How to Boost your Direct Sales with Flight+Hotel Packages

Over the last ten years, the hotel industry has seen a significant increase in the adoption of flight plus hotel package solutions. This trend has been more pronounced in markets such as the United Kingdom, Northern Europe, Germany, Canada and the United States, compared to countries such as Spain and France.

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But what has driven this evolution and why should hoteliers consider this option?

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CUSTOMER PERSPECTIVE

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From the customer's point of view, booking flight and hotel packages directly on the hotel's website offers multiple advantages:

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• Cheaper Price: Packages are usually cheaper than booking flight and hotel separately.

• Greater Convenience: The ability to book everything in one place reduces the friction and anxiety associated with planning a trip.

• Security and Legal Protection: Packages usually offer greater legal protection, which provides peace of mind to the traveler.

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USE CASES AND POTENTIAL

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Any type of hotel that has a lot of direct traffic is likely to sell flight + hotel packages.

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Hotels focused on families and vacation hotels are the ones that benefit the most due to the nature of their clients, who tend to look for all-inclusive solutions. In urban hotels with a high percentage of international clients, it is an interesting option and is obviously an added value in islands or destinations connected by air.  

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The current large increase in package sales through other channels may indicate significant demand that hotels can tap directly into.

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There are many markets for which the package is very important. UK, Northern Europe, Germany, Canada and USA are countries where they are used to buying from TTOO and where it is economical to buy packages and safer for the user.

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AREA CONNECTIVITY AND RATES

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One of the biggest challenges for hoteliers is accessing competitive flight inventories. However, this can be solved by collaborating with specialized partners that manage air connectivity and ensure competitive rates. It is crucial for hotels to offer competitively priced flights to make packages attractive to customers.

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OPERATION AND MANAGEMENT

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Implementing a flight and hotel package solution requires considering several operational and legal aspects. It is essential to have a partner that handles air connectivity, payment methods and customer service.

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In addition, integration with the hotel reservation system (CRS) facilitates rate management and ensures that packages are offered efficiently.

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KPIS AND METRICS

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To evaluate the success of package sales, hoteliers should consider the following key metrics:

• Share of Package Sales: Between 5% and 13% of total sales.

• Interest Rate: Between 4% and 8% of web traffic shows interest in the packages.

• Conversion: Approximately 50% of the conversion from hosting only.

• Average stay: 33% higher in packages compared to accommodation only.

• Average Ticket: 25% improvement in the value of reservations.

• Cancellations: Significantly fewer in packages.

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OPTIMIZATION AND MONITORING

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To maximize package performance, it is vital to have an integrated solution that enables real-time data tracking. In addition, optimizing rate visibility and competitiveness, along with an effective marketing and communication strategy, will help promote the new bundled solution.

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Conclusion

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Incorporating the sale of flight and hotel packages can represent a significant opportunity for hoteliers, not only to increase sales but also to enhance the customer experience. With the right strategy and partners, hotels can offer an attractive and competitive solution that meets the needs of the traveler.

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