The Essential Role of Dynamic Packaging in Modern Travel Industry

In the rapidly evolving travel industry, dynamic packaging has become a cornerstone, revolutionizing how travel products are created, sold, and enjoyed. At Goodwin, a leader in dynamic packaging software, we’ve witnessed firsthand how this technology empowers various players in the travel sector. Let’s delve into why dynamic packaging is vital for our diverse clientele, including Online Travel Agencies (OTAs), Travel Service Providers, Classical Tour Operators, and Destination Management Companies (DMCs).


1) Online Travel Agencies (OTAs)

Enhanced Customization and Competitive Edge: OTAs have significantly benefited from dynamic packaging, as it allows them to offer tailor-made travel experiences. By dynamically bundling flights, hotels, and other services, OTAs can cater to the unique needs of each traveler. This customization not only enhances customer satisfaction but also gives OTAs a competitive edge in the market.

Example: Lastminute’s core business EBITDA grew by 60% in 2018, driven by a +112% EBITDA growth of its OTA business. What is behind this impressive growth is (adding €7.6 million in EBITDA) and OTA organic growth (adding €8.5 million) mostly as a result of Dynamic Package growth.

Source: 2018 annual report

2) Travel Service Providers

Maximizing Revenue and Expanding Market Reach: For travel service providers, including transportation companies and hotel chains, dynamic packaging is a game-changer. It allows them to bundle their services with other travel products, reaching a wider audience and maximizing revenue opportunities.

Example: A strategic initiative that has been in development for months, Marriott has, as of September 1st 2016, integrated Expedia’s dynamic packaging technology into the Vacations by Marriott Hotel & Flight Packages product with selection of air inventory, tours, attractions and ground transportation options accessible on Travelers accessing to book a hotel can now also combine their accommodations with a flight booking from the more than 475 airline partners. Package bookings typically have twice the length of stay, twice the booking window, and half the cancellation rate of a standalone hotel-only booking, making them an attractive source of incremental demand for owners.


3) Classical Tour Operators

Adapting to Consumer Trends and Increasing Efficiency: Traditional tour operators are finding dynamic packaging crucial in adapting to modern consumer preferences. By offering dynamic packages, touroperators can cater to the increasing demand for personalized travel experiences and widely increase the offering, launching the new destination within minutes instead of months. Additionally, dynamic packaging streamlines the booking process, making operations more efficient.

Example: TUI Group, one of the world’s leading tour operators, surpassed earnings expectations in the first quarter of 2024 with the help of a surge in demand for holiday experiences like cruises and the increasing use of dynamic packaging. While management didn’t mention specific figures, TUI’s CEO Sebastian Ebel said that dynamic packaging has grown by 25% and has done especially well in the United Kingdom.


4) Destination Management Companies (DMCs)

Tailored Experiences and Enhanced Local Tourism: DMCs benefit immensely from dynamic packaging by being able to offer comprehensive, localized travel experiences. This not only promotes local tourism but also ensures that travelers have memorable, personalized experiences together with the benefits. The incoming API integrations can help launching the incoming travel packages within the minutes, what combining with the best fares can increase the distribution drastically.