U.S. Travel Rules Spark Testing Rush in Resort Getaway Spots
(Bloomberg) -- Hotels, airports and airlines across Mexico and the Caribbean are rushing to set up Covid-19 testing sites to meet new U.S. entry rules and salvage demand for the pandemic-hit travel industry.
In Mexico, tourist magnets like Cancun have set up multiple testing sites inside airports to accommodate travelers to the U.S., which on Tuesday started requiring proof of negative Covid results before allowing visitors to fly in from other nations. Hyatt Hotels Corp. is offering complimentary testing at its 19 Latin America resorts, while Marriott International Inc. is providing a mix of on-site testing and assistance coordinating with local facilities.
The U.S. requirements are meant to help airlines regain at least some of their lucrative international business by helping to assuage fears of contracting the virus. Yet any difficulty in obtaining tests also stands to dent demand from Americans fleeing to vacation spots who would potentially face trouble returning home. In places like Mexico, tests are hard to come by, can cost as much as $200 and results can take days -- leading travel companies to step in.
“In an environment for hotels where demand is down dramatically, anything they can do to make travel feel safer is a win in their eyes,” said Michael Bellisario, an analyst at Robert W. Baird & Co. “There’s a lot of uncertainty and anything to expedite the process and make traveling simpler and safer is helpful for all parties.”
The new rules require that travelers receive a test within three days before leaving for the U.S. and provide written documentation of a negative result. Both PCR and rapid antigen tests are accepted, and passengers who have already had the virus can also show proof of recovery instead.
The requirement is creating some “choppiness in demand,” especially for popular beach destinations in Mexico and the Caribbean, because of a lack of widespread testing capacity, Delta Air Lines Inc. Chief Executive Officer Ed Bastian said in an interview at Bloomberg’s The Year Ahead conference Wednesday.
Doug Parker, CEO of American Airlines Group Inc., said on the company’s earnings call Thursday that there have been some drops in demand in short-haul international travel. Even so, the company’s president said the new rules went into effect smoothly in Cancun, which is currently the carrier’s largest international destination.
Beyond Cancun, the state of Guanajuato, home to San Miguel de Allende, is also offering airport tests and is working with hotels so they can do it too. Yucatan is doing the same.
Among hotels, testing sites are most prominent at luxury resorts, where wealthier travelers can secure results ahead of their departure without having to leave the premises. Marriott’s locations with on-property testing include the Ritz-Carlton Cancun, the JW Marriott Los Cabos Beach Resort & Spa and the Dominican Republic’s Westin Puntacana Resort & Club, according to a spokeswoman.
For Hilton Worldwide Holdings Inc., on-site testing is available at properties such as the Hilton Aruba Caribbean Resort & Casino and the Conrad Punta de Mita. Others are providing access to a local testing provider.
In the days since the requirement took effect, local media showed a chaotic scene at the Mexico City airport, where many passengers had no idea they needed a test. Some of them were able to get a rapid one there, while others missed their flight, according to a report on Imagen TV.
In Cancun, 120 Cuban travelers had tests that were done more than three days before their flights and weren’t allowed to board, according to newspaper and TV station Milenio Noticias. At the Dominican Republic’s Las Americas airport, hundreds of passengers missed their flights on Tuesday and Wednesday because they didn’t have tests, radio station NotiUno reported.
Volaris, Mexico’s biggest airline, set up a testing site at the Marriott hotel inside the Mexico City airport. Controladora Vuela Cia. de Aviacion SAB, as the low-cost airline is officially known, has managed to bounce back to pre-pandemic traffic yet has seen its shares fall 12% this year as the new U.S. rules were announced.
The company didn’t yet have statistics on how many tests it has administered, but a spokeswoman said they have conducted more than they expected since passengers from other airlines have taken advantage of the offer.
For its part, Grupo Aeromexico SAB is offering discounts with certain labs for people to get tested days before heading to the airport. The carrier also is working to set up sites across the terminals where it operates, a spokesman said.
The costs for tests vary by location and company. At Marriott’s JW Marriott Cancun Resort & Spa and Marriott Cancun Resort, it’s included in the room rate, while for others it’s not, said spokeswoman Kerstin Sachl. Hilton’s Aruba resort offers PCR tests for $125 and antigen tests for $50, according to its website.
“It makes you feel more comfortable as a traveler,” Bellisario said. “And from the hotels’ perspective, it brings in incremental demand and limits cancellations.”
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