Increase your hotel’s revenue with package holidays

For a long time now, package holidays have been a popular way for hotels to generate more reservations and revenue.  

 

Travelers are also happy to book package holidays if they involve additional benefits. Demand for these types of offers increased after the pandemic, as guests finally want to treat themselves again.  

 

Information from the short trip provider  kurz-mal-weg.de confirms this trend. So if you haven't done so already, it's time to start looking at package holidays.  

Do you already offer package holidays? Then optimize them so that they continue to increase your customer satisfaction and sales.  

 

Here you’ll learn how it works.  

 

What is a package holiday? 

 

When a hotel bundles several services together and sells them as a package, it is called a package holiday.  

 

Possible extras added to the room include breakfast, half or full board, spa treatments, reserved parking, airport transfers, and excursions in the local area surrounding the hotel. Creativity has no limits here, so feel free to offer more unusual services if this interests your own guests. A discount on one or more parts of the package holiday is possible, but is also not obligatory.  

 

Well-tailored packages offer added value to travelers because they receive additional services at a single price. It also saves them the trouble of having to find the various services for themselves.  

 

How your hotel can benefit from package holidays 

 

Offering package holidays do have a number of benefits for hotels. Here are the most important ones.  

 

• Higher ADR: The ADR for package holiday reservations can be up to 30% higher than for normal room reservations. The simple reason behind this: Guests spend more on their stay because they will book more services from the very beginning. 

 

• Longer lead time: Travelers tend to book package holidays twice as far in advance as just overnight bookings. This makes your budgeting easier and gives you more leeway in pricing the other rooms.  

 

• Longer stays: Guests who book package holidays usually stay twice as long as those who only make room reservations. This has a positive impact on your acquisition and operating costs.  

 

• Fewer cancellations: Cancellation rates can be up to 50% lower, especially if guests book flights or a rental car together with a stay at your hotel. 

 

• More revenue during the stay: Since guests stay longer, they have more opportunities to spend their money within the hotel. They will likely take advantage of other offers in addition to the services they have booked.  

 

• Off-season opportunities: An attractive package holiday and good value for money can even boost business during the off-season. For example, it allows you to attract guests from the local area instead of the usual target group from abroad.  

 

Three steps to more hotel revenue thanks to package holidays 

 

Here you will now find three important tips that will help you design optimized package holidays.  

 

1. Understand the target group and needs 

The better your overview here, the more likely you are to put together packages that sell well. So bear in mind the following questions: 

 

• What do your guests want? The better you have the overview in this regard, the more likely you are to create package holidays that sell well. Researching the market and analyzing the competition can provide you with initial ideas. After that, consider putting together similar and - if possible - even better offers.  

 

• What sets you apart from the rest? Look at which of your usual add-on services are the most popular amongst your guests and could even be considered a unique selling point. It could be certain spa treatments or your starred restaurant.  

 

• What do guests often ask for? If you often get requests for airport transfers or candlelight dinners, for example, you can offer this from the outset in package holidays..  

 

• What new trends are out there? The demand for work-from-hotel packages and digital-detox holidays has increased over the past years. There are also different trends in each region and target group that you can leverage, so keep your eyes open! 

 

2. Design package deals and set prices 

 

Package holidays should be a win-win situation - for both parties.  

 

For the guests, they should offer added value, personalize their stay and save them time, because all of the important items are already included in the package. For your hotel, they should result in more revenue, higher profitability, and more positive reviews.  

 

The most creative package is useless if your guests don't like it or you lose money on it.  

The next questions will help to either solve this problem or avoid it entirely.  

 

• What should be included in the package holiday? You should have already gathered some ideas for this during Step 1. Now combine the elements that seem to fit your audience.  

 

• How much does each component cost? Create a list to have an overview of individual and total costs. You’ll need this for pricing, too.  

 

• At what price is the price-performance ratio as it should be? Again, doing some market research helps you here. Of course, you also need to keep an eye on the profitability of the package.  

 

• Would you like to offer a discount on certain services? If yes: How much is reasonable? A discount is not mandatory, but can improve the price-performance ratio and make the offer more attractive.  

 

3. Marketing planning 

 

Now that you've put together your package holidays and set their prices, it's time to advertise them.  

 

• Keep the longer lead time in mind: Advertise in a timely manner, and inform your newsletter subscribers and website visitors about new offers early enough.  

 

• Consider the differences between source markets: Vacations, public holidays, and booking habits are different in each source market. Your marketing for each respective audience must reflect this.  

 

• Analyze the behavior of your top source markets: Are there any that tend to book for longer than the average stay? Create a unique package for this market that is tailored to their booking patterns.  

 

• Work with package holiday portals: Mainstream portals significantly increase your visibility online. Dedicated providers are ideal for a well-defined target audience or more specific offers (e.g. offers for families, couples, activity holidays, etc.) 

 

Are you ready to optimize your package holidays or try out a few new offers? With the above thought-provoking ideas, you'll be on the right path from the start.  

More excited guests and a higher ADR will then not be long in coming.  

 

When you have the right technology partner by your side, everything about your package holidays becomes even easier.  

 

Your guests can easily compare offers and book directly with you, so your team only needs to worry about execution, since all booking details end up directly in the PMS.  

 

This is exactly what you get with the new package holiday module offered by Hotel-Spider. Find out more right now or book a complimentary demo!!