Product Packaging
Packaging involves combining a number of component products to form a package, which can then be on-sold through the distribution system to consumers. Before you develop a package, it is important to determine the target market(s) for the package, what may appeal to them, and the distribution system you plan on using.
A package normally involves compatible products, such as accommodation, transport, entry to attractions, meals and touring. Packages may include discounts, or value adding components such as complimentary meals or services. They are usually developed in co-operation with other operators, and are an effective way to encourage visitors to take longer stays within region. For example, you may be an accommodation operator, who wishes to encourage visitors to extend their intended stay. You may put together a package including a local tour, a meal at a local restaurant and entrance to a local attraction.
Packages can make it more appealing for travel agents and tour wholesalers to take up your product, especially if you are a single attraction or accommodation operator with a small number of rooms. Packages may also assist in driving business during low seasons or off peak times.
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, meals, tours etc.
A central booking number for the package makes it attractive for the travel industry, as it only takes one call to secure all elements of the package. For assistance with product packaging, or to be included in packages put together by Capricorn Holidays, call a Membership staff member at Capricorn Tourism on +61 7 4927 2055.
Prices for packages
The following pricing methods are applied to packages and the most appropriate method depends on the type of product being sold.
Disguised Pricing
Generally, discounted package components (eg accommodation, meals, entry fees, transport) are presented as one upfront cost. This method disguises the exact cost of individual components and also the extent of discount provided by individual operators.
Visible pricing
Offering a range of activities, attractions and options, with each component costed at their full price, can result in a final package cost that is too expensive to be appealing.
This can be overcome by offering a flexible package with each component priced separately and purchased individually. The customer is then able to select their preferred package components according to the travel preferences and budget.
