The history of all-inclusive travel dates back nearly 100 years: Holiday camps in the U.K. pioneered the idea in the 1930s, and in 1950, the first “modern” resort utilizing the approach opened in Spain (it was a destination with tents and straw huts)—with others soon to follow.
Over time, the reputation of all-inclusive resorts evolved into an option primarily for travelers seeking value—with many activities and dining options included, the model offered cost predictability and the opportunity to explore new experiences and different cuisines without risk. The ease of planning made the approach attractive as well, contributing to widespread popularity in spite of what some saw as limitations or trade-offs compared to traditional luxury resorts.
A Shift in Perception
Although all-inclusives still deliver immense value, during my nearly 20 years in the industry, I’ve seen the perception of these resorts gradually move toward the “luxury” end of the spectrum. The travel landscape is vastly different than it was even 10 years ago, and some of the earliest adopters of the all-inclusive model—particularly in Mexico and the Caribbean—have continuously enhanced their approach to meet the evolving needs and desires of today’s travelers. Even legacy hotel and resort brands are experimenting with more inclusive offerings, an indication that this is more than a passing trend.
Another fact that bodes well for all-inclusives over the long term? Younger generations seeking stress-free trips are largely behind the resurgence. According to the Unpack ’25 travel trends report from Hotels.com, 42% of Gen Z travelers say they prefer all-inclusive vacations.
Of course, the renewed popularity of all-inclusive travel doesn’t guarantee that every resort can succeed with the model. Thriving in this space requires a thoughtful approach, both in terms of what to deliver and what to avoid. Here are five key things I believe all-inclusive resorts absolutely have to get right going forward, along with three risks that warrant careful consideration.
Five Keys to All-Inclusive Success
1. Crafting Narratives, Not Just Itineraries
While it’s important to have a broad array of activities and offerings that appeal to different audiences, presenting guests with a laundry list of “stuff” just doesn’t feel inspiring or personal. Today’s travelers want curated, meaningful experiences that feel as if they were created with intention and aligned around a central theme (or themes, based on what individuals within each party seek).
A “Healing” path, for instance, could have recommended spa treatments paired with healthful meal options and wellness activities such as sunrise yoga. An “Exploring” package might include guided cultural tours in the region, artisan demonstrations, and other immersive offerings that satisfy the hunger for authenticity and perhaps even help travelers give back.
Resorts that excel in this space weave design-driven environments with low-stress, streamlined vacationing. Making it easy for travelers to plan is crucial—whether they’re doing it on their own or with the support of a pre-arrival or on-site concierge (which is the kind of personalized, thoughtful service that can add a high-end feel to the overall experience).
2. Delivering Gourmet Dining Experiences
Dining at all-inclusive resorts isn’t what it used to be. It’s better—far better.
All-inclusives have long offered a wealth of culinary options that typically include at least one outlet for upscale dining—but many properties today are incorporating ultra-premium experiences designed to attract audiences that want luxurious amenities while still feeling that they’re getting solid value.
That means any resort aiming to compete in this space needs to bring its A-game. The modern all-inclusive now features gourmet concepts that rival top urban dining, with offerings such as Michelin-starred restaurants, top-shelf beverage programs, and elevated journeys that draw upon local culture (and local ingredients). This includes theatrical dining experiences that integrate live performance and culinary artistry into the evening for an immersive, unforgettable spectacle.
3. Taking Advantage of “Set-Jetting” Trends
Travel tied to shooting locations for films and TV shows has evolved from a niche into a powerful driver of demand around the world. While this isn’t new (“The Sound of Music” helped put Austria on the tourism map in 1965), the trend has certainly grown—such as New Zealand with “The Lord of the Rings,” and “The White Lotus” in Hawaii, Italy, and Thailand. We’ve seen this here in Mexico, too: The James Bond film “Spectre” inspired a surge of international travel after highlighting Día de Muertos traditions.
Resorts fortunate enough to be in a setting with pop-culture cachet must take full advantage, designing packages and experiences that allow travelers to step into their favorite stories and bring familiar screen moments to life.
4. Embracing Multigenerational Travel
As multigenerational travel continues to grow in popularity, the ease of planning provided by all-inclusives is invaluable—and resorts that thoughtfully implement experiences across the age spectrum can capture a wide share of family business.
For instance, kids’ clubs allow parents to carve out time for more adult-focused pursuits, confident they aren’t just dropping the kids with a babysitter. While mom and dad have a day or night to themselves, the kids will be enjoying interactive programming, play-focused spaces, activities that reflect local culture, and more. Grandparents, meanwhile, can benefit from accessible activities and safe opportunities to explore, even if they have mobility limitations.
Features such as connected rooms, family suites, and shared gathering spaces also simplify logistics, allowing each generation to spend time together while still enjoying tailored experiences of their own.
5. Blending Luxury With Value
With more travelers seeking elevated experiences, luxury and value are no longer mutually exclusive: Many guests are willing to splurge, but they need to feel that they’re getting good bang for their buck along with premium touches.
Personalized planning and white-glove service both set an initial tone of luxury while reinforcing that the investment is worthwhile, but the offerings have to do the heavy lifting here. Private retreat-style packages, immersive cultural excursions, chef-driven culinary experiences, and world-class beverage options all can help create a sense that this isn’t the all-inclusive resort your grandparents went to in the 1980s—and that it’s a better value than the five-star hotel where everything is a la carte.
In fact, inclusions such as off-site adventure activities, wellness amenities, and fine dining can almost feel like bonuses, particularly for travelers who haven’t yet experienced the transformation of today’s all-inclusives.
Three Biggest Risks
1. Lack of Authenticity
Most travelers don’t want homogenized experiences, especially when they’re visiting an international destination—they want to be immersed in the differences between the destination and their city or country, learn about the culture and traditions, and perhaps even volunteer or find another way to contribute to the community.
Resorts that don’t weave local culture into their offerings risk delivering experiences that can leave visitors wondering why they left home in the first place, or why they chose to stay at that particular property.
Even if guests remain almost entirely on site, they should feel as if they have been transported—or at least have the opportunity to pursue authentic experiences, such as activities with local organizations, artisans, and others. Those are what build connections to a place and its people. Often, they also result in a desire to return.
2. Hidden Charges
An “all-inclusive” that doesn’t feel all that inclusive can erode guest confidence very quickly. I believe it’s far better for resorts to price more experiences in—even if it means raising the overall package cost—rather than risk guests feeling nickeled-and-dimed with additional fees every time they want to participate in a unique activity or have a special dinner.
Often, amenities such as fine-dining options have been treated as extras. Today, however, some resorts are beginning to include them, sometimes as part of an elevated package bundling specific activities and experiences that aren’t part of the standard all-inclusive offering.
Resorts don’t need to avoid upsell opportunities entirely; after all, some activities and offerings just aren’t practical to include with every stay. But they should come across as indulgent extras rather than essentials that belong in the standard package. One thing to keep in mind: Anything you upsell is essentially being positioned as a premium experience, so it absolutely needs to be on point to ensure customers feel it was worth the splurge.
3. Balancing Inclusivity With Individuality
While the perception of the all-inclusive category is clearly shifting from “budget” to “luxury,” it is incumbent upon individual properties to ensure that perception reflects reality. Everything from sustainability and plant-based menu offerings to curated cultural immersions, craft cocktails, and more sophistication in general is required for travelers to believe your property is part of the new breed of all-inclusive resorts, versus the homogenized, mid-range experiences of years gone by.
Room for Growth
Paying thoughtful attention to these opportunities and risks have helped my company, The Villa Group, build a thriving guest base that returns to our all-inclusive resorts again and again. But there’s still plenty of room to grow in this space. Continuing trends I’m seeing include hyper-personalization, sustainability, and tech-enhanced convenience.
For decades, all-inclusives have been the choice of travelers who want to get the most out of their vacation spending. Today, by infusing the experience with luxury while still preserving the long-cherished value proposition, many of these resorts are redefining the model and reframing perceptions. As this space continues to evolve, the all-inclusives that will thrive are the ones open to change, ready to adapt, and willing to invest—because there’s always something new around the corner.
Reprinted from the Hotel Business Review with permission from www.HotelExecutive.com.
