Updated: Feb 20, 2019
All-inclusive resorts play an important role in Turkish tourism system. This system is well liked by tourists, enabling them to have a stress-free vacation with the psychology of all all-you-can-eat/do model. However, the system is not without any defects.
"I believe that all-inclusive system for Turkey can be very beneficial. However, currently, this sector is one of the main reasons why the average revenue per tourist is declining even though tourists numbers are increasing." Prof. Cihan Cobanoglu
In every part of the world, all-inclusive resorts are an important part of tourism eco-system. Turkey is no exception. All inclusive resorts offer a business model, where the guest pays one fee that includes accommodation, breakfast, lunch, dinner and all beverages and snacks. Some variations of this system exists in which some premium services such as premium drinks and some entertainment options may be available for an extra charge. All-inclusive concept was first introduced in holiday camps ( Butlins and Pontins) in Britain during the 1930s ( Poon, 1998). Club Med is credited for popularizing the concept globally in the 1950s (Issa & Jayawardena, 2003). Tourists report high level of satisfaction with these resorts and high levels of loyalty towards them (Ozdemir, Çizel, & Cizel, 2012).
Pros and Cons
All inclusive system has some advantages (Poon, 1998), (Çiftçi&Düzakın&Önal,2007) and disadvantages (Rayna, T., & Striukova, 2009), (Çiftçi&Düzakın&Önal,2007) .
Increased financial certainty
Increased physical security while on holiday (especially in somewhat dangerous areas)
Higher levels of commission for travel agents and tour operators
Higher levels of occupancy and profitability
Scales of economies savings in purchasing bulk items
Suppliers benefit from higher levels of occupancy and profitability
Eliminates the unexpected expenditures faced by tourists
Extending their tourism seasons between 15 to 30 days
Prevents tourists from spending money in local environment
Low quality products due to high costs
The tourist may not have exact information on what is included and what is excluded in the fixed price package
The tourists generally tend to spend all their time with in the hotel and thus cannot get enough information about the historical background and social structure of the region
Likely to reduce their service quality level to increase profitability
Low salary and heavy working conditions for employees
"All inclusive is here to stay in Turkey, we just need to find a better way to make money from it."
It is very clear that there is a need to examine all inclusive system in Turkey and compare it to the other markets in the world. A SWOT analysis will enable the strengths, weaknesses, opportunities and threats to the system. This kind of analysis can only be possible with a think tank where all stakeholders participate in the discussion. For this reason, Prof Cobanoglu will lead a think tank about all inclusive system in Turkey on April 22, 2019. The think tank will be hosted by Akdeniz University Tourism Faculty in Turkey. Different stakeholders are invited to the think tank. A white paper will be produced after the think tank. The objective is to create actionable items to make the all inclusive system better in Turkey.
About Prof Cihan Cobanoglu
Dr. Cihan Cobanoglu is the McKibbon Endowed Chair Professor of the College of Hospitality and Tourism Leadership (CHTL) at the University of South Florida Sarasota-Manatee (USFSM), who also serves as the Director of the M3 Center for Hospitality Technology and Innovation and Coordinator of International Programs for the College of Hospitality and Tourism Leadership. He is a Certified Hospitality Technology Professional (CHTP) commissioned by Hospitality Financial & Technology Professionals (HFTP) and Educational Institute of American Hotel & Lodging Association (AHLA). He is the Editor of the Journal of Hospitality and Tourism Technology (JHTT), editor of Journal of Global Business Insights (JGBI), co-editor of Journal of Global Education and Research and a co-author of six books and ten conference proceedings. He is also currently serving as the President of Association of North America Higher Education International (ANAHEI).
Issa, J. J., & Jayawardena, C. (2003). The “all-inclusive” concept in the Caribbean. International Journal of Contemporary Hospitality Management, 15(3), 167-171.
Ozdemir, B., Çizel, B., & Bato Cizel, R. (2012). Satisfaction with all-inclusive tourism resorts: The effects of satisfaction with destination and destination loyalty. International Journal of Hospitality & Tourism Administration, 13(2), 109-130.
Poon, A. (1998). All-inclusive resorts. Travel & Tourism Analyst, (6), 62-77.
Rayna, T., & Striukova, L. (2009). Luxury without guilt: service innovation in the all-inclusive hotel industry. Service Business, 3(4), 359-372.