Bundling is when companies package several of their products or services together as a single combined unit, often for a lower price than they would charge customers to buy each item separately. This marketing strategy facilitates the convenient purchase of several products and/or services from one company. e.g. In Hospitality, the best example is when you package up a number of your products and/or services into one price for the customer. A bundled, or packaged price might include the room, plus breakfast and wi-fi.
Unbundling may also refer to offering products or services separately that had previously been packaged together. e.g. In Hospitality, an example of unbundling is where the hotel might offer a room without servicing/cleaning, or even without linen. This type of pricing is becoming more popular, initially starting with basic or budget hotels but now moving upmarket too. The guest selects the room attributes and services that they want and they don’t need to pay for items they might not want to use.« Back to Glossary Index