How did the all-inclusive concept begin?

A holiday in Latin America in the late 1980s changed not only Cem Kinay’s career path, but also the future of Turkish tourism.

While staying at a small hotel in the Dominican Republic, he experienced, for the first time, what is now known as beverage-inclusive service. This experience inspired him, even though he had no background in tourism or hotel management at the time.

“I was thinking about people’s needs, especially families,” he recalls. “And I thought: how wonderful it would be if people could pay once and receive the full holiday experience.”

In the photo: Cem Kinay in Turkey, 1990

Shortly after returning to Vienna, he founded his tourism company, Magic Life Hotels. In the early 1990s, the company opened Turkey’s first all-inclusive hotels. 

Introducing the new concept was not easy. Hotel staff were unfamiliar with it, and Kinay had to train them to think from the guest’s perspective.

Convincing tourists was another challenge. “At first, people were hesitant to pay everything in advance,” he says. “But after positive experiences, word of mouth did the rest.”

The model proved highly successful and was quickly adopted across Turkey, contributing significantly to the country’s tourism boom.

“When I started in 1987, only a few million tourists came to Turkey each year. Now the number is around 65 million, and about 95 percent of hotels offer all-inclusive packages.”

The concept later spread to Greece, Tunisia, Egypt, Bulgaria, and beyond. Today, all-inclusive resorts are common across the Mediterranean and the Caribbean. Kinay believes it has been the only true revolution in the hotel industry over the past 35 years.

How did the pandemic change tourism?

Tourism is highly sensitive to global crises, and the pandemic brought travel almost to a halt. Yet, according to Kinay, it also intensified people’s desire to travel.

“When restrictions ended, we saw that demand was even stronger than before,” he says.

What changed was how people travel. Nature-based holidays, camping, and visits to smaller, less crowded destinations became more popular. Many travellers also started avoiding flights when possible.

At the same time, the B&B and short-term rental market expanded rapidly. Kinay believes this sector is now comparable in size to the hotel industry.

“It has affected hotels, but not dramatically, because overall travel is growing,” he explains. “There are simply different types of travellers. Some prefer hotels, others prefer private rentals. I tried Airbnb myself, but it’s not for me.”

Is artificial intelligence making hospitality less human?

Kinay strongly supports integrating AI into hotel systems, especially to improve operational efficiency, marketing effectiveness, and customer service. He sees it as the next digital revolution.

However, he insists that hospitality must remain human-centred.

“Travel is about emotions,” he says. “Robots cannot replace people in this industry. Technology should support the experience, not replace human service.”

While some destinations experiment with robotic hotels, Kinay believes balance is essential: innovation should enhance, not diminish, human interaction.

Photo: Kervan Saray in Konya, Turkey

What is his new concept?

After redefining mass tourism, Kinay is now focusing on heritage-based luxury tourism. In 2024, he founded CK Legacy Hotels in Vienna, aiming to restore historic buildings and transform them into sustainable luxury hotels focused on wellness, gastronomy, and cultural heritage.

The first project is Kervan Saray in Turkey, an 800-year-old caravanserai that once served medieval merchants much like hotels serve travellers today. The restored building now operates as a museum hotel with 13 rooms.

Located near Konya, the site had been largely forgotten. After renovation, it attracted around 100,000 visitors within a year.

Kinay is now searching for similar opportunities in Austria, particularly castles and monasteries that could be partially converted into boutique luxury hotels.

“This project is very selective. I’m not in a rush,” he says. “The magic is preserving authenticity while adding comfort and elegance.”

He chose Austria partly because he lives in Vienna, but also because of the historical links between the Ottoman and Habsburg Empires.

“Staying in a castle offers a unique experience. Combining heritage with modern digital life is exciting, especially for younger generations.”

Photo: Inside Kervan Saray in Konya, Turkey

His journey to success

Kinay moved to Vienna in 1977 at the age of 18. While many immigrants face major difficulties, he considers himself fortunate.

“I had good parents, a strong education, and supportive friends. Vienna opened the world to me.”

His contributions have been widely recognised. In 1997, Austria named him Man of the Year for his impact on the travel industry, and in 2006, he received the Austrian State Medal.

Despite challenges along the way, he says, “The best things in my life happened in this country.”

Advice to young entrepreneurs

Kinay believes Austria continues to offer strong opportunities, especially for young professionals.

“This country needs skilled immigrants in every profession,” he says. “For those who are ready to integrate and prepare professionally, Austria offers great chances and strong social security compared to many other countries," he ends.