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What are Packages?
Any item that you bundle in with the accommodation can be classed as a package. Guests cannot resist packages.
Typical Package Items
'Free' Breakfast or a 'Free' bottle of wine on arrival. Other items can be Tours you have arranged with tour companies or a Hire Car for the duration of the stay. Another might be 'Free' use of the Bridal Suite when a wedding is booked for your function room.
How is it packaged in?
Everyone will reduce the value of the accommodation by the value of the package item. Say the accommodation is $100 per night and the breakfast sells for $12. Reduce the value of the accommodation to $88 and add the package item for a total of $100. The guest never sees the package component on their account, so do not know how much it is worth. (Unless you tell them)
How do you handle items you do not supply yourself?
Always do a cross deal with the supplier. Eg. You sell the use of the hire car for $85 a day. Your commission on the sale is your profit. The same with local tours. Always make it profitable for the other supplier to do business with you. Without you they might never have got the sale. And always pay them on time.
Look at the possibilities
You have your resort with few bookings during the 'low' season. Do deals with other suppliers. The local restaurant provides one free meal, the car hire company gives an additional day free, you provide the 7th day free. It all adds up to an excellent saving to a prospective guest. Promote the end product and the savings. Maybe offer a Weekend for Two at the price of one.
Beware of the company
Some companies will try to arrange a package using your business as the vehicle for theirs. They expect you to include their product at full price while you discount yours, just to get bodies in your beds. Point out to them that you require a commission as you are doing the selling and marketing or walk away from the deal.
Agent Allotments
Travel companies will contact you to arrange that you hold a number of rooms for them for a specified period with a pre determined release back period. Allotting rooms like this is a two way street. The company guarantees to fill the room for the period of the allotment at a hefty discount for them for which you pay the additional penalty of possibly not selling the room during the release back period. While a 7 days release back period is OK during quiet times, be very wary of those that require less than 7 days release back during peak periods, as you may not be able to fill the rooms with short notice and consequently you will lose money. Millenniums Allotment Module controls what is available at any time and for what period. It will release back rooms to you according to the schedules setup by you.
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