In a market where differentiation and the ability to generate new revenue streams is increasingly important, Flight + Hotel is a valuable tool to enhance your value proposition and increase your profitability.
While packaged bookings are not going to overtake accommodation-only bookings anytime soon, they will help the hotel generate more revenue and compete (and win!) against OTAs on their home turf.
Here are 5 facts that will make you want to offer Flight+Hotel on your website tomorrow:
Average stay is higher
The average stay of Flight+Hotel bookings from the direct sales channel is 2.5 nights or 60% longer than room only bookings. This translates into higher revenue per booking and more possibilities to sell complementary products (SPA, dinners or excursions) during the stay.
Booking in advance is higher
Up to 55% more in advance compared to accommodation-only bookings. At a time when the average advance booking is lower, conditioned by the uncertainty generated by COVID-19, increasing advance booking will help hotels to generate more cash flow and better plan their resources for hotel management and operations.
Lower cancellation rates
Largely because they already have the two main components of travel – flight and accommodation – customers who book Flight+Hotel cancel 50% less than those who book accommodation only. The benefits for cash flow and financial planning are obvious.
Flight+Hotel does not cannibalize accommodation only.
On the contrary, it allows hotels to reach a new customer segment accustomed to booking packages with OTAs, tour operators and travel agencies. These are additional bookings that the hotel would not have obtained by selling the room only.
For some of our clients, Flight+Hotel sales represent up to 7% of total sales.
Distribution cost is lower than with any other sales channel.
The sales cost of the direct sales channel will always be lower than that of intermediated channels such as OTAs, tour operators or travel agencies.
At Roiback we offer the most advanced Flight + Hotel solution for the direct hotel channel in the market.
Fully integrated into our CRS to ensure easy and simple management, our Flight + Hotel solution offers you the widest range of flights and routes in the market – both in Europe and America – and has excellent usability to achieve the highest possible conversion rate.
Contact us to learn more about our solution and arrange a demo!