Though it is less likely that while booking your holiday packages, you may have come across with this term on web sites. But a little reminisces will dawn on you that phrases like “Book Together and Save” “Make Your Own Package’” “Flight Plus Hotel” “Flight+Hotel+Car” and so forth have not evaded your eye sight. These phrases are nothing but what dynamic packaging is all about.

Let’s see in details what actually dynamic packaging entails.

Dimensions of Dynamic Packaging

Dynamic Packaging is primarily a way of selling holiday packages on the web wherein consumers can select from different available travel components as per their needs and preferences and consequently build their own holiday packages. This provides the consumer the convenience of more flexible and usually cheaper packages which are not so available otherwise. In other words, dynamic packaging is the ready availability of travel components grouped together and priced in real time as a result of the consumer’s directions on the travel portal. Consumer can book not only the desired flight, preferred accommodation and favorite car services, but also other stuff like airport parking, room upgrades, theme park, museum tickets, spa etc. Dynamic packaging is generally available online but may also be provided on the phone depending on the travel agent’s business model.

Dynamic Packaging vs. Traditional Packages

As the name suggests, dynamic packaging enables the consumers to select the travel components and prices of their likings in real time whereas traditional packages are pre-defined in which consumer has no role in defining the package components. Further, travel extras such as airport parking, room upgrades, theme park, museum tickets, spa etc. are generally available building dynamic packages. Dynamic packaging are somewhat similar to the traditional packages in a sense that flight, accommodation or car rates is available as a constituent part of the package, not as standalone. In some packages travelers can exchange travel components if they wish so. This exchange convenience in a travel package is sometimes mistakenly assumed to be dynamic packaging. In fact, this is a less refined process which, at its best, can described as “Dynamic Bundling” Technologies Behind Dynamic Packaging In the lines of how consumers purchase the travel packages, dynamic packaging facilitates consumers to express their desired place and date for the package but additionally provides the flexibility of choosing from various attractive options of flights and hotels at different prices along with travel components such as insurance, city tour, sightseeing and so forth. This is in stark contrast to choosing from predefined and fixed traditional packages. The following technologies generally make this concept happen: Service Oriented Architecture (SOA) which helps in capturing contents from various sources and further distribute to the front ends which require them. NTier Model which helps in expanding the infrastructure and makes the applications flexible and reusable. Multi Source Procurement which helps in retrieval of various contents through front ends and facilitates just-in-time inventory. What Does it Hold for the Travelers? Dynamic packaging offers an array of benefits to the travelers like: Travelers are no longer required to bother about visiting multiple travel portals, giving personal information time and again, endlessly waiting for response and making multiple online payments. Travelers can create, modify and manage their packages at will. Travelers are likely to get discounted rates. For example, inclusive tour rates generally lower the published fare by 10-25%. What Value Propositions Does it Have for Travel Agents/Providers Dynamic packaging helps travel agents/providers to: Engage in cutting edge marketing efforts to increase sales volume Establish brand image through value added online distribution strategy Get hidden discounts and lessen price transparency Avail better margins and nonetheless be able to provide competitive rates than direct competitors. Provision mark-ups and discounts to each product Make all products completely searchable and bookable