Time for a grown up debate about all inclusives

ICRT Boss calls a halt to prejudice and misplaced focus

See also: www.travelmole.com/stories/1147582.php

The decision by First Choice to reposition the brand from summer 2012 as a retailer of all inclusives reflects changes in the market and arises in part from the need to differentiate the First Choice and Thomson brands within TUI. Writes Professor Harold Goodwin in his blog

I understand that in 2011 two thirds of the holidays being purchased by First Choice customers are all inclusives and that over the last five years demand for all inclusives has increased by one third. In deciding to become the UK’s first mainstream company specialising in all inclusives First Choice is following the market. The First Choice non-all inclusive products will be sold under the Thomson brand.

The decline in UK living standards, coupled with uncertainties about the value of the holiday pound, has resulted in a rapid increase in the number of all inclusives being purchased by UK consumers worried that they will not be able to afford the extras in destination. The packages will include flights, in-resort transfers, hotel accommodation, three meals a day, and unlimited local drinks as standard.

Since the decision was announced by First Choice on April 8th there has been the usual storm of ill-informed criticism of all inclusives. For example, Simon Calder is quoted on the BBC News website describing all-inclusives as “the devil’s work.” SEE: www.bbc.co.uk/news/business-13005275

First Choice did not handle the announcement well. The original press release played into the hands of the critics of all inclusives:  “they won’t have to worry about spending money when they’re abroad”….

“First Choice will become the home of All Inclusive, offering the best of both worlds – a unique feeling of indulgence combined with practical control over their holiday spending – whatever your budget. Well-earned breaks will be even more enjoyable because people can leave their wallets at home and relax: they won’t have to worry about spending money when they’re abroad.”
There is a positive story to be told about some all inclusives – but too little research has been done.

Think for a moment what happens if First Choice does not offer holidays which customers want. Many destinations are now economically dependent upon tourist arrivals – leave aside the argument about whether this is or is not desirable. We have to deal with the situation as it is. . If the market shifts towards all inclusives countries which do not adjust to changing demand and which fail to find alternative non-all inclusive markets, will lose visitor arrivals and suffer decline and hotels close, staff are made redundant and the local economic impacts are negative.

Too many people unthinkingly assume that operators want to trap holidaymakers in the hotel or resort – hardly, it costs them money to have them in the restaurants and bars. The commercial imperative is to encourage holidaymakers to go out of the hotel or resort. I understand that research conducted by TUI comparing foreign exchange purchases made following a booking that on average all inclusive clients exchange an average of only 14% less foreign currency than holidaymakers going to non-all inclusive hotels.

The debate about all inclusives is characterised by prejudice and a misplaced focus on the form rather than the impacts of the holidays.

Misplaced focus on the form rather than the impacts of the holidays:

Different forms of tourism need to be assessed not on the superficial form of the holiday but rather on the social, economic and environmental impacts of the holiday. Some forms of holidays might best be organised as all inclusives in order to reduce negative social impacts.

The economic impacts of holidays need to be considered and measured – the quantity and continuity of local employment, the consumption of locally produced food and drink, the employment of local rather than foreign entertainers. Working conditions in hotels are generally likely to be better than those in small enterprises around the hotels and resorts.

All inclusives in Turkey and Cuba for example employ local staff, in larger numbers because of the range of activities provided, the levels of occupancy over a longer season are greater, requiring higher levels of permanent employment. Food and drink are locally produced and the entertainments and activities provided are locally owned and staffed.

We should be focusing on the relative local economic benefits and costs of different types of holiday in particular places; we need to move beyond the stereotypical generalisations which currently characterise the debate. All forms of tourism can be made more responsible, we can work to improve the economic benefits and reduce negative economic, social and environmental impacts. It may be easier to do this in successful all inclusive resorts with long seasons or year round operations than with traditional resorts and hotels.

The research to substantiate this view is yet to be done and published – it is long overdue.  There need to be robust comparative studies of the economic impacts of holidays in all inclusive and traditional hotels and resorts. We need to learn a great deal more about how we can improve different forms of tourism – and improve them.
 

Prejudice:
Derek Moore as Chairman of AITO has responded with the usual and false argument that “all-inclusives give almost nothing to the local community because holidaymakers don’t spend much money outside the resort.”  SEE

There is a tendency by specialist and up-market operators to dismiss all-inclusives, forgetting that they too sell all inclusives:  the full-board secluded hotel luxury packages which include spa treatments, the high end cruises and yacht charters, the all inclusive African safaris. And of course the food and drink is much more likely to be imported and there will often be a higher proportion of expatriate labour.

It is time for a more rational debate based on more evidence and less prejudice.
AITO Agents 5* Sheraton Gambia Hotel, The Gambia, All Inclusivewww.aito.co.uk/aitoagents/holiday.asp
AITO site advertises "Experience the glamour and sophistication of Monte Carlo on an all inclusive trip to the Monaco Grand Prix" www.aito.co.uk/sports-holiday.asp
AITO members Pure Crete: We specialise in all-inclusive, self-catering, luxury, villa holiday Crete style. All of the houses, villas and holidays described on this website are situated in Cretan villages set in the fabulous foothills of the White Mountains overlooking the sea. www.purecrete.com/luxury-villa-holidays-crete.html
Kuoni offer luxury all inclusives

Listen to the discussion on Radio 4 www.bbc.co.uk/programmes/p00gl4dq
There are echoes of the snobbery in the all inclusives debate in the reported comments of Oliver Letwin, the Cabinet Office minister, in conversation with London Mayor Boris Johnson about new airports, and the increase in airport taxes.

Mr Letwin, the Prime Minister’s key policy adviser, allegedly told Mr Johnson: “We don’t want more people from Sheffield flying away on cheap holidays.”

Read more in the Daily Telegraph www.telegraph.co.uk/news/politics/8424883/Oliver-Letwin-We-dont-want-more-people-from-Sheffield-flying-away-on-cheap-holidays.html
The Daily Mail www.dailymail.co.uk/news/article-1373025/Nick-Clegg-defends-Sheffield-Oliver-Letwin-jibe-He-wants-tread-carefully.html

Then ODI report into the socio-economic footprint of First Choice’s Holiday Village Turkey has subsequently  been published it can be downloaded Travel Foundation’s website thetravelfoundation.org.uk/index.php

Edited by Valere Tjolle
Valere Tjolle is editor of the Sustainable Tourism Report Suite – special offers HERE