Dynamic packaging

Dynamic packaging is an approach in travel booking that allows customers to create their own set of travel products, including flights, accommodations, activities, car rentals, etc. As opposed to booking a traditional predefined package tour, dynamic packages give travelers the flexibility of individually configuring all the elements of their trips.

In terms of quotation, there are several main approaches, depending on how the price of the package changes:

• semi-dynamic packaging – there’s a limited number of options available, the inventory prices don’t change dynamically, and the package price is modified manually depending on the selected components;
• dynamic pricing – the package price equals the sum of component prices that are adjusted dynamically according to market conditions; and
• fully dynamic packaging – the package price and the component prices change dynamically.

Dynamic packaging technology is mostly used by tour operators and online travel agencies, but other travel service providers like airlines and hotels are also starting to adopt this approach to offer customers a holistic booking experience.