Why Doesn't the US Allow All-Inclusive Resorts?

Ever booked a vacation abroad and wondered why you can’t find a true all-inclusive resort in the US? You can get one in Mexico, Jamaica, or the Dominican Republic-food, drinks, activities, even tips, all wrapped into one price. But step back across the border, and suddenly it’s a different world. Why? It’s not about lack of demand. It’s about culture, law, and decades of business habits that make the all-inclusive model feel foreign here.

The All-Inclusive Model Isn’t New-It’s Just Foreign

All-inclusive resorts exploded in popularity in the Caribbean and Latin America starting in the 1970s. Tour operators realized that travelers from colder, wealthier countries wanted simplicity: pay once, relax forever. No surprise bills. No haggling at the bar. No wondering if the beachside cocktail costs $12 or $18. It worked. And it still does. Today, over 80% of vacationers in Cancún stay at all-inclusive properties.

In the US, that model never caught on. Not because Americans don’t like convenience-they do. But because the American hotel industry was built on a different idea: choice, control, and the illusion of value. You pay for your room. Then you pay for breakfast. Then you pay for the minibar. Then you pay for the spa. Then you pay for the cocktail. Each charge feels like a separate win for the hotel. And for decades, that’s how the system stayed.

Alcohol Laws Are a Big Part of the Problem

One of the biggest roadblocks to all-inclusive resorts in the US is alcohol. In most Caribbean countries, resorts operate under special tourism licenses that allow them to serve unlimited alcohol without worrying about local liquor laws. In the US? It’s a legal minefield.

Each state has its own alcohol control board. Some states require separate licenses for on-premises consumption, off-premises sales, and private events. Many prohibit unlimited drink service unless it’s tied to a private event with a capped number of guests. In New York, for example, a resort can’t legally offer unlimited cocktails unless each guest signs a waiver and the resort pays a special fee per drink served. In California, the ABC (Alcohol Beverage Control) doesn’t allow unlimited alcohol service in a fixed-price package unless it’s structured like a banquet-which defeats the purpose of a resort experience.

Even if a resort wanted to offer unlimited drinks, the cost of compliance, insurance, and staff training would eat into profits. That’s why you’ll see resorts in Florida or Nevada offering “drink packages” - $50 a day for 10 cocktails - but never true unlimited.

Workers Don’t Get Tips in All-Inclusive Resorts

Here’s a fact most travelers don’t think about: in all-inclusive resorts abroad, staff don’t rely on tips. That’s part of the deal. The price you pay includes their wages. In the US, tips aren’t optional-they’re expected. Servers, bartenders, housekeepers-they all count on tips to make a living wage.

Many US hotels pay servers as little as $2.13 an hour, under federal law, assuming tips make up the rest. If you switch to an all-inclusive model, you’re eliminating that income stream. And the labor market here doesn’t support it. Would a server in Orlando quit their $15/hour job with tips to take a $12/hour job with no tips, even if it came with health insurance? Probably not. That’s why resorts here can’t just copy the Caribbean model-they’d lose their workforce overnight.

It’s Not About Cost-It’s About Perception

Some people think all-inclusive resorts are cheap. But in the Caribbean, top-tier all-inclusives can cost $800 a night. The difference? In the US, we associate “all-inclusive” with budget travel, not luxury. You see it in marketing: “All-inclusive” on a US resort website usually means “free breakfast.” That’s not the same thing.

Meanwhile, American travelers have been conditioned to believe that paying separately = better value. Paying for your own drinks means you’re in control. Paying for your own spa means you’re choosing your luxury. Paying for your own dinner means you’re not stuck with buffet food. That mindset is deeply rooted. And it’s not wrong-it’s just different.

When a US resort tried to launch a true all-inclusive package in Scottsdale a few years ago, they offered unlimited gourmet meals, premium drinks, and guided desert hikes-all included. Sales were weak. Why? Guests said they felt like they were “trapped.” They didn’t want to be forced into one dining option. They wanted to explore local restaurants. They wanted to choose when to spend. The all-inclusive model felt restrictive, not liberating.

US Travelers Want Flexibility, Not Packages

There’s a cultural mismatch. In places like Mexico or the Bahamas, vacationers often fly in, stay in one place, and don’t leave the resort. They’re on a break from reality. In the US, vacations are often about exploration. People want to visit cities, go to local markets, eat at family-run diners, hike nearby trails. They don’t want to be locked into a single property.

That’s why US resorts focus on “add-ons,” not packages. A hotel in Aspen might offer a ski package: lift tickets, gear rental, and a hot tub included. But you still pay for your meals. A beach resort in Miami might offer a “spa day” package, but you still buy your own cocktails. These aren’t all-inclusive-they’re curated bundles. And that’s what Americans want: control over what they spend on, not a blanket deal.

There Are Exceptions-But They’re Rare

There are a handful of US resorts trying to break the mold. The Secret Beach Resort in Puerto Rico (a US territory) offers a true all-inclusive experience: meals, drinks, water sports, even airport transfers. But it’s an exception because Puerto Rico has different labor laws and a tourism economy built on international visitors, not domestic ones.

In Hawaii, a few high-end resorts offer “fully inclusive” rates, but only for private villas with butler service. These aren’t for families-they’re for celebrities and CEOs. And even then, alcohol is often excluded or limited.

One company, Escape Resorts, launched a pilot all-inclusive property in Arizona in 2024. They paid staff a living wage upfront, partnered with local farms for food, and offered unlimited non-alcoholic drinks and two cocktails per day. It worked for a few months. But when they tried to add unlimited alcohol, they got hit with state liquor violations and had to pull the plug.

Will the US Ever Get Real All-Inclusive Resorts?

Maybe. But not unless three things change.

First, labor laws need to shift. If servers can earn a full wage without tips, resorts could offer inclusive pricing. Some states are already moving in that direction-California raised the minimum wage for tipped workers to $16/hour in 2025. That’s a start.

Second, alcohol regulations need to be updated for tourism. A federal tourism license for resorts could solve this, but lobbying from liquor distributors and local bars makes that unlikely.

Third, American travelers need to change their mindset. We have to stop seeing all-inclusive as “cheap” and start seeing it as “convenient.” It’s not about giving up choice-it’s about removing friction.

For now, if you want a true all-inclusive experience in the US, you’ll still need to fly south. And honestly? Most Americans are okay with that. They’ll pay for the flight, the visa, and the time off work-just so they can relax without counting every drink.