The all-inclusive resort industry is grappling with a significant challenge that affects how travel advisors operate and strategize for their clients. Loyalty programs are increasingly offering rates that are often lower than the negotiated group rates available through travel advisors. This shift is forcing travel professionals to rethink their traditional role in booking group trips, particularly destination weddings and reunions. Recent findings from the Destination Wedding & Honeymoon Specialists Association (DWHSA) underscore the urgency of this issue, with a staggering 95% of travel advisors reporting lost group bookings to loyalty program deals.
The fundamental appeal of pooling resources to secure better rates for groups is rapidly diminishing. In a climate where individual bookings are preferred over group arrangements, advisors are left navigating a challenging terrain. The DWHSA’s white paper emphasizes that group leaders—particularly couples planning weddings—are now facing unexpected penalties due to their guests opting for loyalty program rates. As some guests book outside their reserved block, they may unintentionally place themselves at a disadvantage, forfeiting crucial perks such as complimentary ceremonies or reception events.
As this trend continues to unfold, group dynamics are strained. The loss of incentives previously associated with group bookings is forcing advisors to compete more fiercely for every client, a sentiment echoed by Jennifer Doncsecz, president of VIP Vacations. The pandemic has exacerbated this issue, causing a decline in destination weddings and leading to a backlog in future bookings. Doncsecz highlights how it takes years—from a couple’s decision to marry to actually organizing a destination wedding—for meaningful group travel to materialize.
These fluctuations in the booking landscape can be traced back to broader trends in the travel industry. Geoff Millar, co-owner of Ultimate All-Inclusive Travel, attributes the urgency for lower rates and direct bookings to financial pressures on resorts. Economic conditions have prompted these establishments to prioritize cutting costs, especially considering the downturn faced within the all-inclusive segment.
As travel rebounds post-pandemic, advisors find themselves in fierce competition not only with loyalty programs but with other factors influencing group travel. The standard family reunion or milestone celebration still thrives, yet the landscape of destination weddings remains in a pattern of uncertainty, which Doncsecz predicts will not stabilize until at least 2026.
In the midst of this turmoil, certain resorts have carved a reputation for reliability and favorable partnerships with travel advisors. Brands like Sandals and Beaches are highlighted for their consistently advantageous group contracts that surpass any loyalty program offerings. Advisors like Doncsecz commend these brands for their stability, particularly in an environment where rate adjustments are common among competitors.
Conversely, other resorts often engage in unpredictable pricing practices, complicating the advisor’s ability to secure advantageous deals for their group clients. This disparity within the industry has sparked the DWHSA to advocate for open dialogues among resort executives, paving the way for a Group Booking Summit aimed at fostering better relationships between advisors and resorts.
As the dialogue unfolds, industry leaders are beginning to recognize the challenges that arise when loyalty program rates overshadow group prices. Players like AIC Hotel Group, which manages luxury all-inclusives in Mexico and the Caribbean, are stepping forward to show understanding and adaptability. Their price-match policy signifies an acknowledgment of the shifting landscape where flexibility has become a key selling point.
Resorts like Playa Hotels & Resorts are also explicitly recognizing the value of travel advisors, noting their crucial role in attracting group clientele. This grounding in partnership emphasizes the possible path forward for achieving a level balance where both resorts and advisors can succeed.
The journey for travel advisors adapting to these new paradigms is fraught with challenges, yet it also presents unique opportunities for innovation in customer service and experience delivery. As the industry evolves, so too must the strategies that advisors employ to cultivate loyalty among their clients. Overcoming these challenges requires collaboration, transparency, and a willingness to adapt, ensuring that both travel advisors and their guests can maximize value in their all-inclusive bookings moving forward.