Sandra Bullock and baby Louis vacation in the Caribbean

Sandra Bullock knows how to do a vacation right.

Spending the past week at the Viceroy Anguilla in the Caribbean with baby Louis and other family -- including her sister and brother-in-law -- Bullock and her group took the time to get massages, drink tropical cocktails, play in the pool and even take a jaunt to a nearby private island.

The family had a blast, a source tells PEOPLE. "The group looked very festive at dinner, laughing and toasting over a long meal and Sandra in particular looked relaxed," says the source.