Are All-Inclusive Hotels Really Worth It?

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Planning a vacation can be tough. You have to figure out not only the logistics of the trip but the budget as well. That can be hard if it’s a new place and you’re not sure how much everything costs.

It’s that very time-consuming headache that lures many travelers to book an all-inclusive hotel. But is it worth it?

We analyzed the pros and cons, made a cost-benefit comparison, and chatted with experts about when you should book an all-inclusive hotel or pay as you go.

Pros of an all-inclusive hotel

There’s a reason all-inclusive hotels are a thing in travel. Here are some of the benefits of booking a hotel package:

  • Food and drinks (sometimes alcohol) are typically included. “You can leave your wallet in the room and not worry about overspending,” said Heather Ebert, travel expert for MissTravel. “Additionally, the endless breakfast, lunch, and dinner buffets — along with specialty dining options — offered at all-inclusive resorts are great for families traveling with kids who are picky eaters or have growing appetites.”

  • If you’re a first-time traveler or are traveling with kids, you might feel safer staying at an all-inclusive resort rather than crashing at an Airbnb and roaming a small city alone.

  • Many all-inclusive resorts are close to major airports and big cities, said Ebert. If you’re visiting a place like the Caribbean, you’ll find many resorts have private access to the beach.

  • You don’t have to plan out meals or activities when they’re included. Some packages even include logistics such as flights and airport transfers.

  • If scuba diving or kayaking sound like activities you want to do on your vacation, paying an all-inclusive rate is best for you.

  • You’re never surprised by your bill at the end of the trip. The convenience factor of not having to carry around your wallet could be reason enough for some to go the all-inclusive route.

Cons of an all-inclusive hotel

While there are many positives to booking an all-inclusive hotel, there are some downsides, according to Ebert:

  • If you’re interested in seeing what the native culture is like, a resort won’t provide that. Considering most resorts are situated together, you’ll have to travel quite a distance before reaching local villages and neighborhoods.

  • To reap the benefits of an all-inclusive rate, you’re pretty much confined to the resort. Otherwise, you’re wasting money. Everything from dining to activities is on the property, so you don’t have the flexibility to go where you want and do what you want.

  • If tasting the local cuisine is on your to-do list, you won’t get that experience from the food at an all-inclusive resort. “Most resorts cater to American and European tourists, so you’ll most likely find the same food you eat back home,” said Ebert.

  • At some resorts, bottled water and soda are priced the same as ordering an alcoholic drink, so you could end up saving more with the option that isn’t all-inclusive.

Cost-benefit analysis of an all-inclusive hotel

Not surprisingly, there are a lot of variables that go into the pricing of a trip, making it difficult to understand if an all-inclusive option is better than a pay-as-you-go choice. Let’s look at some examples.

Isar Meitis, president of Last Minute Travel, pulled two options in Cancun to compare:

Jen Pellerito, travel writer and creator of Jen on the Run, did an analysis using an Expedia search for resorts in Cancun for seven days (Aug. 24 to Aug. 31, 2018).

Pellerito said the total cost for an all-inclusive resort in Cancun is about $2,100. A similar four-star resort, not all-inclusive, is cheaper upfront, totaling about $1,400. That’s a $700 difference.

But if you are planning on having three drinks or more per day, plus three meals a day, it could average about $100 a day, according to her calculations.

How to make sure you’re getting the best deal

Start by looking at the fine print to see everything that is included as all-inclusive. Then ask yourself these questions:

  • Does it cover everything you would want to do on the trip (for example, an excursion off property to see a local site)?

  • Does it include things you wouldn’t use (for example, if it includes alcohol but you’re not a big drinker)?

  • Is tipping included?

  • Do you want to stay on the property for the entire trip? Do you want to explore the local culture?

  • Are you a picky eater who would appreciate the choices offered on an all-you-can-eat buffet? Or are you a foodie who wants to taste the finest local cuisine?

Make a spreadsheet of the costs you would incur if you paid for the trip a la carte. Be sure to compare apples to apples (if the all-inclusive option is a four-star resort, price a four-star hotel for comparison). Add up the columns to find out whether all-inclusive is the better choice financially.

Be aware of hidden surcharges at all-inclusive resorts, warned Shylar Bredewold, owner of Odyssean Travel, a small travel agency.

There could be resort fees, local taxes, or administrative costs, as well as charges for using a safe in your room or choosing premium liquor. Some resorts even carry an added insurance cost for unescorted visitors younger than a certain age. You’ll want all those details hammered out before booking.

Also, see what other resources you have to bring your costs down. Your credit card might offer travel discounts, for example, that could make a hotel option more affordable.

But sometimes cost shouldn’t be the only determining factor in your trip. If you want to experience the sights and sounds of the local community and eat and drink as the locals do, going with a non-all-inclusive option is a better bet.

Is an all-inclusive hotel the right option?

According to the data and experts, all-inclusive resorts are generally a better value for your money. You can often book a reservation at an all-inclusive resort for about the same as you would at an a la carte property.

But at an all-inclusive resort, your food, drinks, and activities (depending on the property) are included. Amenities such as Wi-Fi are often included as well.

“If you don’t plan on leaving the resort and if you plan on enjoying a lot of food and drinks while you’re there, it makes sense to go with an all-inclusive resort,” said Pellerito. “If you want to explore the surrounding area and don’t drink a bunch, then a regular resort will likely be the more affordable option.”

In a nutshell, you have fewer things to worry about with all-inclusive packages. If relaxation and simplicity are top of mind, all-inclusive would be a better choice. But if experiencing the local food and cultural scene is important, you can likely find a pay-as-you-go option that works in your budget too.

Interested in a personal loan?

Here are the top personal loan lenders of 2018!
LenderAPR RangeLoan Amount 
1 Includes AutoPay discount. Important Disclosures for SoFi.

SoFi Disclosures

  1. Personal Loans: Fixed rates from 6.990% APR to 14.865% APR (with AutoPay). Variable rates from 6.255% APR to 12.555% APR (with AutoPay). SoFi rate ranges are current as of September 1, 2018 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. See APR examples and terms. Interest rates on variable rate loans are capped at 14.95%. Lowest variable rate of 6.255% APR assumes current index rate derived from the 1-month LIBOR of 2.08% plus 4.425% margin minus 0.25% AutoPay discount. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.

    To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull.See Consumer Licenses.
  2. Minimum Credit Score: Not all applicants who meet SoFi’s minimum credit score requirements are approved for a personal loan. In addition to meeting SoFi’s minimum eligibility criteria, applicants must also meet other credit and underwriting requirements to qualify.
  3. SoFi Personal Loans are not available to residents of MS. Maximum interest rate on loans for residents of AK and WY is 9.99% APR, for residents of IL with loans over $40,000 is 8.99% APR, for residents of TX is 9.99% APR on terms greater than 5 years, for residents of CO, CT, HI, VA, SC is 11.99% APR, and for residents of ME is 12.24% APR. Personal loans not available to residents of MI who already have a student loan with SoFi. Personal Loans minimum loan amount is $5,000. Residents of AZ, MA, and NH have a minimum loan amount of $10,001. Residents of KY have a minimum loan amount of $15,001. Residents of PA have a minimum loan amount of $25,001. Variable rates not available to residents of AK, TX, VA, WY, or for residents of IL for loans greater than $40,000.
  4. Terms and Conditions Apply: SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)

2 Includes AutoPay discount. Important Disclosures for Payoff.

Payoff Disclosures

  1. All loans are subject to credit review and approval. Your actual rate depends upon credit score, loan amount, loan term, credit usage and history. Currently loans are not offered in: MA, MS, NE, NV, OH, and WV.

3 Important Disclosures for FreedomPlus.

FreedomPlus Disclosures

  1. All loans available through FreedomPlus.com are made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. All loan and rate terms are subject to eligibility restrictions, application review, credit score, loan amount, loan term, lender approval, and credit usage and history. Eligibility for a loan is not guaranteed. Loans are not available to residents of all states – please call a FreedomPlus representative for further details. The following limitations, in addition to others, shall apply: FreedomPlus does not arrange loans in: (i) Arizona under $10,500; (ii) Massachusetts under $6,500, (iii) Ohio under $5,500, and (iv) Georgia under $3,500. Repayment periods range from 24 to 60 months. The range of APRs on loans made available through FreedomPlus is 4.99% to a maximum of 29.99%. APR. The APR calculation includes all applicable fees, including the loan origination fee. For Example, a four year $20,000 loan with an interest rate of 15.49% and corresponding APR of 18.34% would have an estimated monthly payment of $561.60 and a total cost payable of $7,948.13. To qualify for a 4.99% APR loan, a borrower will need excellent credit on a loan of $15,000 with a term of 24 months, and qualify for at least two of the following discounts: (1) add a co-borrower who has sufficient income; (2) use at least fifty percent of the loan proceeds to directly pay off existing debt; or (3) show proof of having at least forty-thousand dollars in retirement savings – contact FreedomPlus for further details.

4 Important Disclosures for Citizens Bank.

Citizens Bank Disclosures

  1. Personal Loan Rate DisclosureFixed interest rates from 6.49% – 19.49% (6.49% – 19.49% APR) based on applicable terms. Lowest rates range from 5.99%-18.99% (5.99%-18.99% APR), are for eligible applicants, require a 3-year repayment term, and include our Loyalty and Automatic Payment Discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.
  2. Loyalty Discount: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower has a qualifying account in existence with us at the time the borrower has submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, student loans or other personal loans owned by Citizens Bank, N.A. Please note, our checking and savings account options are only available in the following states: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI and VT. This discount will be reflected in the interest rate and Annual Percentage Rate (APR) disclosed in the Truth-In-Lending Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan, and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan.
  3. Automatic Payment Discount: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their Citizens Bank Personal Loan during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account two or more times within any 12-month period, the borrower will no longer be eligible for this discount.

5 Important Disclosures for LendingPoint.

LendingPoint Disclosures

  • Loan approval is not guaranteed. Actual loan offers and loan amounts, terms and annual percentage rates (“APR”) may vary based upon LendingPoint’s proprietary scoring and underwriting system’s review of your credit, financial condition, other factors, and supporting documents or information you provide. Origination or other fees from 0% to 6% may apply depending upon your state of residence. Upon LendingPoint’s final underwriting approval to fund a loan, said funds are often sent via ACH the next non-holiday business day. LendingPoint makes loan offers from $2,000 to $25,000, at rates ranging from a low of 15.49% APR to a high of 34.49% APR, with terms from 24 to 48 months. The loan offer(s) shown reflect a 28 day payment cycle which is being offered as a courtesy as many of our customers are paid on a biweekly schedule and thus this may better align the loan payment dates with your actual income receipt schedule.

6 Important Disclosures for LendingClub.

LendingClub Disclosures

All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage & history. The APR ranges from 6.16% to 35.89%. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at time of application. The origination fee ranges from 1% to 6% and the average origination fee is 5.49% as of Q1 2017. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months or longer.


7 Important Disclosures for Earnest.

Earnest Disclosures

  1. Earnest does not lend in Alabama, Delaware, Kentucky, Nevada, or Rhode Island.

8 Important Disclosures for Avant.

Avant Disclosures

* The actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. Funds are generally deposited via ACH for delivery next business day if approved by 4:30pm CT Monday-Friday. Avant branded credit products are issued by WebBank, member FDIC.

** Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33


* Important Disclosures for Upgrade Bank.

Upgrade Bank Disclosures

* Your loan terms are not guaranteed and are subject to our verification and review process. You may be asked to provide additional documents to enable us to verify your income and your identity. This rate includes an Autopay APR reduction of 0.5%. By enrolling in Autopay your payments will be automatically deducted from you bank account. Selecting Autopay is optional. Annual Percentage Rate is inclusive of a loan origination fee, which is deducted from the loan proceeds. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. All loans made by WebBank, member FDIC. Please refer to Upgrade’s Terms of Use and Borrower Agreement for all terms, conditions and requirements.

** Accept your loan offer and your funds will be sent to your bank via ACH within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes this transaction. From the time of approval, funds should be available within four (4) business days.

7.73% – 29.99%$1,000 - $50,000Visit Upstart
6.26% – 14.87%1$5,000 - $100,000Visit SoFi
6.99% – 35.97%*$1,000 - $50,000Visit Upgrade
5.99% – 24.99%2$5,000 - $35,000Visit Payoff
4.99% – 29.99%3$10,000 - $35,000Visit FreedomPlus
5.99% – 18.99%4$5,000 - $50,000Visit Citizens
15.49% – 34.49%5$2,000 - $25,000Visit LendingPoint
6.16% – 35.89%6$1,000 - $40,000Visit LendingClub
6.99% – 18.24%7$5,000 - $75,000Visit Earnest
9.95% – 35.99%8$2,000 - $35,000Visit Avant
Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality and will make a positive impact in your life. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print understand what you are buying, and consult a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time. Please do your homework and let us know if you have any questions or concerns.