By Greg Schulze
All-inclusive holidays have exploded in popularity in recent years, with more travellers booking all-inclusive packages now than ever before. Since 2019, the all-inclusive demand on Expedia and Hotels.com has grown by 70% and the average daily rate (ADR) by +40%.
Over the past year, the most popular all-inclusive destinations booked on Expedia Group platforms are in Mexico, the Caribbean, and Turkey, followed by Spain, Greece, Cyprus and the East Adriatic.
This remarkable growth is largely thanks to higher quality offerings that are attracting new demographics of travellers. As guest expectations evolve, a shift is currently underway from a one-size-fits-all model to more personalized experiences for all-inclusive.
A shift to high-end all-inclusive
All-inclusive experiences are historically 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, personalized service and luxury experiences.
Brands like Ikos, Excellence Group, Rixos Hotels or Iberostar are elevating the all-inclusive offering. Global chains have entered the category including Hyatt and Marriott. Hyatt – which has 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.4
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.
Generational shift
In terms of the age profile of those driving demand, there is a whole new audience for all-inclusive holidays – and it’s not who 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 there has been growth in interest for all-inclusive experiences across the board, what appeals to Gen Zers may not appeal to a mass affluent family audience or wealthy retirees. Putting thought into how experiences can be catered to your specified target market or markets is vital.
Travel businesses can use member-only deals and online tools to boost 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 also help partners get ahead.
The new all-inclusive traveller doesn’t want everyday drinks and an all-you-can-eat buffet. To succeed, a choice of 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.
And finally, high-quality on-site customer service is a necessity rather than a nice-to-have. Easy contact with guests, providing daily activity updates sent to their phones, and delivering attentive customer service is absolutely vital to make a memorable all-inclusive experience. Time and again, happy all-inclusive travellers cite excellent service levels as a main source of satisfaction.
As all-inclusive holidays continue to grow and the profile of those who seek them changes, it’s crucial that travel businesses take steps to capitalize on the opportunities they provide.
(Greg Schulze is Chief Commercial Officer at Expedia Group)
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