April 20, 2017

The power of packages for hotels

Expedia took a deep dive into 2016 data, comparing package bookings to standalone hotel bookings from global points of sale inbound to U.S. properties. The findings? A wealth of information and opportunity that should be music to hoteliers’ ears.

Packages are a great way to maximize revenue, secure longer booking windows, and minimize cancellations.

Overall, in full year 2016, Average Daily Rates (ADRs) – a common performance metric for hotels – for package stays were higher versus standalone stays by an average of 20 percent (see Figure 1). This shows a substantial rate boost for hotels – and an incentive to include their hotels in package offerings.

One potential reason for package bookings delivering a higher ADR? Hotels offering deeper room discounts in package bookings may successfully upsell consumers on room type, due to the overall perceived value. For example, in Hawaii – where package demand is high – a package consumer typically books a higher room view type; an ocean view room versus say, a courtyard view room. While the ADR for an ocean view room may be more expensive than a courtyard view room, if the ocean view room is more deeply discounted as part of the package, consumers may be more apt to re-invest their package savings into a higher category room.

Download the white paper at Expedia Partner Central (PDF 647 KB)