All-inclusives are bankable until a pandemic or hurricane hits

 


How lucrative are all-inclusive hotels?  Very. Take, for example, Playa Resorts which has 24 properties in the Caribbean basin. Playa Hotels & Resorts Nv revenue was US$962.14M for the trailing 12 months ending Sep 30, 2024, with 96 per cent growth year over year. Quarterly revenue for the quarter (Q3 2024) ending on Sep 30, 2024, was $183.5 million, down 22.1 percent from last quarter, after hurricane Beryl bit

What are the revenue streams for all inclusives? Hospitality.net states that when considering Total Guest Value, segmentation is important.

"No longer are guests just budget-conscious vacationers and party-seeking singles, the new all-inclusive clientele skews toward multigenerational families, adventure seekers, health-and-wellness aficionados, luxury vacationers, and millennials who love them for weddings and honeymoons. "

Many visitors, meanwhile, love all-inclusives for the array of food. One can try foods from all around the world with breakfast, lunch, dinner snacks and drinks all covered in the room cost. Knowing this proclivity, multiple ethnic restaurants are on offer at the all-inclusive property.

Hospitality.net notes that All-inclusive resorts now offer ancillaries and luxury services to guests. “While traditional packages might include hotel, airfare, transportation, food, and beverage as fully covered, many all-inclusives are now adding upsell options such as entertainment, kids-zones or adults-only spaces, local excursions, and upscale restaurants. As a result, overall Total Guest Values are on the rise, and they're bringing all-inclusive resort profits right along with them.”

Foreign policy.com, in a publication earlier in 2024 outlined that there are about 860 all-inclusive resorts all over the world and about half of them are in the Caribbean.

The script by Cameron Abadi is a deputy editor at Foreign Policy and Adam Tooze, columnist at Foreign Policy and a history professor and the director of the European Institute at Columbia University indicate that all-inclusive resort hotels are a booming global business that earns billions of dollars per year.

They state, “For decades, their typical clientele has been families from the United States and Europe seeking convenient vacations on beaches along the Mediterranean or Caribbean. But their appeal now extends to customers, and hospitality providers, across Asia—and with the same basic economic rationale.

“More people will agree to go on holidays if you promise them a fixed price, more people will actually sign up to go.”

The advocates of the model would say that because you get bigger business, in the end there are more jobs created by this kind of model. And there are hundreds of all-inclusive resorts. One figure

Amadi and Tooze note, “It’s estimated that only about 20 to 30 percent of the revenue generated by the resort stays locally in the form of wages and local supplies, and the vast majority of the revenue generated flows back out again in forms of dividend payments and flown-in supplies that create this bubble of essentially a North American existence or a European existence in a physical geography that is someone else’s or some other place.”

Notable hurricanes are not the only threat to the all-inclusive and tourist industry in general. There are also economic downturns, some caused by pandemics.

McKinsey. com notes COVID-19 affected every sector across the globe, and the hotel industry was among the hardest hit. Its research suggests that recovery to pre-COVID-19 levels could extend for years to come.

Minister of Tourism Edmund Bartlett said that the tourism, Jamaica’s second-largest earner, ended 2020 with losses of $76 billion because of the novel coronavirus pandemic.

 Photo credit: Elitehavens.com. Meal offerings at all-inclusive hotels brings in business.

Caribbean Money Daily

Caribbeanmoney.blogspot.com

Follow us for breaking news

Email austanny@yahoo.com

 


Comments

Popular posts from this blog

Kintyre makes US$300,000 investment in Sevens Ice

BCMG increases risk management oversight: Launches surveys-as-a -service

Wish List: University Hospital CEO seeks top-flight CFO for turnaround miracle