Caribbean Resorts Are Seeing a Massive Booking Surge — and Mexico's Loss Is Driving It
Caribbean destinations are reporting up to 50% booking increases as travelers redirect from Mexico following security concerns, with Punta Cana, Aruba, and Nassau seeing record demand.
Caribbean resort destinations are experiencing a dramatic surge in bookings this spring, with some islands reporting year-over-year increases of roughly 50 percent. The spike comes as travelers redirect trips away from Mexico following security incidents in Puerto Vallarta in late February 2026 — and the data suggests this isn't a temporary blip.
According to industry reports, approximately 90 percent of travelers who canceled Mexico trips are not rebooking Mexico for a later date. Instead, they're choosing entirely different destinations, with Caribbean and Central American resorts as the primary beneficiaries. Punta Cana, Aruba, and Nassau are all reporting record-level demand for the March peak weeks.
The Dominican Republic has been a standout, welcoming over 1.2 million visitors in early 2026 with strong hotel occupancy across the board. Grenada saw a 22 percent year-over-year increase in British visitors, while Barbados is benefiting from new InterCaribbean Airways routes launched March 8.
Industry Optimism at Record Levels
At the Virtuoso Latin America and Caribbean Forum held March 2-4 in Lima, luxury travel advisors reported the strongest optimism levels of any region in the global Virtuoso network — exceeding Europe, Asia-Pacific, and North America. Caribbean travel insurance demand is up 28 percent, and advisors are recommending earlier booking windows as inventory depletes faster than usual.
The shift is also accelerating investment. Sandals Resorts is midway through a $200 million transformation of three Jamaica properties, and multiple new all-inclusive developments are racing toward 2026 and 2027 openings across the region. Average roundtrip flights from U.S. cities to the Caribbean currently sit around $1,300.
