How Gen Z is redefining luxury travel

[UNITED STATES] In recent years, a surprising trend has emerged in the travel industry: the resurgence of all-inclusive resorts. Leading this charge is none other than Generation Z, the digital natives born between the mid-1990s and early 2010s. This shift in vacation preferences is not just a passing fad but a significant movement that's reshaping the landscape of luxury travel.

Generation Z, known for their digital savviness and desire for unique experiences, might seem like an unlikely group to embrace the all-inclusive model. However, this trend aligns perfectly with their values and lifestyle preferences.

Convenience and Stress-Free Planning

One of the primary reasons for the popularity of all-inclusive resorts among Gen Z is the convenience they offer. In a world where young adults are constantly bombarded with choices and information, the simplicity of an all-inclusive vacation is incredibly appealing.

Haley Mahabadi, a 27-year-old social media marketing professional, perfectly encapsulates this sentiment. You don't have any plans. You can just do whatever you want. I think for a true relaxation vacation, it's perfect.

This ease of planning extends beyond the vacation itself. Many Gen Zers are turning to travel advisors to streamline the booking process, a trend that further emphasizes their appreciation for convenience in travel planning.

Luxury on a Budget

Gen Z has grown up in an era of economic uncertainty, making them particularly value-conscious. All-inclusive resorts offer a unique proposition: luxury experiences at a predictable cost. This aspect is particularly attractive to young travelers who want to enjoy high-end amenities without the stress of unexpected expenses.

"I think it's kind of like the girl math thing, where you pay so much in advance that it feels free when you're there," Mahabadi explained, highlighting the psychological appeal of the all-inclusive model.

Social Media-Worthy Experiences

In the age of Instagram and TikTok, the visual appeal of a vacation is more important than ever. All-inclusive resorts, with their picturesque settings and curated experiences, provide the perfect backdrop for social media content.

Malley Goodwin, a luxury travel advisor at Embark Beyond, noted, "I also think with social media being so big and being an integral part of their lives, many people are motivated by sharing highly curated content and ultra luxury resorts."

The Evolution of All-Inclusive Resorts

The all-inclusive concept isn't new, but it has undergone a significant transformation in recent years. Gone are the days of mediocre buffets and watered-down drinks. Today's all-inclusive resorts are redefining luxury and catering to a more discerning clientele.

Elevated Dining Experiences

Modern all-inclusive resorts are partnering with renowned chefs and offering a diverse array of dining options. For instance, Samantha Cintron, a 26-year-old marketing professional, experienced this firsthand during her stay at the Atelier Playa Mujeres near Cancun. The resort boasted 13 restaurants and 12 bars, offering a culinary journey that went far beyond the traditional buffet.

Diverse Activities and Amenities

Today's all-inclusive resorts offer a wide range of activities to keep guests entertained. From water sports and fitness classes to cooking workshops and cultural experiences, these resorts ensure that there's never a dull moment.

Cintron's experience at Atelier Playa Mujeres included activities like paddle-boarding, beach volleyball, and sushi-making classes, showcasing the diverse offerings available at modern all-inclusive resorts.

Personalized Luxury

Many all-inclusive resorts now offer personalized services and amenities that cater to individual preferences. This could include anything from customized spa treatments to private dining experiences, allowing guests to tailor their vacation to their specific desires.

The Impact on the Travel Industry

The growing popularity of all-inclusive resorts among Gen Z is having a significant impact on the travel industry as a whole.

Major Hotel Chains Expanding All-Inclusive Offerings

Recognizing the potential of this market, major hotel chains are rapidly expanding their all-inclusive offerings. Hyatt, for example, has seen a significant rise in demand for all-inclusives since entering the space in 2013 with Hyatt Ziva and Hyatt Zilara.

Amy Weinberg, senior vice president of brand, loyalty, and data at Hyatt, stated, "The Inclusive Collection is a significant driver of Hyatt's business, establishing us as a leader in the all-inclusive resort industry." The company's $2.7 billion acquisition of Apple Leisure Group in 2021 made it the largest operator of luxury all-inclusive resorts worldwide.

Similarly, Marriott and Hilton are also expanding their all-inclusive portfolios. Marriott opened its first all-inclusive resort under the Marriott brand name in Cancun in September 2024, while Hilton reported that their all-inclusive segment was a "catalyst for growth" in 2023.

Changing Travel Advisor Roles

The rise of all-inclusive resorts has also impacted the role of travel advisors. Gen Z, more than any other generation, is turning to travel advisors to help plan their vacations. This trend suggests that while Gen Z values convenience, they also appreciate expert guidance in making travel decisions.

Group Travel Boom

All-inclusive resorts have become particularly popular for group travel, including bachelorette parties and multi-generational family vacations. A'Rielle Thomas, a travel advisor for Fora, noted that all-inclusive resorts simplify the process of managing expenses for group trips, eliminating the need to split bills or keep track of individual expenses.

The Future of All-Inclusive Travel

As we look to the future, it's clear that the all-inclusive trend is here to stay. The travel industry is adapting to meet the demands of Gen Z travelers, who are seeking stress-free, luxurious, and Instagram-worthy vacations.

Melanie Fish, a travel expert and spokesperson at Expedia, summed up the appeal: "There's a lot going on in our world and Gen Z isn't worried as much about competing for who took the most off-the-beaten-path vacation or how much they stuffed in their backpack. They want a break from all the stimulation in the world."

This desire for a break from the constant stimulation of everyday life is likely to continue driving the popularity of all-inclusive resorts. As Gen Z enters their prime earning years, we can expect to see further innovation in the all-inclusive space, with resorts continuing to elevate their offerings to meet the evolving expectations of this discerning generation.

The all-inclusive era ushered in by Gen Z is more than just a travel trend – it's a reflection of changing values and priorities. As this generation seeks balance between luxury and value, convenience and experience, the travel industry will continue to evolve, creating new and exciting opportunities for travelers of all ages.