Dynamic packaging has transformed the way agents book holidays beyond recognition. Last year, this method of combining holiday components – rather than booking traditional packages – accounted for £1.5 million sales.
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However, for those who are new to the process – or new entrants to the travel trade – it can be a minefield. The vast array of technology options, accommodation-only suppliers and add-on suppliers can be mystifying for the novice.
Read on for 10 top tips to help you make sense of it all.
- Don’t try to do too much too soon. The first step is to decide which destinations you want to cover and how much choice you wish to provide. Dolphin Dynamics president Roberto Da Re advises: “Consider what your customers are looking for – does an opportunity exist to sell them a wider range of products?”
- Decide whether you want to dynamically package products yourself or sell them through a third party using its website. If you do it yourself, you have to think about whether you will need your own ATOL
- It is best to use just a handful of suppliers at first, as it will take time to familiarise yourself with their product. It is important to know whether each supplier takes principal status. If the supplier does not take responsibility when something goes wrong overseas, the agent could be left liable. You must know where you stand on this issue
- Take your time looking at the technology suppliers available. Most agent consortia have their own systems. Hayes and Jarvis uses Comtec’s Travelink and Travel Counsellors swears by its Phenix system.
Tell potential suppliers what you want to achieveand ask them to demonstrate how they can help. “Are you still using traditional packages?” asks Comtec product manager Tim Loring. “If so, the product should blend the search results of packages and dynamic packages, so you only have to search once.” - Train your staff – they won’t buy into the change unless they feel confident about what they are doing. “Make sure everyone understands the law so they advise customers of the benefits and downsides,” advises Worldchoice and Triton director Helen Burgess. “And get customers to sign to say they understand they are booking separate elements.”
- Make use of Web 2.0– customer reviews, maps and destination guides will all help you add value. Setting up a Facebook group or MySpace page could help create a buzz around your business
- Understand the VAT implications. Get it wrong and you could end up with a big bill later
- Profit is the name of the game, so don’t be afraid to take net rates and maximise your returns by adding mark-ups based on what your customers will pay. “You need to be able to display content that’s not only competitively priced but makes you the best margin,” said Loring
- Dynamic packaging doesn’t have to mean cut price. Agents can add extras such as luxury transfers or sightseeing tours to add value for high-end customers
- Agents have proved you don’t need technology to dynamically package. DoSomethingDifferent.com commercial director Ian Coyle said: “A lot of our agent bookings come over the phone after they’ve made the core sale. Add-ons are often easier to sell at that stage.”
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