Excerpt from CoStar
Pandemic-Related Leisure Travel Not the Only Support System
Solid operating margins, amenable development environments and a growing interest in all-inclusive travel are driving performance at all-inclusive hotels in the Caribbean region.
The continued surge in leisure travel has helped support the rapid acceleration of all-inclusive resort development in the Caribbean, but that’s not the only driving factor, according to executives from some of the region’s leading brand names.
Solid operating margins for the all-inclusive model, amenable development environments and a growing interest in all-inclusive travel have fueled more interest in the region.
Marriott International and Hilton in recent years have joined more established regional brands such as Apple Leisure Group, Grupo Posadas and Barceló Hotel Group to expand all-inclusive resort options in the region.
Recent alliances and deals in the all-inclusive space include IHG's loyalty alliance with Iberostar Hotels & Resorts, Hyatt’s acquisition of Apple Leisure Group and Wyndham Hotel Group’s partnership with Playa Hotels & Resorts, all with the goal of claiming more of the Caribbean all-inclusive pie.
Distribution Matters For Big Brands
Distribution is a big reason why Marriott and Hilton have joined the all-inclusive cohort.
Paula Cerrillo, director of development in the Caribbean for Marriott, said the company needed all-inclusive offerings to stay competitive, and had been considering the space for some time prior to its 2019 launch of its all-inclusive platform.
“We realized there was a need to jump into all-inclusive when we saw that our loyal guests were staying with our competitors because we weren’t offering all-inclusive,” she said during a panel discussion at the recent Caribbean Hotel Investment Conference and Operations Summit.
Now Marriott has more than 32 all-inclusive resorts open and continues to announce expansion, such as the signing of the W All-Inclusive Punta Cana Uvero Alto in Dominican Republic, set to be one of the first all-inclusive W Hotels to open.
Nicole Tilzer, senior director of all-inclusive resort strategy for Hilton, said many strong demand drivers are lining up now in the region.
“There’s been a growing and improving perception of all-inclusive in general, so the brands coming in have raised the perception of the category and brought new consumers in,” she said. “And we can make a great business case for making money for our owners, and provide something to guests that perhaps we had been missing before.”
Tilzer said Hilton data shows that within the first six months of opening an all-inclusive resort, about 60% of people booking stays are Hilton Honors members redeeming points.
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