From passive
to purposeful
No one believes that sun-and-sand vacations will ever go away. But as experiences come to dominate travel priorities, all-inclusives are finding ways to attract and accommodate guests who have a hunger for authenticity.
Nowadays, no one wants to be seen as a tourist. It conjures images of fanny packs and SLR cameras draped cumbersomely around necks. Today, people want to come back with a story about the place they visited. They want to eat tacos from a street cart and take pictures of ruins without 200 other tourists in the foreground. They want authenticity.
Which is why the sexiest word in travel these days is “experiential.” Travelers today are just that: travelers, as distinguished from tourists.
Historically, all-inclusives have been the antithesis of that trend. They were created as easy, stress-free options for convenient beach getaways, most designed with the concept that guests pay one price and don’t have to worry about a thing upon arrival. The model was to keep guests on the property, which was good for travelers who were looking for that traditional sun-and-sand getaway.
It was also an effective model for those who were apprehensive about mixing with locals, travel in general or the safety of a particular destination.
But it’s no secret today, nor has it been a secret for nearly 10 years, that travelers more and more are valuing experiences over prepackaged conveniences. A craving for authenticity is not merely trending anymore; it’s now the norm.
Travel has become much more the norm than a luxury, especially for Americans, who are growing increasingly curious about the world around them. According to the State Department, more than 21 million passports were issued in 2017. That is up 3 million from 2016 and 6 million from 2015. Americans want to see the world, and they want to do so authentically.
Changing the game
It was just a year ago that one resort in particular burst onto the scene in a way that started to change the conversation: Unico 2087 Hotel Riviera Maya.
The lifestyle all-inclusive concept opened in the Riviera Maya area of Mexico in early March 2017. While for years all-inclusive hotels have touted their experiential add-ons (usually by way of excursions that come at an additional fee and are often mass-produced), Unico 2087 is one hotel that manages to achieve add-ons that are actually experiential.
"Adding some experiences or excursions in with the all-inclusive stay does cost the resort more, but it’s probably the biggest value-add to the consumerand probably has the biggest impact."
“I love that some of the all-inclusive hotels are starting to add some experiences or excursions in with the all-inclusive stay,” said Anna Thelen, a travel consultant with Dream Come True Vacations. “That does cost the resort more, but it’s probably the biggest value-add to the consumer and probably has the biggest impact.”
Included in the rate at Unico 2087 are select local tours as well as an additional six Signature Tours that come with an additional fee. However, each tour, even those that are included, steer away from mass-produced elements. Instead, each has been curated for a particular destination, targeting travelers who very much want to get out of the resort and experience the larger location.
For example, there is a trip to Garrafon Natural Reef Park on the southern point of Isla Mujeres, an island that is popular predominantly with locals. Another included tour is a visit to the ruins of Coba, which unlike Chichen Itza and Tulum, is not crawling with tourists. It’s a more intimate, off-the-beaten path experience, which has become crucial to many travelers these days.
Most recently, a second resort has burst onto the scene, taking what Unico 2087 started and pushing it to the next level. Hotel Xcaret, which opened in December, has begun to flip the all-inclusive model on its head. Grupo Experiencias Xcaret, the company behind the eight ecoparks devoted to Mexican and Mayan culture, history and heritage, expanded its empire within that very same jungle with its first all-inclusive hotel, the first of 12 set to open over the next few years. The biggest game-changer of the resort is that everything is included: unlimited entry to all eight parks as well as the hotel’s excursions, which are elevated, immersive experiences. Not only do travelers get to see Chichen Itza, they have lunch in nearby Valladolid, a city unfrequented by the bulk of U.S. travelers.
Francisco Gutierrez, CEO of the Hotels Division for Grupo Experiencias Xcaret, said that at a given moment, 65% of hotel guests are out experiencing the parks or on a tour, while the other 35% remain on property experiencing the hotel.
“As a Mexican,” Gutierrez said, “I must say that since day one, we have experienced an average of 300 rooms of Mexican occupancy, because they are very happy to experience a real Mexican experience and not a Mexican experience from the perception of someone from another part of the world.”
These two hotels in particular are changing the way a certain market segment views all-inclusives. In particular, they are opening the minds of travelers who normally would not consider an all-inclusive because of stereotypes that guests are kept sequestered in minicompounds.
Filling the void
Not that there is anything wrong with a vacation that is purely about sun, sand and unlimited tropical beverages. People love that stuff. Some even need that stuff. Someone working a 75-hour week might not want to take vacation time to bushwhack through the jungle or hop from ruin to ruin. But what this new model of all-inclusive is doing is filling a void for the activity-, wellness- and immersive-minded traveler who normally would not even consider an all-inclusive hotel as a travel option.
The question becomes, then, what does this mean for the existing all-inclusives or the brands that have been around since the beginning and have more of their same business models in the pipeline?
Frank Maduro, vice president of marketing for AIC Hotel Group, parent company to Unico 2087 Hotel Riviera Maya, said, “A lot of hotels are trying to adapt and offer unique amenities that embrace the local culture. Some are more lip service than others. I think the internet and access to information have exposed people to new things and experiences where they seek to get outside of their comfort zones.”
It’s true that the tastes of travelers and the overall quality of the industry have both undergone a face-lift, and all-inclusives have changed to meet the new standard, replacing the ubiquitous salad bar and burger buffets with an emphasis on gourmet food and drink and better entertainment.
The market has seen the emergence of brands and resorts that cater to specific niches like romance, family and adults-only. Ernst & Young’s 2014 Global Hospitality Insights trends report said that competition among all-inclusives had created the space for product differentiation and the emergence of targets brands.
Still, while the quality of amenities is improving across the board, it is the rare all-inclusive that immerses its guests in the local environment in an authentic way. And the ones that are doing it come at a considerable price point.
Hotel Xcaret, which opened in December, is Grupo Experiencias Xcaret’s first all-inclusive hotel and the first of 12 set to open over the next few years.
Hotel Xcaret, which opened in December, is Grupo Experiencias Xcaret’s first all-inclusive hotel and the first of 12 set to open over the next few years.
Guests at the Hotel Xcaret, inset right, get access to the eight ecoparks run by Grupo Experiencias Xcaret. Above, the underground rivers at Xcaret Park are part of a natural network of channels in the Yucatan Peninsula.
Guests at the Hotel Xcaret, inset right, get access to the eight ecoparks run by Grupo Experiencias Xcaret. Above, the underground rivers at Xcaret Park are part of a natural network of channels in the Yucatan Peninsula.
The towering waterslides at another Xcaret ecopark, Xel-Ha, deliver riders into a natural lagoon.
The towering waterslides at another Xcaret ecopark, Xel-Ha, deliver riders into a natural lagoon.
The new luxury
It’s often been said that experiential travel is the new luxury, a truism that is now trickling down to the all-inclusive segment. Resorts like Unico 2087 and Hotel Xcaret do include everything, but that comes at a hefty price. Unico 2087’s rates start at $518 per night and Hotel Xcaret starts at $500 per night. But you do get what you pay for.
“The moderate-priced all-inclusives will continue to offer what they do — a 3- to 4-star experience,” said Ryan Doncsecz, a travel agent with VIP Vacations in Bethlehem, Pa. “The meals might be great, or they might not be. The basic activities and pools are there, but I do think that this is the next level of luxury. It’s a step up from what people were paying for. You are getting a lot more, though, so I understand that price point. It is important to know that these all-inclusives have excellent service and amazing amenities, and the rooms aren’t basic. They are attaching this experiential adventure aspect with an already beautiful hotel.”
Yet, there are also opportunities for travelers to have both the experience of a destination and the all-inclusive model at a moderate price point.
Hotel Xcaret and Unico 2087 manage to do this by using Hotel Xcaret and Unico 2087 manage to do this by using only Mexico-sourced materials in their designs, embracing local entertainment and highlighting Mexican gastronomy with Mexican chefs. These elements introduce travelers to Mexican culture upon entry.
Sandals Resorts International, for example, is another brand that enables travelers to have both kinds of experiences. Sandals is a pillar in the industry for the all-inclusive model. It is Caribbean owned, Caribbean operated and Caribbean inspired.
Adam Stewart, deputy chairman of Sandals Resorts International, said it’s a matter of walking the walk.
“We tend to spend a lot of our time in our own backyard as Caribbean nationals,” he said. “We try to live the experiences that we pass on to our customers. Others in the all-inclusive space will have executives who live elsewhere. We test-drive the product every day in the Caribbean by the way we live our lives. The Caribbean has meant that for us for so many for years. We have felt it is our duty to share the Caribbean with our clients, to get them off-property and to get them to experience things.”
Sandals has long had its tour arm, Island Routes, an operator with excursions on 12 Caribbean islands, all of which claim to take travelers under the skin of the destination. The difference, however, is that these tours do come at an additional cost.
Sandals also operates the Sandals Foundation, its philanthropic arm, which is ideal for travelers whose idea of experiential travel means contributing to the community.
The foundation’s mission is to give back to the communities that have provided the home base for their success. It gives travelers the opportunity to get up close and personal within the local communities to assist with issues such as poverty, disaffected youth and poor healthcare. It is a way to touch the destination in a meaningful way, build relationships and see a side of life that would be missed sitting on a beach within an enclosed resort.
“We see a really nice spread across our business of people who want to go out and explore,” Stewart said. “Some people just want to hang out and read their Kindle and have a cocktail. That’s what we call the visitor. Then you have the traveler who wants to do that but at the same time wants to go out on a Sandals Foundation program.”
There are also those resorts that offer both European Plan (a la carte) accommodations and all-inclusive plans. These types of resorts were not designed to keep travelers on property, but should they want the convenience of included food and beverage, the option is available.
El Mangroove, Autograph Collection in Costa Rica, for example, is tucked within the mangroves in the Gulf of Papagayo. Surrounded by nature, it caters specifically to guests who want to get out and explore the natural environment, which is one of the top selling points for Costa Rica. The destination is all about getting into the environment. It is not known for its all-inclusives. That said, the resort offers an option that includes all meals and premium alcohol.
The Dune Buggy Trek in Jamaica, like other Island Routes excursions, comes at an additional cost for Sandals guests.
A milestone moment
It must be said that there is still a barrier. As experiential travelers try to plan any vacation, they can’t know a destination like a local unless they spend a significant amount of time there. Snorkeling a cenote, no matter how private, is still very much a vacation activity. And that is not a bad thing. You might not be eating street tacos in a dimly lit alley surrounded by solely Spanish-speaking natives, but that’s not the folks these resorts are targeting. It’s a different style of travel.
That said, an emphasis on experiences and the local culture can be a stepping stone to bigger risks in vacation styles. Travelers who test out these experience-forward all-inclusives have the mental peace of mind that comes with a fair amount of hand-holding, but they have the autonomy to take their knowledge of the destination a little further. And once those limits are tested and they enjoy stepping outside of their comfort zone, the door opens for them to ask the question, “What can I do next?”
Kristen DeAngelo, owner of Dream Escapes has observed the effect firsthand.
“I have a lot of clients who say they don’t want to leave the resort.” DeAngelo said. “They don’t care about excursions. But once they try resorts that offer immersive experiences, they see that it’s safe in that destination. It opens up their minds to say they can try other things.”
For example, she said, “a lot of people have a guard up” about Mexico. But “once you mention Hotel Xcaret, they say, ‘Oh, this looks different and unique.’ Then they see the country is not so unsafe. It opens the doors to more opportunities.”
Doncsecz described travelers’ first experiential getaways as “the gateway drug to something more intense, whether that’s Machu Picchu, South Africa, backpacking through Thailand or something a little more out there. Getting off property to do something sets you up to be a more experienced traveler.”
A dolphin swim in Lucea, Jamaica, is one of the Island Routes excursions available to Sandals Resorts guests.
A dolphin swim in Lucea, Jamaica, is one of the Island Routes excursions available to Sandals Resorts guests.
The Reggae Family Catamaran Cruise is another excursion offered through Island Routes, Sandals’ tour arm, which operates on 12 Caribbean islands.
The Reggae Family Catamaran Cruise is another excursion offered through Island Routes, Sandals’ tour arm, which operates on 12 Caribbean islands.
Passive vs. purposeful
A sun-and-sand vacation is never going to go out of style. Sometimes people just want a picture-perfect beach, a cocktail and the knowledge that dinner is just steps from their bedroom.
But the growth of experiential travel is showing no signs of slowing. In fact, it’s only increasing, and with that in mind, a certain level of adaptation from new and existing brands has to be expected in order to remain competitive and also to capture this new market segment.
“There will always be people looking for a quick getaway,” Doncsecz said. “That’s why some of these online Expedias and Travelocitys are so big for quick tourism. Sometimes travelers don’t want to think much. They want to beach, eat, drink and tan. I don’t think that will ever go away. But I do think that these luxury all-inclusive brands need to step up their game or they’re going to be passed by by competitors.”
