All-inclusive resorts have become all pervasive. Major brands have lined up and made significant investments in the segment, with the properties becoming more diversified by region, by price category and by market appeal.
It has been a long road to get to this point. Scott Berman, a longtime hospitality consultant who is now an independent board director, has worked with all-inclusive operators for decades. As he tells it, it was Club Med that pioneered the category with its small “clubs” around ski resorts going back to the late 1950s.
With the coming of Sandals and SuperClubs in the 1980s, Berman continued, upscale all inclusives in Jamaica impressed developers with higher margins than traditional resorts and economics that were easier to forecast. That drove expansion elsewhere in the Caribbean and, ultimately, Mexico.
An inflection point occurred in 2021, according to Alejandro Rodriguez del Peon, VP of marketing and public relations at Blue Diamond Resorts. It was in that year that Marriott International and Blue Diamond announced a partnership, showcasing the strength of collaboration to drive immediate market presence. Shortly after, Hyatt Hotels Corp. acquired Apple Leisure Group, bringing several established all-inclusive brands into its portfolio. Hilton followed suit by establishing its own all-inclusive division, underscoring the potential for growth through internal brand creation.
Adam Stewart, executive chairman of Sandals International and the son of Gordon (Butch) Stewart, the company’s pioneering founder, said that Sandals “is proud to have played an instrumental role in elevating the all-inclusive experience.” Sandals, an originator in the space, helped pave the way for many of hospitality’s most well-known brands to enter this space with confidence.
“Over the last few years alone, we have seen such an increase in demand for the concept,” Stewart said. “It’s mostly because people are busier than ever and their expectations have grown. They want quality, stress-free planning and a worry-free vacation.”
LOYALTY TRIUMPHS
Major hotel brands are synonymous with their loyalty programs and needed to “fill more dots on the map” with beach resorts,” Berman reasoned. Fast forward a few years and all the major brands now have all-inclusive partners. “Hyatt purchasing ALG was a courageous and brilliant acquisition and everybody took notice,” Berman said.
That sentiment resonates with Javier Coll, global head of growth for Hyatt’s Inclusive Collection. “At the end of the day, it’s about our loyalty program,” he said. “[Members] demand that our brands be in certain markets and that is a main driver for us to grow in certain destinations.”
Blue Diamond’s partnership with Marriott, said Rodriguez del Peon, “has been transformative, allowing guests to redeem points earned from their travels worldwide and enjoy an array of additional perks based on their Marriott Bonvoy status while staying with us.”
Though Sandals is not part of an umbrella brand, its Sandals Select Rewards Program is a major factor in creating a return guest rate of more than 50%.
MORE UPSCALE, MORE DIVERSE
What started as a bare-bones concept, stereotypically portrayed as offering buffet meals and desultory amenities, has moved increasingly into the four- and five-star realm. At Hilton, said Nicole Tilzer, VP of all-inclusive and resort strategy, select properties offer an elevated room category known as Enclave. It includes additional benefits, such as exclusive lounge access, dedicated concierge services, private pool access and more.
In 2024, Sandals launched Sandals Saint Vincent and the Grenadines, designed as “the ultimate romantic retreat.” It offers Sandals’ first-ever Two-Story Overwater Villas.
At Sandals Royal Curaçao and Sandals Royal Bahamian, guests are given the keys to a personal Mini Cooper and receive dining credit through an Island Exclusive program to off-site restaurant partners, countering the view of some that all-inclusives limit appreciation of a destination.
Luxury, naturally, produces higher expenses, and though all inclusives can have solid margins where costs are lower, there are ways to compensate when they become higher. Operators, Coll said, require a more robust property management system when running an all-inclusive because the product is extremely intensive operationally. Managers, he said, are dealing with many more restaurants and ongoing entertainment, with multiple services utilized 100% of the time.
On the positive side, said Rodriguez del Peon, opportunities for additional revenue are abundant, especially through premium experiences within the property, such as spa treatments and upgraded accommodations. “These suite categories are more than just upgraded rooms,” he said, offering an elevated experience with things like personalized amenities, a private butler, premium in-room service and access to exclusive areas within the resort.
Julienne Smith, chief development officer, Americas, IHG Hotels & Resorts, agreed that all-inclusive resorts often present additional revenue opportunities by attracting longer guest stays and through onsite activities, such as golf and spa services that command supplemental charges. All-inclusive resorts, she said, “also rely heavily on menu planning and data-driven food consumption projections, helping maintain profitability while delivering an enhanced guest experience.”
Corporate travel planners and meeting planners have also taken notice of the all-inclusive phenomenon. With the rise of remote work, Hilton has seen a surge in group bookings, signaling an increase in the number of smaller meetings, off-site team gatherings and incentive travel in 2024, which is only anticipated to strengthen in 2025.
All-inclusive resorts, Smith continued, appeal to corporate clients by offering meetings and events spaces. Many of these properties, she said, are equipped with convention centers, advanced technology, dedicated event planning services and comprehensive food and beverage options, making them attractive destinations for business gatherings, leisure stays and those seeking a little of both.
PARTNERSHIPS PREVAIL
Though major brands have jumped into the all-inclusive space, most have done so with experienced partners. For example, Kimpton’s first all-inclusive in Mexico, Kimpton Tres Rios, in Playa del Carmen, which opens this year, will be operated by Playa Hotels & Resorts. And these partnerships are not exclusive: Playa currently owns and/or manages properties under flags from Hyatt, Hilton, Wyndham Hotels & Resorts, Tapestry Collection by Hilton, Kimpton, The Luxury Collection and others.
And while Kimpton is an IHG Hotels & Resorts brand, the company also has a strategic alliance with Iberostar, with the Iberostar Beachfront Resorts brand now part of IHG’s portfolio. According to Smith, the collaboration spans 23 all-inclusive resorts across the Americas and nine in Europe and North Africa. More are in the pipeline. Recently, Hyatt announced plans for affiliates of Hyatt and Grupo Piñero to enter into a long-term asset-light strategic joint venture to be headquartered in Palma de Mallorca, Spain, and manage Bahia Principe-branded hotels and resorts and own the Bahia Principe brand. Bahia Principe Hotels & Resorts is expected to join the World of Hyatt loyalty program at a later date.
The tie-up will expand Hyatt’s Inclusive Collection room portfolio by approximately 30%, Hyatt said.
Most recently, SLS, part of Accor’s Ennismore group, opened its first all-inclusive in November 2024. The SLS Playa Mujeres in Mexico features 18 dining venues, a 20,000-square-foot spa, five pools and a Greg Norman-designed golf course.
GOING GLOBAL
Once thought to be limited to Jamaica, then the Caribbean, then Mexico, all-inclusive operators are now looking globally. “We don’t have any all-inclusives hotels in Asia yet and we don’t have any in the Middle East,” said Coll, “so it makes sense for us to look at those destinations. There are many good opportunities. My expectation is for Asia this year and maybe the following year in the Middle East. If we convert [properties], it could be as soon as this year for both.”
Even with the global outlook, said Berman, it is wise for operators to continue to grow in the Americas for reasons of economics and demand. “When you think about the population base in the Northeast, it’s three hours from takeoff to touchdown,” Berman said. “You can leave at eight in the morning and be on the beach at two with a piña colada in your hand.”
Aside from ever-more opulent luxury options, wellness is increasingly central to guest offerings, said Rodriguez del Peon, with resorts providing health-centered programs that support holistic relaxation and well-being. In addition, he said, family- and group-friendly activities, with curated programs for various age groups, illustrate the industry’s move toward more meaningful, diverse experiences.
All-inclusive resorts, concluded Rodriguez del Peon, “are set to lead the way in global travel over the next decade, especially as companies continue to innovate year after year. As the appeal of seamless, worry-free vacationing grows worldwide, travelers are looking for curated experiences that allow them to fully immerse themselves without managing every detail.”
Story contributed by Harvey Chipkin.
