First off, I know that AI isn't for me - I discovered this on my most recent trip to Cuba and my four days in an AI hotel in Varedero will be the first and last time I'll do AI. I think that there are overall damaging consequences of going AI as this sector of the market spreads and as long as people are willing to accept them - well, it is each to their own and I can see the attraction for families but I think that the AI concept is one that is going to destroy the character of some holiday destinations and reduce the level of choice for those who want something other than AI.
So what are those consequences? Well, in my experience in Cuba, firstly, it's surly, resentful staff who in the end get fed-up at throwing out perfectly good food and drink, food and drink that they could never afford to buy in the first place. It also results in tiresome strategies on the part of staff to get tips. The usual practice in Cuba is just to leave the very small change ie round payment up to the nearest full CUC or leave a CUC at the end of night. But when no money is changing hands this can rapidly degenerate into having to tip in order to get good service in the first place rather than tipping to reward good service. I can see no reason why this should be limited to Cuba - it's going to happen wherever there is a similar large disparity between the income of tourists and local staff.
Secondly, if hardly anybody ventures out of their resort hotel then no infrastructure develops for those who would rather not spend all their time in the hotels. Or even worse, what would appear to be happening in parts of the Canaries, is that once AI becomes the dominant form of holiday in a resort, the local infrastructure of bars and restaurants cannot continue to survive because fewer and fewer customers are being spread increasingly thinly around them all. I think that this is why more and more resorts are being criticised for being too quiet of an evening now. Once this starts to happen, there are fewer and fewer incentives for people to leave their hotel and the local infrastructure disappears because there are so few customers to keep it going. As cazB discovered it can get really boring being stuck in the same hotel for a couple of weeks but if not enough visitors support the local bars and restaurants then there will no longer be any local alternative to what is on offer in the hotel. If you want an alternative or a good range of choice, then you do have to support the local economy by spending money in local bars and restaurants otherwise they will close.
Thirdly, the quality of the AI experience starts to go down for the majority as the AI hotels are forced into greater and greater competition on price and price alone. The luxury high end of the market will survive for those willing to pay a premium for a premium product but judging by the critical comments on here about so many AI hotels, the poor quality food, watered down drinks, limits on what actually is included in the AI offer (eg only local rather than imported spirits) I think that the middle market is already being really squeezed as it lowers prices even further and then adjusts what is actually on offer accordingly. I think there's a good chance that the AI market will become really polarised - a small, luxurious but expensive top end and a long tail of budget basement AI hotels for those who shop only on price. Which could leave the middle market with very little choice.
SM