The landscape of group bookings at all-inclusive resorts is undergoing a significant transformation. With the rise of hotel loyalty programs actively marketing rates that can undercut those offered by travel advisors, a competitive imbalance is emerging. Recent findings from the Destination Wedding & Honeymoon Specialists Association (DWHSA) have shown that a staggering 95% of its members—comprising 840 professionals in the U.S. and Canada—have lost group guests to direct loyalty program bookings. This phenomenon raises critical questions about the future of group travel arrangements, especially for weddings and milestone events.
Traditionally, the advantage of booking in groups lay in negotiating better room rates while securing complementary amenities. However, the current trend has flipped this premise on its head, threatening the very essence of group travel incentives. As couples and event organizers face the risk of penalties for guests booking outside their arranged blocks, they may inadvertently jeopardize exclusive benefits like complimentary wedding ceremonies or tailored reception events. Additionally, the inability for group guests to earn loyalty points or secure preferred room assignments creates an environment where the collective benefits of group bookings are diminished, often leaving travelers at a strategic disadvantage.
Insights from seasoned professionals in the travel industry suggest that financial pressures are compelling resorts to shift their focus towards enhancing direct bookings. Geoff Millar, co-owner of Ultimate All-Inclusive Travel and Ultimate Hawaii Vacations, believes that resorts are struggling with growth in a challenging climate, prompting them to aggressively pursue this new booking strategy.
The post-pandemic landscape has seen an unprecedented lull in destination weddings, with expert Jennifer Doncsecz explaining the cyclical nature of wedding planning. She points out that the pandemic era resulted in individuals postponing their dating lives and marriage plans. Given that it typically takes four years for couples to transition from engagement to planning an actual destination wedding, it is anticipated that the recovery of this segment may not materialize until around 2026. Meanwhile, other segments of group travel, including family reunions and corporate incentive trips, continue to show stability.
This heightened competition among travel advisors has made it increasingly important to secure group bookings. Therefore, agents are often left scrambling to find clients the best offers amidst a landscape where rates are becoming harder to negotiate.
In this shifting scenario, not all hotel brands are responding uniformly to the challenges presented by the competitive landscape. Certain resorts have positioned themselves as reliable allies for travel advisors. Doncsecz expresses particular appreciation for brands like Sandals and Beaches, which boast favorable group contract terms; their group rates typically outperform other advertised pricing. Other brands, such as Majestic Resorts, are reported to maintain stability in their pricing without frequent adjustments, which is a notable advantage for travel advisors.
Conversely, some resorts present hurdles in maintaining consistent pricing for group bookings. This inconsistency stems from a reliance on changes in occupancy and complex promotional apps which make it difficult for advisors to secure a straightforward deal for their clients. This disparity highlights the necessity for dialogue between the DWHSA and various resort executives to forge reliable partnerships that honor the value travel advisors bring to the table.
Recognizing the need for change, the DWHSA is initiating discussions with resort executives, planning a Group Booking Summit in February in Miami aimed at addressing these pressing issues. Preliminary conversations with 16 major hotel brands have reportedly yielded positive feedback, though some larger names have been more reticent to engage in meaningful dialogue. Among those showing a willingness to participate is AIC Hotel Group, known for management of luxury all-inclusives including the Hard Rock brand.
AIC’s vice president of North America sales, Ash Tembe, acknowledges the challenge that arises when group rates exceed individual rates, particularly as last-minute bookings offer travelers more flexibility. In response, AIC has implemented a price-match policy that ensures parity between FIT (Fully Independent Traveler) rates and group bookings, a move aimed at fostering trust among travel agents.
Addressing the intricacies of group travel further, Playa Hotels & Resorts emphasizes the enhanced offerings and unique experiences that come along with their group rates. Dean Sullivan, Playa’s senior vice president of commercial marketing, reaffirms the company’s commitment to valuing partnerships with travel advisors—an acknowledgment that is increasingly vital in today’s competitive landscape.
As group bookings in all-inclusive resorts navigate this challenging terrain, the need for responsive partnerships and clear communication between travel advisors and resort brands becomes imperative. The evolving dynamics indicate a steep learning curve for all parties as they work toward solutions that not only support the business longevity of travel advisors but also uphold the value proposition for guests. The industry’s leaders, therefore, must champion collaborative efforts to reshape the future of group travel and restore the benefits that traditional group bookings once guaranteed.