From Wikipedia, the free encyclopedia
Dynamic Packaging is a method that is becoming
increasingly used in package holiday bookings that enables
consumers to build their own package of flights, accommodation, and a hire car instead of a
pre-defined package.[1]
Dynamic packages differ from traditional package tours in that
the pricing is always based on current availability, escorted group
tours are rarely included, and trip-specific add-ons such as
airport parking and show tickets are often available. Dynamic
packages are similar in that often the air, hotel, and car rates are available only as part
of a package or only from a specific seller. The term "dynamic
packaging" is often used incorrectly to describe the less
sophisticated process of interchanging various travel components
within a package, however, this practice is more accurately
described as "dynamic bundling". True Dynamic Packaging demands the
automated recombination of travel components based on the inclusion
of rules that not only dictate the content of the package, but
conditional pricing rules based on various conditions such as the
trip characteristics, suppliers contributing components, the
channel of distribution, and terms of sale.[2]
Dynamic packages are primarily sold online, but online travel agencies
will also sell by phone owing to the strong margins and high sale
price of the product.
See also
Dynamic Packaging is also often misunderstood since it requires
that the provider of Dynamic Packaging be a wholesaler, who must
also issue tickets, vouchers or other redeemable coupons in order
to become a Dynamic Packager. Without an inventory management
system, and a ticket, coupon or voucher issuing system to make the
prices of the individual components appear as one price to the
consumer and allow each travel service provider to know what rate
to accept or charge the traveler; dynamic packaging does not work.
Many travel retailers have mistakenly assumed they could provide
dynamic packaging without an inventory management system, mark-up
engine with business rules and a ticket issuing and resolution
system.
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