We did Sandals for the Honeymoon (Regency in St. Lucia). I would 100% recommend the relaxing all-inclusive for a Honeymoon, but I probably would not do it for a regular vacation. The exception would be if we were traveling with the express purpose of a relaxing getaway.
Pros:
-- Everything was included. It was so freeing to just go in and order whatever we wanted (food and beverage) without wondering if we were busting the budget. We had exceptional food at all of the restaurants.
-- There were plenty of places to eat at the resort, offering a wide variety of menus. We did not dine at the same place twice all week.
-- walk to all meals... no cabs, no reading guides for places to go, no nada. Very simple. Sometimes simple is good.
-- like dani, our resort included lots of water activities. In addition to those, we purchased several excursions (one by catamaran, one by horseback, one by very scary tour bus) to explore the island. While I don't think we experienced much island culture, I do feel that we were given plenty of options to site-see. All the excursions were purchased through our resort and came recommended by them. Again, it kept things simple for us in that we didn't have to research anything.
Cons:
-- agree with those who say that you don't fully experience the local culture. Some people never even left the property! We stayed on-site for all night life.
-- have to do enough research ahead of time to learn if food is good, number of restaurants on property, if alcohol and tips are included, if activities are included, etc. You also have to do a lot of math to see if you come out close enough to ahead to make it worth it.
ETA: like 33 said, we only needed our room key. Fabulous!
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