All-inclusives’ upscale shift

Hospitality companies are growing their high-end offerings in the all-inclusive sector to meet surging traveler demand for luxe resort experiences.

The new Sandals Royal Curacao is Sandals’ 16th resort. It features the brand’s first off-site dining program. (Photo by Corey Hamilton for Sandals Resorts)

The new Sandals Royal Curacao is Sandals’ 16th resort. It features the brand’s first off-site dining program. (Photo by Corey Hamilton for Sandals Resorts)

The new Sandals Royal Curacao is Sandals’ 16th resort. It features the brand’s first off-site dining program. (Photo by Corey Hamilton for Sandals Resorts)

Michelin-starred chefs, hammam spas and $1,500-plus-a-night price tags may not be synonymous with the broader all-inclusive sector, but as players in the space compete to further raise the bar, such features could soon become hallmarks of the category’s higher end.

The upscale shift within all-inclusive, said travel advisor Tahryn Nicastro, owner of New Jersey-based Shore to Sea Vacations, comes as demand for more premium resorts shows no signs of slowing.

“Clients are looking for higher-end experiences,” she said. “Everybody wants the latest, greatest and most Instagrammable type of property, and the all-inclusives that can offer that are in high demand.”

Nicastro has also seen a number of cruise clients, many of whom have been unable or hesitant to cruise throughout much of the pandemic, pivot to upscale all-inclusives as a travel alternative. Some, added Nicastro, appear to have made the switch a more permanent one.

“I did about 50% cruises before the pandemic, and that has just not rebounded,” Nicastro said. “A lot of existing clients and new clients who would have normally cruised are now going all-inclusive instead.”

Pioneer all-inclusive, luxury brands such as Le Blanc, Velas and El Dorado have been joined recently by myriad competitors.

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A king room accommodation at Unico 2087, an adults-only Riviera Maya resort that opened in 2017. (Photos Courtesy of Unico 2087)

A king room accommodation at Unico 2087, an adults-only Riviera Maya resort that opened in 2017. (Photos Courtesy of Unico 2087)

A king room accommodation at Unico 2087, an adults-only Riviera Maya resort that opened in 2017. (Photos Courtesy of Unico 2087)

Ash Tembe, vice president of global field sales for AIC Hotel Group, said that the luxury all-inclusive segment has well outperformed the broader lodging industry throughout the pandemic, citing demand for so-called trips of a lifetime.

“Luxury all-inclusive was quicker to bounce back versus some of our other products,” Tembe said. “Many people were landlocked [during the pandemic], so they hadn’t seen the ocean in a while. And when they finally could go see it, they wanted to make sure it was at a good quality product.”

Chief among AIC Hotel Group’s high-end all-inclusive offerings is Unico 2087, an adults-only Riviera Maya resort that emerged as something of a pioneer in the space when it opened in early 2017, showcasing gourmet dining options, luxe design touches and Mexican art and culture. 

A sushi dish from Unico 2087’s Mura House restaurant. (Photos Courtesy of Unico 2087)

A sushi dish from Unico 2087’s Mura House restaurant. (Photos Courtesy of Unico 2087)

A sushi dish from Unico 2087’s Mura House restaurant. (Photos Courtesy of Unico 2087)

“There’s that level of customer that just won’t go to an all-inclusive, but our idea was to deliver a five-star concept that happens to be all-inclusive,” said Tembe. “We want to give our guests a $1,000-a-night experience.”

That meant adding small touches like locally crafted soaps and artwork as well as making larger-scale investments like bringing on high-end design and branding firms. Also key was the creation of lively and social dining environments.

“A lot of all-inclusives don’t spend much on architects, but we felt that was a big differentiator,” said Tembe. “And we have bars in every restaurant, so there’s always a little bit of a bar scene as you wait to eat, just like at a restaurant in New York.”

With Unico 2087 continuing to do brisk business in the fifth year since its debut, AIC Hotel Group plans to expand the concept to more locations as well as potentially develop an all-ages “Unico-type brand” that would be ideal for weddings, group travel and other occasions, Tembe said. 

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The lobby at the Hilton Tulum Riviera Maya All-Inclusive Resort, which opened in May. (Courtesy of Hilton Tulum Riviera Maya All-Inclusive Resort)

The lobby at the Hilton Tulum Riviera Maya All-Inclusive Resort, which opened in May. (Courtesy of Hilton Tulum Riviera Maya All-Inclusive Resort)

The lobby at the Hilton Tulum Riviera Maya All-Inclusive Resort, which opened in May. (Courtesy of Hilton Tulum Riviera Maya All-Inclusive Resort)

Big names making moves in the sector

AIC Hotel Group is far from the only luxury all-inclusive player with its eye on expansion. Competition at the category’s high end is hotter than ever as some of hospitality’s biggest names accelerate their push into the sector.

Marriott International has been making steady progress in its plans to convert or develop numerous all-inclusives under its luxury and upper-upscale Ritz-Carlton, Luxury Collection, Marriott, Westin, W, Autograph Collection and Delta flags. Most recently, the company partnered with Playa Hotels & Resorts to add the Playa-managed Sanctuary Cap Cana in the Dominican Republic as the first all-inclusive in its Luxury Collection soft brand. 

Hilton has similarly ramped up activity in the higher-end all-inclusive sphere in recent years, opening properties like the Hilton Cancun, an All-Inclusive Resort near the end of 2021 and the Hilton Tulum Riviera Maya All-Inclusive Resort this past May. 

Hyatt Hotels Corp., however, has arguably made the industry’s biggest bet on the category thus far, snapping up all-inclusive powerhouse Apple Leisure Group and its AMResorts arm for $2.7 billion last year. Hyatt officially consolidated AMResorts’ AMR Collection flags — which include the four- and five-star Secrets, Dreams, Breathless, Zoetry, Alua and Sunscape brands — under its new Inclusive Collection portfolio this spring, alongside its existing Hyatt Ziva and Hyatt Zilara all-inclusive concept.

As part of the Hyatt fold, AMR Collection plans to grow further, with a new adults-only all-inclusive concept, Vivid Hotels & Resorts, set to join the lineup in the near future. Erica Doyne, senior vice president of marketing and communications for AMResorts, said Vivid will offer “mindfully crafted culinary experiences, low-key social events and live performances” and will seek to “connect with the next generation of travelers.”

Meanwhile, AMR Collection’s efforts to further innovate at the high end are on full display at the Secrets Moxche Playa del Carmen, which debuted in April. The 485-room, adults-only all-inclusive recently received a new omakase sushi restaurant and added a traditional hammam to its spa offerings.

Come October, the resort will be joined by neighboring sister concept Secrets Impression Moxche, the first Impression offshoot for the Secrets brand. The 198-room Secrets Impression property promises to offer “the most elevated level of all-inclusive luxury” to its guests, thanks to a mix of upscale suite accommodations and beachfront villas, personalized butler service and more curated and exclusive experiences and dining options.

“Demand for high-end travel remains high,” said Doyne. “The Impression concept elevates the already high standards and strong foundation of the Secrets Resorts & Spas brand and meets luxury travelers where they are.”

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The Playa-managed Sanctuary Cap Cana in the Dominican Republic is the first all-inclusive in Marriott’s Luxury Collection soft brand. (Courtesy of Marriott International)

The Playa-managed Sanctuary Cap Cana in the Dominican Republic is the first all-inclusive in Marriott’s Luxury Collection soft brand. (Courtesy of Marriott International)

The Playa-managed Sanctuary Cap Cana in the Dominican Republic is the first all-inclusive in Marriott’s Luxury Collection soft brand. (Courtesy of Marriott International)

Also looking to up the ante is high-end all-inclusive stalwart Sandals, which recently rolled out its first off-site dining program with the early June opening of the 351-room Sandals Royal Curacao. 

Under the concept, known as the Island Inclusive program, guests staying in butler-level suite accommodations for a minimum of seven nights as well as higher-tier Sandals Select Reward members are granted a $250 voucher that can be used to dine at one of eight partner restaurants in the destination.

Likewise, Mexican hospitality developer Grupo Xcaret has been pushing in a more premium direction for some time now, following up last July on the success of its Hotel Xcaret Mexico in Playa del Carmen with a second luxury property, the adults-only, 900-room Hotel Xcaret Arte. 

Late last year, the company also debuted its latest project, a 63-room, adults-only boutique all-inclusive called La Casa de la Playa, a Preferred Hotels & Resorts member property. Also located in Playa del Carmen, the property has made high-end food and beverage a core component of its strategy, in line with its sister resorts.

“One of the misconceptions that we are up against is that a lot of people still think that because you’re an all-inclusive, you can’t have high-quality food and beverage,” said Sakari Malinen, Hoteles Xcaret’s director of sales. “But we’re working hard on changing that idea in people’s minds.”

La Casa de la Playa’s culinary offerings include concepts from celebrity chefs Martha Ortiz and Virgilio Martinez and guest access to restaurants at Hotel Xcaret Mexico and Hotel Xcaret Arte, which showcase venues from Michelin-starred chefs Carlos Gaytan and Paco Mendez, respectively. 

Another highlight is the property’s wine cellar, from which guests are invited to take a bottle to their room to enjoy during their stay.

In addition to fine dining and wine, a selection of exclusive experiences is included as part of a stay at La Casa de la Playa, with guests able to select from options including a romantic dinner served atop a cenote or a private underground river swimming experience.

Starting rates at La Casa de la Playa currently hover around $1,500 per night, double.

“I think those of us who are focusing on the high end are also pushing the industry in general to improve,” Malinen said. “And we welcome competition. Competition is always healthy and pushes us to also continually get better and better.”

Whether or not the luxury end of the all-inclusive space may soon be too crowded, however, remains to be seen. 

“The luxury growth in the category has been significant,” said Haydn Kramer, principal at lodging industry consulting firm Haydn Kramer Consulting. The sector “has virtually doubled its luxury capacities in less than five years.”

AMResorts’ Doyne, however, said the all-inclusives luxury end is still early in its growth phase and that many travelers are in the discovery process when it comes to those experiences. 

“Historically, all-inclusive properties were primarily considered an attractive option for families and couples,” Doyne said. “Now, we’re seeing the demographic of travelers and stay occasions change. The reimagination of the all-inclusive model has provided an opportunity to expand and reach new audiences that may not have opted for an all-inclusive vacation previously.”

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