As the battle for influencing and retaining consumer evolves, what does “loyalty” stand for hoteliers? Online travel agencies continue to innovate and create new services and tools that improve the travel experience. In order to become successful on the online space they understand that adding value to the trip booked through their sites in a way to improve the travel experience and increase customer loyalty.
Online agencies are using dynamic packaging to increased customer loyalty & profit, if hoteliers sit back they will be squeezed out of the packaging market.
Executive Summary - excerpts from 2008 industry trends report
‘The Dynamic Packaging market is forecast to double by 2009. Hotels, Spas and Resorts need to learn from what happened after 9/11 when the online agencies took control of hotel bookings. Accommodations providers have been fighting to take back control of their inventories (Chains more successfully than Independents). Dynamic Packaging is now ‘The Next Battlefield’. Online agencies have been using dynamic packaging as a way of building increased customer loyalty and profit, if hoteliers sit back and wait they will be squeezed out of the packaging market.’ Marc Zablatsky, President iTravel Solutions
Currently 45% of US package buyers booked a package online, these package buyers are being trained to go to online agencies to book package deals. 76% of online package buyers bought through an online agency, while 9% bought only at a suppler site (Forrester Research). Online package purchases will continues to grow as online agencies focus on educating customers that you can save big by building your own package vacation.
Your customers want to do business direct with you. When asked, ‘If you knew that the price of travel would be the same, who would you prefer to buy travel from?’ 69% chose you, while only 29% chose Travel Agencies (Forrester Research). Dynamic packaging makes it easier for them to do so.
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