Hospitality in Mexico Customer Challenges and Pains Analysis¶
Challenges and Pains faced by Customers¶
Based on the analysis of the provided reports on the Mexican hospitality value chain, several key challenges and pains faced by final customers (both B2C and B2B) can be identified. These customer pains often stem directly or indirectly from the bottlenecks and inefficiencies present within different steps of the value chain and the broader industry environment.
A significant pain point for customers relates to the quality and consistency of service. The reports highlight human capital challenges, including shortages and skills gaps, as a persistent bottleneck for businesses in the hospitality sector [Value Chain Analysis]. This directly translates into a customer pain of experiencing poor or inconsistent service quality across accommodation, food and beverage, and activity providers, impacting their overall satisfaction and experience during their stay or visit.
Difficulties and potential costs related to transportation and accessibility represent another challenge for customers. The value chain analysis points to infrastructure limitations as a bottleneck, affecting transportation to and within destinations [Value Chain Analysis]. For customers, this can mean longer or less comfortable journeys, limited access to certain desired locations, or congestion issues, particularly during peak travel times.
Customers may also face the pain of potentially higher costs or reduced value for money. While not explicitly stated as a direct customer pain, the analysis of commercial relationships reveals the high commission rates charged by intermediaries like Online Travel Agencies (OTAs) and food delivery platforms to hotels and restaurants [Value Chain Analysis]. Additionally, supply chain inefficiencies and reliance on imports can increase operational costs for businesses [Value Chain Analysis]. These pressures on business profitability can indirectly lead to higher prices being passed on to the customer or businesses reducing service levels or quality to compensate, resulting in a perceived reduction in value.
Price fluctuations and potential service disruptions are challenges driven by the inherent seasonality of the tourism industry and vulnerability to external shocks [Value Chain Analysis]. Customers may experience significantly higher prices for accommodation, flights, and activities during peak seasons compared to off-peak times. Furthermore, external events such as economic downturns, health crises, or security concerns can lead to unexpected cancellations, changes in service availability, or safety concerns, disrupting travel plans and overall experience.
Finally, particularly when dealing with smaller or independent establishments, customers might encounter outdated facilities or limited amenities. The challenges faced by Small and Medium-sized Enterprises (SMEs) in accessing financing can limit their ability to invest in renovations, technology upgrades, or expanding their service offerings [Value Chain Analysis]. This can result in a less modern or well-equipped experience for customers compared to larger chains or newer developments.
Prioritized Table of Challenges and Pains¶
| Priority | Challenge/Pain Faced by Customers | Description |
|---|---|---|
| 1 | Poor Service Quality | Inconsistent or substandard service experienced in hotels, restaurants, and activities due to human capital shortages and skills gaps in the industry workforce. [Value Chain Analysis] |
| 2 | Transportation and Accessibility Difficulties | Challenges in reaching or traveling within destinations due to infrastructure limitations such as road quality, airport capacity, or limited regional connectivity. [Value Chain Analysis] |
| 3 | Potential for Higher Costs or Reduced Value | Customers potentially paying more or receiving less value due to businesses offsetting high operational costs from intermediary commissions and supply chain inefficiencies. [Value Chain Analysis] |
| 4 | Price Fluctuations and Service Disruptions | Experiencing significant price variations based on seasonality and facing potential cancellations or changes in services due to external events. [Value Chain Analysis] |
| 5 | Potential for Outdated Facilities/Limited Amenities | Finding that some establishments, especially independent ones, may lack modern facilities or a wide range of amenities due to limited investment capacity. [Value Chain Analysis] |
Correlation with Value Chain¶
The challenges and pains faced by customers in the Mexican hospitality industry are directly correlated with specific steps and bottlenecks identified in the value chain analysis:
- Poor Service Quality is primarily a pain point experienced by customers in the Accommodation, Food and Beverage Services, and Activities and Recreation steps of the value chain. This pain is strongly correlated with the Human Capital: Shortages and Skills Gaps bottleneck within the Support Services step, which is responsible for providing trained personnel to the front-line hospitality businesses [Value Chain Analysis].
- Transportation and Accessibility Difficulties directly impact the customer's experience within the Transportation step. This pain is linked to the Infrastructure Limitations bottleneck, which falls under the broader Support Services required for the entire value chain to function effectively [Value Chain Analysis].
- Potential for Higher Costs or Reduced Value is a pain that can manifest across customer interactions in the Accommodation, Food and Beverage Services, and Activities and Recreation steps, influencing the final price or the perceived quality relative to cost. This pain is correlated with the Intermediary Dependence & Commission Costs bottleneck primarily impacting the Tourism Promotion and Intermediation (OTAs) and Accommodation steps, and also the Food and Beverage Services (delivery platforms) step [Value Chain Analysis]. It is also indirectly linked to Supply Chain Inefficiencies and Costs within the Support Services step, which can increase the cost of goods and services for hospitality providers [Value Chain Analysis].
- Price Fluctuations and Service Disruptions are pains that can affect customers across all primary steps of the value chain where they interact with service providers (e.g., booking accommodation, transportation, activities). These are directly linked to the vulnerability of the industry to Seasonality and External Shocks, which impact demand and operations across the value chain [Value Chain Analysis].
- Potential for Outdated Facilities/Limited Amenities is primarily a pain point for customers utilizing Accommodation and potentially Food and Beverage Services or Activities and Recreation offered by smaller providers. This pain is correlated with the Financing Access for SMEs bottleneck within the Support Services step, as limited access to capital hinders the ability of smaller businesses to invest in their physical assets and offerings [Value Chain Analysis].
In summary, the challenges faced by customers are not isolated incidents but are often direct consequences of the systemic bottlenecks and operational complexities present at various stages of the Mexican hospitality value chain, particularly those related to human resources, infrastructure, cost structures influenced by intermediaries and supply chains, and vulnerability to external factors.
References¶
CBRE Marketview Hotelería 1S 2024 | CBRE Mexico Creció 13.2% el número de turistas internacionales en México - ContraRéplica - Noticias El turismo internacional en México crece un 8,5 % en enero - SWI swissinfo.ch El turismo mexicano rebasa expectativas con el ingreso de más de 32 mmdd en divisas por visitantes internacionales en 2024 7.4% más que 2023 - Gobierno de México Llegan a México más de 2 millones de turistas internacionales vía aérea según su nacionalidad en enero de 2024 | Secretaría de Turismo | Gobierno Más de 40 millones de turistas visitaron México en 2024 - atiempo noticias México inicia 2025 con alza turística pese a baja en gasto promedio - ContraRéplica Tourism Ministry reports a bump in foreign visitors - Mexico News Daily Mexico Tourism Surges Past Pre-Pandemic Levels with Strong 2025 Outlook - The Rio Times Mexico Tourism Statistics | How many tourists visit? (2025) - Road Genius Mexico's Hotel Industry in 2024: A Vibrant Year of Growth and Opportunityand What's Ahead for 2025 Domestic spending buoyed strong growth in the tourism sector this summer - Mexico News Daily Mexico Source Tourism Insight by Domestic and Outbound Tourism, Key Destinations and Tourist Profiles, 2025 Update Mexico Business Travel Market Size & Outlook, 2024-2030 The global MICE Tourism market size will be USD 4315.5 million in 2024. Mice Market Size & Share Analysis - Industry Research Report - Growth Trends Meetings, Incentives, Conferences, and Exhibitions Market Size 2034 MICE Market Size, Share, Analysis, Statistics, Report, 2033 - IMARC Group MICE Market Size, Share, Trends | Global Growth Report - Fortune Business Insights Mexico Hotel Market 2024 - Horwath HTL