Travel SOS: Why are holiday packages so cheap?

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Adam is amazed by some of the deals on offer and wants to know if there are any tricks he needs to think about before booking.

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Q. Adam
Some of the travel deals I see in your newsletter and other places online seem too good to be true. When I try and put these deals together myself, the costs are much more expensive. Can these deals be trusted? Why are they so much cheaper than I am able to manage when shopping around directly with the providers?

happy holidayers

A. The deals can definitely be trusted, or otherwise you would be reading bad reviews on every site that you visited, and the companies would not survive for very long.

The reason inclusive holiday packages are so popular is that it is often so much cheaper than booking all of the individual elements individually and it also takes the heavy lifting away from the traveller.

Many of the companies that offer inclusive holiday packages benefit from industry and business partnerships. This includes having direct access to airline partners and on-the-ground operators, such as cruise, coach and bus companies. Exclusives tours use these relationships to negotiate the best-value deals, which are then passed directly on to travellers.

Also, the high volume of sales that these companies generate encourages suppliers to offer better prices on tours and experiences. Think of it as a cycle: increased online sales prompt travel suppliers to provide more deals and this increases the competitive price points in the market. Travellers then receive more cost-efficient deals as a result.

While the tours feature essentials such as flights, accommodation and some transportation, travellers also have the opportunity to add extras, including activities and package upgrades. This option provides travellers with the flexibility to stick to their budget and save on costs.

Do you prefer to book and plan a holiday yourself, or do you prefer to book a package deal with all the work done for you? What do you think provides the best value?

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Written by Ben



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