I've been to the Caribbean 10 times now and only done room only once, mainly because the price of food and drink out there scared me off doing it again.
We have some friends who holidayed in Barbados last year and went room only and they were staggered how much money they got through over two weeks.
All-inc may appear expensive up front but I really do think it's the way to go over there.

Check out Best at Barbados, we used them last year and they were excellent and I notice they have some good deals on the Almond Casuarina for next month.

The Dollar exchange rate isn't helping you at the moment. There are some good AI deals about at the moment (Virgin Holiday has an AI for £800 pp at the moment right in the gap) which is good value consideiring that the flight alone would cost £500.

Mark

Thank you for the help everyone.

Mark, I wish I could find a deal like that, whenever I look at Virgin they always seem so expensive . . . was that deal for 7 nights or 14?

Try Escape at the Gap not very expensive its AI but gives you a chance to eat out if you wish.

That deal was for Escape at the Gap although they have now slightly changed

Check here: http://www.virginholidays.co.uk/brochures/caribbean/holidays/caribbean/barbados/escape_at_the_gap/offers.aspx#hd

Prices change at least once a week and if you're looking for a last minute type booking a good deal can be had.

Escape at the Gap is well recommended. No fuss 3* hotel - very good value for money.

Mark