All-Inclusive Resorts on the Rise

With a growing number of all-inclusive resorts and mainstream hotel chains getting into the act, the expanding market for all-inclusive resort vacations is one agents should pay attention to if they’re not already doing so.

Fully 12% of U.S. travelers booked an all-inclusive vacation last year, according to Douglas Quinby, vice president, research for PhoCusWright.

While that number has been fairly steady over the last three years, travel sellers and suppliers anticipate growth with each new generation of travelers.

“My generation knew the European plan and that was just a hotel,” said Tom Carr, owner and president of All Inclusive Outlet, who has been selling the niche since 1998.

“Now kids are coming out of school and they’re going on a honeymoon to an all-inclusive resort. Couples now cut their teeth on all-inclusives. As they evolve in their careers and accumulate wealth they’ll want all-inclusives.”

A changing product
The all-inclusive resort product has evolved dramatically from the rustic Club Meds Villages of a half century ago to encompass a staggering variety of options ranging from moderately priced to ultra-deluxe.

In some destinations all-inclusives are practically the norm, especially in certain Mexico resort areas as well as a few Caribbean islands like Jamaica where Sandals pioneered the concept.

According to the Cancun Hotel Association, as reported in Forbes magazine, all-inclusive hotel rooms make up nearly two-thirds of the total room count in the Cancun area.

Hyatt gets in the game
In addition to all-inclusive brands, a growing number of major hotel groups are either adding all-inclusive resorts to their product lines or testing the waters with inclusive programs at existing properties.

Hyatt has embraced the concept in a move to expand its presence in Mexico and the Caribbean.

The lodging company has introduced two new all-inclusive brands – Hyatt Ziva and the adults-only Hyatt Zilara – debuting both brands in Mexico where the Hyatt Ziva Los Cabos and the Hyatt Zilara Cancun opened late last year.

In Jamaica the Hyatt Ziva Rose Hall, formerly the Ritz Carlton Golf Resort & Spa, Rose Hall, will open later this year after a multimillion dollar renovation.

“By entering the all-inclusive segment, we immediately increase Hyatt’s presence in key resort markets,” said Chris Walker, vice president brand experience for Hyatt Ziva and Hyatt Zilara. “Hyatt Ziva and Hyatt Zilara will provide a platform for future growth.”

Other entrants
Hard Rock launched its first all-inclusive four years ago. The company now has four hotels in Mexico and the Caribbean with plans to open two more later this year.

Other hotel companies have added all-inclusive options. Marriott, for example, offers Inclusive Vacations by Marriott at hotels in Mexico, the Caribbean and Costa Rica.

Fairmont and Four Seasons have also begun to offer an all-inclusive product.

New directions
Meanwhile, traditional all-inclusive resort companies are expanding their scope.

Take Sandals, the original couples-only all inclusive. The resort company is focusing its expansion, including product enhancement and new properties, on its family-oriented Beaches brand, said Gary Sadler, the company’s senior vice president of sales.

“It’s not about the parents at Beaches; it’s all about the kids,” Sadler said. “That is why we added the Sesame Street program and teen center and Club Liquid [an under 21 nightclub].”

New Beaches resorts are scheduled to open in Barbados and Antigua next year.

Multiple brands
Another player, Apple Leisure Group’s AMResorts, is also expanding. Agents can expect to see more of its six brands in the future.

These brands include the new luxury adults-only Breathless brand which will open the Breathless Riviera Maya, its second hotel, in December 2015 will open its second hotel; the Breathless Riviera Maya.

AMResorts is also going into Panama with a new hotel under its Dreams brand scheduled to open in 2016.

The original all-inclusive
Club Med, the old-timer in the game, is focusing its U.S. marketing efforts on ski resorts and exotic cultural destinations.

“We have 71 resorts globally and we focus on 30 of those for the U.S. market,” said Patrick Mitchell, Club Med’s vice president of sales, U.S.

“Within those 30 are eight ski resorts as well as some iconic destinations like Bali, Phuket and Marrakech.”

Agents can expect to see continued growth of all-inclusive products as more companies enter the market.

“As the customer demands it, more and more destinations will provide an all-inclusive experience,” said the All Inclusive Outlet’s Carr.

Next time: Inclusive resorts are a profitable alternative for cruise-selling agents.