How ‘all-inclusive’ resorts are targeting millennials
What techniques are capturing the hearts of today’s trendsetting youth, turning them into tomorrow’s loyal customer? 18-to-34s have swiftly become the must-have guest for accommodation providers.
The dawn of the digital age has made them difficult to target because they seem to have so much more control over what travel experience they want.
As Airbnb and shared accommodation options become more popular it is hard to imagine that traditional hotel types will continue to thrive.
However, all-inclusive resorts are doing their damnedest to become the next big thing even though they might seem like a throwback to more traditional 1950s family holidays.
Leadership council chairman at the Department of Tourism and Hospitality Management in George Washington University Lelei LeLauLu told Skift in a newly published report: “There are many advantages of all-inclusive resorts, because people want the security of an all-inclusive hotel on their vacation, they want the sense of calm, and they don’t want to worry everyday how much they’re racking up their hotel bill.”
The report looks at how all-inclusive resorts are adapting to the digital age and what the response has been like so far.
Perhaps most notably, 50 per cent of those asked in a survey published in the report said that on-site activities would need to be included for them to purchase and all-inclusive trip, while just 10 per cent demanded child-care.
This speaks to a younger crowd who is more interested in an active, cheaper holiday than more traditional family fun.
Kristina D’Amico, a senior analyst, hospitality consultant and hotel appraiser at the HVS hotel consultancy company also said in the report that the biggest shift in the all-inclusive industry has been the rise in quality across all budget sectors.
She said that prices have stayed “very reasonable and often lower than you would expect,” while add-on purchase options at restaurants, bars, spas and other outlets have become more popular.
The latter has occurred as hotels aim to boost sales by partnering with local businesses, and consumers content with the quality they’ve received in their paid-for package are more likely to splurge outside of it.
“General managers are saying that people want to spend an extra $50 to get a truly great wine or a private dinner setting outside with personal service,” she said.
“People still want to make spontaneous travel purchase decisions, and because it’s an all-inclusive resort, they know there won’t be that sticker shock at the end of the stay, so why not spend a little extra here and there.”
Richard Kahn, a longstanding board member of the Caribbean Hotel & Travel Association (CHTA) explained that a rise in guest expectation and competitiveness in the marketplace have driven up the level of service quality.
All-inclusives are fostering loyalty by offering unique guest activities as part of a good value booking package and by introducing guests to local businesses that can offer something special.
Could these trends work just as well for other types of accommodation?
AccomNews is not affiliated with any government agency, body or political party. We are an independently owned, family-operated magazine.
