Agents urged to embrace dynamic packaging in bookings peak
Agents should not ignore the power of dynamic packaging during the peak booking period as Flexibletrips forecasting that only 70% of summer holidays sold will be traditional packages.
A growing number of user-friendly websites and customer awareness, more flexibility, competitive pricing when combined with low cost carriers and better managed tour operator capacity is driving significant growth to the dynamic sector, said Stephen Vaughan, head of worldwide sales for UP Trips.
He said: “It is clear that dynamic packaging is now a powerful tool, offering competitive prices and choices to customers that were previously not available to them, while the better managed tour operator capacity has meant that while supply and demand are better matched, the market has increased for areas that the traditional package does not cater for.
“Dynamic packaging closes that gap and agents must embrace it during peak selling periods alongside traditional holidays if they are to provide customers with the choice they are looking for.
“If they don’t they may well find those customers voting with their feet and buying their next summer holiday from another retailer or even from another distribution channel.”
Vaughan added: “There is a perception that still exists that peaks is only about the traditional seven and 14-night package and that dynamic packaging is simply focused on city breaks.
“However, dynamic packaging is an important option for beach breaks as well and one that should not be overlooked during peaks, it can generate a lot of incremental and repeat business providing holidays which are often viewed as the sole domain of the traditional seven night package market.”
He said that a “significant proportion” of Flexibletrips’ growth in recent months has been driven by the sale of one and two-week beach holidays which now account for half of its summer business.
“This is because they are available at extremely competitive prices when combined with the use of low cost carriers,” added Vaughan. “As the dynamic packaging grows – it now represents in the region of 30% of bookings – and more and more customers become aware and familiar with the concept and the flexibility it offers them, then the demand will become even greater.
“We are also seeing a growing number of repeat bookings from customers who having used dynamic packaging once are impressed with the concept and are more than happy to book a component-based holiday that suits their needs better than a traditional package.”
Report by Phil Davies
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