Perhaps, but only if you don't ask the question in a public forum.
Because now everyone is going to start a website like that!

I think everyone already has. ;)

The travel space isn't easy and it seems like the inventory must be spread very thin across many websites in certain sectors.

Is it vacation time?

It is no easier or more difficult than any other websites. Travel websites can perform well like any other site as long as you have good content and traffic.

Do you know anything unique and relevant about Acapulco/wherever or are you just going to Plagiarise?

Plagiarise?

BIG scary word.

Plagiarise?

BIG scary word.

Big scary duplicate penalty:-))

Do you know anything unique and relevant about Acapulco/wherever

If you do, you can make money in that sector. But you have to offer something that no-one else does.

Little vertical niches can work very well here...

Travel sites can do very well, but travel is an extremely competitive category that has attracted major corporate players in addition to mom-and-pop sites.

Also, if you're depending on search for traffic, you'll be competing against not only against corporate megasites like Yahoo Travel and TripAdvisor, but also against tourist offices (a.k.a. convention and visitors bureaus) and established independent sites that have been around for years.

I'd guess that it's still possible to establish a presence in the travel category with limited resources, but it's probably easier to do in niches that bigger or more established players aren't serving. If you do decide to go with a big-name topic that's already being mined by others, you'll need to find a unique angle and/or style, and you'll need to develop a substantial body of useful content to become visible in a crowded landscape.

I set up an information site on my local area a while back. The reason being that I wanted to diversify, and I do know a lot about the local area.

I would say that the earnings were OK, but the problem is getting noticed in the first place. There are a lot of people in the travel arena, and I think your site would need to offer something different to get noticed. Just cobbling together bits and pieces from other sites isn't enough.

I know the travel site can earn high eCPM from adsense. Check Sitepoint for couple of travel sites for sale now and you will get an ideal of how much you can earn from travel related web site.

I know the travel site can earn high eCPM from adsense.

Depends on the keyword or keyphrase (or, in a broader sense, the topic). Ads for New York luxury hotels are likely to pay better than ads for motels in Cornhusk, Iowa, all other things being equal.

But EPC and eCPM are only a small part of the story. To earn good revenues, you need traffic--preferably from readers who are researching ways to spend their money. That's where the going gets tough. Anybody can pick out high-value keywords and put together a site; the real challenge is in building an audience.

I do okay with my travel sites. I think the secret is: unique content, and a real interest in the content. I have a site on some travel spots that I regularly visit, so I have my own spin on things. Plus I am enthusiastic because I really love the places I write about.

I don't think I'll ever compete with the big travel sites, but there's a "home grown" flavor to sites like mine which have their own appeal.

I'm BACK! Well I've created 3 Wordpress blogs over the past 2 months. Each one is generating 1,000 - 5,000 unique hits per day and $20 - $100 per day in Adsense Revenue. I am really good at SEO (thats my job). I was only wondering if this was a higher paying keyword. I know on Keyword Research Search Statistics pages that you can find that Carmen Electra is search 60,000 times per day but her Adsense ads pay about 1 - 4 cents a click. Sites on Marketing such as my blog with 5,000 daily uniques generated 1 - 3$ per click.

The weird thing is I've heard Vacation hot spots pay higher (the ads would be related to cruises and hotels, higher priced items).

I've found the vacation sector to be very worth while. There are many 'out of the way' and 'behind the times' places that people like to vacation in. The people in live in those places don't always have the skills to create a good website about the area, so there are plenty of niches you can go into if you have the knowledge to create a very good site ( and they have to be good, not amateur ). Even if you live in a completely different country to where the resort is, it's possible. Often the official government tourist authorities can provide royalty free photographs for you to use and information.

your idea sounds a little bit like 'easy-making-money-scheme-with-adsense' (unless you really know a lot about the certain region, Acapulco)

As many times stated on this board... content, content and again content...

keep this in mind: you can have a good earning website with little SEO integrated, but very high quality content, but a site that's fully SEO standard with minor or bad quality content will very rarely have good earnings

i was wondering if i start a blog on a top vacation [...] would that bring me higher rankings and high PPR rates?

PPL looking for travel sites have their pockets full of money, ready to spend :)