It all comes down to regulation, liquor licenses, and consumer behavior.
The phrase “all-inclusive vacation” often conjures visions of beaches, pool bars, free-flowing cocktails, and seemingly endless entertainment. Upon check-in, everything is taken care of from the moment of arrival to the minute of departure, promising a stress-free experience. Travelers can order whatever they want and as much as they’d like—because when staying at an all-inclusive, it’s already paid for.
The modern all-inclusive model is said to have originated when Club Med opened its first resort in Alcúdia, Majorca, Spain, in 1950. It’s become increasingly popular throughout the decades. Accommodations such as these are usually located somewhere beautiful and unique—and, more often than not, are associated with destinations like Mexico or the Caribbean.
So, why don’t we traditionally think of U.S. destinations when we plan an all-inclusive escape? Some resorts in the U.S. offer all-inclusive or mostly inclusive offerings—but they’re not nearly as common as in other regions. To investigate, we interviewed more than half a dozen hoteliers and hospitality experts to understand why all-inclusive resorts are so few and far between in the United States.
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From Palo Alto, California, to rural Montana—here’s some insider information on why a resort might or might not be interested in operating as “all-inclusive,” will choose to be “semi-inclusive,” or might manage themselves as something in between.
The All-Inclusive Business Model
“All-inclusive resorts have historically been associated with beach destinations and the allure of international travel,” explains Fernando Mulet, Vice President and Chief Investment Officer at the leading all-inclusive operator Playa Hotels & Resorts, which doesn’t own any all-inclusive properties in the United States. “This is paired with the opportunity to fully relax in pre-set confidence of what the vacation will cost.”
Second, he adds, is the additional layers of safety for international travelers provided in a secure resort and defined environment.
“The domestic travel culture in the USA often emphasizes flexibility and choice, with many travelers preferring to explore various dining and entertainment options outside of their resort,” says Mulet. “This preference for flexibility may also contribute to the relatively lower prevalence of all-inclusive resorts domestically. However, when Americans travel abroad to Central America and the Caribbean, all-inclusive resorts often offer a sense of security and safety, typically being situated in gated or secluded areas with a focus on guest comfort and well-being. This can be particularly appealing to Americans who may have safety concerns when traveling abroad.”
Beyond safety and convenience, Mulet explains that all-inclusives tend to be a costlier business model.
“The cost of land, labor, and operational expenses in the USA is generally higher compared to some international destinations,” he adds. “This can make it more challenging for resorts to offer all-inclusive packages at competitive prices. Additionally, the USA’s distinct regulations, including labor laws, tax regulations, and other legal considerations, may introduce additional challenges in offering all-inclusive packages.”
Mulet says that while U.S. all-inclusives may not focus on beach resorts, plenty offer experiences around skiing and wellness. These are mainly found in rural areas of Wyoming, Colorado, and even California that operate via an all-inclusive or nearly all-inclusive model. They’re just more challenging to find. Rural properties usually run better as all-inclusive hotels because there’s nothing else around, and guests must be fully cared for during their isolated visit.
Many guests who choose to visit rural, ranch-style resort properties tend to want to spend their time on-site, compared to hotels in big cities that simply serve as a launchpad for a wider exploration while on vacation.
“Large city markets with more tourist attractions nearby might have a difficult time with all-inclusive pricing if their guests plan to venture beyond the hotel or resort,” says Karli Miller, Director of Marketing at The Brush Creek Luxury Ranch Collection, which is located in rural Wyoming.
With guests more interested in exploring beyond the resort grounds in those fewer remote destinations, urban hotels are hard-pressed to justify offering all-inclusive pricing models. It’s the same with The Resort at Paws Up, which sits 45 minutes outside Missoula, Montana. Managing Director Steve Hurst points out that most urban and city-based hotels and resorts can make money on locals who just briefly pop in for a quick bite, which isn’t possible for those located dozens of miles from the nearest town.
“Maybe if you took The Resort at Paws Up and put it in Southern California on the beach, we wouldn’t be all-inclusive because we’d have as much revenue coming from outside sources,” he adds.
The U.S. also has its share of historic dude ranch vacation offerings, which have always traditionally run on an inclusive model (generally not including alcohol) due to their isolated location. From a business standpoint, all-inclusive models can be more predictable and simpler to plan and budget for in secluded regions. Russell True, owner of White Stallion Ranch in Tucson, Arizona, says his ranch operates on the inclusive model to stay competitive with other dude ranches since it’s his competitor’s standard.
True says running on an a la carte pricing model would likely exceed the all-inclusive price, so he could make more money overall. However, his guests would likely become choosier about what experiences they’re investing in while on-site, and his overall revenue would drop.
Darwin Ranch, a guest ranch near Jackson Hole, Wyoming, is also an all-inclusive, sans-alcohol ranch property (guests can bring their own alcoholic choice beverages instead). The property’s owner, Oliver Klingenstein, explains that “Old West” nostalgia heavily factors into his inclusive business model, leaning toward a desire to mimic historic, all-inclusive, and relaxing vacation itineraries reminiscent of a simpler era.
A Creative Take on All-Inclusives
Liquor licenses can be a tricky business in many states, and the properties deal with this challenge in some creative ways. At Darwin Ranch, which can host a maximum of 17 guests, Klingenstein says the property’s open BYOB beverage policy actually brings guests together because sharing a bottle of wine or whiskey can be a bonding experience.
In contrast, California’s large Alisal Ranch property, which hosts 73 guest cottages, operates from the opposite ideology and does include alcohol in its “all-inclusive” package because they’ve found guests bringing their own liquor can be a liability issue for them.
Sometimes, properties offer all-inclusive packages or accommodations, even if their resort is not “all-inclusive” as a whole. In Colorado Springs, Colorado, the historic property The Broadmoor is not traditionally an all-inclusive resort mainly due to its size, but the brand does host inclusive, seasonal “Wilderness Experience Property offerings” located just beyond the edges of the main grounds. Those who book these experiences get all meals, beverages, and most alcohol, activities, transportation, and lodging included with their booking price.
“We did not want guests to feel the need to carry a purse or a wallet on them while enjoying the outdoors,” says Andre Gutierrez, director of reservations.
This model can serve as a compromise for those who want a more immersive and luxurious travel experience operated by a well-known brand like The Broadmoor.
Even though all-inclusive models are typically associated with white sand beaches and backcountry ranch life, some are more “urban.” In Palo Alto, California, The Clement Palo Alto of Preferred Hotels and Resorts caters to business ventures and leisure travelers alike. Their property’s all-inclusive model is unique in that it caters to business travelers and vacationers in an urban Silicon Valley destination—not just those who want to soak in sand and sunshine.
Colleen Gerstner, on-site Director of Sales and Marketing, explains that these varying types of travelers spend their money differently. She says the cost fluctuates based on the day of the week and type of traveler since leisure guests staying over the weekend utilize more food and beverage options. However, the property hosts a diverse mix of guests, from VIPs like corporate executives, professional entertainers, speakers for Stanford University, and Stanford University parents. The biggest takeaway is that all of these guests are seeking the peace of mind of “paying upfront.”
The Benefits of All-Inclusive Accommodations
Whether travelers are on the road for business or pleasure, the inclusive model offers them more freedom and a chance to enjoy their time at the property without worrying about signing a single check—and it gives employees the freedom to provide more personal service.
When guests aren’t concerned about calculating a tip or signing a check, properties can put their employees in a better position to care for their visitors. Whether it’s the joy of a child who can order themselves a milkshake at the pool with their parents not having to worry about signing a bill or embarking on the activities already included in the price of the vacation, the all-inclusive models often offer a sense of greater freedom than their a la carte hospitality vacation counterparts for staff and visitors.
“It doesn’t feel transactional—it truly feels like an [elevated] service point,” says Paws Up’s Hurst. “Maybe it’s selfish, but we enjoy the service because we don’t have it as a transactional thing.”
When showing up for an all-inclusive stay, the only thing a traveler needs to do is relax and enjoy their time on-site. Even though all-inclusives may be more challenging for travelers to find in the U.S, each resort that shared insight for this story agrees it won’t be changing the business model anytime soon.
In the States, booking an all-inclusive experience is admittedly more of a financial investment, but it’s certainly a model that seems to be appreciated by travelers making the investment. However you spin it, it seems like these properties are doing something right—because their beloved guests keep coming back.