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Restaurant Industry News
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Sunday June 11th, 2006 |
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Hotel Packages at The Point of Sale - By Richard Walsh
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Online travel packages are hot! But who is selling the packages? |
Over the past few years the sale of travel packages online has grown exponentially. The merchant sites clearly lead the market in selling packages by offering various combinations of air, hotel and car. Today, air, car and hotel packages are available on all travel supplier websites, including most of the hotel brand websites. Some hotel property websites offer air and car reservations, but very few bundle these services. The hotel websites generally offer packages that bundle their rooms with on-site amenities or local activities. Mostly, the hotels don't want to be perceived as liable for airline or car rental services or service mistakes.
What are the real benefits to the hotel when selling packages? First, it is a great way to bury a discounted rate as part of the bundled services so it doesn't erode their other rates. The package clearly presents an added value to attract online shoppers and a package can generate a higher yield per sale. In the past, the package was used mostly to fill empty hotel rooms during the slow periods like weekends or during the off season. Today, the package has to be a critical part of a hotel's promotions and marketing efforts.
But, how can the independent hotel compete with the merchant websites or the other 3rd party online agencies with their property website? The answer is targeted online marketing! Make specials and packages a part of your search engine keyword optimization. Be sure the searcher is directed to your package offers and not you're your homepage. Optimize your package specials description with relevant keywords. Keep the theme of your packages targeted, competitive and seasonal. By this, I mean focus on your target market whether it is weddings, honeymoons, graduations, seniors, singles, local sports or entertainment events or holiday celebrations.
From the hotel perspective, there are two types of packages; one offers bundled air, car and hotel services and the other, more specific to the hotel property, offers local services bundled with the room rate for specific dates. Remember, less than 20% of the average hotel's guests arrive by air. So you can leave the air, car and hotel package to the 3rd party channels and focus on your hotel's benefits and value.
Your website is your online 'point-of-sale'! The challenge in marketing packages on your website is in the time, resources that are required to create and manage a set of attractive package offerings on your website or on your brand pages. It may even cost you for web services if you change the text and photos on your package web pages. Or, your brand may also charge or they may not offer property specific specials.
Of course, you have to balance your time and cost with the traffic and success you've realized from your website. In addition to your time and resources, you still have to invest in promoting the website to grow your direct website traffic. You can have the best brand or the best website possible, but you still have to invest in marketing to your target markets to attract buyers.
Try separating your package promotion marketing strategy from your marketing and even your Internet marketing plans. Focus on 'direct package sales'! What can you offer in a good basic package like a 'Weekend Special', check your competition to see what they are offering. Rather than pay your webmaster every time you want to change package text, pictures or dates look for tools online, like www.mywebsitepromotions.com that give you an extranet solution that does not require expensive changes to your website. In fact, this tool allows you to design your own package web page look and feel as well and to set the effective and end dates of the package automatically. And most important, it includes its own linked distribution network with links to your extranet package page.
You don't have spend time negotiating with local services or become the local wholesaler. Keep your packages simple, for example two nights for two people with dinner for two at the hotel and one added value item such as golf reservations, in-house spa services or for tickets to a local attraction or event build in a fixed amount and make it based on availability only. State that you must charge for the tickets if the reservation is cancelled. To keep your package reservations straight you can make your packages the same as different room types.
With fifty percent of all hotel bookings projected to come through the Internet in 2006 and more and more hotel shoppers looking for packages, it is important to have a clear 'Package Marketing Plan'. And, don't just rely on the merchants and brand to sell generic packages, create packages to feature your hotel's proximity to events and attractions, onsite amenities and other special services managed at the property. And, don't assume you need to bundle and air with your hotel rooms. Remember the vast majority of travelers still travel by automobile. The bottom-line is a package sale will produce a better ROI on your Internet marketing and sales while adding value to basic services.
Richard Walsh is Vice President of Business Development for Lodging Interactive. Prior to his role with Lodging Interactive, Richard has held a number of strategic executive management positions with major travel and Internet companies. Lodging Interactive is a leading Hospitality Internet Marketing company based in Parsippany, New Jersey. The company provides a complete portfolio of marketing services ranging from website design and hosting to search engine marketing and managed pay per click campaigns to email programs and reservation services. You can contact Richard at (973) 402-49670 or .
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Contact Information:
2001 Route 46, Suite 310
Parsippany, NJ 07054
Telephone: 973-402-4970
Fax: 877-833-7375
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| Lodging Interactive is a leading provider of Internet Marketing Services to the travel and lodging industries. The company provides a-la-carte and full managed Internet Marketing Services for hotels, resorts, timeshares and bed and breakfasts. |
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