The Increased Value of All-Inclusive Resorts — and How Travel Advisors Benefit

As travel costs continue to rise in various segments, the all-inclusive hotel concept is proving to be an especially appealing option, according to some experts.

Cost concerns, in fact, drive a sizeable percentage of travelers to choose all-inclusive hotels, according to a recent study in TravelAge West’s “Need to Know” research series. The study found that 77% of travel advisors report that “most” or “some” of their clients have opted for an all-inclusive vacation to better manage costs.

Similarly, 82% of agent respondents said that budget is one of the first topics discussed during the booking process.

Hotel costs are also affecting where people vacation, according to the U.S. Consumer Travel Report 2024: Lodging by Phocuswright, which found that 22% of travelers are influenced by the price of accommodations during the destination selection process.

These recent findings seem to give all-inclusive hoteliers a competitive advantage, especially as they continue to diversify and upgrade their offerings to appeal to a wider variety of travelers. 

Travel advisors, meanwhile, praise the selling points of the all-inclusive concept, while stressing the need for continued education among the traveling public.

The Cost Advantage of All-Inclusive Resorts

The general premise of the all-inclusive concept — pay one price for room, food, drinks and activities — makes it easy to understand why these hotels are popular with many budget-conscious travelers. That’s especially true for those headed to major beach destinations, where such properties often dominate the landscape. 

“All-inclusive resorts are an attractive option for travelers looking to control their budgets,” John Maddox, owner and travel expert at Tropical Getaways, a NEST affiliate in Hernando, MS. “Travelers can leave their wallets in the safe and know how much something truly costs before leaving home. Of course there are extras, but those seem to be much less frequent at all-inclusives than cruises and other forms of accommodation, like vacation rentals.”

Theresa Bailey, owner of Inspire More Travel, a NEST affiliate in Auburndale, FL, agrees about the client-pleasing aspects of hotels in this category. “Choosing an all-inclusive allows travelers to see little to no out-of-pocket expenses once they have arrived,” she said. “Most vacation packages allow payments in installments, making it even easier to budget up front for the entire vacation.”

The cost predictability of all-inclusive hotels can even make them competitive with domestic vacations, according to Bailey. “Travelers are often pleasantly surprised to see all-inclusive resort pricing isn't that far out of line with their week-long summer vacation to a drivable beach destination,” she explained. “Often, they will save money because the rental only includes the house rental itself, whereas all-inclusive resorts cover all your meals.”

Who’s Booking All-Inclusive Hotels

Heather Nelson, VP of partner relations, Hotel at Ensemble, says the demographics of typical all-inclusive guests has diversified greatly. “It could be anyone from couples to multigenerational families, to families with kids,” she said. Ensemble’s own hotel program confirms the growth of this market; the company has witnessed a 42% surge year-over-year in the number of all-inclusive properties joining its program.

Bailey, too, reports an uptick in multi-generational travel bookings. “A lot of families are looking to replace gifts with experiences and spending quality time together,” she said. “Family-focused all-inclusive resorts offer a variety of on-site activities that are great for all ages.”

All-inclusive hotels are also ideal for destination weddings, family reunions, and luxury travel, thanks to the decidedly elevated offerings at many hotels. “With high-end accommodations, premium dining options and amenities like spas and private beaches, guests can enjoy a luxurious experience without having to plan each expense individually,” Bailey said.

Oyuki Brito, RIU Hotels & Resorts junior manager, Romance USA & Canada, emphasized that all-inclusive weddings are a strong market segment. “The increased value of a destination wedding — in Los Cabos for instance — could not be more attractive. Wedding couples are making unforgettable memories with packages such as RIU's Indulgence Wedding Collection that includes a 6-hour wedding event, plus a first anniversary return stay at an unbeatable value.”

Educating Clients

Despite the popularity of all-inclusive hotels, some travelers still have misperceptions about the concept — which makes education key to increasing sales, according to Nelson. “This is really where the value of a good advisor comes in,” she said. “There are probably clients that don't like all inclusives [and say], ‘no, thank you, I'm not standing in a buffet line.’ An advisor can coach and educate them about what the experience really looks like.”

Bailey echoes this sentiment. “A big misconception travelers have about all-inclusive resorts is that they are all created equal,” she said. “There are so many different types of resorts —from adults-only to family-friendly to wellness-focused to party-centric. It’s the role of the travel advisor to assist their client in finding the best fit.”
Maddox also points to the persistent notion that all-inclusives are either party scenes or romance-only properties. “It’s our job as advisors to learn what the resorts offer in terms of vibe — even differences among resorts within the same company,” he said. 

Educating clients about the differences between the all-inclusive concept at hotels vs. cruises is also helpful, according to Bailey. “Travelers often don't understand how other types of vacations will have them spending more,” she said. “For instance, most ocean cruises have a low buy-in rate to get on the ship and eat at certain places. Once you are on the cruise itself, there are additional costs for specialty restaurants, drink packages and certain activities. When you're looking at cruise all-inclusive versus resort all-inclusive, you have to be sure you're comparing apples to apples.”