All-Inclusive vs Separate Bookings: Which Saves More on Your Next Holiday?

If you’ve ever felt that rush scrolling endless holiday deals, you probably paused at the crossroad: book an all-inclusive escape, or go DIY and snag everything—flight, hotel, extras—one at a time? Here’s the fun part: I know people who swear by both, armed with receipts and passionate arguments. Packages flash big ‘discount’ banners. DIY-ers brag about their under-the-radar cheap finds. But how do the numbers really stack up? And more importantly, what’s more stressful, and what lets you squeeze the most fun out of your well-earned break? Let’s break the whole thing down.

The Real Cost of All-Inclusive Holidays

All-inclusive holidays mean you pay one price upfront for your flight, hotel, meals, drinks, and sometimes even activities and transfers. You see these everywhere—big resorts in Mexico, Greece, the real-deal Riviera Maya. It sounds blissful, especially if you’re the type who would rather drop your bag, grab a mojito, and not worry until checkout. But what exactly are you buying?

First off, you’re paying for all-inclusive holidays to eliminate guesswork on costs. Package companies negotiate bulk rates, so individual services like meals and airport shuttles are cheaper than you could book alone. Did you know TUI’s research from 2023 found their all-inclusive deals in Spain averaged 20%-23% less per person versus the same trip booked à la carte? That includes food, drinks, and airport transfers that rack up, especially in touristy spots where a latté costs the same as a museum entry elsewhere. For families, these packages can be a relief: kids’ snacks, activity clubs, and even ice cream trips are covered—no digging for change each day.

But of course, all-inclusive doesn’t mean everything. There are always exclusions—premium booze, off-site trips, sometimes Wi-Fi. If you like exploring local markets or popping into hidden cafes instead of eating every meal at the resort buffet, you might find yourself paying twice for food and drinks outside. In fact, the main complaint among seasoned travellers is boredom with food variety and feeling ‘stuck’ in the resort bubble. Many folks find they end up splurging extra to escape for a meal or two or to join excursions, meaning their “fixed” cost suddenly isn’t so fixed.

Another important point: prices can balloon in high season. For example, all-inclusives in Cancun almost double in price during December/January—think $1,900 CAD versus $950 CAD per week. You’re essentially trading flexibility for certainty, and that certainty can cost more if you’ve missed the early-bird window or need to travel during public holidays.

Here’s a little breakdown from a real-world price check I did for a week-long escape to Gran Canaria in July 2025:

Here, the all-inclusive saves $500, mostly because of food and drink inflation on the island. But this isn’t universal—sometimes booking à la carte means you’re free to mix-and-match. If you’re the “never eat at the same place twice” type or a die-hard explorer, all-inclusive value depends on how much you actually want what’s included.

Breaking Down Separate Bookings: Where You Might Save

So, what about piecing it together yourself? Separate bookings aren’t just for the thrifty. There’s a definite thrill in scoring the cheapest flight with a strategic route, then matching it to a local guesthouse you found buried on page 12 of Booking.com. The secret: timing, flexibility, and research. Want to keep costs low without feeling restricted? Here are the levers you can pull.

First, book flights early—or late. According to Google Flights’ 2024 data, travelers who booked 2-3 months in advance saved up to 17% on international routes versus those who waited until the last minute. But flash sales and error fares happen too, if you’ve got flexibility built in. Next, accommodation ranges wildy in most places: in Barcelona, for example, you can find hostels for $30 CAD per night or trendy Airbnbs for $130 CAD, while all-inclusive hotels stick to $200+.

Food is another spot where you either save or splurge unconsciously. Eating local can be shockingly cheap—especially in Southeast Asia, parts of Eastern Europe, or Central America. In Thailand, you might spend $4 a day on street food, where an all-inclusive resort might cost $160/day, meals included. But in Switzerland or Iceland? Restaurant dinners will make you want the safety of a prepaid buffet. The lesson: know your destination’s cost of living. Price it out—don’t assume every country is affordable to DIY.

A few key savings tips if you go separate:

• Use price trackers and fare alerts (Kiwi, Skyscanner, Hopper) to pounce on deals.
• Book direct with hotels for bonus perks like free breakfast—or use reputable comparison sites for last-minute discounts.
• Opt for local transport cards or city passes rather than single taxi rides.
• Don’t overlook extras—airport shuttles, checked bags, insurance, which are quietly bundled into package deals.

But a warning: separate bookings require energy and attention to detail. If a flight delay causes you to miss your prepaid hotel or transfer, you’re at the mercy of cancellation and rebooking fees (and possibly hours arguing with customer service). Travel insurance becomes non-negotiable, and sometimes even that won’t save your wallet if you’ve built your trip from a dozen different sources.

Weighing Flexibility Against Value

Now let’s talk about the weird thing nobody mentions—what “cheaper” really means. There’s straight math: which total number looks smaller when you add up each piece. But there’s also value: what’s your time (and stress) worth? The pandemic years taught lots of folks just how risky separate bookings can be when plans unravel. With packages, if the whole trip is cancelled, you usually get a refund or credit. With separate bookings, you face a chain of refund requests, and some may flat-out deny you based on their small print.

All-inclusives almost always win for peace of mind, group trips, or family holidays where wildcards are not welcome. One parent told me she paid a premium for an all-inclusive just to avoid the relentless ‘what’s for dinner?’ panic and budgeting for unpredictable snack attacks. No shame in that. And if you’ve ever traveled with teenagers, you’ll know how fast extras add up when they’re let loose on an open tab.

On the flip side, solo travelers, couples looking for romance, or seasoned explorers often prefer separate bookings. Why? If you’re happy digging for cheap eats, booking night trains, or hostel-hopping, you can easily halve the price of a package—if you know the ropes. More flexibility means more chance to say yes to that last-minute wine tasting or sunset cruise, without feeling tied to yesterday’s prepaid steak buffet.

Here’s a quick look at how flexibility impacts savings in different destinations (example for Summer 2025):

It’s a gamble—sometimes packages are unbeatable, especially in all-inclusive-heavy zones or when traveling last-minute. In city destinations, DIY almost always wins. In countries with low daily costs, DIY destroys packages on price. Look at the numbers for where you’re headed, not just flashy deals with exclamation points.

Smart Booking Strategies: Getting the Best Value

If you want to squeeze every last drop from your holiday budget, you need a toolkit—whether you’re leaning package or separate bookings. Start by deciding what matters most: comfort, routine, surprise, or savings? Here’s how to win with both approaches:

• For all-inclusive deals, book six months out for peak periods, or pounce on last-minute drops if you’re spontaneous. Use cashback sites or loyalty points when you pay—sometimes you’ll get a free room upgrade or airport lounge access.
• For separate bookings, experiment with departure airports (often, crossing the border to Seattle saves Vancouver folks several hundred dollars, even after parking and a coffee stop). Pair low-cost carriers with basic hotels, then top-up with splurge dinners or unique tours that make your trip memorable.
• Check local holidays and events, which can jack up both package and flight/hotel prices—Carnival in Brazil, cherry blossom in Japan, Euro Cup years in Europe. Slight date changes can cut costs dramatically.
• Have cancellation and refund policies in your fingertips. For DIY, prefer refundable rates. For all-inclusive, make sure your package comes with change/credit options; many do, since COVID turned travel upside down in 2020.
• Track hidden costs like local resort fees, airport transfers, checked baggage, or exclusive excursions. Sometimes, packages are cheap up front but tack on $200 in ‘optional’ charges you can’t avoid.
• If you’re traveling as a group, ask for group discounts or upgrades. Surprisingly, small businesses (local Airbnb hosts or boutique hotels) will sometimes beat gigantic chains—if you just ask!
• Think beyond the big OTAs—Canadian travel co-ops, credit union travel clubs, or regional tour providers sometimes beat international brands with bonus perks, loyalty bonuses, or flexible payment plans.

And don’t forget—travel agents aren’t just for your parents. A quick call to a real human can sometimes unlock discounts you’ll never find online. Plus, they can bundle insurance and transfers, and advocate for you when things go off the rails (which they occasionally do). Especially helpful if planning feels overwhelming or if you’re juggling several needs in one trip.

At the end of the day, the real answer to our question—‘Is it cheaper to book all-inclusive or separate?’—is that it depends on your destination, your travel style (and let’s be honest, your patience for trip-planning spreadsheets). For lazy weeks in sun-drenched resorts, all-inclusive gives unbeatable value and zero stress. For adventure capital city breaks, road trips, and foodie quests, piecing it together yourself usually wins. I know, it’s not the tidy answer you want. But armed with real numbers, timing tricks, and an appetite for the best deal, you can always make the smarter choice for you.