All inclusive holidays. How on earth do they make money

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Stefan Thomas
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Posted: 3rd Aug 2012 - 14:58 Quote
I am seriously impressed by my first all inclusive holiday - I am currently in Turkey.

I have just worked out that I am paying £32 per head Per night for a 5* hotel, with swimming pool and kids waterslides, 3 seriously good meals per day, plus all day snack bars and an open bar.

I cannot for the life of me work out how they are making money on this. It is also obvious that the three all inclusive hotels built around here have decimated the other restaurants and bars locally.

Seriously impressive value and quality.

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Gareth Frensham
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Posted: 3rd Aug 2012 - 15:05 Quote

Have to agree, we're off soon for 2 weeks all  inclusive for the four of us for not much more than £1500, cheaper than staying at home almost!!

I'd guess that not everyone gets those prices and someone who booked ages ago through a top travel company may be in effect subsidising you.

Or a good job you're a veggie Stef as the meat dishes may not be what they appear!

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Brad Burton
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Posted: 3rd Aug 2012 - 15:21 Quote
This rocks

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Chris Maslin
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Posted: 3rd Aug 2012 - 15:21 Quote

Good to hear.  We've never been all inclusive, mainly following hearing a few horror stories where the only inclusive restaurant serves a buffet of gruel!

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Posted: 3rd Aug 2012 - 15:34 Quote

Went Cancun, Mexico last year. You could buy a case of 24 corona for $20, if you kept the box and all 24 empty bottles, you could trade it for a new case for $1, this blew my mind.

 

So that's 336 bottles of Corona for $33..

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Michael Mertens
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Posted: 3rd Aug 2012 - 15:43 Quote

How they make money? Purchasing power parity.  (PPP)

UK         US$ 37,000
Turkey   US$ 14,000 

(per capita)

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Ashley Wilkes
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Posted: 3rd Aug 2012 - 15:56 Quote

Economies of scale. Filling rooms. Known staffing costs.

Loads of reasons why it makes sense.

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Adam Stevens
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Posted: 3rd Aug 2012 - 15:57 Quote

Economy of scale.

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Adam Stevens
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Posted: 3rd Aug 2012 - 15:57 Quote

ah crap he beat me to it....

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Jo Bayne
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Posted: 3rd Aug 2012 - 16:01 Quote

It helps if there are more T totallers in the mix - my family and friends tend to hit the profit margins!!

 

 

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Gareth Mailer
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Posted: 3rd Aug 2012 - 19:22 Quote

I have a client in this niche, AllInclusive.co.uk - buy his stuff! They just signed up a month or so ago. 

Seriously, well worth a check - they offer great packages and the owner is a genuinely good guy. As for how he makes his money? Well, I'm sworn to secrecy....

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Stefan Thomas
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Posted: 4th Aug 2012 - 05:34 Quote
There is a little group of people employed here to try to sell you other stuff, beauty treatments, hairdressing, photography and the whole point of the pool party last night was to sell drinks that aren't on the all inclusive list.

It is also very noticeable that anyone selling anything prefers to be paid in £Sterling rather than Lire.

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Richard Quirk
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Posted: 4th Aug 2012 - 05:49 Quote

Yes, Ive often wondered why but never really investigated further because Ive always been gorging myself on what was available ;-)

Undoubtably a combination of "stack it high sell it cheap", coupled with a lower standard of living giving them cheaper outlays and a thriving up sell of the extras around it!

 

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Brad Burton
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Posted: 4th Aug 2012 - 07:47 Quote
roll on Golden Coral Buffet in the US in a couple of weeks..

I think the gorging pace slows down after the initial first few days pace setting. So day 1 consumption would be greatest slowing down throughout stay.


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Gareth Coxon
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Posted: 4th Aug 2012 - 11:21 Quote
Quote:

Good to hear.  We've never been all inclusive, mainly following hearing a few horror stories where the only inclusive restaurant serves a buffet of gruel!

This.

My brother and his wife had a horror story of an all inclusive in Cuba last year, so I think they might be abit hit and miss, but looks like a hit in your case Stef.

 

 

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