Premium product ‘leads all-inclusive growth’
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Middle class families and luxury travellers are turning to all-inclusive resorts to get the most value for money, according to a new report.
With a quarter of all-inclusive bookings now in the premium sector (typically £200 higher in cost than a traditional all-inclusive), the sector is thought to be worth £3 billion and growing at a rate larger than other holiday types.
Speaking at the launch of the report from GfK Ascent, YouGov and Club Med, the latter’s managing director in the UK Laurent de Chorivit said XL Holidays going bust had changed the market into wanting more security. As a result, the premium all-inclusive market is also more likely to book before the season starts, unlike the late booking conditions normally seen in the travel market.
“Packages have resisted more in the crisis, more than flight only or independent dynamic bookings,” said de Chorivit. “Premium all-inclusive has been the star of the last five years and those looking for five-star luxury are choosing these packages”.
Club Med itself moved into the premium all-inclusive market in 2004 by upgrading several of its resorts. The move proved to be stroke of luck ahead of these resorts, which de Chorivit explained as “we’ve been in the right market at the right moment”.
Since then Club Med has introduced new villa concepts with resorts in Italy and Belek planned to open in December 2012 and March 2013 respectively. “We are looking in Spain but it is hard to find a great, large location. Spain is very popular but crowded,” added de Chorivit.
Take-away bites from Club Med’s report
- ‘Premium’ all-inclusive holidays cost £200 or more than the typical all-inclusive holiday
- Families are £3,000 worse off a year but 45% consider holiday as most important luxury
- One in four all-inclusive bookings are premium and this is expected to grow
- Misconception of what’s included – around 23% are aware that sports and childcare is included in price, but 20% does not expect them to be included
- One in 10 holidaymakers are looking for an all-inclusive holiday in 2012, led by food, security and budgeting
- Egypt is the most popular all-inclusive destination for winter and summer
- All-inclusive holidays saw a 9% increase in sales in 2011 year-on-year
- Summer 2011 saw a 53% rise in eight-13 day holidays and now accounts for 17% of holidays in the market
- Seven-day holiday sales were also up, while 14-day dropped but still make 35% of market share
Rival company Mark Warner Holidays showed a similar step into the premium market earlier this year when it opened its Levante Beach resort. Its managing director David Hopkins said the opening was part of his belief that quality accommodation is the way forward. See what he said here.
