All-inclusive: Mediterranean raises its game

OPERATORS are targeting the Mediterranean all–inclusive market for summer 2005 as all-inclusive sales surge. The latest figures from market analyst AC Nielson show a 27.5% year-on-year increase in demand for short-haul, all-inclusive holidays for summer 2004, and hoteliers in the Western Mediterranean are upping their game in response. In destinations where the strong euro has forced up the cost of living, all-inclusive clients have been able to budget for their holidays in advance. All-inclusive properties in the more keenly priced Eastern Mediterranean, such as Turkey and Bulgaria, have also become more popular.

Thomas Cook head of mass-market product and planning Jeanette Linfoot said: “Traditional resorts are having to reinvent themselves. Caribbean islands such as Cuba and the Dominican Republic offer good value for money meaning short-haul destinations have to compete.”

Travel Weekly asked four key players to sum up the Mediterranean all-inclusive market and give their advice on new products for 2005.

Head of UK market development Paul Bunce: “Customers who have visited the Caribbean expect all-inclusives in Europe to be of the same standard. When all-inclusive holidays first took off in Europe they were little more than converted apartment complexes offering drinks and snacks and people lost confidence in the market. Today clients expect more inclusions such as entertainment and activities.”

New for 2005: Club Hotel Riu Miramar and Riu Helios Bay are both opening in Bulgaria in May. May also sees Club Hotel Riu Bonaca opening in Croatia and Club Hotel Riu Palace Algarve in Portugal. Club Hotel Riu Bolero opens in Bulgaria in June.

Sample product: Thomson offers seven nights at the Riu Arabella in Bulgaria starting at £449 per person for departures between September 28 and October 12 2005.

Head of mass-market product and planning Jeanette Linfoot: “Increased competition means there’s a greater focus on quality. All-inclusives are doing very well, for long haul and in the Mediterranean. More hotels are adding all-inclusive options in the Balearics and the Costa Blanca is selling well. In Turkey we are seeing a lot of new purpose-built properties for summer 2005. We are very keen to get them into our third-edition summer brochure for next year.”

New for 2005: some 89 all–inclusives are being added worldwide by First Choice for summer 2005, with Turkey taking the lion’s share. These include Iberostar Ciudad Blanca in Majorca, Marmaris Park in Icmeler, Turkey, and Iberostar Las Dalias in Tenerife. New Turkish properties are being built in resorts such as Lara Beach, Belek and Antalya. These could all be featured in JMC, Thomas Cook or Sunset summer 2005 third-edition brochures.

Sample product: Thomas Cook is offering seven nights’ all–inclusive at the four–star Hotel Marmaris Palace in Icmeler, Turkey, from £397 per person, departing Gatwick on May 9 2005.

Head of short-haul product Nicky Macfarlane: “The all–inclusive market is growing, with the Eastern Mediterranean and the Canary Islands selling well. The Eastern Med offers better value than Eurozone destinations – Bulgaria in particular has really taken off. In order to compete with the Caribbean, standards have to change. This includes the food, entertainment, accommodation and activities.”

New for 2005: three of First Choice’s flagship Holiday Village properties open next summer: the Viva Majorca, located on the Spanish island, and the Pegasos Palace and Pegasos Tropical, both in Turkey. An additional six new all-inclusive properties are coming on line, including some in Greece and Turkey. In those properties where there is no all-inclusive option, such as the Barcelo Palma Nova in Majorca, children’s snacks, drinks and ice-cream are included.

Sample product: all-inclusive accommodation is available at First Choice’s four-star Holiday Village Viva in C’an Picafort, Majorca, from £479 per adult and £179 per child for seven nights, including flights and transfers.

Head of sales Steve O’Loughlin: “All-inclusive resorts in the Mediterranean must raise standards to remain competitive. People are demanding more upmarket all-inclusive holidays. As a business, Club Med is taking this on board. People are still getting good value for money, but over the next couple of years we will renovate, refurbish and refresh our properties.”

New for 2005: new from Club Med for next summer is the option to upgrade to a ‘total all-inclusive’ package, which will include all drinks and snacks between meals and costs from £69 per adult and £34 for children. Club Med is also offering early-booking discounts of up to £300 per family to support the launch of its first-ever separate European and Worldwide brochures. The offer is valid on bookings for all Club Med villages until the end of February, excluding peak season.

Sample product: a seven-night all-inclusive stay at Club Med Kos, in Greece, starts at £646 per adult and £428 per child aged between four and 11 years; £356 per child aged between two and three years; and £107 for children under the age of two. This price includes return flights and transfers, accommodation, all meals, beer, wine and soft drinks with lunch and dinner, most sports and tuition including windsurfing, children’s clubs from the age of four upwards, entertainment and insurance.