Still think it's cheaper to book flights and accommodation separately on the net? Not so, says Danielle Veldre. With a little bit of savvy, travellers can beat travel agents at their own game and create their own holiday packages online.
The birth of the Internet had the travel industry worried. If people could book their own flights and accommodation online, what role did the travel agent serve, and would it become an entirely redundant one?
Judging by the number of travel agency storefronts in any local shopping mall around Australia, though, it's obvious there is still plenty of demand for the human touch that agents provide.
But dynamic packaging just might be the killer app which makes life difficult for the traditional travel agent.
Right now in Australia, consumers can book their flights directly with an airline or one of the companies which offer comparisons between airlines. And people might also book their accommodation online, separate to their flights.
What dynamic packaging allows people to do is combine flights, accommodation, tours and activities on the fly to create a whole holiday package online. Just like you would in a travel agency.
Katrina Richardson, marketing manager of online travel agent Expedia.com.au, says "Dynamic packaging on Expedia enables consumers to build a holiday tailored to their needs and save money".
She says dynamic packaging gives people greater flexibility and freedom to choose the flight, the hotel, and car that forms their holiday.
"By booking these components together the consumer saves money and our pages will actually show them how much they've saved," she says.
If you were to book your flights and accommodation and car hire separately, you might get a special on a flight, but dynamic packaging gives you the chance to take advantage of deals the online travel company has made with its suppliers and which wouldn't be offered to the general public.
Richardson uses the example of a holiday for two adults for travel dates between February 4 and February 8 next year.
From Sydney to Fiji staying at the Outrigger on the Lagoon would cost an average of $1006 per person using an online package. But booking flights and accommodation separately would cost around $1087 per person. That's a saving of more than 7.5 percent.
A Perth to London trip on the same dates, staying at the Grand at Trafalgar Square would cost an average of $2584 per person using an online package. But booking flights and accommodation separately would cost around $2736 per person. That's a saving of 5.6 percent.
You'd think massive Internet savings would be an immediate hit with holidaymakers. But it's been a relatively slow start for dynamic packaging in the Australian market, whereas it has been popular in the US and UK for some time.
The way dynamic packaging works overseas is that the online companies keep all their data on you, with the idea that each time you go back you get a bigger discount. They also learn your preferences from your bookings and offer suitable options based on your previous choices.
Justin Wastnage, news editor of industry magazine Travel Weekly, says a number of factors have caused Australia to be slower on the uptake of dynamic packaging.
"It's very difficult to get people to book a hotel at the same time as a flight. They disjoint the transaction in their own heads," Wastnage says. "And people don't like having to make the choice right away."
He says another reason for the late take up of dynamic packaging is that the technology hasn't been available to make it a reality, including the fact that broadband speeds in Australia are much lower than comparable countries around the world.
A further complicating factor is that tour providers and hotels don't have all their products online, which makes getting the best deals difficult.
Wastnage also says there are really only a few companies, such as Expedia, which offer "true" dynamic packaging, rather than just booking hotels at the same time as you book a flight. Qantas Holidays is bundling flights and accommodation, as is lastminute.com.au, and Webjet is also dipping its toe into the dynamic packaging waters.
If the rest of the world is anything to go by, however, it shouldn't be long before Australians are cottoning on to the savings online packages can bring them.
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