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Guest Comment: Dynamic packaging – the route to riches
by Vic Darvey, OTC I have been astonished by the recent negative press surrounding the topic of dynamic packaging and can only think that this, once again, smacks of agents burying their heads in the sand. As pioneers of dynamic packaging in the UK, and with 35% of all bookings at OTC being dynamically packaged this year, we have been lucky enough to experience the benefits of this new technology before most and we have high expectations for 2004. There are two clear benefits with dynamic packaging. Firstly, it offers the customer a far wider choice of product, therefore increasing the chance of a booking being made. Secondly, it delivers a margin of between 15-18%, which in turn drives far greater profitability than any other travel component. One of the major industry trends to come through this year has been the decline of the package holiday in place of consumers tailor-making their own travel. Whether you call it dynamic packaging, de-packaging or flexible stays, it’s here to stay and it’s time to embrace it. Some agents have opted to offer their customers dynamic packaging, while others, as they did with the net, have failed to take advantage of this burgeoning market. The package holiday is by no means dead; it’s still the industry cash cow. However, just as the customer of three years ago demanded an increase in the number of ways they communicated with their travel company, it’s clear that in 2003 they have begun to demand a change in the way they can book their holiday with them. It’s time to “Evolve or Dissolve”. Unless you run a very specialist business you cannot afford to ignore the ever-changing buying habits of the British consumer and miss the real opportunity that is dynamic packaging.
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