Club Service Fees for 2022
The 2021 Advisory Council meetings were held in Cancun during week 42 and the representatives of The Royal Islander, The Royal Sands and The Royal Haciendas met with Management to review the 2021 financial reports and the proposed resort budgets and Club Service Fees for 2022.
At Royal Resorts we work hard to keep Club Service Fee increases to a minimum. However, external economic and pandemic factors have had a serious impact on resort finances in 2020 and 2021. This was especially the case in 2021 and as a result we have to increase the Club Service Fees for only the third time in seven years. At The Royal Cancun, the 6% discount granted in 2020 and 2021 will not be available for 2022.
In 2021, resort finances have been hit by a less favorable exchange rate. The 2021 resort operating budgets were prepared using an estimated average exchange rate of 22.58 pesos to the dollar, based on the Bank of Mexico’s forecasts and the consensus of major financial institutions. However, the average exchange rate this year is actually 20.10 pesos to the dollar. This represented a big negative variation of -11%, and accounted for significant losses in resort income. Most resort expenditures are in pesos and price rises and an inflation rate of 5% have also played a role.
The resorts also had additional expenses such as the COVID-19 testing program to comply with new travel rules issued by the CDC in the United States and the Canadian government and ongoing purchases related to Royal Care Standard health and hygiene measures to keep members, guests and employees safe; beach cleaning and sargassum disposal; and clean ups in the aftermath of the 2020 October storms and Hurricane Grace in August of this year.
In order to absorb some of the impact, Royal Resorts Management proposed increases in the Club Service Fee at the resorts at the Advisory Council meetings in October and they were approved by the Advisory Council representatives.
The Royal Cancun does not have an Advisory Council yet and it will be duly constituted when the resort is 80 percent sold. Management sets the Club Service Fee.
The 2022 Club Service Fees are as follows:
THE ROYAL HACIENDAS
| Villa | Flexivilla | Deluxe |
| CSF | 1,057.98 | 1,125.21 |
| VAT 16% | 169.28 | 180.03 |
| Occupancy tax 3% | 31.74 | 33.76 |
| CSF + Taxes | 1,259.00 | 1,339.00 |
| Suite | ||
| CSF | 687.40 | 731.09 |
| VAT 16% | 109.98 | 116.98 |
| Occupancy tax 3% | 20.62 | 21.93 |
| CSF + Taxes | 818.00 | 870.00 |
| Room | ||
| CSF | 370.59 | 394.12 |
| VAT 16% | 59. 29 | 63.06 |
| Occupancy tax 3% | 11.12 | 11.82 |
| CSF + Taxes | 441.00 | 469.00 |
THE ROYAL SANDS
| Villa | Occupancy | 1-44 days before | 44-90 days before |
| CSF | 975.63 | 963.03 | 950.42 |
| VAT 16% | 156.10 | 154.08 | 152.07 |
| Occupancy tax 3% | 29.27 | 28.89 | 28.51 |
| CSF + Taxes | 1,161,00 | 1,146.00 | 1,131.00 |
| Suite | Occupancy | 1-44 days before | 44-90 days before |
| CSF | 642.87 | 630.26 | 617.65 |
| VAT 16% | 102.85 | 100.83 | 98.82 |
| Occupancy tax 3% | 19.28 | 18.91 | 18.53 |
| CSF + Taxes | 765.00 | 750.00 | 735.00 |
| Room | Occupancy | 1-44 days before | 44-90 days before |
| CSF | 357.99 | 345.38 | 332.77 |
| VAT 16% | 57.27 | 55.26 | 53.25 |
| Occupancy tax 3% | 10.36 | 18.91 | 9.98 |
| CSF + Taxes | 426.00 | 411.00 | 396.00 |
THE ROYAL ISLANDER
| Villa | |
| CSF | 940.33 |
| VAT 16% | 150.46 |
| Occupancy tax 3% | 28.21 |
| CSF + Taxes | 1,119.00 |
THE ROYAL CANCUN
The 6% discount granted in 2020 and 2021 to members at The Royal Cancun will not be available in 2022
| B Villa | C Villa | |
| CSF | 811.77 | 920.18 |
| VAT 16% | 129.88 | 147.21 |
| Occupancy tax 3% | 24.35 | 27.61 |
| CSF + Taxes | 966.00 | 1,095.00 |
The Club Service Fee increases also apply for Points memberships at The Royal Sands, The Royal Haciendas and The Royal Cancun.
In the last seven years, Royal Resorts Club Service Fees have only had three increases, with four years showing no increase at all.
When compared to the timeshare industry, our Club Service Fees are lower than those charged at Westin, Marriott and other major resort chains and cover services such as daily housekeeping, which is not the case in the US, or indeed at other Cancun resorts.
The Advisory Council meeting reports and financial statements will be published in the next edition of Royal Resorts Life magazine in December and online here in the Members Area in the weeks to come.
We hope that this information is helpful, if you have any questions, please do not hesitate to contact us.