Just who or what are consolidators?By Mukesh of Picmoney.com
One of the new in-words when you surf the internet looking for good travel deals is "consolidators".
For some reason, common discounts and "special deals" are out. Consolidator fares are in. So what’s in a name?
What special kind of mojo do these guys have that allows them to sell so cheap (or should that be at a discount?).
Well, the answer is both simple and complicated.
The simple answer is that airlines have these big airplanes with a lot of seats to fill. They could just sit there and wait for enough individuals to ask for tickets,
but that is a little risky. So, months in advance, they sell blocks of seats at a bulk discount to big
companies called
consolidators. This gives the airlines a guaranteed minimum take for each flight.
In some cases, airlines aim to presell enough seats to break even on the flight.
This strategy transfers the risk to the consolidators. They have to sell enough of the seats to cover their costs and make a profit.
So the
consolidators act as wholesalers and sell the seats to retail
consolidators and "approved" travel agents.
There is usually enough discount available to pass on some to the paying public.
But, as with all things, there are complications. The air industry is controlled by states who all support
the interests of their national carriers. Who can fly where and when is covered by international treaties and conventions.
To offer some regulation, there is an international body called IATA and it has a rule. Airlines cannot discount their fares.
This holds the retail prices for national airlines and protects everyone’s profits. Except it does not work.
Airlines cannot sell enough seats at the full prices to make a profit. So IATA looks the other way as its rule is broken.
Airlines sell their tickets to consolidators and everyone gets what they want. Businesses can afford to buy
in advance at full price, buying the flexibility to change dates. Holiday makers get discounted tickets indirectly.
A few buy directly from the
consolidators. Most buy through travel agents. The trick is to find the
agents who will give the largest discounts.
Cheap tickets are always available if you know where to look. Online search engines are the best way to survey
the market because they are not discriminating. They find everyone who has the tickets on sale.
That leaves it up to you to work your way through all the hits to find the agents with the lowest prices.
But, one word of warning. There are always some problems with the terms of cheap tickets.
Once booked, you cannot change the flight unless you pay a fee (sometimes a big fee).
You cannot cancel the ticket and get a refund. And there can be a host of "hidden" charges
that appear later on and make the overall price less impressive. However, so long as you read all the small print,
there is no reason why you should not get where you want to go at a good price.
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