Create formulas to increase reservations
30 Jul, 2019
In search of experiences and adventures, today’s travellers like to plan activities during their stay to discover the surrounding area. The emergence of packages that generally combine accommodation and activities is increasingly attractive to travellers. This system of offers is aimed at both gîte owners and hoteliers. Based on collaboration with local companies, a package is the solution to diversify the service offer. Discover all our tips for creating formulas that will boost your income.
What is a formula?
Generally, a package includes accommodation and access to local attractions (museums, guided tours, zoos, etc.). The objective is to allow travellers to benefit from the activities included in their reservation. This is a good compromise for families who have little time to organize their holidays.
The formulas do not stop at the traditional “accommodation + activity”. Sometimes the traveller is entitled to discounts for restaurants in the vicinity. The hotelier can also offer packages for events (festivals, concerts, etc.). By booking this package, the traveller is entitled to tickets to access the event. On the other hand, the extras should not be overlooked. This is the right way to easily enrich an offer. A massage, a candlelight dinner… the possibilities are endless and will help you stand out from your competitors.
The offer of packages does not imply the reduction of the price per night of the room. A traveller is motivated to book a package because it saves time. With a single click he can book his accommodation and the activities of his stay. Thus, the added value of these formulas is the time saving, but the promotion must still be attractive enough.
Manage special offers
Before creating a formula, a hotelier must study the market of origin, identify the assets of the environment on which he could focus his offers. A hotel in Burgundy will of course propose offers including wine tasting. Once the possibilities have been defined, the hotelier must identify the target group of travellers likely to be interested in the packages. The objective is to propose activities in line with their interests in order to maximise the profitability of the offers. For example, an establishment that usually welcomes families will offer packages that include admission to an amusement park.
The development of special offers is done in collaboration with local companies. The aim is to promote tourist activity in the region. This cooperation between the hotelier and the company can be done in both directions:
- The hotelier buys tickets for the activities in advance from the partners. Reimbursement of unsold tickets is not mandatory. This depends on the agreements made with the partners.
- The hotelier markets special offers without prior booking of activities. He buys tickets based on demand. This technique allows the hotelier to avoid losses by reserving only the right number of tickets. However, this requires a daily investment by the hotelier to manage reservations, particularly in the event of high demand.
The benefit to hoteliers
A study conducted by Expedia highlights the benefits of promotional offers. Firstly, the frequency of cancellations is four times lower than for travellers booking a single room. Those who take advantage of the offers tend to stay longer to enjoy the benefits of the formula (access to the spa, sports necks…). In addition, these travellers spend more during their stay, 30% more in average daily fare compared to travellers booking only their accommodation. Finally, those who book a stay with a formula do so one month in advance compared to other customers.
The special offer system is a good way to maximize the income of an establishment while securing long stays. In addition, the package system is an excellent marketing tool to attract travellers to your establishment. In low season, it is the solution to boost the attendance rate and reduce the seasonal impact on your turnover.
If you wish to offer packages, we advise you to create 2 or 3 at the start in order to observe the reaction of the travellers. Don’t forget that promoting your packages is an essential step. Indeed, the added value of a special offer depends on the level of attractiveness of the promotion. To encourage travellers to book directly, you can choose to offer the packages only on your website.
30 Jul, 2019
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