Package Like a Pro: The Benefits and Basics of Tourism Packaging
Creating travel packages can be a powerful growth strategy for your tourism business, whether you're a winery, attraction, accommodation provider, or tour operator. Travel packages can enhance customer experiences, increase customer spend, and extend the length of their stay. Here we'll explore the broader industry structure and how packaging can generate more bookings.
Why Package?
Travel packages make it easier for customers to experience more of what your region has to offer without having to do all the legwork themselves. It's all about convenience and value. By collaborating with local businesses and bundling experiences, you can offer a seamless, enriched travel experience that appeals to a broader market. Here are some reasons to consider packaging:
- Increased Customer Spend: Bundling services can encourage customers to spend more than they would on individual purchases.
- Extended Stay: Packages often encourage longer stays as they offer multiple activities or experiences.
- Enhanced Customer Experience: A well-planned package can provide a memorable and cohesive experience, leading to positive reviews and repeat business.
Types of Packaging
To keep it simple there are two main ways to package your tourism product:
- Direct Bundling: Combine your product with local or statewide experiences and sell these packages directly via your website and social media. This approach gives you control over the customer experience and allows for direct bookings.
- Third-Party Packaging: Collaborate with wholesalers, agents, or Online Travel Agents (OTAs) to package your product and reach a wider market. These partners can help distribute your product through their established networks, leading to indirect bookings.
One of the myths about packaging is that a package needs to be cheaper than individual components, but in truth, packaging adds convenience and value, which customers are often willing to pay for. You are taking the legwork out and often showing visitors something they may never have found or booked on its own.
Local Collaborations and Responsibilities
If you are working with others locally in your town or region and bundling experiences together, here are some tips:
- Establish Clear Agreements: Define each partner’s responsibilities, such as handling bookings, customer service, and marketing.
- Share Tools like calendars and marketing materials that explain FAQs.
- Think About the Customer Journey: Ensure seamless communication and coordination among partners to provide a smooth customer experience.
Key Players in Packaging
As you grow in your business, understanding the various players in the travel distribution chains is crucial for successful packaging with trade partners and large commercial companies. Distribution is one of the 'secret weapons' I write about in my book and can unlock bookings from interstate giving you year round revenue and strengthening your competitive base.
- Online Travel Agents (OTAs): Platforms like Booking.com, Expedia, and Airbnb can help you reach a global audience.
- Booking Platforms: Tools like Rezdy, Checkfront, and TourCMS can integrate with your website to streamline bookings.
- Wholesalers and Inbound Tour Operators (ITOs): These players distribute tourism products to travel agents and customers, both domestically and internationally.
Examples of Packages
- Accommodation + Experience Packages: Bundle winery tours with stays at local hotels or BnBs.
- Seasonal or Event-Based Packages: Create special offers for events like harvest seasons or music festivals.
- Customizable Packages: Allow customers to choose from a list of available experiences to create their own package.
- Themed Packages: Develop packages around specific themes like romantic getaways or family-friendly adventures.
Creating travel packages involves thinking creatively and strategically about how to combine your products with others to offer unique, valuable experiences. By understanding the benefits, types, and key players involved in packaging, you can start creating compelling offers that attract more customers and boost your business.
If you want to workshop packaging ideas for your business and region, get in touch!
Join Susan's network on Linked In where she writes about tourism trends, shares industry information and publishes articles. Susan's book Booked Out! How to Start and Grow A Successful Regional Tourism Business is available for sale now.
