How can agents sell holidays so cheaply?
- Thread starter Bessa
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Re: Holiday for a song in Tenerife
They often do at this time of year, its low low season between after the Holloween Break and Christmas. You see similar deals advertised again between January and March. If you have worries you can check if they are fully bonded and insured.
They often do at this time of year, its low low season between after the Holloween Break and Christmas. You see similar deals advertised again between January and March. If you have worries you can check if they are fully bonded and insured.
Re: Holiday for a song in Tenerife
The accomodation in these resorts is next to nothing. As far as i can tell the flights are the main cost. I got 2 weeks accommodation in gran canaria last june for €80pp and in fuerteventura for 8 nights over christmas for €25 each.
The accomodation in these resorts is next to nothing. As far as i can tell the flights are the main cost. I got 2 weeks accommodation in gran canaria last june for €80pp and in fuerteventura for 8 nights over christmas for €25 each.
Brendan Burgess
Founder
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Re: Holiday for a song in Tenerife
The tour operator charters a plane. That is their main cost, but they are stuck with it.
If they have empty seats, they can give them away free at the last minute as it costs them nothing.
They probably also pre-pay for the accommodation, so again it's costing them nothing to provide it.
Brendan
The tour operator charters a plane. That is their main cost, but they are stuck with it.
If they have empty seats, they can give them away free at the last minute as it costs them nothing.
They probably also pre-pay for the accommodation, so again it's costing them nothing to provide it.
Brendan
Re: Holiday for a song in Tenerife
Its also possible that not only do they prepay for accomodation but they may have to pay more if there is nobody in it. Most of these apartment blocks have shops, bars, restaurants etc. so if there is nobody in the room they are not spending cash in the resort.
Its also possible that not only do they prepay for accomodation but they may have to pay more if there is nobody in it. Most of these apartment blocks have shops, bars, restaurants etc. so if there is nobody in the room they are not spending cash in the resort.
Jister is right.
Travel agents book planes, apartment complexes etc in advance and at predetermined rates. Now back to cheap holidays:-
1. An empty plane seat earns nothing, a cheap plane seat earns something.
2. It is the same with empty apartments.
3. Numbers matter - (a) Travel Agents do deals with accommodation providers who would rather see people around and spending money (however little).
3. Numbers matter - (b) Travel Agents like to boast of the number of customers they have to boost the share price.
3. Numbers matter - (c) Customers make more customers and a high percentage of Cheapie Holiday Makers will return later probably paying full rate for future holidays.
4. There are also lesser reasons e.g more on board = more people and the possibility for excess baggage etc.
Travel agents book planes, apartment complexes etc in advance and at predetermined rates. Now back to cheap holidays:-
1. An empty plane seat earns nothing, a cheap plane seat earns something.
2. It is the same with empty apartments.
3. Numbers matter - (a) Travel Agents do deals with accommodation providers who would rather see people around and spending money (however little).
3. Numbers matter - (b) Travel Agents like to boast of the number of customers they have to boost the share price.
3. Numbers matter - (c) Customers make more customers and a high percentage of Cheapie Holiday Makers will return later probably paying full rate for future holidays.
4. There are also lesser reasons e.g more on board = more people and the possibility for excess baggage etc.
An interesting question. Most of the above comments are quite correct.
As a licensed travel agent may I point out ...
First of all it's the tour operator who organises and determines the price of the holiday -not the travel agent who sells them at a commission (or increasingly adding a fee). Naturally we make more commission on a dear holiday than a cheapy, but we get more bookings at lower prices, (and, frankly, on dear holidays we often cut the commission).
So, from an efficient and honest travel agents point of view the price is not super important, as long as people walk in the door and buy something. fifty times a tenner is better than zilch.
The problem for TOUR OPERATORS is that if they keep selling at rockbottom prices then they EITHER go out of business -like happened to four operators this year, XL being the biggest, and that means less choice of holidays.(e.g. no more Santorini or Skiathos flights).. OR they reduce routes (e.g. no more Azores ).
Anyway, grab those bragains now - Jan is cheap and so will be May.... and avoid scholl holidays.Always.
As a licensed travel agent may I point out ...
First of all it's the tour operator who organises and determines the price of the holiday -not the travel agent who sells them at a commission (or increasingly adding a fee). Naturally we make more commission on a dear holiday than a cheapy, but we get more bookings at lower prices, (and, frankly, on dear holidays we often cut the commission).
So, from an efficient and honest travel agents point of view the price is not super important, as long as people walk in the door and buy something. fifty times a tenner is better than zilch.
The problem for TOUR OPERATORS is that if they keep selling at rockbottom prices then they EITHER go out of business -like happened to four operators this year, XL being the biggest, and that means less choice of holidays.(e.g. no more Santorini or Skiathos flights).. OR they reduce routes (e.g. no more Azores ).
Anyway, grab those bragains now - Jan is cheap and so will be May.... and avoid scholl holidays.Always.
PaddyBloggit
Registered User
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I can't avoid school hols ...... :-(
but some apparently do: [broken link removed]
but some apparently do: [broken link removed]
Once you have booked your holiday you will be asked whether you want holiday insurance organised by the travel agent. The agent may tell you that they cannot take you on holidays unless you have insurance. The insurance they offer is invariably very bad value for money (because of their huge commission). You can buy the same insurance yourself online for a fraction of the price.
When you get over to your holiday destination, the first thing that will happen is that you will also be invited to an orgainsed welcome meeting with your rep, and to meet your fellow holidaymakers. The rep will give you some general advice on the place. A free drink is often offered as an additional incentive to attend.
At the meeting you will be told of all the fabulous wonderful outings that your rep can arrange for you. A jeep safari, trip to a water park, a barbeque, car hire, sightseeing tour, nights out etc. (to name but a few that I have been on myself). Naturally you are not told about the commission, for the holiday reps employer, which is built into the price.
I remember watching a programme on TV a few years ago. All the reps have sales targets, based on the number of holidaymakers that they must make. If they consistently fail to reach the targets they are let go.
If you didn't go with the tour operator in the first place, there is no chance that they will make anything out of you.
Murt
When you get over to your holiday destination, the first thing that will happen is that you will also be invited to an orgainsed welcome meeting with your rep, and to meet your fellow holidaymakers. The rep will give you some general advice on the place. A free drink is often offered as an additional incentive to attend.
At the meeting you will be told of all the fabulous wonderful outings that your rep can arrange for you. A jeep safari, trip to a water park, a barbeque, car hire, sightseeing tour, nights out etc. (to name but a few that I have been on myself). Naturally you are not told about the commission, for the holiday reps employer, which is built into the price.
I remember watching a programme on TV a few years ago. All the reps have sales targets, based on the number of holidaymakers that they must make. If they consistently fail to reach the targets they are let go.
If you didn't go with the tour operator in the first place, there is no chance that they will make anything out of you.
Murt
Yes, true, travel agents make commission for selling travel insurance and it is cheaper elsewhere. Nowadays we expect that most clients have their own travel insurance so the question rarely arises.
As long as the clients have travel insurance with someone then travel agents can sell them a package with a tour operator who (rightly) insist that clients should have proper travel insurance before booking.
If a client wants to go with a scheduled airline and doesn't want insurance that's fine by us - though reckless of the client.
If a client does buy travel insurance from us then we spend ten minutes going through the details -including the pitfalls of dealing with travel insurance companies, especially pointing out the exclusion clauses of travel insurance companies. PLUS we help them with their claims.
As regards holiday rep meetings, I was a holiday rep in Greece, Italy and Germany ages ago when clients were very inexperienced and bought anything and everything from us. We made good money but stayed with the clients 24/7/
I think most people ignore the reps nowadays. indeed, reps are disappearing and clients are asked to contact the local agent in case of problems. That's one reason that today's reps can be so useless.
Frankly, the whole tour operation business is changing and I doubt there'll be many operators left standing in a years time...
As long as the clients have travel insurance with someone then travel agents can sell them a package with a tour operator who (rightly) insist that clients should have proper travel insurance before booking.
If a client wants to go with a scheduled airline and doesn't want insurance that's fine by us - though reckless of the client.
If a client does buy travel insurance from us then we spend ten minutes going through the details -including the pitfalls of dealing with travel insurance companies, especially pointing out the exclusion clauses of travel insurance companies. PLUS we help them with their claims.
As regards holiday rep meetings, I was a holiday rep in Greece, Italy and Germany ages ago when clients were very inexperienced and bought anything and everything from us. We made good money but stayed with the clients 24/7/
I think most people ignore the reps nowadays. indeed, reps are disappearing and clients are asked to contact the local agent in case of problems. That's one reason that today's reps can be so useless.
Frankly, the whole tour operation business is changing and I doubt there'll be many operators left standing in a years time...
SlurrySlump
Registered User
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I stayed in a hotel in Benalmadena a few Novembers ago and it was €40 per day half board for two people. Bed, breakfast and evening meal, €20 per person. I would imagine that a travel agent with the buying power of a few dozen people could easily negotiate a cheaper price.