RezNEWS Feature Article:
Part two: The purpose and power of dynamic packaging
(Part one of this article appeared in the April 2007 issue of RezNEWS)
Last month’s feature article explored the basics and benefits of dynamic packaging. This month’s article will discuss how hospitality businesses can profit by applying the same principles that large travel websites employ to construct and sell creative dynamic packages.
Click here to download PDF version of article.
What is the best way to create effective dynamic packages?
Follow these handy RezNEWS tips and practical examples to produce highly effective dynamic packaging for your business success.
RezNEWS Tip: Utilize local resources to create desirable dynamic packages.
Figure A (adapted from E-Tourism: Creating Dynamic Packages using Semantic Web Processes - Jorge Cardoso)
Any exploration of how to create dynamic packages must begin with an evaluation of available local resources; times that activities are possible and the logistics of combining different vacation components. Good questions to explore are:
- What can a tourist do while staying in my area?
- Where are the interesting places to see and visit?
- When can the tourist visit a particular place?
- How can the tourist get to the destination to see or do an activity?
- What local resources can I combine to create attractive packages?
RezNEWS Tip: Be flexible.
Many businesses turn away valuable revenue by not being flexible. If your property is able to accommodate pets, even in just a few rooms, attract the growing customer base that travels with pets. Offering a pet package that includes treats for your pet, pet sitting services, or suggestions for activities for your pet, creates a desirable package for pet lovers.
RezNEWS Tip: Create special packages for your repeat customers.
Make it a practice to offer VIP customers gift cards when they check out. Special package offers, designed specifically for VIP customers, can also be effective revenue generators during the off-season. RezStream Professional records how many times a guest has stayed at your property in addition to the number of nights they have stayed. These statistics are vital in identifying VIP customers.
RezNEWS Tip: Managing dynamic packages.
Once you have an outline of your dynamic package offerings, utilize a property management system that allows you to create and manage your dynamic packages. Key features to look for are flexible “triggers” for multiple age group pricing and for applying charges every day, once during a stay, or any other charge combination pertinent to the package. Also look for the ability to create and manage packages by date ranges, specific room assignments, etc. Using a property management system to track and manage dynamic packages makes selling advanced packages, whether complicated or not, a much easier process.
RezNEWS Tip: Selling dynamic packages online.
If you have approximately ten rooms or more, make sure some of your inventory is available on the Global Distribution System (GDS). As savvy travelers like to book airfare, car, and accommodations at the same time, make sure your online business practices are set up and available to these people.
Keep in mind that just because you want to talk to a guest before they reserve a room doesn’t mean that guest wants to talk to you. More and more travelers prefer to reserve online and will only make a reservation at properties that allow them to do so. With that thought, a majority of dynamic packages are now being sold online.
A new trend with online booking engines is the ability to create highly custom dynamic packages, with specific quantity triggers, specific room assignments, and date range capabilities. In other words, when potential guests book a reservation online, they will also have access to the same information that previously could only be communicated by phone. With the newest generation of booking engines, innkeepers will not have to worry about packages being offered at the wrong times of the year or whether the guest will book the right type of room for the package. In addition, the newest generation of booking engines allows consumers the option to simply book a standard room or instead, begin a reservation by combining available packages with available rooms. Having this flexibility gives the consumer what they want while offering the property a greater chance to enhance revenue possibilities.
RezNEWS Tip: Have a well designed website and offer online reservations.
Having a well designed website that allows guests to reserve rooms and packages online is a key element for increasing your occupancy and revenue. Even after an online booking is made, you can still make a follow-up phone call to review key policies or sell the guest additional services.
What’s next in the world of dynamic packaging?
Another interesting travel trend is the recent growth of travel websites that provide advanced travel information in conjunction with traditional online reservation services. These websites combine booking services with expert advice on local activities and provide a more comprehensive travel planning experience. Well known websites like: http://www.tripadvisor.com and http://travel.yahoo.com/trip/ or lesser known websites like: www.homeandabroad.com, http://www.budgettravelonline.com, and http://www.travelplan.com assist consumers who want to be able to pre-plan many activities. These services even offer the ability to download travel itineraries directly into PDA devices! The benefit is obvious. When consumers have more information, they become equipped to make more intelligent choices, are more satisfied with their vacation, and often spend more money on bundled travel components.
Conclusion
Increasing business revenue through creating dynamic packages can be hard work, but is worth the effort. Giving people what they want should always be your mindset when selling packages of any kind. Continue the practice of creating dynamic packages even if one or two offers do not generate immediate results. Implement a well designed website with a real-time booking engine to expand your online package sales opportunities. Creativity, perseverance, and being resourceful are often the most important components in increasing your revenue through selling dynamic packages.
About the author
Bill Mitchell is co-owner and Chief Operating Officer for RezStream. Bill has
over 20 years experience in the hospitality industry with extensive knowledge in management and marketing for hotels, resorts, and bed and breakfasts. Bill is a nationally recognized featured speaker and consultant for the hospitality industry.
Click here to contact the author with comments or questions.
