-“The all-inclusive market is reaching a plateau,” said Geoff Millar, co-owner of Phoenix-area agency Ultimate All-Inclusive Travel and Ultimate Hawaii Vacations.
Prices at many all-inclusives have nearly doubled over the past year or two, with this upward shift undermining the value-for-money appeal that once defined all-inclusive vacations. As a result, some all-inclusive loyalists are starting to consider alternatives.
At the same time, Millar added, competition within the all-inclusive sector is at an all-time high, thanks to a recent influx of entrants and development activity.
“I think the all-inclusive resorts are going to have to start adjusting their pricing, because people are still traveling, but they’re just not going all-inclusive like they were before,” he said. “We’re not seeing it at the very upper end, but the middle class and the family market are now more conscious of what they’re spending and what they’re getting for their money.”
Some all-inclusive operators are also seeing demand growth start to level off.
Hyatt reported some pullback within the segment during the company’s Q2 earnings call in August, with CEO Mark Hoplamazian citing a “return to prepandemic seasonality” in Mexico and the Caribbean.
Hyatt’s Inclusive Collection has more than 100 all-inclusive resorts across Mexico, the Caribbean, Central America and Europe.
In the Americas, Hyatt saw the Inclusive Collection’s net package RevPAR eke out just 2% growth for the quarter.
