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How to sell tour packages online alongside flights

Tekravel Editorial

You already sell the desert safari, the dhow dinner and the airport transfer. Your guides are yours, your vehicles are yours, and you know to the dirham what a Tuesday-morning city tour costs you to run. What you do not control is the flight that brings the customer to you, and for years that did not matter, because the customer booked it somewhere else and turned up. The question now is whether to sell tour packages online alongside flights on your own site, in one basket, so that the person who wanted your four-night Dubai programme does not leave to find a fare and come back with a competitor's package instead.

It can be done. But putting your own ground product next to someone else's live inventory changes where your margin sits and who carries the risk when a price moves, and most of the trouble tour operators run into comes from treating the two as the same kind of thing.

Two kinds of inventory in one basket

Your ground product is inventory you own or contract. You have an allotment of seats on the safari, or you run it free-sale up to a vehicle limit. You set a cut-off — the latest moment you will accept a booking — and, if you hold hotel rooms on contract, a release period after which unsold rooms go back to the hotel. The price is yours. It does not change between the moment a customer sees it and the moment they pay, unless you change it.

A flight is none of those things. It is a fare filed by an airline and returned by a supplier at the moment of search, priced for that seat, that fare class, that minute. Hotel rates from a supplier sit somewhere in between: some are static contracted rates, some are live and move like airfares.

The mistake is to build one product out of both and give it one fixed price. The customer sees a single number, which is what they wanted, but underneath it you have promised a price for something whose cost you do not know until you book it. On a quiet week the fare is where you expected. On the week of a big event in the city it is not, and the difference comes out of the margin on your safari.

So the first design decision is not about the website at all. It is: which parts of this trip have a price you set, and which parts have a price you receive?

Pricing a package when one leg is live-priced

There are three honest ways to handle a basket where one component moves.

Fixed package price, flight includedLand package fixed, flight priced live at checkoutSeparate bookings, one itinerary
Who carries fare movementYou, entirelyThe customer, at the moment of bookingThe customer
What the customer seesOne numberA land price plus a flight price that totals on the pageTwo or three confirmations
Where your margin sitsBlended; you cannot see the flight margin on its ownYour markup on the land part, plus whatever markup you put on the fareSeparately on each booking
Cancellation logicOne set of rules you have to inventEach component keeps its own rulesEach component keeps its own rules
Fits bestCharter or block seats you already paid forMost tour operators selling scheduled flightsHigh-value or complex trips handled by staff

The middle column is where most operators should start, and it is not a compromise. The customer still gets one checkout and one total. You still get a package page with your photographs and your programme. What changes is that the flight component is quoted from live results and your markup is applied to it as a markup, visible to you in your reports, instead of being hidden inside a round number that was right three weeks ago.

The left column is for when you genuinely own the seats — a charter or a block you have already paid the airline for. Then the flight cost is fixed, and a fixed package price is honest. Selling scheduled seats at a fixed package price is a bet on the fare, and you only find out whether you won at ticketing.

One more thing about the middle column: price the land part in the currency your costs are in, and let the display currency be the customer's. A Dubai operator whose guides are paid in AED and who shows a Saudi customer SAR does not want the conversion to eat into the land margin quietly. We wrote more about where margin leaks when a site shows several currencies in the piece on multi-currency booking sites.

What the customer sees on one voucher

The customer does not care that the flight came from a supplier and the safari came from you. They care that they have one document that tells them where to be and when. That document is yours to design, and it is where tour operators most often look amateur.

A good combined itinerary does four things:

  • Lists every component in the order the customer experiences them — flight in, transfer, hotel, each tour, flight out — not in the order they were booked.
  • Carries each component's own reference: the airline PNR for the flight, the hotel's confirmation number, your own booking reference for the ground services. A customer at a check-in desk needs the PNR, not your internal number.
  • Says who to call for what. The airline for a schedule change on the day of travel; you for anything on the ground. If you want to be the single point of contact for everything, say so, and staff for it.
  • States the cancellation rule for each component in one line, not a paragraph of legal text the customer will read only after something has gone wrong.

None of that requires the three components to be one booking in your system. It requires them to be presented as one trip.

When to keep them as separate bookings

Sometimes the right answer is not to combine them at all.

Keep them separate when the cancellation rules are incompatible in a way the customer will not understand. A non-refundable fare with a fully refundable safari is fine; a refundable fare with a non-refundable five-day desert camp that you have already paid the camp for is a refund dispute waiting to happen, and it is easier to explain as two purchases than as one package that is "partly refundable".

Keep them separate, too, when combining them changes your legal position. In several markets, the European Union among them, selling transport and accommodation together as one trip can make you the organiser of a package, with consumer-protection obligations for the whole thing — including the parts you did not operate. That is not a reason to avoid packages. It is a reason to know, before you design the checkout, which side of that line each product sits on in the markets you sell to, and to ask someone who practises travel law there rather than assuming.

And keep them separate when the flight is simply not what you sell. An operator whose customers mostly arrive by their own arrangements may be better served by selling tours and attractions on their own, with flights as an optional add-on rather than the front door.

What getting it wrong costs

The expensive failures here are rarely technical.

A fixed-price package built on a scheduled fare costs you the fare difference every time the market moves against you, and because the package price is one number, you often do not see it until the month's reports. A combined booking with one blended cancellation rule costs you an argument every time the airline changes a schedule and the customer wants their tour money back as well. And an itinerary that shows only your reference costs you the phone call at 5 a.m. from a customer at an airport desk, asking for a number you should have given them.

The cost that does not show up in a report is the customer who never comes back because the one time something moved, nobody could tell them which part of the trip it was.

What you need to sell tour packages online alongside flights

Short list, because this is where operators overthink it. The site has to show your tour packages and attractions as your products, show flights and hotels from suppliers next to them, and let you set your own markups and see your own bookings and reports. On this platform, flights, hotels, tour packages and attractions are separate services, each switched on per site, and a site only shows the services it sells — so an operator who is not ready to sell flights yet can launch with tours and attractions and add the flight service later.

If you are still deciding between a platform like this and commissioning your own system, the comparison of white label and building your own booking engine covers the part of that decision this piece skips. If you want to see what a site looks like with your own ground product on it, start one from the signup wizard — it provisions a branded site on a platform subdomain and does not ask for a card.

The software is the easy half. The hard half is deciding, for each thing you sell, whose price it is — and building the basket around that answer rather than around a single number that looks tidy on the page.

Tekravel Editorial

Travel technology desk

The Tekravel travel-technology desk writes for the trade: agency owners, consolidators and the developers who integrate them. Every article is checked against the platform it describes before it is published.