For 2023 Starting At $10 Per Week

Easily Earn Points For Free Travel

Tourists Taking Pictures Of The Los Cabos Arch From A Tourist Boat In Los Cabos, Baja California Sur, Mexico

Why, then, is Cabo's popularity soaring despite rising prices?

Why Are Tourists Willing To Pay More?

Its greatest strength lies in its vast tourist offer.

Travelers can either choose to be surrounded by nature in a more peaceful setting, basing themselves in more recluse areas between San Lucas and San José, or find themselves in the center of the action in downtown Cabo, jam-packed with bars and beach clubs.

It caters to not only one category of traveler but several, as everyone – nature seekers, families on a yearly break, honeymooners, solo travelers, and sociable individuals – will find their own ‘niche' to explore in Los Cabos.

beach chairs by pool

It is currently the fastest-growing destination in Mexico, having surpassed Cancun in recovery rates, as well as the most sought-after relaxation retreat in Latin America, boasting a high concentration of wellness and spas.

It should come as no surprise, then, that hotel rates are nearing the $600 mark.

World-Class Service

As The Cabo Sun, the leading independent authority on anything Los Cabos has stated, hotel infrastructure is simply ‘unbelieavable'.

Rates may be eye-watering, but guests often have access to some of the top-rated, most modern listings available in the market.

Resort Pool In Los Cabos, Mexico

From beautiful interior designs to well-equipped entertainment areas – some resorts even have swim-up rooms – Cabo's enviable list of five-star resorts, some of which have gained international recognition for their excellence, are quite literally giving Cancun's hotel owners a run for their money.

Even the food is great.

A Food Mecca

If you've ever stayed in an all-inclusive before, you will be all too familiar with the lackluster, not-so-fresh breakfast buffet or the less-than-impressive spread offered at on-site restaurants.

Now more than ever, resorts in Mexico are being absorbed by American brands, and you're more likely to find your average pepperoni pizzas and American-adapted tacos than truly delectable, traditional Mexican cuisine.

mexican tacos on a restaurant terrace in Mexico

In Cabo, however, the gourmet restaurants are ‘on a whole different level', as noted by The Cabo Sun, as are the theme bars on the poolside, where you can find an array of fresh, made-on-the-spot nibbly bits, miles better than anything pre-cooked or overly processed you'd find in other internationalized resorts.

As the average nightly rate nears $600, you should expect better dining experiences. After all, for this price, a majority of local resorts will have included all-inclusive fine dining in the deal.

Cabo Can Feel More Exclusive

Additionally, resorts here feel more exclusive. Unlike Cancun, where affordable holiday packages have proven a major success among the masses, Cabo hoteliers have turned their eyes to high-spending travelers looking for exclusivity.

Modern Marina In Los Cabos, Baja California Sur, Mexico

Though there are plenty of hostels and affordable guest stays to pick from, the driving force behind Cabo's booming economy is luxury tourism.

From semi-private jets to a truly unparalleled five-star treatment, visitors who are not wary of splurging will find their home here. Finally, there is the matter of safety.

Cabo Is Extremely Safe

In recent months, the country has made headlines in the States as a ‘risky' destination due to a series of isolated violent incidents affecting tourists traveling along the no-go zones of the US-Mexico border, but as those who are regular visitors to the Mexican coast already know, ‘touristy' Mexico is the polar opposite of underground, crime-ridden Mexico.

los cabos arch

Cities like Cancun, Puerto Vallarta, and Los Cabos are heavily guarded by police, or even ‘tourism batallions', who help ensure visitors feel and remain safe year-round, driving crime rates down and keeping criminals and pickpockets away from all the main points of interest.

Due to the heightened surveillance, Los Cabos is one of the safest vacation resorts South of the border, being classed by the State Department as such, or namely, a Level 2 destination – as safe as Paris, France, or London, England.

With its high level of safety, comfort, quality of services provided, and abundant nature, it's no surprise tourists are willing to pay over $600 on average per night to experience Cabo and its diverse offer.

↓ Elevate Your Travel↓

Sign Up Now For Travel Off Path Premium! No ads, VIP Content, Personal Travel Concierge, Huge Savings, Daily Deals, Members Forum & More!


Enter your email address to subscribe to Travel Off Path's latest breaking travel news, straight to your inbox.

This article originally appeared on

Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.