The Hotel Boom Has One Soft Spot: All-Inclusives

Hyatt’s third-quarter report, released October 29, painted a healthy picture of travel demand. Comparable systemwide revenue per available room rose 7.2 percent and gross fees climbed 15.2 percent, while the company’s development pipeline stands at about 158,000 rooms.

The exception was all-inclusive. Net package RevPAR in that segment fell 2.5 percent, with weaker demand in certain Mexican destinations partly offset by better results in the Caribbean and Europe. The company also pointed to Hurricane Melissa disruptions in Jamaica as a factor affecting distribution.

That makes the timing of other announcements interesting. Park Hyatt is preparing its first all-inclusive resort in the Riviera Maya, and JW Marriott recently opened its first all-inclusive in Costa Rica. Brands are still investing heavily in the format even as one quarter of results shows regional differences.

For vacationers, softer demand in specific destinations can mean better deals, especially for travel outside peak holiday weeks. One quarter is hardly a trend, but shoppers comparing all-inclusive packages in Mexico may find more flexibility than they would have a year ago.

Sources: eTurboNews