Yes, alcohol is really included!
Every resort has their own moniker, but whether they call it “all inclusive”, “awe inclusive”, “ultra inclusive”, or whatever, the bottom line is that it doesn’t include *everything*, but pretty darn close to it.
What’s included: To qualify as an all-inclusive, a resort has to include all food, all beverages including alcoholic ones (but the brands of alcohol carried will differ from a two-star resort to a five-star resort – at the lower end of resorts you’ll find only local beers, wines, and spirits or sometimes those of a inexpensive US brand, at the high end of the scale you’ll find top-shelf US brands and more ), daily and/or nightly entertainment, and many activities of both the land (yoga and other fitness classes, cooking or language lessons, tennis, bicycling, etc.) and water (snorkeling, kayaking, pool or beach volleyball, etc.) varieties.
What’s not included: The things they can upsell you on such as Spa Treatments, off-site excursions and tours, golf, scuba diving, or deep sea fishing. SOME resorts do include some of these things (such as an included golf package at Palace Resorts, or an unlimited dive package at Sandals Resorts, or even a Spa package at a destination Spa resort such as Miraval), but most All Inclusive resorts do charge for those add-ons.
To be 100% certain, ask your travel agent for a complete list of what’s included when you get a vacation quote.