Club Med Kani in the Maldives
Hilton Playa del Carmen will be among the first branded all-inclusives under the new Hilton-Playa deal
“ AFFLUENT AND EVEN VERY WEALTHY PEOPLE ARE INTERESTED IN THE CONVENIENCE .”
XAVIER MUFRAGGI , CEO , CLUB MED NORTH AMERICA AND THE CARIBBEAN
Contributed by DEBBIE CARLSON
moving into all-inclusive must think carefully about how they meet guest expectations — tailoring it as a journey through F & B and experiential offerings . Because of the multiple offerings at all-inclusive resorts , there are challenges to making it profitable . Both Mufraggi and Saenz says hotels need to first focus on the experience , then the cost . Start with the client base and understand how much they are willing to spend on the vacation , Mufraggi says . “ If you ’ re an American , how much are you willing to pay to ski in St . Moritz ?” he says .
One of the most popular experiences is around wellness , says Dervla Louli Musgrave , founder and editor-in-chief of Compare Retreats , which focuses on luxury wellness retreats . And it ’ s a perfect fit for all-inclusive resorts . “ What people really like is it means that they can turn off the decision-making part of their brain , which allows them to actually create more space and it allows them … to relax ,” she says .
Poling says Karisma ’ s marketing hits hard on the experience , since that plays well with millennial guests . The message is evolving , but it ’ s highly visual : videos of bartenders making craft cocktails and scenes that give an intimate , first-person viewpoint . Social media influencers , bloggers and celebrities are also employed .
“ We do a lot with earned media because everybody loves to come down to visit . And when they do , they ’ re more than happy to tell everybody about it ,” she says .
BEYOND THE CARIBBEAN
Yes , the all-inclusive segment is heavily focused on the Caribbean and Mexico , helped by cheap labor costs , and Hilton Vice President of Development for Latin America Juan Corvinos says the company is focused on opportunities in the Caribbean and Latin America that are between a three- and five-hour flight from the U . S . But while low-cost labor helps , it is possible to do all-inclusive
outside these regions .
Mufraggi says one of the fastest-growing areas for Club Med is ski resorts . Club Med ’ s research shows “ major , major appetite for that business model . Skiing in Canada or the U . S . is getting expensive . People want the convenience and the experience ( of all-inclusive ), and it ’ s not existing today .” He says having clusters of resorts near each other , such as the company has in the Alps , helps with spending since costs are spread among facilities .
Richard Millard , chairman and CEO of operator Trust Hospitality , Coral Gables , Florida , agrees the all-inclusive segment has geographic legs , but Latin America has some impossible-to-replicate advantages , namely great year-round weather and immaculate beaches . Trust Hospitality runs several Caribbean all-inclusive properties and just opened its first non-Caribbean resort , Sheraton Bijao All-Inclusive Resort in Panama .
With the Westin and Sheraton brands , Marriott is dipping its toe into all-inclusive . Millard , who says he has no insight on Marriott ’ s plans for further all-inclusive resorts , says the two companies will “ learn as we go along . I think you ’ ll see it proliferate . Whether it will be a Sheraton in the long run , I have no clue .”
December 2018 hotelsmag . com 13