Originally Posted by Majuki

I stayed at the Canopy in Cancun and checked out on Monday morning. I had made the reservation in USD - and I confirmed even booking from the Mexican site would result in USD pricing as well - so I was curious how the hotel would handle this. I use an Amex for Hilton stays, so there is no danger of DCC. The reception took a preauth of 1,000 USD. Prices at the hotel restaurant and bar were denominated in MXN. Upon checkout, I was presented a bill with all charges presented in MXN, but the credit card slip was in USD. The curious thing was that the exchange rate was 22 MXN = 1 USD, which is more favorable that the current rate by 4-5%. I confirmed that the room charge & taxes matched the price at the time of booking in USD at a 22-to-1 exchange rate. I wonder who set that rate, and, if one presented a MXN denominated card would the preauth and final charge be in pesos? I did see a label on the terminal that said USD/MXN.

While this isn't quite an example of DCC, it is a currency conversion process that I hadn't seen before. The closest recent example I could remember is Aruba, but even that isn't an exact analog. The hotels there denominate everything, including the bill, in USD, so I imagine one would never see the AWG price unless paying in AWG.

Originally Posted by rasheed

I've seen this at other resorts in Mexico where their internal exchange rate was favorable. It just really means they overprice all their MXN listed items.