Why all-inclusive holidays are more popular than ever as luxury hotels jump on the bandwagon

By MARK PALMER, TRAVEL EDITOR

Published: 01:14 BST, 14 May 2025 | Updated: 01:18 BST, 14 May 2025

All-inclusive holidays have long been known for their bulging buffets, drink-as-much-as-you-like beers and wines, and raucous nightly entertainment.

Not anymore. Premium brands are jumping on this growing bandwagon, offering a la cart menus, sophisticated cocktails and cultural experiences in sharp contrast to traditional fly and flop packages.

Bookings to all-inclusive resorts have doubled every three to four years since 2018, according to data released by the Advantage Travel Partnership, representing independent travel agents in some 750 UK locations.

Eight years ago, approximately 7 percent of all bookings handled by high street agents were for all-inclusive holidays. By 2022, that figure had grown to 15 percent, and, so far, by 2025 it has reached 30 percent.

‘The all-inclusive has evolved hugely and now caters to all budgets, said Julia Lo Blue-Said, chief executive of the Advantage Travel Partnership, speaking at the association’s conference in Malta. ‘But the principle remains the same, whereby you pay up front and can then relax knowing you will keep within your budget’.

Brands such as Hyatt have responded to this shift by launching its Hyatt Inclusive Collection. And family resorts like Sani, Ikos and Rixos have taken the all-inclusive upmarket, attracting more affluent clients than ever before.

Rather than relying just on sun loungers on the beach, all-inclusives are offering excursions to local markets and historic sites. Ikos Resorts offers guests a ‘Culture Pass’, giving access to local museums and galleries, and has started a ‘dine-out’ option whereby packages include eating in restaurants outside the resort.

‘It’s hardly surprising that all-inclusives have become so popular,’ says Mark White, director of Ockey White, a travel agents in Pembrokeshire. ‘We started to see a big increase after Rachel Reeves’s October budget, which spooked people and eroded consumer confidence.’

Luxury all-inclusives such as Ikos Resorts (pictured) are attracting more guests than ever before

Travel agents began to see a big boost in all-inclusives following Rachel Reeves’ October budget

The first all-inclusive is considered to be Club Med, launched by Belgian entrepreneur Gerard Blitz in 1950 in Alcudia, Majorca, where guests stayed in tents and basic straw huts along the beach.

Today, all-inclusives increasingly are available across a variety of holiday types, including cruises, ski trips and safaris.

Despite the cost of living pressures, an Advantage Travel Partnership poll of 2,000 adults from different age groups shows that people are reluctant to cut down on holidays and will make other sacrifices instead.

More than 85 per cent of Gen Zs are cutting back on takeaways, eating out, gym memberships and buying clothes, while 35 percent of 45-64 year-olds are postponing home improvements.

Spain, France and Greece remain popular, but new favourites are emerging based on affordability, including Slovenia, Albania and Montenegro – ‘destination dupes’, as they are known.

And 12 percent of those polled said they go on holiday abroad to escape the UK’s political and economic climate.

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Why all-inclusive holidays are more popular than ever as luxury hotels jump on the bandwagon

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