Dominate direct sales with this more competitive pricing strategy
Revenue 01/04/2025
The package travel model that combines Hotel + Flight has become a key tool in hotel revenue management. The ability to offer this product directly from the hotel's official website offers multiple advantages, from capturing reservations earlier to reducing cancellation rates and optimizing the hotel's profitability . However, to maximize its success, it is essential to constantly monitor the offerings of the various tour operators to offer a competitive price.
For years, the direct hotel channel has been established as the main marketing channel, positively reducing hotels' dependence on intermediaries. Today, if you don't have your direct channel up and running, it means you're not up to date with distribution . However, despite having their official website in the spotlight for hoteliers, tour operators continue to play a key role in some markets and among certain customer segments.
Given this scenario, the optimal strategy is a hybrid model, where packages marketed through the official website coexist with those sold by tour operators, but with strict control over their performance and competitiveness.
Simply listing packages on the official website doesn't guarantee their success; it depends largely on strategic monitoring. Constantly evaluating the prices and conditions offered by different tour operators allows hoteliers to ensure their packages are the most competitive and attractive to customers. With Price Seeker, you can stay up-to-date on industry prices , as well as direct and indirect competitors, allowing you to make informed, data-driven decisions:
For hotel packages to be truly effective, it's essential that any strategy implemented be supported by a high level of competitiveness. In other words, without a comprehensive view of market rates, any effort to strengthen the direct channel will be fruitless.
The key lies in constant product optimization , ensuring that the price on the official website is equal to or even more attractive than that of other channels, maintaining control over distribution and maximizing the hotel's revenue. Monitoring tour operator prices and conducting appropriate benchmarking ensures that the direct channel remains the most attractive option for customers. Only in this way can an efficient and sustainable long-term revenue management strategy be consolidated.
For years, the direct hotel channel has been established as the main marketing channel, positively reducing hotels' dependence on intermediaries. Today, if you don't have your direct channel up and running, it means you're not up to date with distribution . However, despite having their official website in the spotlight for hoteliers, tour operators continue to play a key role in some markets and among certain customer segments.
Given this scenario, the optimal strategy is a hybrid model, where packages marketed through the official website coexist with those sold by tour operators, but with strict control over their performance and competitiveness.
The advantages of offering the Hotel + Flight package
- Bookings made further in advance . Customers who purchase packages with more notice compared to those who book accommodation and flight separately.
- Lower cancellation rates . Packages typically have lower cancellation rates, which provides greater security in expected occupancy.
- ADR Optimization . Bundling allows you to work with higher rates without directly impacting the customer's price perception, as they receive a comprehensive service.
- Longer stays and additional services . Guests with packages opt for a longer average stay and greater use of hotel services, which generates additional revenue.
- Greater control over distribution and profitability . By offering packages on the official website, hoteliers can better manage their pricing strategy and profit margins.
- Greater competitiveness . It's crucial to analyze how tour operators are selling packages to ensure the most attractive prices and conditions on the hotel's official website.
Monitor the competition and tour operators
Simply listing packages on the official website doesn't guarantee their success; it depends largely on strategic monitoring. Constantly evaluating the prices and conditions offered by different tour operators allows hoteliers to ensure their packages are the most competitive and attractive to customers. With Price Seeker, you can stay up-to-date on industry prices , as well as direct and indirect competitors, allowing you to make informed, data-driven decisions:
- Booking Window Analysis
One of the main benefits of working with packages is the expansion of the booking window. Monitoring how this indicator behaves across different channels allows you to identify demand patterns and adapt your pricing strategy to maximize occupancy. - Check rates and compare prices with tour operators
Price benchmarking is essential for fine-tuning your direct channel strategy. If tour operators are offering packages with more attractive rates than the hotel's official website, you risk losing bookings and diverting valuable traffic to third parties.
Constantly comparing the package price on the hotel website with that of tour operators allows you to react quickly and adjust your pricing strategy to ensure conversions on your channel. - Quota management on key dates
Gaining visibility into how tour operators manage room availability during high- and low-demand dates helps optimize inventory and make strategic decisions about opening and closing sales. - Impact on the income statement
Monitoring packages through the direct channel versus those offered by tour operators allows you to assess whether your pricing strategy is generating the expected margins. Sometimes, making minor adjustments to your offering can make a significant difference in profitability. - Evaluation of promotions and market visibility
Package promotions should be analyzed based on their impact on conversion. Furthermore, platforms such as TUI, Loveholidays, and Jet2holidays have a significant influence on hotel perception in key markets, so it's essential to monitor how the hotel appears on these platforms.
Greater profitability thanks to continuous monitoring
For hotel packages to be truly effective, it's essential that any strategy implemented be supported by a high level of competitiveness. In other words, without a comprehensive view of market rates, any effort to strengthen the direct channel will be fruitless.
The key lies in constant product optimization , ensuring that the price on the official website is equal to or even more attractive than that of other channels, maintaining control over distribution and maximizing the hotel's revenue. Monitoring tour operator prices and conducting appropriate benchmarking ensures that the direct channel remains the most attractive option for customers. Only in this way can an efficient and sustainable long-term revenue management strategy be consolidated.
