Online agencies are using dynamic packaging to increased customer loyalty & profit, if hoteliers sit back they will be squeezed out of the packaging market.
Executive Summary – excerpts from 2008 industry trends report
‘The Dynamic Packaging market is forecast to double by 2009. Hotels, Spas and Resorts need to learn from what happened after 9/11 when the online agencies took control of hotel bookings. Accommodations providers have been fighting to take back control of their inventories (Chains more successfully than Independents). Dynamic Packaging is now ‘The Next Battlefield’. Online agencies have been using dynamic packaging as a way of building increased customer loyalty and profit, if hoteliers sit back and wait they will be squeezed out of the packaging market.’ (Marc Zablatsky, President iTravel Solutions)
Currently 45% of US package buyers booked a package online, these package buyers are being trained to go to online agencies to book package deals. 76% of online package buyers bought through an online agency, while 9% bought only at a suppler site (Forrester Research). Online package purchases will continues to grow as online agencies focus on educating customers that you can save big by building your own package vacation.
Promoting Dynamic Savings Front and Center
Expedia: Book Together + Save!…. Expedia discount for booking together
Orbitz: Book Your Flight and Hotel Together and Save
Travelocity: Book Together and Save
Cheap Tickets: Customized Package Savings
Marriott: Bundle your room with air, car or both and save a bundle on vacation packages.
Intercontinental Hotels Group: Create your own travel package and Save!
RIU: Save on Vacation Packages
Best Western: Save more by booking hotel + flight or car together!
Your customers want to do business direct with you. When asked, ‘If you knew that the price of travel would be the same, who would you prefer to buy travel from?’ 69% chose you, while only 29% chose Travel Agencies (Forrester Research). Dynamic packaging makes it easier for them to do so.
Major chains & resorts have already reacted to the new challenge and have started offering dynamic packages on their websites. Hyatt, Marriott, Intercontinental Hotel Group, Best Western, Outrigger, and RIU already encourage their customers to book all their travel/vacation needs directly with them, keeping their current and potential customers from leaving their website to book air, car and activities. Once they leave your website you lose control, allowing them to book and possibly stay elsewhere. The chains and progressive hoteliers are offering their loyal customers added reasons to book directly with them.
Offering customers the ability to book packages with hotel, air &car was named one of the top ways hotel websites could influence you to book directly rather than on a travel website (HeBS Rush Report).
It may sound difficult, but adding dynamic packaging to your existing website is not complicated. Vendors offer Dynamic Packaging Solutions that works easily with your existing reservation system and can be up and running in a matter of days.
This report was researched & created for iTravel Solutions by Marc Zablatsky
Source: Hospitality Trends