Wednesday, September 18, 2019

How To Drive Revenue Through Hotel Package Deals?

Travelers are willing to spend up to 30% more than the average daily room rates (ADRs) when they feel that they are getting a better deal by booking a package. Creating attractive packages are key to profitability.

Hotel packages are an excellent medium to lure lookers and drive the decision-making process, as it not only increases the occupancy rate but it also helps in upselling non-room items; translating to increased revenue.

While one night-free deals are usually a staple of the package deal, modern travellers love options offered outside of these traditional buckets.

Let’s start with reasons convincing enough to create attractive package deals that can convert lookers to bookers.

Advance bookings:

Travellers purchasing packages in advance not only spend more but are less likely to cancel their bookings compared to customers who opt for standalone rooms. Offering tempting packages guarantees booking and drastically reduces on cancellations.

STAAH’s latest Smart Pricing feature on its ConvertDirect Booking Engine helps you price your rooms smartly to set tempting package deals and get the bookings.

Multiple Night Bookings:

Package deals tempt travellers to book for an increased number of nights due to the perceived value they get against the spend.

Profit margins:

With the rising trend of travellers looking for unique experiences from their hotel stays, they are willing to pay higher thereby presenting hotels with an excellent opportunity to bulk up their profit margins. Also, packages are useful to attract repeat and direct customers.

Building Loyalty:

Package deals can help bundle a plethora of services which usually is not considered by the room-only bookers. These additional services help create experiences for the guest to connect with the property, thereby increasing loyalty towards the hotel. Added bonus is free word-of-mouth publicity a hotel can achieve through customer loyalty.

Year-round Occupancy:

Offering attractive packages during off-season can boost your sales and increase the occupancy rates. Likewise, creative promotions during seasonal events and peak periods helps increased bookings and ensures that you are booked round the year.

How to create attractive packages to lure guests?

Think Local:

Travellers love to immerse themselves in the local culture. Pairing this with the local attractions can give definitive unique experience to your guest. Also, it can help increase tourism to the area, thereby attracting more guests in future.

Position your brand:

Term your offering in accordance to the type of property you offer and the audience you attract. A luxury property can promote the package as a value-added experience, whereas a budget property can promote it as savings the guests will enjoy as a result of package pricing.

Targeted Marketing:

It helps to understand and identify the travellers who would take advantage of the promotion. Accordingly, a family-friendly property can consider partnering with amusement parks, and museums to package an attractive deal, and a luxury property popular with couples, can think about offering a taste of local cultural and organizing local guided tours.


Choose package partners that offer off-property activities, and make them your preferred vendors. Decide on partnerships based on the popularity of their tours and activities, as that would be regarded as a noteworthy value add to your offerings.

Promote In-house add-ons:

Dining packages, in-room movies, and spa treatments can add value to the package as this will encourage guests to try your supplemental offerings while boosting revenue.

Have package deals worked for your business? We would love to know at

This post originally appeared on the STAAH website and is reproduced with their permission.

STAAH Ltd is a New Zealand-based technology company that specialises in cloud-based channel management and booking engine for accommodation providers to maximise online revenue. Founded by Gavin Jeddo in 2008, a pioneer in the field of distribution technology, STAAH’s industry-leading technology powers a property’s distribution through online travel agencies (OTA), direct bookings and digital marketing services. STAAH works with more than 6,000 partner properties in more than 80 countries through its operations in New Zealand, India, Malaysia, Philippines, Thailand, UAE and UK.

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