Gen Z is ushering in the all-inclusive era

• Gen Z is contributing to a surge in all-inclusive resort bookings.
• All-inclusives offer convenience and luxury, often at a good value.
• All-inclusives have also become nicer, with perks like Michelin-starred chefs and top shelf booze.

Haley Mahabadi, a 27-year-old who works in social media marketing, is currently traveling across southeast Asia with her husband, staying in $30-a-night rooms.

But when she really wants to relax, she prefers all-inclusive resorts. All-inclusives typically work by having guests pay a set price per night in advance, and once they're on the resort they can visit any bar or restaurant and order whatever they want whenever they want without additional payments.

"You don't have any plans. You can just do whatever you want," she told Business Insider. "I think for a true relaxation vacation, it's perfect."

She's stayed at an all-inclusive that catered to college kids — with bottles of unlabeled tequila that made her feel terrible the next day — and luxury all-inclusives where they serve top shelf liquor and have multiple gourmet restaurants. She even got married last year at an all-inclusive in Mexico, the Finest Playa Mujeres, which can currently be booked for December at about $640 per night for two guests.

In addition to the relaxation and luxurious vibes, the set payment upfront is another bonus.

"I think it's kind of like the girl math thing, where you pay so much in advance that it feels free when you're there," she said.

All-inclusive hotels and resorts are exploding in popularity, with Gen Z leading the trend, according to three travel advisors who told BI they've seen a surge in demand for all-inclusives.

Fora, a travel agency, said it's seen a 324% increase year-over-year in bookings across top-booked all-inclusive brands in 2024. According to a recent report from the Expedia Group, searches on Hotels.com that used the "all-inclusive" filter jumped 60% from a year prior. A survey included in the report found 42% of Gen Z respondents said an all-inclusive was their preferred hotel type, more than any other generation.

"A lot of people, especially led by Gen Z, are entering what we're calling their all-inclusive era," Melanie Fish, a travel expert and spokesperson at Expedia, told BI.

Travelers love the ease and convenience of booking an all-inclusive as well as the feeling of luxury that comes with it, often at a decent value.

Plus all-inclusives have evolved. It's not just buffet lines and budget-friendly accommodations — though those options certainly still exist. Now there's plenty of five-star all-inclusives with picturesque resort grounds, complimentary spa services, and multiple restaurants run by Michelin-starred chefs, with major brands like Hyatt and Marriott also leaning into the all-inclusive game.

Why Gen Z loves all-inclusives

Once guests book their stays at an all-inclusive, very little additional planning is required. They can skip spending hours researching where to eat or how to get around, and instead show up, relax, order whatever they want, and enjoy all the amenities around them without having to reach for their wallet.

Samantha Cintron, a 26-year-old from Orlando who works in marketing, visited her first all-inclusive resort this fall, the Atelier Playa Mujeres near Cancun, which can currently be booked for around $790 per night for two guests.

Cintron and her boyfriend, who got engaged on the four-day trip, were greeted in the lobby with champagne and warm towels. The adults-only resort had 13 restaurants, 12 bars, a gym, and nonstop activities, from paddle-boarding to beach volleyball to sushi-making classes.

Gen Z has also been using travel advisors more than older generations, another sign they appreciate the convenience of not having to spend too much time planning their trips.

Minimal stress, ease of booking, and a luxurious feeling were the top three reasons Gen Zers said they loved all-inclusives in the Expedia survey. The travel advisors said their love of luxury is in part fueled by their use of social media.

"I also think with social media being so big and being an integral part of their lives, many people are motivated by sharing highly curated content and ultra luxury resorts," Malley Goodwin, a luxury travel advisor at Embark Beyond, told BI.

All-inclusive bookings can range in price anywhere from several hundred to several thousand dollars a night per person, but even higher-end all-inclusives can be a good value for your money, including food, drinks, transportation, activities, and excursions.

All-inclusives have also become popular for group trips, like bachelorette parties or multi-generational vacations that include grandparents all the way down to great-grandkids, according to A'Rielle Thomas, a travel advisor for Fora. It's an easy way to handle expenses without having to divvy up bills at every meal or keep track of who ordered what, the travel advisors said.

Demand for all-inclusives is expected to keep rising

Amy Weinberg, senior vice president of brand, loyalty, and data at Hyatt, said they continue to see a rise in demand for all-inclusives since entering the space in 2013 with Hyatt Ziva and Hyatt Zilara. Its $2.7 billion acquisition of Apple Leisure Group in 2021 made it the largest operator of luxury all-inclusive resorts worldwide. The company has some of the most popular all-inclusive brands, including Secrets Resorts and Dreams Resorts.

"The Inclusive Collection is a significant driver of Hyatt's business, establishing us as a leader in the all-inclusive resort industry," Weinberg said in an emailed statement to BI.

Last month Hyatt announced a deal that would expand its number of all-inclusive rooms by 30%.

The Marriott Cancun opened in September, making it the first all-inclusive with the Marriott brand name, catered towards families on multi-generational trips.

And Hilton said earlier this year their all-inclusive segment was a "catalyst for growth," noting its Hilton Cancun Mar Caribe All-Inclusive Resort that opened in 2023. The company said group bookings at all-inclusives increased by double digits in the first half of 2023 compared to a year prior, driven by the family-friendly Hilton La Romana resort in the Dominican Republic.

For Gen Z in particular there may be an intangible benefit of all-inclusives that will continue to drive demand.

"There's a lot going on in our world and Gen Z isn't worried as much about competing for who took the most off-the-beaten-path vacation or how much they stuffed in their backpack," Fish said.

"They want a break from all the stimulation in the world."

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