How to Boost Your Direct Sales with Flight+Hotel Packages

In 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 more economical than booking flights and hotels 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 often offer greater legal protection, providing peace of mind to the traveler.

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USE CASES AND POTENTIAL

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Any type of hotel with high direct traffic is likely to sell flight + hotel packages.

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Hotels focused on families and vacations benefit the most due to the nature of their clients, who often seek all-inclusive solutions. In urban hotels with a high percentage of international clients, it is an interesting option, and it is obviously an added value on islands or destinations connected by plane.  

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

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There are many markets for which the package is very important. The United Kingdom, Northern Europe, Germany, Canada, and the United States are countries where they are used to buying from tour operators and where it is economical to buy packages and it is safer for the user.

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AIR 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 who handle air connectivity and ensure competitive rates. It is crucial that hotels offer flights at competitive prices to make the 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's 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:

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

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

• Conversion: Approximately 50% of the conversion of accommodation only.

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

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

• Cancellations: Significantly lower in packages.

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OPTIMIZATION AND MONITORING

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To maximize the performance of packages, it is vital to have an integrated solution that allows real-time data tracking. In addition, optimizing the visibility and competitiveness of rates, along with an effective communication and marketing strategy, will help promote the new package 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 improve customer experience. With the right strategy and partners, hotels can offer an attractive and competitive solution that meets the traveler's needs.

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