Resort officials and tour operators who specialize in Mexico vacation packages say that deep discounts, advertising and pent-up demand are giving a glimmer of hope to those looking to revive tourism to the country in time for the summer season.
A looming issue, however, is not the H1N1 swine flu scare or the drug cartel violence along the border, but something that has hit home more directly for most Americans: joblessness and the downturn in the U.S. economy.
"We've finally gotten through the swine flu and drug violence, but the economy remains a huge worry," said Jack Richards, Pleasant Holidays president and CEO. "People are waiting to see what happens with the economy and their jobs."
Since the May 15 lifting of the travel health warning to Mexico by the U.S. Centers for Disease Control and Prevention, bookings for destinations south of the border have risen.
In the week that followed the lifting of the advisory, bookings with Pleasant increased 65%, which Richards called "significant."
"Overall bookings are still down, but it looks like a slow build," he said. "Cancellations have stopped.
"The question is whether all those people who canceled [during the swine flu alert] will rebook, now that the panic has died down, for June, July and August," Richards added. "Or, will they have rebooked somewhere else or decided to forgo a trip?"
Traditionally, the summer is peak season for Mexico for travelers from the U.S. West Coast, Texas and the rest of the Southwest.
Pleasant has beefed up marketing in Texas and even hired additional business development managers to call on agents in the state. "There are fabulous deals put together with 33 hotels, with air from Texas and with bonus commissions for agents, and it is working," Richards said.
Discounts should last throughout the summer, said Marc Murphy, managing director of the Riviera Nayarit Convention and Visitors Bureau, on Mexico's Pacific coast. "Expect great deals over the next few months during this jump-start period," he said. "Once travel to Mexico returns, normal prices should start returning, too."
Even though there were no swine flu cases reported in Riviera Nayarit or Puerto Vallarta, hotel occupancy fell to 42% this spring, compared with 72% in spring 2008.
'Nothing contagious here'
In Cancun, like Riviera Nayarit, the message is that "there's nothing contagious here except happiness and fun," according to Jesus Almaguer, CEO of the Cancun Convention and Visitors Bureau.
"Airlines are putting back frequency, and by July the air situation should be back to normal," he said. "The pricing is excellent, and there are discounts everywhere. We believe it will be a good summer, and we're expecting an excellent winter season."
Helping to boost travel to Cancun this summer is new airlift from Europe and a domestic advertising campaign urging Mexicans to vacation within their own country.
Summer prices to Mexico have rarely been this low, according to tour operators.
"Normally it's not a season that's heavily discounted," said Mike Going, president of Funjet Vacations. "But we're seeing discounts of 50% and offers up and down the product ladder that translate to as much as 60% to 70% off.
"They are substantial and significant."
Funjet saw an immediate pickup in business once the travel advisory was lifted, said Going. The company launched a campaign to promote last-minute, heavily discounted packages -- as low as $349.99 for air and three nights at an all-inclusive property -- to be booked by May 28.
"We saw immediate market reaction, and bookings started to come back," he said. "A lot of the merchandising is having its effect."
The low prices make selling Mexico much easier, Going said. "It's basically the price of a staycation. If I stayed at home and went to dinner with my wife for three nights, I might spend more. The values are crazy."
He estimated that about 50% of those who canceled Mexico trips during the swine flu scare rebooked another destination, 25% rebooked for Mexico later in the year and the remaining 25% took a wait-and-see approach.
Caribbean coasts back
Cancun and the Riviera Maya were the first areas to see an uptick after May 15 when the advisory was lifted, according to Going. Puerto Vallarta and the rest of the Pacific coast were behind, he said, adding that Funjet has started using Facebook and other social media to spread the word about Mexico promotions and the status of the swine flu alert.
In addition, it ran a fourth agent fam trip in three weeks in late May, bringing almost 100 travel agents to Cancun.
Tour operators have "an awful lot of work to do" to salvage the Mexico summer season, but "we remain optimistic and are working closely with the Mexico Tourism Board and our travel agency partners," Going said. "There's no doubt Mexico has been hurt. But with aggressive marketing, we're seeing bookings come back."