December 14, 2017
Hotelbeds targets 10,000 directly contracted properties in three years
The aim is to gain the best prices, under the best terms and conditions, for the group's 60,000 travel intermediary clients globally.Read more
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)
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