ALL INCLUSIVE SYSTEM IN TURKEY

Many centuries ago, all inclusive system was born in Caribbean Islands. Occupants of these

islands want to protect their noble guests from pirate’s attacks and so they surround their

accommodation places by bold walls. Due to dangerous situations, all needs should be meet

within the limits of the accommodation establishment. The main idea that lies under the

concept is protection and comfort. All inclusive concept means that all costs related to the

purchase of the estate is included in the price; therefore the prices shown are always your

final price. Today, many Mediterranean countries use this concept in tourism. We will

examine the changes which come from with all inclusive system in Turkey and we’ll look at

the development of this concept for past, today and tomorrow.

In the beginnings of 1990s all-inclusive system is firstly applied by Marco Polo. Then the

followers are; Magic Life, Robinson Club, Club Med, IC Hotels and Gloria. In Magic Life, Cem

Kınay made all-inclusive system widespread through Turkey- especially all sea side regions-.

Firstly, Mediterranean region and the other regions having sea side hotels applied this

system successfully.

Iraq war, PKK and earthquakes which occurred in the 1990s, had negative effects on tourism

sector and also created an adverse image among tourists. Due to these kinds of problems,

five stars hotels and first class holiday villages started to apply all-inclusive system by

contacting with tour operators in order not to encounter economic loss again and in order to

be able to increase occupancy rate. In the following years, three and four stars hotels and

apart hotels joined all-inclusive system, as well. Besides these reasons, all-inclusive system

played an important role in appealing more tourists and declining procedures about money

during holiday. In addition, to minimize the decisions about the money during holiday and to

eliminate stress, depressed and problems are the causes of spending money. All- inclusive

system has developed since the recent years and is applied by Turkey much more than other

countries. Especially, in the recent years, there has been a sharp increase in the number of

accommodations which increase the intensity of competition at both the interior market and

the exterior market. The hotel investors and managers started to define the main problem in

the tourism as the surplus of the supply. Due to intensify of competition, firstly the

Mediterranean region and the other sea side regions went over the strategies of the

marketing. With this process, the hotel managers started to prefer the price which is the

easiest marketing weapon by reducing the quality and in the following period, they integrate

the low-cost strategies with the all-inclusive system.

Today, the country that applies most to all-inclusive system, and has benefits from it is

Turkey. This situation sets an example for other rival countries, such as Spain. In spite of

some problems mentioned before, the reason of the increase in today’s tourism demand for

Turkey is the growth of all-inclusive system. In Turkey, the application rate of all-inclusive

system is % 60. Today, this system is accepted easily and quickly by the people who want to

find everything ready, and who prefer the easiest way to manage this, also the people who

want to exist in technological environment. As a result, all-inclusive system is seen as the

newest marketing strategy that has been accelerated in Turkey.

All-inclusive system has advantages for some groups, and hotels, holiday villages etc. that

have made the most important contribution to the development of this system are the first

group. The most important positive effect of this system on them is an increase in occupancy

rate, which indicates marketing in tourism industry is easier now. Moreover, the hotels and

holiday villages that carry out this system lengthen a season between 15 and 30 days.

Travel agencies that direct the operation of this system in hotels, and establish a connection

between hotels and customers form the second group that has advantages from all inclusive

system. Today, travel agencies work as brokerage firms in this system. Their commission fees

are paid per customer. Transfer costs, guidance service costs, and profit rates are added to

price. Also, different travel agencies perform all inclusive system in different ways; but all

performances are in accordance with package tours. For instance, while some hotels do not

incorporated even the expenditures on shows, sports activities, and health services in price,

some also serve imported foods and drinks.

Customers are the third group that has advantages from all-inclusive system, and is pleased

most. Costs are lower than other boardinghouse types today is the most attractive benefit in

terms of them. Tours are generally prepared for seven days; so people have a chance to take

a holiday that lasts longer than before. In addition, the details about holiday are planned,

and no extra expenses are required in this system tempt customers. Therefore,

holidaymakers go on holiday with an accurate budget. Before buying a package tour, they

know the most appropriate one for them is applied at which hotel, and what features are

involved in. While some apply this system without any time boundaries, some ask for extra

payments after midnight. Because it is hard for families with children to estimate how much

they will spend, this system is primarily suitable to them. Turkey is one of the major

destinations for foreign tourists that belong to lower income level, and by the help of this

system, Turkey today has a more important role in the world’s tourism industry.

Hotel staffs are the fourth group has advantages from all-inclusive system. Because tourism

is a labor-intensive industry, after the development of this system, hotels now need more

employees. As a result, this system helps unemployment rate decrease.

Independent tradesmen in holiday regions that meet hotels’ all kinds of needs are the last

groups that have advantages from all-inclusive system. Furthermore, these trades people

related to hotels gain more owing to an increase in the consumption rate through this

system. Both more foreign and more local tourists are attracted to holiday regions by this

system leads all tradesmen to profit by. According to some surveys, today, these people’s

earning rate is lifted upward.

After discussing the situation of all inclusive system in Turkey yesterday and now, we should

argue if this system should be continued to applied or not and in order to able to determine

this, both of the cases should be taken into consideration with its advantages and

disadvantages. Primarily, we mentioned the advantages while considering the today’s

situation so it is time to consider the disadvantages.

All inclusive system has drawbacks for both the general tourism economy of Turkey and

accommodation facilities. Firstly, this system changes the tourist profile in a negative way.

The new profile is families with children and low income group. In number of elderly and

regular tourists there is a decrease. These new profile tourists do not want to go out from

the hotel because they have paid the bill before. They do not want to spend extra money

during their vacation for meal (i.e.). Therefore, small local shops can not gain any income

from tourism. Furthermore, the facility has to produce, store and offer to customers

continuously all the services which are included in the system. This complicates the hotel’s

operation and increases cost.

Another point is hotels have to customize their services according to their customer profile

and they have to provide standardization to an extent for fast flowing of the works. Although

the hotel is very inclusive, to meet the needs of all customers become impossible. In

addition, complexity of concepts like Classic All-Inclusive, Imperial All-Inclusive, Maximum

All-Inclusive, Ultra or High Class All-Inclusive causes confusion. Some problems occur

because tourists do not know the differences between the systems so sometimes it may not

match their expectations. All this factors decreases tourists’ satisfaction so they do not come

to the same hotel or Turkey again.

Moreover, a hotel has to be constructed first in accordance to the system. In order to apply

the system as required, physical structure of the accommodation facility firstly should be

planned before construction and it has to have necessary technique equipments.

Finally, we want to mention a research which is made by national office among 111 hotels in

Antalya where all inclusive system is applied commonly. According to the research, while

17.9 % of hotels are happy with the system in Turkey, 63.1 % are not happy. They mentioned

that they joined the system in order to increase their competition capability with others and

because of the pressure of tour operators and travel agencies. Out of facilities which do not

apply all inclusive system 66.7 % do not think to change their systems. 14.3 % of them plan

to change in all inclusive and 19 % of them also plan if the current trend continues.

Taking everything into consideration, all inclusive system has displayed a significant

development in Turkey since it came. Although Turkey is not the hometown of all inclusive, it

became an important center which is followed and imitated by other countries. Especially

after tourism encouragement law (1983) a spectacular increase experienced in the number

of accommodation facilities in Turkey. This situation made difficult to compete for hotels.

Firstly, they want to attract tourists through applying all inclusive but all hotels become

highly standardized, almost same with others. So they want to create a difference in their

products but their only means is price. They started to decrease their prices for competition

but they could not stop at a suitable point and decrease their quality in order to maximize

their profit. It decrease tourists’ satisfaction and also tourists spend their whole holiday in

the hotel so it diminishes general tourism economy of Turkey. Probably, it can be made

more profitable for Turkish economy through applying the system more efficient. Some

researchers consider that there is a need for the action of national office.

Prof.Dr. M. Mithat ÜNERGazi Üniversitesiİktisadi ve İdari Bilimler Fakültesi Öğretim Üyesi

Sources:

http://www.turizmgazetesi.com/articles/article.aspx?id=27617

Economic And Social Research Magazine; Spring 2005

http://www.turizmgazetesi.com/articles/article.aspx?id=33759

Prof.Dr. M. Mithat ÜNERGazi Üniversitesiİktisadi ve İdari Bilimler Fakültesi Öğretim Üyesi

http://www.resortacademy.com/ra/index.php? option=com_content&task=view&id=1135&Itemid=2

Yazar ,Ali SelekWORD COUNT: 1700

GROUP MEMBERS: GÜLÇİN ERİN

NEŞE ROMAN YASEMİN AKSOY ZEYNEP KARSAVURAN