Dynamic packaging will come to Australia and have a significant impact in the travel industry, travel.com.au managing director Adam Johnson has predicted.
He said as travellers become more sophisticated, they will select flights, hotels and other product from one website, rather than booking separate components through a variety of sites.
Responding to comments from Wotif chief executive Graeme Wood, who remains unconvinced by dynamic packaging, Johnson said the model will follow that of the UK and US.
“Dynamic packaging in the UK represents about 17% of revenue and it’s growing,” he said. “The UK and US are further ahead but it will come. It’s a matter of educating the public. Travellers will become more sophisticated and seek to book components on the same website. We are already seeing growth through travel.com.au although off a low base.”
He said websites had progressed in the UK and US from “single category” transactions to multi-sector websites offering a full range of product.
“”You only have to look at the growth of Expedia, Travelocity and lastminute to see that,” he said. “The key drivers are convenience and price.”
Booking all elements of a package through one site will also result in a single transaction fee, he added.
Johnson, who praised Wood for the success with Wotif.com, has previously said travel.com.au was “ahead of its time” in developing a full service website.
He added the brand would be repositioned but stressed it would remain strong in international flights.