How are some package holiday providers able to offer such cheap prices compared to if you book a flight and hotel individually direct with the airline and hotel website?
In: Other
They “buy” hotels and flights in bulk early on and thus get big discounts from airlines and hotels because they ensure a minimum of guests/passengers. The hotel and airline has the secury that they get amount x for that season which they can use to hire staff and other fix costs. If big hotels dont do this and have a bad year they could have a problem where they hire to many or to little and then either cant serve all their guests or pay to much for payrole. The obviouse down side is they make less profit on these guests but that is what the other guests are for.
A down side for the package holidays is often that you cant realy select a room and dont get the good rooms because these are reserved for the full price paying guests. Same for airlines that sometimes allow less lugage or dont offer other benefits that they offer to a full price payer.
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