Why All‑Inclusive Resorts Are Rare in the US

Why All‑Inclusive Resorts Are Rare in the US
Theo Frayne 0 Comments October 19, 2025

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When you think of an All‑inclusive hotels a lodging model where meals, drinks, activities and sometimes even tips are bundled into one upfront price, destinations like Mexico, the Dominican Republic or the Maldives probably pop into your head. Yet you’ll notice far fewer of these all‑inclusive resorts on a road trip across the United States. Why is that? The answer lies in a mix of tax laws, liquor regulations, market demand and the way the U.S. hospitality industry is structured.

How U.S. tax policy blocks all‑inclusive pricing

One of the biggest hurdles is Resort taxation the system of state and local taxes applied to hotel rooms, food, alcohol and recreational services. In most European or Caribbean jurisdictions, a flat "all‑inclusive" tax can be added on top of the package price, making accounting simple. In the U.S., each component-room, food, beverage, entertainment-often carries a separate tax rate, and those rates can vary not just by state but by county or city.

For example, a hotel in Florida might charge a 6% state sales tax on room revenue, a 9% county tax on food, and a separate 2% tax on alcoholic beverages. Bundle everything into a single price, and the hotel must untangle the tax portion for every line item before filing. The administrative overhead drives up the overall cost, negating the price‑certainty that makes all‑inclusive packages attractive.

State liquor laws make "everything's included" tricky

Another roadblock is State liquor laws regulations that control how alcohol can be sold, served and priced within each U.S. jurisdiction. Many states prohibit "unlimited" alcohol for a flat fee unless the establishment holds a specific "all‑inclusive" license, which is rare and expensive to obtain.

In Colorado, for instance, the Beverage Alcoholic Beverage Control Act requires separate pricing for each alcoholic drink unless the venue is a private club. This means a resort would either need to forgo the unlimited‑drinks promise or embed a high markup to cover the licensing fees, making the package less competitive.

Why the U.S. market prefers à la carte pricing

American travelers have grown accustomed to Package vacation a trip that bundles flights, hotel stays and sometimes car rentals, but leaves meals and activities to be paid separately. Travel agencies and online booking platforms such as Expedia or Booking.com earn commissions on each component, so a à la carte model maximizes revenue for multiple players in the supply chain.

Moreover, the Travel agency commissions fees paid to agents for booking flights, hotels, tours and other services are calculated per booking item. If a resort sold a single all‑inclusive product, agencies would lose the incremental earnings that come from selling a restaurant reservation or a spa treatment separately.

Consumer protection and pricing transparency

U.S. Consumer protection regulations laws that require clear disclosure of fees, taxes and contract terms to prevent deceptive practices also play a part. The Federal Trade Commission (FTC) scrutinizes any “all‑inclusive” claim that might hide mandatory surcharges, resort fees or mandatory gratuities. To stay compliant, hotels often list extra fees explicitly, which defeats the “everything’s included” promise.

Because of these regulations, many operators opt for a transparent “room‑only” rate plus optional add‑ons, allowing guests to see exactly what they’re paying for and avoiding potential legal pitfalls.

Close‑up of a desk with calculators, tax forms, and liquor‑license documents illustrating U.S. pricing complexity.

Industry lobbying and association influence

The Hotel industry associations organizations like the American Hotel & Lodging Association (AHLA) that lobby on behalf of U.S. hotels have historically favored models that keep room revenue separate from food‑and‑beverage revenue. This separation allows hotels to benchmark performance across distinct profit centers and negotiate better contracts with vendors.

When an association pushes for standardized reporting on Occupancy Rate, RevPAR (Revenue per Available Room) and F&B (Food & Beverage) margins, an all‑inclusive model muddy those metrics, making it harder for investors to evaluate a property's financial health.

Travel trends: What American tourists actually want

Recent Travel trends patterns in how people choose destinations, accommodations and activities show a growing appetite for flexibility. A 2024 survey by the U.S. Travel Association revealed that 62% of respondents preferred to customize meals and activities rather than be locked into a preset menu.

Millennials and Gen Z travelers, in particular, value local cuisine experiences and unique activities over the homogenized offerings typical of many all‑inclusive resorts. This cultural shift reduces the market pull for a one‑size‑fits‑all package.

Comparison: US vs classic all‑inclusive destinations

Key differences between U.S. resort pricing and traditional all‑inclusive markets
Aspect U.S. Resorts Caribbean / Mexican Resorts
Tax Structure Multiple state/local taxes per service Single tourism tax applied to total package
Liquor Licensing Separate permits; limited unlimited‑drink options All‑inclusive liquor licenses common
Market Demand Preference for à la carte and local experiences High demand for all‑included meals & drinks
Pricing Transparency Mandatory fee disclosure per FTC rules Bundled price often includes taxes and fees
Revenue Reporting Separate room and F&B metrics for investors Combined RevPAR simplifies reporting
Traveler planning a U.S. vacation using full‑board plans, activity passes, and grocery delivery for an all‑inclusive feel.

How to get an all‑inclusive experience in the U.S.

Even if true all‑inclusive resorts are scarce, you can still replicate the convenience:

  1. Book a resort that offers "all‑meal plans" or "full‑board" options. Many upscale chains in places like Hawaii, Arizona or Colorado provide meals and drinks for a set daily rate.
  2. Look for vacation rentals with kitchen facilities and add a prepaid grocery delivery service (e.g., Instacart). It mimics the all‑inclusive hassle‑free vibe.
  3. Purchase a bundled activity pass. Ski resorts often sell lift tickets, rentals and lessons in one package, cutting down on per‑item costs.
  4. Use a travel agent who can negotiate "all‑in‑one" rates with boutique hotels. Some agencies have exclusive contracts that bundle spa, dining and excursions.

Tips for booking without hidden fees

  • Read the fine print for resort fees, Wi‑Fi charges and mandatory gratuities.
  • Ask if drinks are truly unlimited or if there are caps on premium spirits.
  • Check cancellation policies; all‑inclusive packages can be less flexible.
  • Compare the total cost of a "full‑board" plan against paying for meals separately; sometimes the difference is negligible.

Quick takeaway

If you’ve been wondering why you don’t see the typical all‑inclusive resort scene in the United States, the short answer is: tax complexity, liquor licensing, market preferences, and industry reporting standards all push hotels toward à la carte pricing. That doesn’t mean you can’t enjoy a hassle‑free vacation-you just have to piece together the right mix of services.

all-inclusive hotels US remain a niche, but savvy travelers can still capture most of the benefits with a little planning.

Why are all‑inclusive resorts more common outside the United States?

Foreign destinations often have a single tourism tax and more permissive liquor licenses, which simplify bundling all services into one price. U.S. states impose multiple taxes and stricter alcohol regulations, making the all‑inclusive model administratively costly.

Can I find any all‑inclusive hotels in the U.S.?

Yes, but they’re limited. Resorts in Hawaii, Florida and certain ski towns offer "full‑board" or "all‑meal" plans that include meals and drinks. These aren’t as blanket as Caribbean all‑inclusive deals, but they give a similar experience.

Do U.S. all‑inclusive packages hide extra fees?

Federal and state consumer‑protection laws require hotels to disclose resort fees, taxes and mandatory gratuities up front. That transparency often means the “all‑inclusive” label is less common because any hidden cost would violate regulations.

How can I create an all‑inclusive vacation on a budget?

Combine a hotel’s full‑board option with prepaid activity passes (e.g., ski lift tickets or theme‑park tickets). Add grocery delivery for snacks and use a travel agent to bundle everything into a single invoice.

Will taxes on all‑inclusive packages change in the future?

There’s ongoing debate in several states about simplifying tourism taxes. If legislation moves toward a single consolidated tax, the all‑inclusive model could become more attractive, but such changes are still years away.