Gaining Ground with Groups

The all-inclusive resort group niche is extremely lucrative, yet also one of the most challenging. Success in the category comes through a combination of patience, a thorough knowledge of all-inclusive resort companies and their respective programs, plus an ability to think creatively.

We queried executives from AMResorts, Sandals Resorts and Beaches Resorts, Palace Resorts, Bahia Principe Hotels & Resorts and Royalton Resorts for the best strategies for travel agents to cultivate, manage and profit from group business.

ARE ALL-INCLUSIVE RESORTS WITNESSING AN INCREASE IN GROUP BUSINESS? IF SO, WHAT TYPES OF GROUPS?

“Yes, there has been an increase in the overall Sandals and Beaches group business, especially with social and MICE groups,” said Tammy Gonzalez, CEO of Unique Vacations, Inc., parent of Sandals Resorts and Beaches Resorts.

Bahia Principe is seeing a consistent increase in group business year over year, said Helen Montijano, the company’s vice president sales and marketing USA & Canada: “Groups celebrating birthdays, family reunions, Sweet Sixteens, bachelorette parties and weddings drive the majority of our group business.”

In recent years, AMResorts has witnessed an increase in groups seeking experiential team building and wellness offerings, said Mary Ellen Burke, the company’s national director of sales: “Our success in attracting and growing group business can be attributed to how we have differentiated the product to appeal to consumers at every stage of their lives, through our six distinct brands.”

Royalton Resorts is also seeing an upswing in group business.

“Social groups are increasing at an impressive rate,” said Janek Rattinger, the company’s corporate director of weddings and groups. “We believe this can be attributed to the fact that people are increasing the amount of group travel among friends. Multigenerational vacations are also common with guests who want to experience the destination with extended family.”

Frank Corzo, vice president of U.S. field sales for Palace Resorts, said that its all-inclusive resorts have seen a sizable increase during the past two years in social group and destination weddings.

WHY DO YOU BELIEVE THE GROUP SEGMENT IS GROWING?

Bahia Principe’s Montijano attributed the category’s growth to new resort facilities dedicated to groups: “We built new convention centers in Punta Cana and La Romana, Dominican Republic, and Riviera Maya, Mexico, which have led to an increase in incentive groups,” she said.

Corzo noted that travelers are becoming increasingly more aware of the value all-inclusives resorts offer.

“We’ve seen a shift in the perception of the all-inclusive concept as customers are beginning to understand the value of its offerings,” he said. “At Palace Resorts we have redefined the all-inclusive experience for each traveler.”

Similarly, Royalton’s Rattinger, said “value for money” is driving the growth in the group segment.

“With multiple resorts opening within 2017 alone, there are more facilities for large and small groups alike,” he said. “Customizable packages also offer incentives for groups to travel to specific destinations based on what they want to experience during their stay.”

The same holds true for Sandals and Beaches.

“Clients are recognizing the value that a Sandals and/or Beaches resort offer to groups,” said Gonzalez. “Budgets are very important, and at Sandals and Beaches Resorts, the decision-maker knows the total cost of the group right from the start versus having to worry about additional expenses upon departure.”

Burke of AMResorts attributed the all-inclusive resort segment’s growth to “North American consumers seeing the value of staying at an all-inclusive resort, where everything is taken care of and there is no need to stress or even pull out your wallet during the entire stay.”

READ MORE: The All-Inclusive Transformation

HOW SHOULD AGENTS QUALIFY GROUPS TO MATCH THEM WITH THE RIGHT RESORT?

“At Palace Resorts, the idea is to educate each of our agents through ample methods that include platforms like digital marketing tools and combined hands-on events onsite,” said Corzo. “Through these strategies of combined methods, we create an experience so each agent can have a clear understanding of the properties and have a tangible idea of [our] ‘aweinclusive’ offerings.”

Matching groups to the right property takes attention to detail and a thorough qualifying process, noted Royalton’s Rattinger.

“When travel agents are trying to match groups to the right resort, they should first look at the destination the group would like to visit, then the overall budget for the trip,” he said. “A hotel’s reputation is also a valuable asset.”

It is also imperative that agents properly qualify groups.

“In order to qualify a group, it is important to understand what the group leader and the participants are looking for in a destination and a resort,” said Unique Vacations’ Gonzalez.

A thorough understanding of groups’ needs, coupled with product education, are essential keys to success.

“Travel agents should understand the groups they’re catering to and what type of resort experience they are seeking,” said Burke. “Our robust travel agent loyalty program, AMRewards, makes matching groups to the ideal resort easy by guiding agents through the six brands’ differentiating factors and identifying key selling points to match clients with the right resorts,” she said.