Taken from Forbes
Like bell-bottom jeans and flip phones, travel trends often come and go, but never in exactly the same way as before. All-inclusive resorts are currently enjoying a huge surge in popularity, minus the mediocre buffets, low-quality piña coladas, and cheesy entertainment of decades past.
This new wave of all-inclusive resorts is all about luxury and offers a wealth of attractions, from gourmet à la carte dining to personal butler service and unique, high-end experiences. Notably, many of these properties are being launched by luxury hospitality brands entering the all-inclusive market for the first time.
Attribute it to a post-pandemic shift in consumer mindset, driven by soaring travel demand coupled with widespread decision fatigue. “People aren’t really looking for surprises when it comes to what’s included,” says Brian King, president of Marriott International’s Caribbean and Latin America region. “They just want to go and discover, enjoy, and really want to pay once and be done with it.” While all-inclusive isn’t a new segment, he continues, “I think the trends have changed quite dramatically.”.
In past decades, many all-inclusive resorts were flytraps, designed to keep guests on the property. In 2023, King says, guests “want to go beyond the gate” and are looking for a quasi-concierge service built around curated, designed experiences. These vacationers want fabulous options, but they never want to feel overly programmed.
King calls the formula “E squared,” as in Entertainment x Education. At the Westin in Costa Rica, for example, guests can play golf on a course designed by Robert Trent Jones II, discover wildlife in national parks in an ATV or on a canopy tour. There are also Spanish learning sessions, cooking demonstrations, cocktail tastings, and tai chi and yoga classes. “We’re creating these events that have to be both entertaining and educational,” King says. “When you get the ‘E squared,’ you’ve won the consumer.”.
ALL-INCLUSIVE MARRIOTT
CREMA OF THE CAP: The new adults-only Sanctuary Cap Cana in the Dominican Republic is a jewel in Marriott's all-inclusive crown.
Last year, Marriott, the world’s largest hotel company, posted $21 billion in revenue, a 50% increase over 2021. Marriott CEO Anthony Capuano has noted that the all-inclusive segment is a key growth area for the company, with many of Marriott’s luxury brands entering the all-inclusive space. “We’re working on our first Ritz-Carlton all-inclusive offering. We’re very excited about that,” says King, pointing to the success of the Ritz-Carlton Yacht, with one luxury vessel launched in 2021 and a second in 2024.
“We’re also putting W into the all-inclusive space, and that will be an adults-only playground,” King says of the first all-inclusive W Hotel. It’s slated to open in 2025 in the Dominican Republic with 349 rooms and suites, eleven restaurants and bars, three pools, and a spa. “We also have our Westin that we opened last year in Brazil, which has been a huge success as a family all-inclusive.”.
It would be easy to credit Marriott's all-inclusive success as a brilliant post-pandemic pivot. But the planning actually began long before Covid hit, when company executives recognized that their leisure business was growing faster than other segments. As part of Marriott's 2016 merger with Starwood Hotels, it inherited what was then Westin's only all-inclusive resort, the Westin Golf Resort & Spa, Playa Conchal in Costa Rica. The resort subsequently became a training ground for Marriott to hone its all-inclusive expertise. With the introduction of new properties, Marriott is in the enviable position to leverage its Marriott Bonvoy loyalty program, which boasts a staggering 177 million members.
Travel consultants say the industry's major shift is impossible to ignore. “In a three-year window, Marriott went from having one all-inclusive to 30, with more in the pipeline,” says Cory Hagopian, senior vice president of sales and partnerships at Virtuoso, the world’s largest luxury travel network. He adds that French hotel giant Accor plans to quadruple the number of all-inclusive Rixos properties in its portfolio.
Hardly a month goes by without a luxury giant partnering with an all-inclusive brand. Late last year, InterContinental Hotels announced a long-term agreement with Spain's Iberostar Hotels & Resorts, adding some 70 all-inclusive hotels to IHG. Hilton now operates a dozen all-inclusive properties, including the 735-room Hilton Tulum Riviera Maya, the company's largest resort in the Caribbean.
And then there's Hyatt, whose acquisition of Apple Leisure Group for $2.7 billion in 2021 made it the world's largest luxury all-inclusive operator, now spread across nine brands with more than 120 resorts in 40 beachfront destinations and 11 countries.
By the end of 2023, Hyatt's Inclusive Collection will include more than 45 resorts in Mexico alone. Upcoming openings in Mexico include intimate, adults-only hideaways like Secrets Tulum Resort & Beach Club, as well as the family-friendly Dreams Estrella Del Mar Mazatlán, a resort featuring a water park, lazy river, multiple pools, and 350 suites, each with views of the Pacific Ocean.
“Growing our all-inclusive brand footprint with intention is central to Hyatt’s commitment to delivering new luxury travel experiences,” says Erica Doyne, senior vice president of marketing for the company’s all-inclusive portfolio. “We plan to open five Inclusive Collection resorts in Mexico and the Caribbean this year, as well as five additional properties in Bulgaria.” Also on the slate is the highly anticipated debut of the luxury Dreams brand in Portugal, with Dreams Madeira Resort Spa & Marina opening in early 2024.
HYATT ALL INCLUSIVE
While Mexico, the Caribbean, and Latin America are “the breadbasket of all-inclusive,” says Marriott’s King, Europe is not far behind. “And eventually, I see all-inclusive expanding globally in Asia as well. So this is a global trend, there’s no doubt about it.”.
Doyne sees all-inclusive as a potentially significant growth driver for Hyatt in Europe. “With 46 all-inclusive European resorts in the Inclusive Collection portfolio, we currently offer resorts in Spain and Greece, with Bulgaria and Portugal expected to follow soon,” he says.
Hagopian believes that global economic conditions are also contributing to the all-inclusive boom, noting that the 2008 recession also accelerated the attraction of affluent travelers to the all-inclusive segment. “More high-end consumers were willing to experience all-inclusive resorts,” he says. “Today, there is a new set of consumer priorities centered around connection, wellness, and authenticity. All-inclusive resorts must cater to these new priorities, moving beyond the original model that was more focused on convenience and budget.”.
To see their point, look no further than Club Med, a pioneer of the all-inclusive concept in the 1950s, which has just announced a “completely refreshed and modernized brand identity” called L’Esprit Libre (The Free Spirit) that promises a premium guest experience. Club Med’s expansion includes the launch of its Exclusive Collection portfolio of resorts, villas, chalets, and even a five-star yacht, “taking luxury to the next level, from artfully crafted individual dishes to larger, highly designed multi-bedroom suites.”.
The rebranding comes at the perfect time, says Kevin Armstrong, senior director of brand and communications for Club Med North America and the Caribbean. “Club Med is redefining the all-inclusive resort market by offering exclusive, premium vacations and happiness, as travelers are hungry for happiness right now.”.
After all, unlike flared jeans, happiness will never go out of style.
