What Is an All Inclusive Price?

Lainie Petersen

The term all inclusive price or all in price refers to a business transaction in which the cost of a good or service includes everything that the purchaser needs to use or enjoy the product or service, in contrast to an a la carte approach that requires the purchaser to buy several additional products and services. In practice, it typically means that a buyer will not need to spend additional money on equipment, training, or fees after paying the all-inclusive price. While the phrase is frequently used in the tourism industry to describe hotels, tours, and resorts that provide guests with accommodations, meals, and recreational opportunities for one set price, the term can be used to describe physical goods such as furniture sets. Within the entertainment industry and all-in-price packages may include tickets to an event along with additional amenities such as parking or refreshments.

An all inclusive trip to China might include a hotel and meals, as well as trips to famous destinations, like the Forbidden City.
An all inclusive trip to China might include a hotel and meals, as well as trips to famous destinations, like the Forbidden City.

Many people find it irritating to budget and pay for a purchase only to find out that they need to purchase additional items or services in order to use or enjoy the item or service that they bought. Some manufacturers, for example, are now including batteries with battery-operated appliances and toys so as to reduce consumer disappointment after an item is opened in a household that does not have batteries on hand. In a very basic way, the price paid for these batteries-included items can be considered an all inclusive price. Likewise, hair stylists may offer clients an all inclusive price package that includes shampoo services, hair cutting, and styling. Businesses may also be quoted an all-inclusive price if they buy a particularly expensive piece of office equipment for which the price includes appropriate power cords and accessories as well as training and a maintenance plan.

Vacation packages are often sold at an all-inclusive price, particularly if the vacation takes place at a resort. Typically, these resorts charge one price per person, family, or couple that covers all or most of their vacation expenses, including the cost of the room, all meals and drinks as well as entertainment. It should be noted, however, that even if a resort quotes an all inclusive price, travelers may still be expected to pay some of their expenses such as spa services or transportation to and from the resort. Thus it is crucial for someone who purchases an all-inclusive price vacation to read all fine print and clarify with the resort the exact nature and limitations of their "all-inclusive" claim.

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