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 in bulk, basically guaranteeing that the rooms/seats will be sold and get a moderate discount from the airline/hotel for doing so.
Often times if there are tours involved certain sites/cities/etc will pay a small commission for bringing tourists into an area, and many local businesses will pay to have them bring said tourists into their shops, etc.
My parents went on one such tour in southeast Asia and were perplexed why they always seemed to end up at a ceramics factory store, or rug merchant, for at least a 90 minute block in the afternoon.
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