Packaging involves combining a number of product components together to form a holiday experience for the consumer. Consumers (either through the trade or directly with the airline or wholesaler) can tailor their own holiday experience either online or offline, selecting the product components of their choice. Before you as an operator develop a package or packages, it is important to do some research to determine your target market/s and the types of experiences that appeal to your target market/s.

A package includes components such as flights, accommodation, car hire and event/theatre tickets.
You may be a regional accommodation supplier who wishes to encourage visitors to your area to stay for one or two nights. Your package may include a local tour, a meal at a local restaurant and suggestions as to what visitors can do and see in your area.

Developing packages often makes your product more appealing for wholesalers and travel agents to book your product and region, particularly if you are a single attraction or accommodation provider with a small number of rooms.

A central booking number for the package makes it attractive for the travel industry, as it only means one call is required to secure all elements of the package.

Packages can also assist in driving business to your product during low seasons or off peak periods. Attractive pricing can drive consumers to book packages during these times.

Packages can help drive new markets by offering products that appeal to a new market segment.
When developing a package you will need to factor in administration costs if you are looking after the administration of the entire package. This will include those elements not provided by you, for example entrance to attractions, tours, meals etc.

Commissions

Packages make it easier for travel agents and wholesalers to sell them and earn commission. Packages distributed through the travel trade will need to be fully commissionable. The cost of covering commissions on top of operating costs may seem daunting to some operators. However, it is important to remember that you only pay a commission on those bookings actually made through the wholesaler or travel agent.