Dynamic Packaging - Preconditions

Preconditions

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.

The wholesaler must either directly control the inventory that is combined into packages or buy the package components up-front from other travel suppliers. This implies that dynamic packages (as with static packages) are always pre-paid by the customer.

The wholesaler would typically also require special discounted fares/rates from the travel suppliers. For car rental, the supplier (car rental company or intermediary) should ideally supply their price based on calendar days rather than hour-by-hour. Calendar day rates reduce the number of vehicle availability/pricing scans the wholesaler must make. For packages that include flights, the outbound arrival and return departure date/times determine the car rental pick-up and drop-off date/times. If car rental rates were by the hour they would differ for each flight option, hence the wholesaler whould have to issue a vehicle availability search for each available flight, while with 24-hour rates one single vehicle availability search is enough to cater for all flight options.