What Will It Take for All-Inclusives to Recover After COVID-19?

Everyone is talking about the “new normal,” and the global hospitality industry, having been decimated by the pandemic, is doing its best to anticipate and adapt itself to the meet customers’ altered expectations post-COVID-19.

With generally-accepted measures for reducing viral transmission dictating a no-touch and distanced approach to personal interactions, COVID-19 promises to complicate the customer relationship for every provider—at least initially.

Even after travel restrictions are lifted and transportation resumes, residual uncertainty about the relative safety of flying on a plane or staying in hotel accommodations is bound to clash with the public’s pent-up longing for freedom of movement and a long-awaited escape from home.

The consensus among industry insiders is that establishing a sense of safety on-property will prove key to winning back consumers’ confidence and convincing them that the potential risks are minimal enough to start booking their trips.

While many chains have already released revised, heightened health and safety plans, we wondered whether all-inclusive resorts—a model that had become increasingly popular prior to the pandemic—might find themselves facing a unique and specific set of challenges as they proceed toward reopening.

“All-inclusives, in particular, will be facing challenges on a larger scale, as guests spend the majority of their vacation on property,” remarked Rodrigo de la Peña, CEO of Original Group, whose all-inclusive brands include Temptation Cancun Resort and Desire Resorts.

“Oftentimes, the property is the destination as opposed to a sleeping point. The all-inclusive clientele typically books longer stays, indulge in round-the-clock food and beverage service, and enjoy on-property entertainment where guests mix and mingle with other guests,” he observed.

Once guests have actually arrived on property, the trick will be to balance delivering the enjoyable, easy and accessible vacation experience guests seek while also incorporating elevated health and safety protocols into the mix.

“Our duty as a hospitality group is to ensure our guests’ on-property experience does not change in a drastic way,” and to minimize any inconveniences attached to new practices, he continued. Much effort will go towards fulfilling that promise, since Original Group’s adults-only brands, he said, “are distinctly known for being the hubs that bring together communities of like-minded travelers to meet and enjoy each other’s company in a safe and open environment.”

Enrique Calderon, COO of Posadas Group, whose brands include Grand Fiesta Americana, Fiesta Americana and Live Aqua, echoed this emphasis on the need to preserve signature guest-stay experiences while adopting COVID-19 precautions.

“We know that these new measures will soon become the norm in our daily lives and we are confident, despite the changes, that our resorts will continue to provide guests with the charming Mexican hospitality and vacation experience that Posadas has always shown,” Calderon said. “Same experiences, comfort, entertainment, relaxation, and quality of food—but with the best hygienic hospitality standard.”

Inmaculada Benito, Corporate Director CEO Office, Communications, PR and Public Affairs at Iberostar Group, said that the company had already been heightening its health, safety and sustainability efforts pre-pandemic and operational aspects that now, “will be joined by an increased focus on sanitation and change in consumer habits derived from complying with the rules of prevention of COVID-19.” She continued, “Social distancing, hygiene and the use of protective equipment will be a new reality in our lives.”

Aside from all of the focus on cleaning, sanitation and hygiene protocols, Sabrina Cendral, Senior VP of Marketing and Sales for Club Med North America, foresees a larger shift in consumer preferences stemming from the social-distancing mentality: “We also believe there will be increased demand for resort options that are less dense, and more spread out across large natural areas.

“Travelers will look for all-inclusive options that are more on the ‘boutique’ side rather than the concrete high-rises, or for properties that have decreased their maximum occupancy so they feel comfortable knowing there’s a good level of privacy and elective distancing,” she said.

A spokesperson for RIU Hotels & Resorts shared other thoughts about what it will take for all-inclusives to rebound, noting, “There is a huge interdependence between tour operators, airlines, travel agencies, hotels and complementary offerings. It is relatively easy for a hotel to open its doors, but without the necessary connectivity, it is impossible to achieve enough occupancy to cover expenses.”

It’s important to consider, said RIU, that brands often operate multiple resorts across various destinations and, with countries each applying their own strategies and working on separate timelines towards recovering from the crisis, all-inclusives’ degree of success in returning to “normal” will largely depend upon the progress and policies being made in each of their locations.