July 19, 2018

Expedia says packages are better for hotels than room-only

Hotels are achieving higher average daily rates (ADR) from consumers who book packages rather than just rooms, according to data from Expedia Group.

The online travel giant said consumers buying packages paid around 30% more in ADR than those making standalone hotel bookings.

The study further revealed that package buyers booked one month earlier on average than standalone customers, who were also 2.6 times more likely to cancel their reservation than package consumers. These findings were based on Expedia’s booking data for 2017 with package sales running into the “tens” of millions.

The research comes at a time when global hotel companies are focused on direct marketing to customers and encouraging them to book directly through their own websites and portals, rather than via online travel agencies and other third parties.

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