This research aims to compare between Soft and Ultra All-Inclusive accommodation systems and analyze their impact on hotels' Costs and profitability in Hurghada city. For achieving the research aim, a questionnaire was designed and distributed to a random sample of managers in the investigated hotels, of which 200 responses were valid to analyze by SPSS V.25. Results indicated that the All-Inclusive system has an impact on the hotels' costs and profitability, and there are differences among the sample responses of the study toward reasons of implementation, and the impact of the hotels' costs and profitability according to the type of All-Inclusive system (AIS) applied. Based on the results, some recommendations have been proposed to minimize the negative effect of AIS on hotels' costs. One of the most important recommendations is creating non-costly facilities by adopting a recreational inclusive system that includes adding some tours to ultra AIS package that enhance guests' preoccupation and maximize hotel's profitability.