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Industry Continues Its Record Pace

Thursday, May 21, 2026 Research

International Demand Surges as Puerto Rico’s Air Network Resets for Summer

Arrivals at the San Juan International Airport in April reached 564,500 passengers this year, about 9,000 less than the same month last year (-1.6%). Year-to-date through April, Aerostar (SJU) has reported 2.3 million passenger arrivals, a -2.4% decrease compared to the same period last year, or approximately 55,000 fewer passengers. Arrivals from North America (-2%) and the Caribbean (-17%) have decreased, while combined arrivals from Europe, South America, and Central America reached 125,000 (+14%).

Regarding Spirit Airlines' bankruptcy, the U.S. Travel Association views airline competition as broadly healthy and believes market forces, not regulation, should respond to Spirit’s collapse, while prioritizing improvements in system capacity and efficiency. Travelers, meanwhile, face immediate disruption and, over time, fewer ultra‑low‑cost options and potentially higher airfares.

According to Airline Data Inc., total U.S. air capacity into San Juan (SJU) shows a mixed outlook: Q2 seat capacity is down 6.6% year over year as of last week, while Q3 capacity is up 3.4% compared to the same period last year. However, capacity changes may continue for now as Frontier and JetBlue align on picking up routes and flights previously operated by Spirit Airlines.

Accommodations Demand in Puerto Rico Maintains its Growth Momentum

According to STR and AirDNA, total lodging demand across the island continues to outpace last year, rising 7% in April and 8% year-to-date. April alone recorded more than 391,000 hotel room nights (+5% year-over-year), while short-term rental demand reached 351,000 nights, up 10%.

April hotel performance was particularly strong during Easter Week, with occupancy averaging 87% and maintaining momentum through the remainder, ending the month at 80%, an increase of 6% compared to last year. Short-term rental occupancy remained resilient, reaching 58% (+1 ppt). The rental market has continued to capture about half of the demand tracked, reaching 47% of the total market, up one point from last year.

After several months of large decreases in average rates, Puerto Rico Regional luxury and Upper Upscale properties bounced to an average April rate of $530 (+14%), with especially healthy rates during Easter weekend at nearly $670 per night.

According to the U.S. Travel Association, Puerto Rico’s 8% year-to-date growth in hotel demand through March continues to outperform the U.S. average of 2%. However, average U.S. travel prices rose sharply in March, with the Travel Price Index increasing 5.8%, far outpacing overall inflation, driven mainly by surging transportation costs, including gas, airfare, and other travel-related expenses.

These increases were largely fueled by energy price shocks linked to the Middle East conflict, while travel activity softened, with slower growth in air travel, hotel demand, international arrivals, and short-term rentals. At the same time, consumer sentiment weakened significantly, with confidence near record lows and fewer travelers viewing it as a good time to spend on leisure travel.

Balanced Growth Observed in Lodging Segment Drives Record Revenues

April lodging revenues reached an estimated $207 million, a 13% year-over-year increase and setting a new monthly record. Hotels contributed $135 million, enjoying a RevPAR of $276 (+14%).

The rental segment showed similar growth in April, generating $73 million, an 11% increase from last year, and accounting for 35% of the market's revenue share. By region, rentals in the San Juan area generated $18 million in revenue (+14%), while rentals in the South region reached over $1.8 million (+15%). Rentals in the East and West regions grew 6%, reaching $15 million and $14 million, respectively. Rentals in the central mountain area of the Island generated $1.2 million in rental revenue, up 17% year-over-year, enjoying the highest growth by region.

Year-to-date lodging revenues captured by STR and AirDNA reached $898 million, an increase of 9% compared to last year. Hotel revenues have increased 9% and rental revenues have increased by 8% to $585 million and $312 million, respectively.

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