The rise of all-inclusive travel: an opportunity for tourism partners

Since 2019, demand for all-inclusive packages on Expedia and Hotels.com has grown by 70%, and the average daily rate (ADR) has increased by 40%. Over the past year, the most popular all-inclusive destinations booked on Expedia Group platforms have been Mexico, the Caribbean, and Turkey, followed by Spain, Greece, Cyprus, and the Eastern Adriatic region.

This notable growth is largely due to a higher quality offering that is attracting new traveler demographics. As guest expectations evolve, there is a transition from a “one-size-fits-all” model to more personalized all-inclusive experiences.

A shift to luxury all-inclusive

Historically, all-inclusive experiences were associated with customers seeking budget travel, often at the sacrifice of quality. This has changed. We are now seeing a shift to luxury all-inclusive experiences, with gourmet cuisine, personalized service, and high-end experiences.

Brands such as Ikos, Excellence Group, Rixos Hotels, and Iberostar are elevating the all-inclusive package offering. Global chains have also entered the segment, including Hyatt and Marriott. Hyatt, which has its own “Hyatt Inclusive Collection,” recently announced a long-term investment in the all-inclusive segment through a 50-50 partnership with Spanish hotel operator Grupo Piñero, with plans to add properties in destinations such as Mexico, Jamaica, and the Dominican Republic.

On our platforms, the share of all-inclusive package bookings at 5-star properties has grown by 125% since 2019, with a 65% increase for European travelers and an impressive 110% for Americans.

While the corresponding increase for Asian travelers is 20%, our recent research on affluent traveler trends in Asia shows that all-inclusive packages are popular. In India, Indonesia and Vietnam, 61%, 61% and 58% of travellers respectively say all-inclusive packages are a likely choice.

The growing popularity spans different demographics. The data suggests that upper-middle-income Asian consumers are an interesting target audience for all-inclusive packages. 55% of travellers in this segment consider them among their top choices, and 48% of consumers with incomes in the top 10% of their countries also choose them.

Generational shift

In terms of the age profile driving demand, there is a new audience for all-inclusive holidays – and it’s not the one most would expect.

Our 2025 travel trends report, Unpack ’25, found that younger travelers see a huge appeal in all-inclusive vacations. Two in five Gen Z travelers (42%) say an all-inclusive resort would be their preferred hotel type, and a third say their perception of this model has improved, thanks in part to the #allinclusive hashtag trending on TikTok.
The appeal lies, in part, in simplicity. Younger generations are looking for laid-back experiences: 41% of Gen Zers cite minimal stress as the top reason for preferring all-inclusive, followed by ease of booking (39%) and a sense of luxury (38%).

Our research indicates that young travelers want the convenience of all-inclusive, but they also have high standards and expectations for a rich and varied experience.

How can travel businesses capitalize on this opportunity?

Travel partners have a unique opportunity to benefit from the surge in interest.

Get to know your audience. While overall interest in all-inclusives has grown, what appeals to Gen Z may not be the same thing that interests a wealthy family or wealthy retirees. Tailoring experiences to specific target markets is crucial.
Leverage digital tools. Companies can use member-only offers and online tools to attract all-inclusive travelers. Consider platforms to increase your visibility, fill rooms in off-peak seasons, and use advertising solutions to reach specific audiences with specific interests.
Offer premium quality. The new all-inclusive traveler doesn’t just want generic drinks and unlimited buffets. Offering high-quality restaurants and off-site collaborations is a must. Leaders in this segment offer premium drinks and menus designed by Michelin-starred chefs.
Provide exceptional customer service. Easy contact with guests, daily activity updates sent to their phones, and attentive service are vital to ensuring memorable experiences. Satisfied travelers repeatedly highlight excellent service as a key source of satisfaction.

Demand for all-inclusive packages will continue. Our research on travel trends in Asia shows that 54% of consumers planning an international trip in the next 12 months consider all-inclusive packages among their top choices.

As these holidays continue to grow and the profile of those seeking them changes, it is crucial that travel companies take steps to capitalise on the opportunities they provide.

Source: Expedia Group.