Commentary: Burnt out young travellers are driving the rise of all-inclusive resorts

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SINGAPORE: Forget self-guided tours and DIY holidays – all-inclusive resorts are experiencing a revival.

Once regarded as convenient but uninspired family destinations, all-inclusive resorts – where the price of stay includes accommodation, meals, drinks and activities – are drawing in Gen-Z travellers with their modern design and amenities.

In 2024, searches on Hotels.com using the “all-inclusive” filter spiked 60 per cent from the year before. In a survey conducted by Expedia Group of over 25,000 travellers, 28 per cent of travellers said their perception of all-inclusive hotels had improved in the last 12 months, and 64 per cent of young travellers had already stayed in an all-inclusive hotel.

Social media is also fuelling interest, as TikTok’s #allinclusive hashtag has appeared in around 200,000 posts worldwide.

Travellers considering all-inclusive hotels shun big-city locations, favouring beach-front properties, wellness and food. This ties in with the rise of detour destinations, where travellers add a side-trip while visiting major cities, for instance to Krabi, Thailand (detour from Phuket), Fukuoka, Japan (from Tokyo) and Reims, France (from Paris).

So what’s driving the rise in interest for all-inclusive stays?

DEMAND FOR PREDICTABLE COSTS

2025 will be a period still defined by post-COVID uncertainties. The conditions contributing to the state of a permacrisis, such as climate change, economic volatility and geopolitical tensions, are likely to persist. This dampens consumer confidence and drives demand for predictable costs.

Against this backdrop, Gen Zs are pragmatic when it comes to spending. This means they are more likely to prioritise value for money, often waiting for sales before making purchases, according to market research firm Mintel.

All-inclusive resorts tend to be marketed as a value proposition: Guests know how much they are spending because they pay upfront and there are no surprise costs. This predictability relieves both financial and mental stress for young travellers.

THE PROMISE OF HASSLE-FREE TRAVEL

Wellness in travel is nothing new, but for Gen Zs, this may come as more of a priority. Gen Zs are experiencing burnout at an earlier age. In a Cigna Global Health survey of almost 12,000 workers around the world, 91 per cent of 18- to 24-year-olds reported being stressed, 7 percentage points higher than the average.

With the promise of a hassle-free experience where every detail has been taken care of, all-inclusive resorts may provide young travellers much-needed respite. These hotels offer guests the chance to shut their brains off while drinking unlimited margaritas in the sun, until it’s time for their already-paid-for dinner.

In the Expedia survey, Gen-Z travellers cite minimal stress (41 per cent), ease of booking (39 per cent) and a feeling of luxury (38 per cent) as the main appeal of all-inclusive resorts.

Additionally, seeking experiences in travel is something that this generation may prioritise more. By starting families and buying homes later, Gen Zs are inclined to owning less and experiencing more. These travellers desire experiences over material goods and are looking to maximise every moment of their time away.

As the newest generation of travellers, the tastes and preferences of Gen Zs will define the tourism sector. With Gen Z’s focus on stress-free travel, this may mean that all-inclusive resorts are here to stay.

Lavinia Rajaram is Travel Expert and Director of Asia Public Relations at Expedia Group.