Picture this: you land at your resort, check in, and walk straight to the beach. No lines at the airport taxi stand. No searching for a restaurant. No worrying if your credit card will work overseas. Everything’s right there-food, drinks, entertainment, even snorkeling gear. It feels like magic. But then you start wondering: do you need money on all-inclusive holidays? The short answer? Yes, but not nearly as much as you think.

What ‘All-Inclusive’ Actually Covers

All-inclusive resorts promise a lot. But not everything. Most packages include three meals a day, basic drinks (soft drinks, local beer, house wine, and sometimes spirits), snacks, non-motorized water sports, and nightly entertainment. Some even throw in daily activities like yoga, tennis, or cooking classes.

But here’s what’s usually left out: premium alcohol (like top-shelf whiskey or imported cocktails), spa treatments, off-resort excursions, laundry service, and tips. You won’t find a $12 margarita made with Patrón in your basic package. You won’t get a free massage. And if you want to take a boat trip to a nearby island or go zip-lining through the jungle, that’s extra.

Resorts in the Caribbean, Mexico, and the Dominican Republic operate on a model where they make most of their profit from add-ons. That’s why they advertise the base price so aggressively. The real cost? What you spend beyond the upfront fee.

How Much Cash You’ll Actually Need

Most travelers end up spending between $20 and $100 per day on top of their package. That’s not a fortune-but it’s not nothing either. Here’s how it breaks down:

• Tips: $5-$10 per day. Staff at all-inclusives rely on tips. Even if service is included, leaving a little extra for housekeeping, waitstaff, or bartenders goes a long way. Many resorts now allow you to add tips to your room bill, but cash is still preferred.
• Premium drinks: $8-$15 per cocktail. If you’re a gin and tonic person, you’ll pay extra for top-shelf gin. Same goes for wine, craft beer, or cocktails with imported ingredients.
• Excursions: $50-$150 per person. Snorkeling trips, ATV tours, cenote swims, and cultural tours aren’t free. Even if the resort offers them, they’re marked up. You can often book the same trip through a local operator for 30% less.
• Shopping: $10-$50. Souvenirs, sunscreen, sunglasses, or local crafts. Resort gift shops charge 2-3x what you’d pay in town.
• Wi-Fi: $5-$15 per day. Many resorts charge for decent internet. If you need it for work or to stay in touch, budget for it.

One couple I know in Toronto booked a 7-night all-inclusive in Cancún. Their package was $2,100 per person. They spent another $180 total-mostly on a day trip to Chichén Itzá and a few premium cocktails. That’s less than $26 extra per day. Not bad.

Where You Can Skip Spending

You don’t need to spend a dime to have a great time. Here’s how to make the most of what’s already included:

• Stick to the basics: The food at most all-inclusives is surprisingly good. Buffets offer variety, and many have à la carte restaurants included in the rate. Try them all.
• Use free activities: Snorkeling off the beach, paddleboarding, beach volleyball, and evening shows are all free. Skip the $80 zip-line tour and spend an afternoon floating in the pool with a book.
• Bring your own snacks: If you’re prone to hunger between meals, pack granola bars or nuts. Resort snacks are overpriced.
• Don’t pay for Wi-Fi: Use your phone’s data plan or connect to free Wi-Fi at the pool bar or lobby. You don’t need 100 Mbps to check Instagram.

One woman I spoke to from Calgary spent her entire 10-day trip on an all-inclusive in Jamaica without spending a single dollar extra. She drank the house rum, ate every meal, joined the salsa class, and even got a free beach towel at the end as a gift. She said, “I didn’t feel like I was missing out. I felt like I was living.”

Hidden Costs You Can’t Ignore

There are a few sneaky expenses that catch people off guard:

• Gratuities: Some resorts automatically add a daily service charge (usually $10-$15). Check your booking confirmation. If it’s already included, you don’t need to tip extra-unless you want to.
• Resort fees: Rare, but some places tack on a mandatory fee for “amenities.” It’s not common in the Caribbean, but check the fine print.
• Room service: Even if meals are included, ordering food to your room often costs extra. Same with minibar items.
• Children’s clubs: Most are free, but some resorts charge for premium programs like teen lounges or babysitting after 10 p.m.

Always read the details before you book. Look for phrases like “basic drinks only” or “select premium brands.” If it’s not spelled out, call the resort and ask.

How to Budget Smartly

Here’s a simple trick: bring one credit card and $200 in local currency. That’s enough for tips, a few drinks, and one excursion. Leave your other cards at home. It stops you from overspending.

Also, track your spending. Use a notes app on your phone. Write down every purchase-even a $3 coconut. At the end of the trip, you’ll see exactly where your money went. Most people are shocked.

Another tip: avoid buying things at the resort. If you want sunscreen, buy it before you leave. If you want souvenirs, wait until you’re in town. A local market in Playa del Carmen sells the same handmade crafts for half the price.

When You Might Not Need Any Extra Money

Some resorts offer true all-inclusive packages-no extras, no surprises. These are rare, but they exist. Look for:

• Resorts that include premium drinks (like Sandals or Secrets brands)
• Packages that list “unlimited premium spirits” or “all beverages included”
• Bookings that say “no tipping required” or “all gratuities included”

These are usually more expensive upfront, but if you’re a heavy drinker or plan to do a lot of excursions, they can save you money in the long run.

One family from Toronto booked a 7-night stay at an all-inclusive in Mexico with premium drinks and excursions included. They paid $4,200 per person-double the basic rate. But they didn’t spend a penny extra. They went on three boat trips, had 15 cocktails, and got spa treatments. The extra cost paid for itself.

Final Reality Check

All-inclusive holidays are designed to make you feel like you’re getting everything. And for the most part, you are. But they’re also designed to get you to spend more. The trick isn’t avoiding spending-it’s spending wisely.

You don’t need a credit card on every trip. You don’t need to buy a $50 bottle of tequila. You don’t need to pay for Wi-Fi. But you do need a little cash for tips, a few drinks, and maybe one unforgettable day trip.

Think of it like a buffet. You can eat until you’re full. But if you want the lobster or the truffle pasta, that’s extra. And that’s okay. You’re still getting a great meal.

Next Steps: How to Plan Your Trip

Before you book:

1. Check exactly what’s included in the package. Look for phrases like “premium drinks included” or “all gratuities covered.”
2. Set a daily spending limit-$25-$50 is plenty for most people.
3. Bring one credit card and $200 cash in local currency.
4. Download a currency converter app so you know what you’re paying.
5. Research free excursions near your resort. Many beaches, towns, and hikes are free or low-cost.

All-inclusive holidays are about relaxing, not budgeting. But a little planning means you’ll leave with more memories-and less debt.