Search Travel Market Report

mainlogo
www.travelmarketreport.com
  • News
  • Tours & Packages
  • Cruise
  • Hotels & Resorts
  • Destinations
  • Retail Strategies
  • Niche & Luxury
  • Well-Being Travel
  • Training & Events
  • Who We Are
    • Anne Marie Moebes
    • Brian Israel
    • Dan McCarthy
    • Denise Caiazzo
    • Dori Saltzman
    • Kelly Fontenelle
Sponsored By ALG
Sponsored By ALG

Include Me In: All-Inclusives Are Hotter Than Ever

by Marilee Crocker / February 13, 2017


Travel agency owner Dave Cook couldn’t be happier about what he sees happening with all-inclusive resorts. The product just keeps getting better; the market continues to expand, and now a growing number of companies are investing in the sector.

“We’re very excited about where we see all-inclusives headed,” said Cook, who with his wife Kim Cook co-owns Love to Travel, a storefront agency in Overland Park, KS.

What’s not to like? At Love to Travel, where all-inclusive resort vacations account for nearly 90% of business, sales volume was up by high double digits last year. And this year sales are already outpacing 2016, Cook said.

The Cooks aren’t the only ones placing their bets on all-inclusive resorts.

Getting in on the action
In December, two private equity firms inked agreements to invest in all-inclusives. In deals expected to close this quarter, TPG’s Pace Holding Corp. will combine with Playa Hotels & Resorts, a move that will inject $500 million in fresh capital into the all-inclusive brand, and KLS Capital Partners and KKR are acquiring AMResorts’ parent company, Apple Leisure Group.

Traditional hotel companies are seeing the promise of all-inclusive resorts as well. In 2013, Hyatt teamed up with Playa Hotels & Resorts in a $325 million deal that included Playa re-launching six of its all-inclusives as Hyatt Zilara and Hyatt Ziva properties.

Now Marriott is dipping its toes in the waters with its new Marriott Inclusive Vacation packages, available at selected properties in Mexico, the Caribbean and Costa Rica. And just this month Margaritaville Holdings and all-inclusive resort company Karisma Hotels & Resorts announced a plan to develop and operate a co-branded product called Margaritaville, an All-Inclusive Experience by Karisma.

Suppliers and agents said they expect more new players to jump onboard in coming years, leading to continued enhancements of a travel product that has long since outgrown its clichéd Club Med roots.

“I think you’ll see new investors––some major players, [including] traditional resort chains. From a consumer standpoint, it’s going to raise the bar,” said Kevin Froemming, executive vice president and chief marketing officer of Playa Hotels & Resorts.

Sandals Resorts chairman and founder Gordon “Butch” Stewart likewise predicted “more entrants, which means more competition and therefore better opportunities for travelers.”

Expanding fast
The all-inclusive sector has already been expanding at a rapid clip. “The growth of the all-inclusive sector has been truly impressive, especially over the past few years,” said Alez Zozaya, CEO of Apple Leisure Group. Zozaya noted that within the Caribbean alone there are now more than 250 all-inclusive resorts spread over 20-plus islands.

AMResorts was on an aggressive expansion trajectory even before the announcement that its parent, Apple Leisure Group, was being purchased. Fourteen AMResorts properties are currently under development, and by 2019, the company will have 68 resorts in Mexico, the Caribbean, the Bahamas and Central America, Zozaya said.

At Playa Hotels & Resorts, an infusion of cash from new owner TPG will allow the company to continue to grow, only faster, Froemming said. “It gives us the ability to do projects and continue to move forward.”

Branding for adventure
For the immediate future, Playa Hotels & Resorts is focused on a new partnership with lifestyle brand Panama Jack, announced in early January. The move, which begins with the re-branding of Playa’s Gran Caribe Resort in Cancun and Gran Porto Resort in Playa del Carmen, is a bid to differentiate the company in the “four-star lifestyle, escape, adventure area,” Froemming said.

Playa plans to expand its new Panama Jack brand via new-builds, conversions and new management agreements in Caribbean destinations such as Punta Cana, Jamaica, St. Lucia and Antigua and in Mexican destinations such as Los Cabos, Puerto Vallarta and the Mayan Riviera, Froemming said.

Back at Love to Travel, Dave Cook said he was pleased about private equity acquisitions in the all-inclusive sector, because they will allow companies like Playa and AMResorts to invest more in the product––“whether it’s dining options, top-level service, top-shelf alcohol, amazing rooms, more elaborate spas or the activities you have to choose from.”

At Sandals, Stewart expressed unbridled confidence in the outlook for all-inclusives. “The future of all-inclusive resorts this year and forward is assured. Demand across all market segments for the concept shows no signs of slowing down.”

Next time: As all-inclusives evolve, so does their clientele.

  1
  0
Related Articles
New Advisor Hits $1.5 Million in Yearly Sales, But at What Cost?
How to Advance More Women Into Leadership: Lessons From Fox World Travel
Playa Hotels & Marriott Partner on Punta Cana All-Inclusive
Why Facebook Groups Are So Important for Travel Advisors
Supplier VP Joins Ranks of Travel Advisors, a Long-Held Dream
How to Keep Your ICs Engaged & Productive
How One Advisor Earned $100,000 on a Group Cruise (& How You Can Too)
Silversea Launches New Slimmed Down All-Inclusive Fare
11 Tips for Growing Active-Adventure Sales
Best Career Advice Ever, From Six Powerful Women in Travel

MOST VIEWED

  1. Why Travel Advisors Need to Learn to Say No to New Business
  2. U.S. Passport Renewal Processing Time Now 8 to 11 Weeks
  3. Government of Canada Updates Its Mexico Travel Advisory
  4. U.S. Passport Renewal Waiting Time Could Soon Get Even Worse
  5. European Union Delays Launch of ETIAS Until At Least 2024
  6. Here’s What the U.S. and Canada Are Saying About Travel and Crime in Mexico

MOST EMAILED

  1. U.S. Passport Renewal Processing Time Now 8 to 11 Weeks
  2. U.S. Passport Renewal Waiting Time Could Soon Get Even Worse
  3. Why Travel Advisors Need to Learn to Say No to New Business
  4. European Union Delays Launch of ETIAS Until At Least 2024
  5. What Travel Advisors Need to Know about the Florida Seller of Travel License
  6. 9 Travel-Advisor Friendly Paris Boutique Hotels to Know About
TMR THIS WEEK
Sponsored by Explora Journeys
//services.travelsavers.com/AMGService.svc/REST/GetImage?ImageID=78f79d51-15c7-ed11-b00b-005056a8720b&Width=350&Height&250

All About Culinary Immersion at Sea

Travel advisors can help their foodie clients enjoy true immersion experiences by booking them on culinary-focused cruises.

Read More...
TMR Subscription

Subscribe today to receive daily in-depth coverage, analysis of industry news, trends and issues that affect how you do business. Subscribe now for free.

Subscribe to TMR

Top Stories
Avanti Adds Tenerife as New FIT Destination
Avanti Adds Tenerife as New FIT Destination

A trip to this largest of the Canary Islands can easily be combined with travel to Spain or Portugal. 

Read...
Transat Implements Call Center Fee for Travel Advisors
Transat Implements Call Center Fee for Travel Advisors

The fee is for tasks that advisors can do themselves online. 

Read...
The Travel Corporation Names New President of Destination America
The Travel Corporation Names New President of Destination America

TTC has named Kirsten Bain, the former vice president of Contiki Operations, USA, as the new president of Destination America. 

Read...
Tauck Boosts Small Group Land Departures in 2023
Tauck Boosts Small Group Land Departures in 2023

Tauck's 2023 schedule boosts small group departures by 35% over pre-pandemic levels.

Read...
G Adventures Is Returning to Peru
G Adventures Is Returning to Peru

Anti-government protests rocked Peru earlier this month. 

Read...
Getting Started Designing Tailor-Made Groups
Getting Started Designing Tailor-Made Groups

Most any travel supplier will advocate group travel as one of the best ways for advisors to increase their business. 

Read...
TMR OUTLOOKS & WHITE PAPERS
river cruise 2022
group outlook 2022
lux cruise outlook
CP White Paper
Multi-Gen Outlook
River Cruise Outlook 2019
View All
Advertiser's Voice
https://img.youtube.com/vi/BDz_-mzUmZA/0.jpg
Meet South Africa with Your Local Guides
About Travel Market Report Mission Staff Advisory Board Advertise
TMR Resources Webinars Calendar of Events Outlook/Whitepapers Previous Sponsored Articles Previous This Week Articles
Subscribe to TMR
Select Language
Do You Have an Idea Email
editor@travelmarketreport.com
Give Us a Call
1-(516) 730-3097
Drop Us a Note
Travel Market Report
71 Audrey Ave, Oyster Bay, NY 11771
News |Tours & Packages |Cruise |Hotels & Resorts |Destinations |Retail Strategies |Niche & Luxury |Well-Being Travel |Training & Events |Who We Are
© 2005 - 2023 Travel Market Report, an American Marketing Group Inc. Company All Rights Reserved | 243 South Street, Oyster Bay, NY, 11771 USA | Telephone (516) 730-3097| Terms and Conditions
Cookie Policy Privacy Policy