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They are also called “Bucket shops”, but travel consolidators provide their own contribution to the success of tourism. These individuals basically buy airline tickets from the travel vendors at lowered prices and then sell them to the public or travel counselors. They can get these reduced prices (also called “bulk rates”) because of a special arrangement that they have with travel vendors. This arrangement that is forged between the consolidator and vendor identifies the minimal sales volume, responsibilities, obligations, and rates. Vendors will not negotiate with consolidators who are unable to sell an ample volume.
The Philippine consolidator is a smart person, since he or she can figure out other ways to get cabins, rooms or seats. They do this by buying unsold inventory at least a day or two before the scheduled departure. They know that the airlines do not expect their seats to be filled up half a year in advance, but the airlines might like to let go of unsold inventory at least 14 days prior to departure since there are less chances of these tickets selling through normal channels.
Consolidators can take care of a number of travel merchandise: space on tours, rental vehicles, cruise cabins, hotel rooms, and airline seats. But then, a lot of travel consolidators focus on air travel, so tourists should not expect other items aside from this. Most air consolidators only offer tickets to international destinations, although there are some firms that take care of flights that go around the United States.
The travel agencies themselves can be consolidators. The companies with high global air sales could get in touch with an airline or two to set up negotiations. Their topics will cover booking procedures, responsibilities, liabilities, sales quotas, and fare among other things. Since a huge number of these travel agencies are not able to promise the required sales volumes under these talks, then will talk to an existing Philippine consolidator to work on this rather than turning into consolidators themselves.