European package holidays are becoming more luxurious as the popularity of high-end resorts increases

In Europe, Marriott and Hyatt are competing to offer luxury all-inclusive resorts to cater to the growing demand of wealthy tourists.

Top resorts are now offering all-inclusive packages that include high-end cuisine, champagne-on-tap and butler service. This trend is sweeping from Mexico and Caribbean to the Middle East and Africa where all-inclusive was traditionally associated with cheap alcohol and all-you can-eat buffets.

Hyatt opened its Dreams Madeira resort in Portugal earlier this month. The 366 rooms include premium spirits, 24-hour room service, and a la carte dining. Five-night stays for a couple starting in June of next year start at just over €1,800.

The US operator is looking for hotel owners to help develop all-inclusive packages in Europe. This includes a Canary Islands location.

Javier Aguila is the group president of Europe, Africa, and the Middle East for Hyatt.

Hyatt operates the largest portfolio of all-inclusive high-end resorts in the world with more than 120 properties after its $2.7bn purchase by resort provider Apple Leisure Group. The most luxurious resorts are located in the Americas. Nearly 50 resorts are found in Europe, mostly in Spain, Greece, and Bulgaria.

Marriott, which has only one luxury all-inclusive hotel in the Dominican Republic — Sanctuary Cap Cana — whose packages begin at $2,700 per five nights, is searching for sites in Turkey and other European countries to launch packages similar to this.

Tina Edmundson is the president of Marriott’s luxury division. She said, “The competition [in luxury travel] today is fiercer than ever before and I do not see this abating.” Developers are clearly requesting these unique and new locations.

The company also signed ten contracts with developers and hotel owners to open all-inclusive luxury resorts in Mexico and Brazil.

Ana Ivanovic is executive vice president at the property group JLL. She said that package holidays “have definitely reinvented themselves” as families want to have everything taken care of. The majority of big brands have not had much exposure in Europe, so it is a great way to expand and grow.

Although the concept of all-inclusive luxury holidays in Europe isn’t new, its implementation has been very limited. Sani/Ikos Group is a Greek resort group backed by Singapore-based GIC. They began offering all-inclusive holidays almost a decade back and own seven resorts, including in Marbella, Corfu, and other locations. Ikos Odisia, a Corfu resort, offers a five-night getaway starting at €3,200 in June.

Andreas Andreadis, the chief executive of the group, said that he would “love to compete” with bigger rivals like Hyatt and Marriott. The group will spend €700mn on its Ikos Resorts all-inclusive brand in order to expand existing properties and add three new venues. It plans to open its Caribbean site by 2028.

The global luxury market is expected to grow . McKinsey defines luxury travellers as people who spend $500 or more per night for accommodation. In a report published in May, the firm predicted that spending on travel will rise by 64% to $391bn over the next five years, faster than any other segment.

McKinsey stated that the demand is driven by a growing number of “aspiring luxury travelers” who are willing and able to spend more of their income for upscale accommodations.

Ivanovic said that such travellers are more interested in all-inclusive vacations. All-inclusive used to be associated with a negative connotation, when you consider its history. It was primarily for students on spring break. . . Manage their travel costs.”