Offer guests something special along with your hotel room. That’s the message coming through loud and clear in an article published on Tnooz last month, which examined Expedia Group’s recent study on the consumer appeal and profitability of package sales.
Hotel guests who purchase packages spend more on their rooms, book further in advance, and are less likely to cancel their bookings compared to customers who opt for standalone rooms. Additionally, guests who go for a package deal – especially those from international markets – also tend to book more nights.
These findings, which were based on Expedia 2017 booking data, are consistent with the rising trend of travelers looking for unique experiences from their hotel stays.
And considering that these package-purchasers paid around 30% more in average daily room rates (ADRs) than room-only bookers, they represent an excellent opportunity for hotels to bulk up their profit margins.
By offering special deals and promotions, hotels can increase both the perceived value of their guest experience and the financial yield from their bookings.
What special offers should hotels include in their packages?
In the same article, Expedia Group SVP of Marketing and Innovation Melissa Maher provided the following insights into how hotels should approach building a package deal:
“Package bookings offer many benefits, to hotels and travelers, and to get the most value from packages, hotels should know their top origins markets, both domestically and abroad.”
In other words, the most successful special offers and packages will be tailored to resonate with the hotel’s global target audience.
The importance of targeting special offers to the traveler type is something we’ve identified at trivago, too.
To support hotels in understanding their top origins markets based on who’s engaging with their trivago profiles, our developers built a visitor profiling feature into the marketing solution PRO package.
That same solution also enables hoteliers to promote their targeted special offers directly on their profiles. This article has more information on how that works.
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Special offers can help sell more hotel rooms, too
Beyond driving up the value of a hotel room and enabling the hotel to charge more for it, a special offer or package deal can also influence the booking decision.
Meaning hotels not only have a chance to get more money for their rooms — they also have a chance to sell more rooms at an increased rate.
Ultimately, the added value that a promotion, perk, or package brings to a hotel will be determined by how appealing and relevant it is to travelers.
And of course, the hotel’s ability to promote their special offer to their target audience is a crucial factor as well.
This article was adapted from a piece originally published on Tnooz.
If you’re a hotelier interested in creating and promoting special offers on trivago to drive up revenue and bookings for your hotel, we can help.
Post enticing offers to encourage potential guests to book with you.Learn more
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