Why package bookers are key to boosting occupancy and revenue

Research shows that travel packages attract high-value travellers: those who book multi-item trips stay longer, book earlier and cancel less than those that book individual trip elements.¹  So what is a travel package? A package is a bundled booking transaction containing at least two major travel products, such as flights, hotel rooms, hire cars and approved services.²

When you incorporate Expedia Group into your distribution strategy, you have the opportunity to bundle your rooms into package promotions that deliver results—such as fewer cancellations and more reliable demand share to increase revenue. Packages are flexible and can be configured to complement your revenue management strategy. You can target specific markets, or limit the offering to travellers booking a specific period in advance, staying a specific number of nights or booking within a specific date range.

Travellers who book packages often use OTAs to search for flights and hotels, and 61% of package bookers booked on an OTA like Expedia.³ When choosing where to plan and book a trip, package bookers prioritise an easy-to-use website (43%),⁴ emphasising the importance of providing travellers with more choice and seamless end-to-end booking experiences.

Our package promotions provide travellers with a price discount when a participating hotel is booked as part of a trip, and offer you a unique opportunity to increase visibility by cross-promoting your hotel alongside more than 500 airlines, over 120 car hire companies and more.

Partners who offer package promotions benefit from increased visibility across Expedia Group brands, as well as access to our B2B distribution network of more than 60,000 partners spanning travel agencies, airlines and corporate travel companies.

Our Traveller Value Index study found that getting a discount for booking a package is among the top three most appealing deals to travellers.

As package pricing is opaque, you can capitalise on consumer preferences in travel booking by offering discounts while protecting your published rates. Opaque pricing enables you to keep your rates competitive while ultimately increasing your revenue potential.

Pro tip: Rev+ provides you with rate intelligence, so you can easily see how your package rates compare to your competitive set. These insights are designed so you can identify the gaps and take action to capture more share from these travellers. 

Package promotions are a high-impact solution if you want to increase reach and conversion from travellers who book earlier, stay longer and are less likely to cancel.

Pro tip: Be aware of popular booking periods and adjust your booking window in Partner Central to accommodate for longer trip-planning lead times for package bookers.

On average, properties with a package offer see over 5% increase in gross booking value. This increases to over 10% outside of the US, and to over 10% at properties with more than 25 rooms.⁸

Sapporo View Hotel Odori Park in Japan partnered with Expedia Group to offer package promotions that would support their strategy of attracting more domestic and international travellers outside of Hokkaido. Since travellers usually need to book a flight to get to the property, capturing package share is key for the hotel.

Data and insights from Partner Central revealed that Sapporo View Hotel Odori Park was well below the average package share in the market, which helped the partner understand the value of setting up packages to stay competitive in the market.

The hotel was able to customise its package promotions and use sophisticated targeting to optimise visibility with the desired audiences, including targeting specific markets and countries by providing better rates for international travellers and adjusting for seasonality. In addition to packages, their larger promotion strategy with Expedia Group included discounts for length of stay, mobile bookings and Members-Only deals.

Are you ready to build a stronger distribution strategy and tap into the power of package promotions? Sign in to Partner Central and set up a new package promotion to help boost your occupancy and revenue.