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ALL-inclusive operators are bracing themselves for another bumper summer season, as more product innovations and new resorts come on line.
Although 2005 has been another turbulent year for the travel industry, sales to all-inclusive resorts have continued to rise.
Thomas Cook director of product Tony Hopkins said: “The all-inclusive product for summer 2005 was up 26% against an overall market that is down 2%. That is a significant increase.
“This trend is continuing into summer 2006, although so far the figures aren’t as high. Sales of all-inclusive properties are up 9% against an overall market that is down 4%.”
Hopkins said part of the increase isn’t clients specifically choosing to go to all-inclusive resorts, but many of the properties in popular resorts in destinations such as Egypt and Turkey have either been built as an all-inclusive property or are converting their offering.
Operators say the eastern Mediterranean and Red Sea as well as long-haul destinations are continuing to sell well for next summer. Clients are also looking for additional activities in resorts such as spas and water sports.
Turkey all-inclusive resort LykiaWorld claims UK visitors made up 36% of its bookings this year, compared to 7% in the previous year.
Trustaccommodation said Sharm el-Sheikh has proved its most popular destination for winter 2005/06, despite the bombings earlier this year.
Some 70% of its sales are all-inclusive hotels and for this summer the Greek islands, Costa Brava in Spain and resorts in Turkey such as Fethiye are leading the way.
Cosmos product manager for western Mediterranean Caron Lockwood said: “Family-focused all-inclusive properties in Spain are still very popular, especially the Jupiter Saturno in Majorca and the Esmeralda in Minorca.”
With all-inclusive product increasing and the concept becoming more popular with clients, Travel Weekly asked six operators with all-inclusive product to name an innovation for summer 2006 and tell agents why they think it is what customers are looking for.
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Paul Riches, sales and marketing director, Libra Holidays
What: new five-star all-inclusive.
Where: St Raphael Hotel in Limassol – currently undergoing a revamp to reopen on April 1 2006 as an all-inclusive property.
It works because: “We believe the demand is there for a five-star – providing the price and the value are there. This product has to be competitive against four-star product and not pitched against top-end luxury such as the Four Seasons. It is due to open in February with a new family wing and two additional pools. The price is right and the facilities are there.”
Sample product: Libra Holidays offers seven nights’ all-inclusive at the five-star St Raphael in Limassol from £639 per adult; child prices start from £199 per child. The price is based on two sharing a twin inland view room and includes flights and transfers. The hotel only operates on an all-inclusive basis between April and October.
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Karla Earp, product manager, Panorama
What: now brochuring Eilat.
Where: Eilat, Israel.
It works because: “The flight [to Eilat] is only a bit longer than a flight to the Canaries. Eilat is guaranteed good weather, as well as being cheaper than the Eurozone. The facilities and structure are already in place and it will attract a similar market to that of Egypt, which is selling very well. Because it’s a new product we’ve gone for 21 new hotels. We’ll work out the leaders and the weak ones and refine our product for next year.”
Sample product: prices for summer 2006 start at £564 per person per week twin-share, at the Isrotel Sport Club, including flights and transfers.
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Bobby Stewart, managing director, Sandals
What: Sandals Antigua Caribbean Village and Spa.
Where: Antigua.
It works because: “This $65 million Mediterranean Village expansion, opening in November, will consist of 180 new suites. Antigua is the single most important property that we have out of the UK and one of the few resorts where there are more UK than US clients.
“We have taken the resort upmarket and will have a new Italian restaurant, English pub and ‘barefoot on the beach’ concept restaurant.”
Sample product: Virgin Holidays offers seven nights at the Sandals Antigua Caribbean Village and Spa from £1,449 per person, including flights and transfers.
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Lucy McKenzie, product manager, Cosmos
What: value child prices – same price for first and second child for one, two or three-week stays.
Where: in its luxury-end properties – four or five star – in the Dominican Republic or Mexico.
It works because: “Customers confident with the all-inclusive product in the Mediterranean are keen to travel further afield and the Dominican Republic and Mexico offer excellent value for money. Demand is definitely rising within the family market for higher-rated hotels in these destinations as families can budget for the holiday before they travel. We are offering low first and second child prices to attract this market.”
Sample product: prices for seven nights at the five-star Moon Palace Golf and Spa Resort in Mexico lead in at £1,119 per adult and £679 for both the first and second child for up to 21 nights. The price includes flights and transfers.
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Tony Hopkins, director of product, Thomas Cook
What: all-inclusive plus – it’s a new category of all-inclusive hotels, which aims to give customers more choice within in the overall package price, such as more restaurants, branded beverages and 24-hour bars.
Where: for summer 2006 all-inclusive plus will mainly be in Thomas Cook’s Turkey resorts.
It works because: “People are becoming more savvy about what’s offered in an all-inclusive package and this gives them choice. If they’re flicking through the brochure, it will help them understand, without reading the small print, why one hotel is more expensive than another.”
Sample product: Thomas Cook offers seven nights’ all-inclusive plus at the five-star Paloma Perissia Hotel in Side from £349 per person, including flights and transfers.
