The 5 facts that will make you want to offer flight+hotel on your website
news
April 23, 2024
In a market where differentiation and the ability to generate new sources of revenue is increasingly important, Flight + Hotel is a valuable tool to enhance your value proposition and increase your profitability.
While packaged bookings are not going to overtake lodging-only bookings anytime soon, they will help the hotel generate more revenue and compete (and beat!) the OTAs on their home turf.
Here are 5 facts that will make you want to offer Flight+Hotel on your website tomorrow:
The average length of stay is higher
The average stay of Flight+Hotel bookings in the direct sales channel is 2.5 nights or 60% longer than room only bookings. This translates into higher revenue per booking and more possibilities to sell complementary products (SPA, dinners or excursions) during the stay.
Earlier bookings are higher
Up to 55% higher compared to accommodation-only bookings. At a time when the average advance booking is lower, conditioned by the uncertainty generated by COVID-19, increasing advance booking will help hotels generate more cash flow and better plan their resources for hotel management and operations.
Lower cancellation ratios
Largely because they already have the two main components of the trip - flight and accommodation - customers who book Flight+Hotel cancel 50% less than those who book accommodation only. The benefits for cash flow and financial planning are obvious.
Flight+Hotel does not cannibalize lodging alone
On the contrary, it allows hotels to reach a new customer segment that is used to booking packages with OTAs, tour operators and travel agencies. These are additional bookings that the hotel would not have obtained by selling the room only.
For some of our customers, Flight+Hotel sales account for up to 7% of total sales.
Distribution cost is lower than with any other sales channel
The cost of sale of the direct sales channel will always be lower than the cost of sales through intermediated channels such as OTAs, tour operators or travel agencies.
At Roiback we offer the most advanced Flight + Hotel solution for the direct hotel channel in the market.
Fully integrated with our CRS to ensure easy and simple management, our Flight + Hotel solution offers you the widest range of flights and routes on the market - both in Europe and America - and has excellent usability to achieve the highest possible conversion rate.
Contact us to learn more about our solution and arrange a demo!
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