Belgian Gérard Blitz invented the all-inclusive resort concept with Club Med in the early 1950s based on the idea that guests could better relax without constantly worrying about what everything cost. As the name all-inclusive suggests, the price covered food, drinks and accommodations, and guests knew about the arrangement before they agreed to the vacation.

The model has since evolved, with adaptations often varying depending on the destination. In Los Cabos, for instance, all-inclusive resorts are usually more akin to luxury-class properties than to the budget-friendly variety. Indeed, all-inclusive properties like Grand Velas Los Cabos and Marquis Los Cabos are among the best resorts in the area, period. 

What all-inclusive resorts look like in Los Cabos

The Los Cabos model has naturally led to a more expensive but higher-end form of the all-inclusive experience. Mediocre food, common at all-inclusive resorts in many other destinations, is much rarer in Los Cabos. In fact, the opposite is often true. Some of the best restaurants in Los Cabos, including the only one in the area to be awarded a coveted Michelin star — Cocina de Autor at Grand Velas Los Cabos — are found at all-inclusive resorts.

However, it’s important to note that not everything is always included in all-inclusive plans. Some spa experiences or premium food and drink menu options may not be; although perhaps surprisingly, dinner at Cocina de Autor is included at Grand Velas. At Sandos Finisterra, a landmark Cabo San Lucas property that features breathtaking views, meals, and national drinks are all-inclusive approved, as are round-the-clock room service orders, swim-up cocktails, gym and tennis court access, and childcare available so parents can play. 

When paired with drinks, the word “national” generally means domestically produced beer, wine and spirits. You can typically drink all the Corona, Modelo Especial or tequila-based margaritas you want,  but if you want a Bud Light or Tito’s Vodka, you may be out of luck or have to pay. Spa treatments, too, are almost always considered an extra. At Marquis Los Cabos, for example, the all-inclusive package does not cover pampering spa and beauty services at Spa Marquis and seven-course food and wine feasts at Canto del Mar.

Family-friendly or adults-only are popular all-inclusive options

Two things Los Cabos all-inclusive resorts do very well is appeal to families and couples seeking a romantic getaway. The two aren’t necessarily mutually exclusive, either. Hyatt Ziva in San José del Cabo deserves special mention in this area thanks to its water park and Kidz Club, which provides supervised activities and babysitting services so moms and dads can enjoy a little time alone. 

Another Hyatt property, Dreams Los Cabos, is also a standout. Its Explorers Club offers everything from climbing walls and sandcastle-building contests to seasonal sea turtle release programs. Hard Rock Los Cabos, meanwhile, has clubs for both kids and teens, with the latter featuring a pool table and a range of arcade-style games. Like Paradisus Los Cabos, it’s pet-friendly, too.

Of course, romance is the primary focus at the area’s adults-only, all-inclusive resorts. At Paradisus and Le Blanc Resort Los Cabos, the mood is set via luxe accommodations, fine food and drink, pampering spa treatments and a convivial pool scene; At Marquis Los Cabos excels, romantic touches abound, from chocolate-covered strawberries and rose petal-strewn suites to photography sessions and special events celebrating anniversaries or vow renewal ceremonies. 

The case against all-inclusive resorts in Los Cabos

Beyond expense — and worrying about what spa or drinks extras cost, something that runs contrary to the initial conception of the all-inclusive — there are other reasons why these resorts aren’t always the best option. One, notably, is the lack of a true experience of the destination or authentic interactions with the people living there. Because all-inclusive resorts promise everything you need onsite, there’s little reason to explore. That makes all-inclusives essentially a generic version of a vacation: you could be anywhere with beaches and beautiful palm trees. Los Cabos and its unique charms are incidental.

Yes, some local all-inclusive resorts offer activity or adventure options designed to give guests at least some sense of local culture and geography — and guests can always leave their properties to explore on their own. However, by providing a resort experience that incentivizes guests to stay on property to enjoy the many all-inclusive amenities, these resorts do no favors to the local communities in Cabo San Lucas and San José del Cabo.

In 2023, businesses in downtown Cabo San Lucas saw sales drop by more than 20% , with the nightlife industry particularly hard hit, a trend that’s continued into 2024. Cruise ship visits have been a saving grace for many of these businesses but not bars and clubs since late-night or overnight stays for these vessels are a rarity. So the significant drop in nightlife sales can only have come from fewer guests leaving their resorts. Trust me: locals haven’t stopped patronizing their favorite bars. 

But if drinks are included in the all-inclusive package, why would guests venture out to downtown bars and clubs? The lack of motivation rises when you consider iven that live entertainment is also a staple at many of these resorts. Hyatt Ziva features live shows nightly, as does Hard Rock Los Cabos. The latter, in fact, posts a monthly calendar of its many live events, which range from Mexican-themed shows with regional song and dance to karaoke nights, circus nights and showcases for fire-breathers. 

Is a Los Cabos all-inclusive right for you?

Does this mean you shouldn’t stay at all-inclusive resorts on your next Los Cabos vacation? Not necessarily. It depends on what kind of vacation you’re looking for. If you want relaxation with a beautiful beach and an abundance of good — at times great — food, drinks, and other amenities, then an all-inclusive resort may be a great option. 

However, if you seek a more genuine connection with the people who live here, and wish to explore and discover what’s special about these communities, including local restaurants, bars and arts and crafts purveyors, then probably not.

Chris Sands is the Cabo San Lucas local expert for the USA Today travel website 10 Best, writer of Fodor’s Los Cabos travel guidebook, and a contributor to numerous websites and publications, including Tasting Table, Marriott Bonvoy Traveler, Forbes Travel Guide, Porthole Cruise, Cabo Living and Mexico News Daily. His specialty is travel-related content and lifestyle features focused on food, wine and golf.