New competition is making the hottest product in leisure travel - - custom vacation packages -- sizzle.
Although Web travel agencies, such as Orbitz, Expedia and Travelocity, once dominated this field, many airlines, hotel chains and rental car companies have started participating. These newcomers offer attractive custom package deals to grab consumer attention.
Custom packages are similar to prebundled packages, but they give you options. Instead of a rigid itinerary and a limited number of suppliers, you can choose your airline, flight time, hotel, rental car company and type of car.
For example, JetBlue Airways began offering packages on JetBlue.com in November. We recently saw a three-night April getaway to the MGM Grand Las Vegas, including two round-trip tickets from Buffalo, for $1,650 -- $180 less than booking the tickets and room separately. JetBlue flights are sold exclusively through its own site, so no online agency had a better deal.
But don't assume that vacation packages sold directly by hotels, airlines and rental car companies are always the best deal. When we added a three-day, midsize Hertz rental car to the package in the above example, our bill rose by $200, or only $139 less than if we had booked the package parts separately through Hertz, the MGM Grand and JetBlue.
Vacation packages that combine all the elements can be a good deal. Case in point: United offers package deals through United.com, and an April five-night Hawaiian getaway to the ResortQuest Waikiki Beachside hotel, including two round-trip tickets from Buffalo and an Alamo economy rental car, cost $1,991 -- 10 percent, or $233, less than booking the tickets, room and rental car separately through United, ResortQuest and Alamo. Delete the rental car from the package, however, and you'll pay the same price.
It's to the advantage of airlines, hotel chains and rental car companies to entice travelers to buy from their branded sites instead of Web travel agencies. For example, Marriott saves when travelers book directly through Marriott.com instead of Expedia -- with which it must split the profit, says Ed Perkins, of online consumer site SmarterTravel.com.
