Holidays that are laid on for you still need a little effort

Published on Saturday 28 January 2012 06:04

THEIR popularity began with the birth of the upmarket Sandals resorts 30 years ago and now account for more than one in ten British holidays abroad.

However, “all-inclusive” holidays – where travellers can pay a set price for their accommodation, meals, drink and activities without fear of being tempted to purchase pricey additional treats – are tipped to be the next big thing as more people tighten their belts amid the spiralling cost of living.

According to a new study by TravelSupermarket, 12 per cent of holidays in 2012 will be all-inclusive – while research from First Choice, which is to make all of its breaks all-inclusive by May this year, insists that holidaymakers can save hundreds of pounds by ensuring they do not overspend while abroad.

It is believed that in the beach holiday market – the heartland of all-inclusive holidays – up to a third of deals is all -nclusive.

Countries such as Egypt, Tunisia and Morocco have become the most popular destinations for the all-inclusive deal in recent years, while further flung resorts such as Cancun in Mexico and Guardalavaca in Cuba are also cashing in on the trend. Closer to home, classic British holiday camps such as Butlins and Pontins – one of the earliest forms of all-inclusive holidays – as well as the modern versions such as Centre Parks and Haven are also enjoying a revival.

“Many of our customers will have overspent at Christmas, but they can go on all-inclusive holiday knowing that this won’t happen again. In the current climate, people want to leave their money worries behind when they go on holiday,” said David Burling, managing director of TUI UK & Ireland, owner of the First Choice brand, which operates under the slogan “Everything taken care of”.

However, experts have warned that holidaymakers need to ensure that they are actually getting the best value for money by opting for total package holidays.

The report claimed that more than half of holidaymakers overspent on their self-imposed budgets while away last year, costing them a total of £403 – with the biggest causes of extra costs coming from evening meals, daytime snacks and drinks and evening drinks at the bar – all of which are usually part of an all-inclusive package.

In the five years between 2004 and 2009, the all-inclusive holiday market grew by 32 per cent, according to research from Mintel.

But TravelSupermarket.com travel expert Bob Atkinson said holidaymakers needed to consider all aspects of their holiday requirements to make sure they pay the best price.

“All-inclusive holidays have been very much marketed to people as the product which a consumer can budget for in the UK and set the price of their holiday knowing that it has been paid for and they will have few other outgoings once they are there, which is an advantage, particularly in this economic climate,” he said.

And while the majority of all-inclusive breaks does what it says on the tin, it is worth checking the small print.

“Often, the inclusive drinks deal is only for local brands of alcohol, whereas if you want an international brand, you have to pay a premium,” added Mr Atkinson. “Also, it may be that in some of the less pricey hotels, food is included, but there might only be one choice. So if you don’t like what is on offer, you might end up having to go elsewhere to eat – and pay twice. You really have to consider whether it is the best option for you.”

While all-inclusive packages are often marketed as a cheap option, they also mean that holiday operators can guarantee a bigger average spend from the holidaymaker than if they were eating out in local restaurants and paying them for flights and accommodation only.

“There is also the argument that this is not great for the local economy – often the big hotels are owned by international operators and if people are not eating in restaurants and just staying on the resort, then that doesn’t help create growth for them,” added Mr Atkinson.

Gillian Edwards, spokeswoman for the Association of British Travel Agents, said the traditional all-inclusive beach holiday had been replaced by a range of options.

“People think of it as a beach holiday concept, but it has now broadened out into skiing and all kinds of adventure and activities holidays,” she said.

“We are predicting both the luxury market and the all-inclusive market to be the areas which will do well this year.”

Luxury cruise ships – such as the stricken Costa Concordia, which earlier this month smashed into rocks off an Italian island with more than 4,000 people on board – are also a form of all-inclusive holiday, as passengers are usually provided with the majority of their food and drink – as well as entertainment – on board.

“All-inclusive is definitely already a growth area, but it will also see quite a bit of shine off what’s happening in the cruise sector at the moment – consumers tend to get a bit twitchy when there are concerns about safety records, or if a company’s financial situation is in question,” said John Lennon, professor of travel and tourism at Glasgow Caledonian University. “However, in the current economic situation, the popularity of all-inclusive holidays is a no-brainer. They have been around for a long time and have gone from being one of the most fashionable ways to go on holiday to becoming a bit ‘pile em high and sell em cheap’ – a bit like cruises have. However, now you will find resorts which are very chi-chi and upmarket – but during a recession people still like the control and the absolute peace of mind that you know your exact expenditure.”

He added: “It is for that reason that cruises, too, have boomed during the recession.”

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