The evolution of everything’s included
AI is on the rise—and we’re not talking about artificial intelligence. A few years ago, major hotel conglomerates decided they were a sure bet and began investing heavily in all-inclusive resorts and purchasing all-inclusive operators.
Consider this trajectory, for instance: When Marriott International purchased Starwood Hotels for $12.2 billion in 2016, it inherited but a single all-inclusive, Westin Golf Resort & Spa, Playa Conchal in Costa Rica. As Cory Hagopian, senior vice president of sales and partnership for luxury travel network Virtuoso, told Forbes in 2023, “In a three-year window, Marriott went from having one all-inclusive to 30, with more in the pipeline.”
That “more” points to Marriott’s plan to have 33 all-inclusive resorts by 2025.
In 2021, Hyatt Hotels Corporation became the largest among its major competitors in the all-inclusive sphere with the acquisition of Apple Leisure Group (ALG) for $2.7 billion. With this purchase, Hyatt suddenly had no fewer than 100 all-inclusive properties, giving it a robust presence in Mexico and the Caribbean. In Europe, with 40 properties in Spain and three in Greece, it operates 10 all-inclusive brands. To date, Hyatt has 121 all-inclusive properties globally, with locations in South America, Africa, India, Australia and East Asian countries, as well.
Read More: All-inclusives: A Sense of Place
This year alone, new properties joining Hyatt’s all-inclusive portfolio include Secret Tides Punta Cana in the Dominican Republic (January), two more in Mexico—Secrets Playa Blanca Costa Mujeres (February) and Dreams Estrella Del Mar Mazatlan (April)—and Secrets St. Lucia, formerly St. James Club Morgan Bay in the Caribbean, acquired by Hyatt in 2022 and scheduled to reopen later this year. Oh, and in 2025 Breathless Puerto Vallarta Resort & Spa, also in Mexico, is set to open its doors 10 minutes from Puerto Vallarta International Airport (PVD).
So, you may wonder, what do these behemoth hotel companies see in all-inclusive properties that makes them willing to put so much money on the line?
Team-building at Melia All-Inclusives
For one thing, the value proposition of this category of resort has changed dramatically over the past two decades. Like the classic all-you-can-eat buffets in Las Vegas, older all-inclusives tended to favor quantity over quality. They catered to young families looking to avoid unwelcome surprises on the final bill, and to cheap package deals for budget travelers and newlyweds.
Business guests—and particularly incentive guests—were not a sweet spot. This has all changed.
“One aspect that is important to consider when planning corporate events at all-inclusive resorts is the potential for team-building and networking opportunities that these venues can offer,” says Kathryn Mollenhauer, director of sales for Canada Meetings and Events at Melia Hotels, which has 45 properties in Spain, the Canary Islands, Mexico and the Dominican Republic. “All-inclusive resorts often provide a relaxed and inclusive atmosphere that can foster camaraderie among attendees and create memorable experiences outside of the typical meeting setting.
“The value proposition of this category of resort has changed dramatically over the past two decades.”
“Additionally, the leisure amenities and activities available at all-inclusive resorts can be leveraged to enhance the overall event experience and provide opportunities for team-building exercises, group outings, or recreational activities that can strengthen relationships and boost engagement among participants.”
Although they have higher flight costs, Mollenhauer says the Dominican Republic and Mexico are its most popular destinations with North American guests. Its Mexico presence includes properties in Cancun, Los Cabos, Playa del Carmen, Cozumel, Riviera Maya and Puerto Vallarta. Melia Puerto Vallarta is Melia’s offering in that last location, and, despite all the reasons an all-inclusive resort makes it difficult to leave the property—and many of these resorts themselves are also in isolated areas—nearby attractions at this property abound. These can include a visit to Playa de los Muertos, the city’s most famous beach, a stop by Los Arcos Marine Park or a stroll down the scenic Malecon Boardwalk. The resort’s 324 rooms are accompanied by 52,687 sq. ft. of meeting space across 13 rooms.
“The unique settings and beautiful surroundings of many all-inclusive resorts can add a special touch to corporate events, creating a more memorable and enjoyable experience for attendees,” Mollenhauer says. “Whether it’s hosting a beachside cocktail reception, a team-building activity on a tropical island, or a gala dinner under the stars, all-inclusive resorts offer a variety of options to elevate the event and leave a lasting impression on attendees.”
Hilton Hears the All-Inclusive Buzz
Hilton Hotels & Resorts is another of the giant hoteliers closely monitoring group and leisure interest in all-inclusives.
“With the travel industry rapidly evolving alongside the needs of travelers, we have seen interest uptick in all-inclusives, year over year,” says Nicole Tilzer, Hilton’s vice president brand leader for all-inclusive and resort strategy. “We have seen an increase [of traffic] to our all-inclusive webpages the last three months specifically, up 130% YoY with Google organic impressions. Guests and meeting planners alike are seeking worry-free travel with minimal planning and effort.”
Although its collection of properties has not surged like some major competitors, it does consist of 14 all-inclusives; Tilzer notes that this represents a growth in Hilton’s all-inclusive footprint of more than 60% since 2019.
Hilton Cancun Mar Caribe All-Inclusive Resort has some of the most generous meeting space in Hilton’s all-inclusive portfolio, at nearly 70,000 sq. ft. Another planner favorite with ample space is Hilton Rose Hall Resort & Spa, an all-inclusive in Montego Bay, Jamaica, with over 44,000 sq. ft. of space, most of it outdoors.
Back on Mexico’s Caribbean Coast, 735-room Hilton Tulum Riviera Maya All-Inclusive Resort has the largest meeting space in that municipality, with the 55,000-square-foot Tulkal Convention Center and a 400-seat auditorium, 13 distinct dining options and access to 21,500-square-foot Conrad Spa.
Read More: New and Renovated: Take Your Destination Meeting to Mexico
Hilton Vallarta Riviera All-Inclusive Resort is a Pacific Coast all-inclusive that offers relatively ample meeting space (16,000 sq. ft.) right next to the 444-room property. Upon arrival at the resort’s lobby, guests are met with shimmering views of the ocean beyond; similar spectacular vistas are found at several of the eight dining options, which includes the Sunan, showcasing cuisine inspired by Thailand, Cambodia and Vietman, and Maxal, which offers a tempting selection of Mexican favorites.
Tilzer says the company has noticed marked interest in new destinations. This is being met with the opening of the 502-room Zemi Miches All-Inclusive Resort, Curio Collection by Hilton in Punta Cana, scheduled to open its doors in December. It will feature 12 restaurants and more than 9,500 sq. ft. of event space.
All-Inclusive Experiences Go Upscale
Increasingly, luxury and all-inclusive are being paired in the same sentence. Individual properties may include elevated experiences in the basic all-inclusive rate, or surcharges may apply for some things. Gourmet dining choices, top-shelf liquors at the bar and spa treatments highlighting local products are increasingly common—as are adults-only all-inclusives and properties with adults-only rooming sections and amenities such as pools.
Hilton’s Tilzer cites F&B experiences ranging from beachfront private dining with local musicians to a chef-led cooking class and tastings of local tequilas, to other tailored on-property activations like pop-up boutiques by local artisans. “Hilton All-Inclusive Resorts offer an abundance of activities to not only keep up with the wants and needs of today’s group travelers, but to offer variety,” Tilzer says. “You can also enjoy activities like salsa and merengue lessons or a Mayan-jewelry making class.”
At Maxal in Hilton Tulum Riviera Maya, a recent addition is La Mezcaleria, a mezcal bar on the restaurant’s terrace. Tilzer says guests can sample up to 13 different mezcals from the region while gazing at Pacific. “The 3,616-square-foot, open-air lounge can easily host meetings and events, and it provides a great setting to unwind and catch up after a long day of meetings,” she adds.
Tilzer says event profs also often ask about special opportunities for VIPs and executives. One she points to is the Enclave experience, an option offered at select Hilton all-inclusives. She uses the 540-room Hilton Cancun Mar Caribe All-Inclusive Resort as an example. “It offers 40 beachfront Enclave guest rooms and 20 Enclave suites, each with a private plunge pool or whirlpool, an outdoor patio and hammocks overlooking the ocean,” she enthuses. “Upgrading to Enclave provides benefits like an upgraded room, exclusive lounge access with premium food and beverage offerings, private check in, dedicated concierge services, private pool access and more.”
This article appears in the July/August 2024 issue. You can subscribe to the magazine here.