There's an increasingly common scenario playing out across the all-inclusive resort industry. Hotel loyalty programs are advertising rates that are lower -- sometimes significantly lower -- than the negotiated rates that travel advisors offer their group clients.
According to a survey by the Destination Wedding & Honeymoon Specialists Association (DWHSA), 95% of its 840 members across the U.S. and Canada reported losing group guests to loyalty program bookings within the past year.
"The entire rationale for being part of a group has been turned upside down," the organization declared in a white paper, explaining that the traditional advantage of pooling rooms for better rates no longer holds true. The DWHSA reported that wedding couples and other group leaders are particularly impacted, as they may face unexpected attrition penalties when guests book outside the block, potentially losing valuable concessions like complimentary wedding ceremonies or reception events.
Additionally, group guests often can't earn loyalty points or guarantee specific room arrangements, which the DWHSA said puts them at a disadvantage.
Industry veterans say these escalating tensions reflect broader shifts in the travel market.
Geoff Millar, co-owner of Phoenix-area agency Ultimate All-Inclusive Travel and Ultimate Hawaii Vacations, said cost pressures are likely driving resorts to pursue direct bookings more aggressively.
"These resorts are looking at cutting costs because their growth isn't quite where it should be," said Millar, pointing to a broader slowdown in the all-inclusive sector.
Jennifer Doncsecz, a destination weddings specialist and president of Pennsylvania-based VIP Vacations, said a post-pandemic lull in destination weddings has further contributed to these intensifying dynamics.
"It takes about a four-year cycle for people to decide if they're going to get married and then plan a destination wedding," she explained. "If you go back four years, what were people doing? They weren't dating, they were locked up."
While overall group business remains steady due to family reunions, incentive trips and milestone celebrations, Doncsecz predicts destination wedding volume won't fully recover until around 2026.
"We've always had people who have found a better rate," she said. "But every destination wedding agent is now fighting tooth and nail for every booking, because there are just fewer people booking."
Some brands have emerged as more reliable partners than others when it comes to group rates and advisor-friendly policies. Doncsecz praised Sandals and Beaches in particular.
"When you get a group contract [with Sandals], you automatically get a better rate than [clients] will ever find," Doncsecz said. "And if they do happen to lower the rates, which they typically don't, the group rate will still be lower."
She also highlighted Majestic Resorts as being "really good with not changing the rates," and while the Hard Rock-branded resorts appear to occasionally discount, Doncsecz reports that they're generally quick to match prices.
In Doncsecz's experience, other brands present challenges for advisors, frequently adjusting rates based on occupancy or being notoriously slow to match promotional pricing for groups.
Such disparities between brands demonstrate why the DWHSA is now pushing for broader industry dialogue.
The DWHSA scheduled a Group Booking Summit for February in Miami to address its concerns with resort executives. Initial talks with 16 major brands have been "very positive," said executive director John Hawks, though some larger players have been slower to engage.
Among those more receptive to discussion, Hawks said, is AIC Hotel Group, which manages sales and marketing for luxury all-inclusives in Mexico and the Caribbean under brands like Hard Rock and Unico.
"We recognize the challenges travel advisors face when group rates are higher than individual rates, especially when last-minute bookings offer more flexibility," said Ash Tembe, vice president of North America sales at AIC. "To address this, we have a price-match policy that ensures if FIT rates drop due to promotions, we'll match those rates for group bookings."
Playa Hotels & Resorts, which owns and/or manages 24 resorts across Mexico, Jamaica and the Dominican Republic, also acknowledged the complexity of the situation, while emphasizing that its group rates reflect enhanced offerings and experiences not available to FIT travelers.
Playa's portfolio includes properties flagged under brands including Hyatt Zilara, Hyatt Ziva, Hilton All-Inclusive and Marriott's Luxury Collection.
"We highly value our partnerships with travel advisors and the important role they play in connecting us with group clientele," said Dean Sullivan, Playa's senior vice president of commercial marketing. "We strive to offer competitive group rates that reflect the added value, amenities and personalized services provided for these bookings."
Jamie Biesiada contributed to this report.