Agents & All-Inclusives: Happily Mutually Dependent

by Harvey Chipkin August 27, 2015

This is the second of two stories on all-inclusives

As the all-inclusive resort segment enhances and expands its offering, especially on the luxury end, it wants––and needs––travel agents to sell its product.

“The best way to sell high-end all-inclusives is through agents,” said Kevin Froemming, chief marketing officer for Playa Hotels & Resorts, which is a partner with Hyatt in its luxury Ziva and Zilara brands.

That’s good news for agents, who can do very well by specializing in all-inclusive resorts.

Driving profits for agents
Robert Whorrall, vice president of sales and marketing for Beach Bum Vacation in Fishers, Ind., said his agency does a whopping 300-plus destination weddings a year, usually at all-inclusives.

Mark Comfort, co-owner of Cruise Holidays in Kansas City and its sister company Comfort Tours & Travel, credits all-inclusives with his agency’s recent success. “Last year was our best year for profits ever, and the reason is all-inclusives.

“We make so much more selling that product because the commission is paid on everything,” said Comfort.

While Comfort has specialized in cruises for many years, he got into all-inclusives in a big way after launching Comfort Tours & Travel. “In the years that my wife and I have been active and learning and building partnerships and experiencing all-inclusive resorts, we have probably seen 120 to 150 of them. We know what we are talking about.”

Today all-inclusives represent more than a third of Comfort’s business. His goal is to increase that to 50% in two years.

Tapping the market
Comfort sells all-inclusives through his radio show and through direct mail to a list of 32,000.

“We have a natural base of people with the financial wherewithal to do all-inclusives. People who have never heard of all-inclusives trust us and trust Hyatt, so they know their expectations will be met.”

Beach Bum Vacation markets mostly through social media, Whorrall said.

“Our approach is to leave a ‘hanger’ in there so people ask questions. We were at the Hyatt property in Jamaica and took a picture of the jerk shack on the beach but didn’t mention Hyatt. We got 30 comments in a few hours.”

All-inclusives require consultation
Whorrall said the 27 agents at Beach Bum Vacation “work consultatively” with agency clients. “We gain their trust and we know what they want.”

That’s especially important when selling all-inclusives.

“It can be tricky,” Whorrall said. “You can spend $10,000 on a resort and hate it, while the next person will love that same resort.

“It’s so individual. You have to ask a lot of questions: ‘How important are multiple restaurants? Is a buffet breakfast OK?’”

Advice for Hyatt
When Hyatt was entering the all-inclusives business, Whorrall said, “we met with them to talk about who’s doing what best out there.”

“We told them that people who go to all-inclusives want more value. We also told them we needed guaranteed connecting rooms for destination weddings in case the bride wanted to bring kids, so they created those.

“That’s what luxury is all about. It’s not about the loud guy with the megaphone playing ‘YMCA.’ It’s about paying close attention to ambiance.”

While his agency is a fan of Hyatt’s all-inclusive products, Whorrall said it will continue to sell other all-inclusives, “because you always want to match resort with client.”

“Also, we usually go with destination first and resort second.”

An improved product
Comfort said he hopes that Hyatt’s entry into the segment will attract new clients, both to Hyatt’s all-inclusives as well as to other and lesser-known brands.

“Hyatt is doing things nobody has done before, like a romance concierge who can help men set up a romantic evening. Other chains are definitely watching Hyatt’s moves,” Comfort said.

As it is, the all-inclusive product has improved greatly, he said. “All-inclusives have gotten so much better, especially the food. The amenities are also great, like spas, fitness centers, candlelight dinners.”