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All-inclusive (AI) packages and meal plans have been an essential component of leisure tourism and received a corresponding attention from the literature, particularly in the case of package tours. However, the existing body of research focuses on the motivations, attitudes and behaviors of tourists, thereby neglecting the supply-side perspective. Therefore, the purpose of this study is to explore the benefits and costs of AI systems from the perspective of hoteliers.

Data were collected through 27 semi-structured interviews with lodging professionals through purposive sampling. This study adopted a qualitative research design and used thematic content analysis to explore the benefits and costs of AI system.

The thematic content analysis produced two main themes as facility-related factors and destination-related factors, which further classified as benefits and costs for the hotels and destinations.

This study extends current knowledge by providing a more comprehensive understanding of the benefits and costs of AI systems based on the hoteliers’ point of view, which reflects the supply-side perspective. The findings also offer valuable implications for industry practitioners and destinations to assess and manage the benefits and costs of the system.