All Inclusive at First Choice.

So, First Choice has decided to sell only All-Inclusive holidays next year.

Clearly, from a marketing and business point of view this makes perfect sense.

Sales of all-inclusive holidays have increased steadily for the past five years and in First Choice’s case, their all-inclusive market has grown by 32% and is expected to account for 65% of all First Choice sales this year.

From a marketing perspective, the move also clearly now differentiates TUI’s family-focused First Choice holidays from Thomson and its other competitors.

With strong, distinctive brands and clearly differentiated products, TUI can move further away from customers choosing tour operators based on cost alone.

First Choice will go on to promote itself as the number one choice for affordability in hard times. By squeezing more value out of their hoteliers they can help customers worried about their finances to budget better. Not only is that good business sense given the current climate, but it’s also good news for the group’s margins as All-Inclusives drive up average selling prices.

But I’m not so sure the news will be universally welcomed by many resort based businesses already struggling with falling arrivals and the increase in ‘wristband tourism’.

I accept holiday products should respond to demand and cater for all tastes, but as a travel enthusiast, I despair at the thought of any holiday, not matter what the price, spent wholly in an All-Inclusive resort. Going abroad should be about experiencing what the destination has to offer not about spending 1 or 2 weeks eating, sleeping and drinking in a complex and never venturing outside the gates.

More should be done to promote resort facilities and local attractions and to provide sustainable tourism before All Inclusive arrangements kill off some resorts for good.

A possible development could be where destinations pass legislation limiting the percentage of hotel rooms that can be used for All Inclusive guests. I understand Lanzarote has already capped the percentage of all Inclusive rooms at 40% in a bid to save the local economy and provide customers for the many local businesses.