The world’s largest hospitality brands, including Marriott and Hyatt, are jumping on board the all-inclusive resort trend. Unlike the all-inclusives of the past with their lackluster buffets and cheesy entertainment, this new wave of resorts is all about luxury and personalized experiences. These properties, many of which are being launched by luxury hospitality brands entering the all-inclusive arena for the first time, offer enticing features such as gourmet dining, butler service, and unique high-end experiences. The shift towards inclusive pricing and no surprises for guests reflects a post-pandemic consumer mindset that craves hassle-free travel experiences. With sky-high travel demand and decision fatigue, people want to just go and enjoy, paying once and being done. Forbes covers this exciting trend and more, providing unlimited access to premium journalism for those looking to stay connected and informed.
The hospitality giants are recognizing the potential for growth in the all-inclusive segment, with Marriott CEO Anthony Capuano citing it as a key area for the company. Marriott, for example, plans to open its first-ever all-inclusive W Hotel in the Dominican Republic in 2025. Hyatt, now the world’s largest operator of luxury all-inclusives after their acquisition of Apple Leisure Group, is spreading across nine brands and over 120 resorts in 11 countries. This industry shift is impossible to ignore, with major brands like InterContinental and Hilton also joining forces with all-inclusive brands. While Mexico, the Caribbean, and Latin America have long been popular for all-inclusive travel, European destinations are also catching on to this enduring happiness trend. With luxurious perks and curated experiences, all-inclusive resorts are redefining the travel landscape and creating a lasting allure for wanderlust seekers worldwide. (266 words)
Title: Why Marriott, Hyatt, and Other Hotel Giants Are Embracing All-Inclusive Resorts
Introduction
In recent years, all-inclusive resorts have experienced a resurgence in popularity, but this time with a luxurious twist. Gone are the days of mediocre buffets and bottom-shelf drinks. Today, all-inclusives are focused on providing guests with the utmost luxury and high-end experiences. This new wave of all-inclusives is being embraced by hospitality giants like Marriott and Hyatt, who are entering the market to cater to the changing demands of consumers. In this article, we will explore the reasons behind the rise of luxury all-inclusive resorts and why Marriott, Hyatt, and other hotel giants are investing in this segment.
The Rise of Luxury All-Inclusives
Current popularity of all-inclusive resorts
All-inclusive resorts have become incredibly popular among travelers looking for a hassle-free vacation experience. The concept of having all meals, drinks, and activities included in one upfront price appeals to many people who want to relax and enjoy their time without worrying about additional costs.
Shift towards luxury and high-end offerings
In recent years, there has been a noticeable shift towards luxury and high-end offerings in the all-inclusive market. Travelers are no longer satisfied with mediocre amenities and services. They want gourmet dining options, personalized service, and unique experiences that are tailored to the local culture and surroundings. This demand for luxury has prompted major hospitality brands to enter the all-inclusive arena.
New Players in the All-Inclusive Market
Luxury hospitality brands entering the all-inclusive arena
Traditionally, all-inclusive resorts were associated with standalone brands that focused solely on this segment. However, in recent years, luxury hospitality brands like Marriott and Hyatt have recognized the potential of the all-inclusive market and have started launching their own all-inclusive properties. This entry of new players brings a fresh perspective and a focus on luxury experiences to the industry.
Consumer Demand and Industry Trends
Changing consumer mindset
The post-pandemic consumer mindset has undergone a significant shift. Travelers now value transparency and predictability when it comes to pricing and inclusions. They want to pay once and not worry about unexpected expenses during their stay. This desire for no surprises has led to an increased demand for all-inclusive resorts, where everything is included upfront.
Desire for inclusive pricing and no surprises
In line with the changing consumer mindset, there is a growing desire for inclusive pricing and no surprises. Travelers want to know exactly what they are getting for their money and have everything taken care of from the moment they arrive at the resort. All-inclusive resorts provide the perfect solution by offering a wide range of amenities and activities that are covered by the upfront price.
Sky-high travel demand and decision fatigue
The travel industry has experienced a surge in demand as people seek to make up for lost time and create memorable experiences. However, this increase in travel options has also led to decision fatigue among travelers. With so many choices available, it can be overwhelming to plan and book a vacation. All-inclusive resorts alleviate this decision fatigue by providing a comprehensive package that includes everything a traveler needs for a relaxing and enjoyable stay.
Marriott’s Entry into the All-Inclusive Market
Marriott’s focus on the all-inclusive segment
Marriott, the world’s largest hospitality company, has recognized the growth potential of the all-inclusive market and has made it a key focus area. The company’s CEO, Anthony Capuano, has frequently highlighted the importance of the all-inclusive segment for Marriott’s growth. With many of Marriott’s luxury brands entering the all-inclusive space, the company is positioning itself as a leader in this market.
Plans for the first W Hotel all-inclusive resort
Marriott is set to open its first-ever all-inclusive W Hotel in the Dominican Republic in 2025. This resort will feature 349 rooms and suites, 11 restaurants and bars, three pools, and a spa. The launch of a luxury brand like W Hotel in the all-inclusive market showcases Marriott’s commitment to providing high-end experiences to its guests.
Marriott’s Strategic Planning and Success
Recognition of leisure segment growth
Marriott’s entry into the all-inclusive market is not a result of a sudden trend but rather a strategic move based on the recognition of the growing importance of the leisure segment. The company’s executives realized that the leisure business was growing more rapidly than other segments, prompting them to invest in all-inclusive resorts.
Utilization of Marriott Bonvoy loyalty program
Marriott has a significant advantage in the all-inclusive market with its Marriott Bonvoy loyalty program. With a staggering 177 million members, Marriott can leverage its loyalty program to attract and retain customers for its all-inclusive properties. This program offers members exclusive benefits and rewards, further enhancing the appeal of Marriott’s all-inclusive resorts.
Training lab at Westin Golf Resort and Spa Playa Conchal
As part of Marriott’s merger with Starwood Hotels, the company inherited the Westin Golf Resort and Spa Playa Conchal in Costa Rica, which became a training lab for Marriott to hone its skills in the all-inclusive segment. This hands-on approach allowed Marriott to learn from its experiences and refine its offerings when introducing new all-inclusive properties.
Industry Shift and Partnerships
Partnerships between luxury brands and all-inclusive resorts
The all-inclusive market has witnessed an increase in partnerships between luxury brands and all-inclusive resorts. This collaboration allows luxury brands to tap into the all-inclusive segment while leveraging the expertise and infrastructure of established all-inclusive resorts.
Examples: InterContinental Hotels and Iberostar, Hilton’s all-inclusive properties
InterContinental Hotels recently announced a long-term agreement with Spain’s Iberostar hotels and resorts, incorporating 70 all-inclusive hotels into their portfolio. Hilton also operates a significant number of all-inclusive properties, including its largest resort in the Caribbean, Hilton Tulum Riviera Maya. These partnerships demonstrate the industry’s recognition of the potential of the all-inclusive market.
Hyatt’s acquisition of Apple Leisure group
Hyatt’s acquisition of Apple Leisure Group solidified its position as the world’s largest operator of luxury all-inclusive resorts. This strategic move allowed Hyatt to expand its presence in the all-inclusive market and gain access to a diverse portfolio of resorts across multiple destinations.
Expansion into New Destinations
All-inclusive resorts in Mexico, the Caribbean, and Latin America
Mexico, the Caribbean, and Latin America have long been popular destinations for all-inclusive resorts. The appeal of beautiful beaches, tropical landscapes, and warm hospitality has made these regions a perfect fit for the all-inclusive concept. Marriott, Hyatt, and other hotel giants are expanding their presence in these destinations to cater to the high demand for all-inclusive experiences.
Growing popularity in European destinations
While Mexico, the Caribbean, and Latin America dominate the all-inclusive market, the popularity of all-inclusive resorts is also growing in European destinations. Travelers are drawn to the convenience and value that all-inclusive resorts offer, combined with the rich cultural heritage and stunning landscapes of European countries. This presents an opportunity for hotel giants to expand their all-inclusive offerings beyond traditional beachfront destinations.
Conclusion
The rise of luxury all-inclusive resorts and the entry of hotel giants like Marriott and Hyatt into this market signify a shift in consumer demands and preferences. Travelers are seeking seamless and luxurious experiences that allow them to explore, relax, and enjoy their vacations without any surprises. Marriott’s strategic planning and partnerships, coupled with the industry’s recognition of the growth potential in the all-inclusive market, ensure that this trend is here to stay. Whether in tropical destinations or European countries, all-inclusive resorts provide an attractive option for travelers looking for a high-end, all-inclusive vacation experience.