Hotels have struggled to sell more packages to increase guest spending in other departments than rooms.
NB: This is an article from Demand Calendar
As a result, guests are difficult to convince to buy hotel packages. The exception is if the hotel is a resort and, therefore, a destination where the guest will spend most of the time. The world outside the resort is of less interest to the guest.
Subscribe to our weekly newsletter and stay up to date
If a hotel puts more effort into designing packages using the four Ps (Product, Price, Promotion, and Place), the chances are much higher that the package will become a sales success. Let’s start with a few examples of packages.
Flexible and creative packages
Developing flexible and creative packages for enhancing profitability requires a dual focus. Firstly, packages should be attractive and compelling to guests, enticing them to spend more than they would on individual services. This involves understanding guests’ needs and preferences and designing packages that offer real value and an enhanced experience. Secondly, each package element should be chosen with profitability in mind. High-margin services should be emphasized, and costs should be carefully managed. In this way, hotels can increase revenue and profit while offering an appealing offer to guests. Here are some package ideas.
Stay and Dine: This type of package combines accommodation with meals. For example, a package could include breakfast, lunch, and dinner at the hotel’s restaurant. This encourages guests to dine at the hotel, increasing F&B revenue.
Spa and Wellness: These packages can be highly profitable, offering services with high perceived value but relatively low costs. For example, a package might include a massage, access to wellness facilities (like a sauna or steam room), and a healthy meal or juice bar.
Adventure and Experience: Depending on the hotel’s location, packages could include guided tours, adventure sports, or local experiences. These can be profitable if the hotel can partner with local providers at a favorable rate.
Business Packages: For business travelers, a package might include a room, meals, and access to business facilities, like meeting rooms or co-working spaces. Adding services like fast Wi-Fi, printing, or concierge business services can increase the perceived value.
Romantic Getaway: These packages can include extras like a room upgrade, a bottle of champagne on arrival, a special dinner, or spa treatments. These extras have high perceived value but can be provided to the hotel at a low marginal cost.
Family: might include accommodation in a family room or suite, meals for children, and family-friendly activities or experiences. Babysitting services or access to kids’ clubs can also be added at a premium.
These are all innovative packages with good intentions from the hotel to enhance the guest experience, but they are still not selling as much as the hotel had hoped.
