The landscape of the all-inclusive resort sector is changing dramatically, with hotel loyalty programs advertising rates so low that they often undercut the group rates negotiated by travel advisors. This shift raises vital questions about the future of group travel and the role of advisors in facilitating these bookings.
A Troubling Trend for Travel Advisors
According to a recent survey conducted by the Destination Wedding & Honeymoon Specialists Association (DWHSA), an overwhelming 95% of its 840 members across the U.S. and Canada indicated that they had lost group guests to these competitive loyalty program deals within the last year. This alarming trend indicates that the benefits once enjoyed by group bookers are waning. The DWHSA articulated that the traditional rationale for grouping, which often enabled travelers to secure better rates through bulk bookings, is now effectively “turned upside down.”
For couples planning weddings and families organizing reunions, the situation becomes even more complex. If guests opt for the lower loyalty rates instead of the group rate, they may inadvertently face exit penalties or miss out on crucial concessions that are usually tied to block bookings. This dilemma not only diminishes the value proposition for advisors but creates an environment rife with uncertainty for groups relying on these packages.
Industry experts like Geoff Millar, co-owner of Ultimate All-Inclusive Travel, believe that economic pressures are compelling resorts to prioritize direct bookings. There’s a noticeable shift in the all-inclusive landscape, where resorts are becoming more aggressive in wooing customers directly—an act that undermines the traditional travel advisory model. Millar emphasizes that resorts are currently under pressure to cut costs, an unfortunate byproduct of sluggish growth in the sector.
Adding a layer of complexity, Jennifer Doncsecz, president of VIP Vacations, notes that the pandemic’s impact on social behaviors has stunted the recovery of destination weddings. She forecasts that it will take until approximately 2026 for these weddings to fully rebound, as the cyclical nature of marital planning is hindered by recent global events. With fewer clients entering the market, competition has escalated among travel advisors, who now find themselves combating for every available booking in an exceedingly difficult environment.
Finding Reliable Partners in an Uncertain Market
Amidst these unsettling dynamics, certain resort brands are emerging as more dependable allies for travel advisors. Doncsecz highlights Sandals and Beaches, noting that they provide group contracts that consistently offer better rates than those available through loyalty programs. Her praise extends to Majestic Resorts, which she describes as having stable pricing practices. Conversely, she points out that brands like Hard Rock may fluctuate their prices but are generally prompt in matching competitive offers.
The uneven standards of pricing and booking policies among various brands illustrate the ongoing frustrations travel advisors face. Some brands’ willingness to frequently adjust rates based on occupancy or their sluggish response to pricing changes can leave advisors feeling unsupported. As the DWHSA advocates for a more cohesive and constructive dialogue within the industry, they are organizing a Group Booking Summit for discussion with resort executives. Early conversations with 16 notable brands seem promising, but skepticism lingers regarding the willingness of larger companies to actively participate.
Some resort companies are beginning to recognize the chasm that has developed between individual bookings and group rates. AIC Hotel Group, for example, has established a price-match policy to ensure group bookings are not subject to disadvantages compared to individual travelers seeking promotional deals. This step, according to Ash Tembe, vice president of North America sales at AIC, signifies awareness of the challenges faced by travel advisors.
Similarly, Playa Hotels & Resorts aims to attract more loyalty from advisors by emphasizing that their group rates account for enhanced offerings unavailable to the average FIT traveler. With a portfolio that includes properties under Hyatt, Hilton, and Marriott, they hope to foster long-term relationships with advisors who play a pivotal role in facilitating group travel.
The all-inclusive resort industry is at a critical juncture where established norms are being challenged by competitive pricing strategies and evolving market dynamics. Travel advisors must adapt to these changes or risk becoming obsolete amid an overstressed market. As the DWHSA seeks to ignite much-needed discussions with resort brands, there is hope that collaborative efforts may lead to a more advantageous environment for both advisors and their clients. Only time will tell if these efforts will restore the balance and inherent value of group bookings or if the industry will continue to skew towards direct-to-consumer strategies.