Demand for all-inclusive holidays this summer is expected to be roughly similar to what it was last year. With the UK market, Abta in its Travel Trends Report for 2018 refers to 23% of people thinking of taking an all-inclusive holiday, with young families particularly attracted to it. The percentage for this tourist category goes up to 34%. For the German market, all-inclusive is becoming increasingly attractive, but it doesn't have the same dynamics to contend with as the UK market. Abta points to a holidaymaker need to manage budgets in light of the continuing uncertainty regarding Brexit and the volatility of the pound. Consumer disposable incomes, Abta adds, are being "squeezed".
There may nevertheless be some increase in the all-inclusive offer by hotels in Majorca. One reason has to do with the dynamics of the UK market. A second could be to recover the slight drop in occupancy rates last summer (albeit that profit levels were up). As an example, the August rate was 91.13% compared with 92.85% in August 2016. There is also the renewed demand from elsewhere in the Mediterranean. Tui Germany reports a 25% increase in bookings for Turkey, 58% more for Egypt and a rise of 16% for Greece.
On the other hand, where the UK market is concerned, there is the ongoing concern about false claims, and these are always made against all-inclusive hotels.
If it is the case, as Abta says, that disposable incomes are being squeezed, then the Balearic tourist tax may well influence holiday decisions. This said, there is now a tourist tax in Greece which is a similar rate to the one in the Balearics.
All-inclusive proliferates in some parts of the Mediterranean to an extent that it doesn't in Majorca. Nevertheless, according to tourism ministry information, there are 290 hotels in Majorca which offer all-inclusive but only 65 which offer it exclusively. In Majorca there are (2016 figures) 1,080 establishments in the three main accommodation categories - hotel; apartment hotel; (hotel) tourist apartments. (The latter of these has a key rather than star rating. In practice, there is little difference with the apartment hotel.)
The typical cost of all-inclusive obviously varies according to standard of hotel and the time of the season. The Post Office last year offered a general figure of 1,600 pounds for a family of four for a week in Majorca, comparing this with a cost of 2,109 pounds for a standard package and buying all meals and drinks.
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