Spread the love

Expedia Group - LogoAll-inclusive holidays have exploded in popularity in recent years, with more travellers booking all-inclusive packages now than ever. Since 2019, the demand for all-inclusive holidays on Expedia and Hotels.com has grown by 70%, and the average daily rate (ADR) has grown by +40%.

Over the past year, Mexico, the Caribbean, and Turkey have been the most popular all-inclusive destinations booked on Expedia Group platforms, followed by Spain, Greece, Cyprus, and the East Adriatic.

This remarkable growth is primarily thanks to higher-quality offerings, which are attracting new demographics of travellers. As guest expectations evolve, a shift is underway from a one-size-fits-all model to more personalised experiences for all-inclusive.

Greg Schulze, Chief Commercial Officer at Expedia Group. by-Dana-Kae-Photograpy

Greg Schulze, Chief Commercial Officer at Expedia Group.

A shift to high-end all-inclusive

All-inclusive experiences have historically been associated with customers looking for value-for-money trips, often sacrificing quality. No longer. We are witnessing a shift to high-end, all-inclusive experiences with gourmet dining, personalised service, and luxury experiences.

Brands like Ikos, Excellence Group, Rixos Hotels, and Iberostar are elevating the all-inclusive offering. Global chains, including Hyatt and Marriott, have entered the category. Hyatt – its own Hyatt Inclusive Collection – recently announced a further investment in the all-inclusive segment with a long-term 50-50 venture with Spanish hotel operator Grupo Piñero to add properties to its portfolio in destinations including Mexico, Jamaica and the Dominican Republic.

Of all the all-inclusive global demand on our platforms, the proportion booked on 5-star properties has grown by 125% since 2019, with a 65% increase for European travellers and a staggering 110% for those booking from the US.

While the corresponding increase for Asian travellers is 20%, our recent research exploring trends around mass-affluent Asian travellers shows that all-inclusive packages are popular and one of the most likely buys among travellers in India (61%), Indonesia (61%) and Vietnam (58%).

Growing popularity is taking place across several demographics. Data suggests that Asian consumers in the middle-upper income segment are a compelling target audience for all-inclusive packages. All-inclusive packages are one of the most likely expenditures among middle—and upper-income Asian travellers (55%). In comparison, 48% of consumers with household incomes that fall within their country’s top 10% of earners say the same.

Generational shift

Regarding the age profile of those driving demand, there is a whole new audience for all-inclusive holidays – and it’s not what most would expect.

Our 2025 travel trends outlook, Unpack ‘25, found that younger travellers see the significant appeal in all-inclusive holidays. Two in five Gen Z holidaymakers (42%) say that an all-inclusive resort would be their preferred hotel type, and one-third of Gen Zers say that their perception of all-inclusive has changed for the better, partially fed by the all-inclusive hashtag trending on TikTok.

The appeal, in part, comes down to simplicity, with younger generations seeking a relaxed experience. Two in five (41%) Gen Zers say minimal stress is the top reason they are living in the all-inclusive era, followed by ease of booking (39%) and the feeling of luxury it gives them (38%).

Our research indicates that savvy young travellers want the convenience of an all-inclusive but still have high standards and expectations of a rich and varied holiday experience.

How can travel businesses take advantage?

Travel partners have a unique opportunity to benefit from the rise in interest.

First, know your audience. While interest in all-inclusive experiences has grown, what appeals to Gen Zers may not appeal to a mass affluent family audience or wealthy retirees. It is vital to consider how experiences can cater to your target market or markets.

Travel businesses can use member-only deals and online tools to increase their appeal to all-inclusive travellers further. They should consider platforms to boost their visibility, showing up to highly engaged travellers to fill rooms during slower periods, and advertising solutions to showcase their resort to a tailored online audience of travellers with targeted interests and preferences. Updating listings to provide details on what travellers can expect, such as hotel restaurant options, spa and gym details, and activities, will help partners get ahead.

The new all-inclusive traveller doesn’t want everyday drinks and an all-you-can-eat buffet. To succeed, choosing high-quality restaurant offerings and off-site partnerships is imperative to grow your customer base. Leaders in the field provide premium drinks and menus curated by Michelin-star chefs.

Finally, high-quality on-site customer service is a necessity rather than a nice-to-have. Easy contact with guests, daily activity updates sent to their phones, and attentive customer service are vital to a memorable all-inclusive experience. Time and again, happy all-inclusive travellers cite excellent service levels as a primary source of satisfaction.

This demand for all-inclusive packages is set to continue. Our research on Asia travel trends shows all-inclusive packages are one of the most likely choices among consumers considering an international trip within the next 12 months (54%).

As all-inclusive holidays continue to grow and the profile of those seeking them changes, travel businesses must capitalise on the opportunities they provide.

 

 

 

Written by: Greg Schulze, Chief Commercial Officer at Expedia Group

 

 

 

 

 

=======================================