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With its year-round temperate climate and favorable coastlines, the Caribbean and Mexico, in particular, have remained the sector’s favorite bets. The first half of 2019 saw approximately 1,500 resorts earn $7.9 billion in sales or a 20 percent growth in revenue over five years, confirming an impressive growth path, according to hotel data firm STR. It’s one of the most relaxing vacations that you can take and most of the people understand that all-inclusive is not going anywhere.”īut how much has Covid transformed the all-inclusive resort model beyond technology, safety and increased demand for premium suites? Will all-inclusive brands be forced into a greater degree of environmental and social sustainability? Will pushing a luxury product also translate into more benefits for small and medium-sized businesses in the local economy? Will they hold up against the heightened social awareness and scrutiny of the post-Covid conscious consumer? A Dizzying Ascent Pre-Pandemic “As the hotels got better it’s so convenient that it’s not about price anymore. “The trend of the travel industry for the last 20 years has been all-inclusive for leisure because of the convenience.” said Javier Coll, group president of global business development at Apple Leisure Group. Boutique-sized upscale resorts with streamlined models - contactless check ins, outdoor concierge huts, pop up dining options, and private swim out pool options, among other benefits - and fewer crowds are more likely to lure consumers back.

The Lirianos’ experience augurs trouble for those brands forced to cut costs and remove privacy perks. As a result, the sector’s most prominent brands are continuing to close an unprecedented number of acquisitions and new constructions.īut this seemingly bright path for upscale all-inclusive resorts bears cautionary signs, as the post-pandemic traveler is likely to demand that this sector of the tourism industry do better - in safety and value, but also in the balance of people, planet and profits. The allure of premium services within a monitored but wide-open space is strong for the post-Covid consumer and that’s what resorts are banking on, along with the pent-up demand for travel on the other side of vaccines. “ This segment is well-positioned to take advantage of the tourism recovery because of the guest profile it attracts, and the ability to impart confidence in the traveler that they’re going to be experiencing a safe vacation,” said Rogerio Basso, head of tourism at IDB Invest, the private sector arm of the Inter-American Development Bank, noting that all-inclusive resorts are masters of crowd control and predictability. Demand has slowly trickled back since, ebbing and flowing according to Covid’s progress in source markets. Unlike megaships stuck at sea, however, resorts sit on spacious land, allowing them to restart their operations as early as summer 2020, albeit at limited capacity, as destinations in the Caribbean, Mexico, and parts of Europe welcomed visitors back. Images of crowds sipping piña coladas by the swim-up bar, and beaches lined with bodies on loungers suddenly evoked fear rather than a blissful escape from reality. When Covid hit in 2020, all-inclusive resorts, much like cruise lines, suffered a major blow that forced them to reinvent the way they run and market their properties to a changed consumer. On Tuesday, the company announced further expansion by signing an agreement with PGA Hotel Management Group to introduce the first Westin all-inclusive resort to South America. When Marriott International finally entered the segment in 2019, purchasing a chain of seven luxury resorts in Barbados after years of steering clear from the model, it was the nod that confirmed this segment’s reinvented image and bright future. “he tourists do not even wear masks, it’s like they are from a different world.”īefore Covid hit, all-inclusive resorts were the fastest-growing market in the accommodation sector, with increasing demand and offering high return on investment. What they encountered next was an even bigger shock.

“We are reduced to one hotel with almost no restaurants,” Liriano said, noting the low staff morale.

On arrival, the couple learned the adults-only section was closed, and their reservation had shifted to the family side. “It’s a special place for us, we first met up here,” said Liriano, referring to one of the longest-running resorts in the area. Two months ago, Dominican-American couple Raquel and Junior Liriano drove eight hours from Puerto Plata to Bávaro, Punta Cana, for a weeklong, all-inclusive resort staycation in the Dominican Republic.