As tour operators have steadily reduced their commission in the past five years, dynamic packaging has provided agents with a means to claw back margins and increase the bottom line by putting their own mark-up on each individual element of the holiday.
To be truly successful, agents need to sell as much as possible and not just think of flights, hotels and, occasionally, car hire.
Seaman said: “Dynamic packaging is a great tool if agents understand the marketing and the business development. It is not a discount tool and agents will lose money if they are using it as a discount tool.”
He advised agents to enable consumers to dynamically package via their websites and market their websites to drive traffic online as well as to their shops.
“This is not something that is going to resolve all the issues of the trade. It’s just another tool. It’s about doing all the stuff agents do anyway – get-togethers at the local social club or pub, sending out flyers and so on.”
Parr believes agents can make a lot of money if they know what they’re doing and show the customer they are adding value.
“With dynamic packaging, agents need to realise they have got to sell everything. There is lots of technology out there to enable that.”
He added that there seems to be a fear factor for some agents with dynamic packaging and many are afraid they will lose sales.
Parr said: “Clients are looking for a complete service and if you don’t give it to them, someone else will.”
Dosomethingdifferent.com commercial director Ian Coyle believes agents can still make money from dynamic packaging even offline and without all the technology and aggregating systems.
“We’re finding that the majority of our bookings are coming offline and after the core sale. Agents might not bring the product into the initial conversation but as a follow-up.”
Coyle also advised agents to ensure they have done their research on the suppliers and product, are happy with the commercial terms and have trained their staff.
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