Do you know what a great service consolidator airfare concept offer us? Not many of us know what happen behind the scene although we may have taken good advantage of consolidator airfare schemes! To put a very complicated story in simple words, if it weren t for consolidator airfare rates, we cannot even dream of cheap airfare deals let alone enjoy their benefits.
An airline consolidator is also known as a bucket shop. The bucket shop acts as a middle man that buys bulk amounts of tickets from the airlines. Then, the tickets will be sold over to travel agencies. They can be called wholesalers because that is what they do in reality. Anyway because of the nature of law attached to their business, they are prohibited to deal with the public. Therefore, they cannot sell you consolidator airfare offhand. That is why you often find discounted rates at travel agencies than at airlines.
Consolidator airfare concept is a brilliant idea where budget is concerned. After all, it allows 3 layers of business hierarchy to earn money while providing the cheapest rates for their clients. So if you have been wondering the logic behind this seemingly illogical tactic of consolidator airfare, now you know the story!
Most online portal sites such as Travelocity, Expedia and Orbitz act as third-men. Taht is why they cannot offer consolidator airfare rates. In this business, it is almost impossible to travel at consolidator airfare prices because every business layer works towards their profit. Even aggregator portals such as sidestep, FareCast and kayak do not offer or even show what consolidator airfare rates are because it will be such a heart break for travelers, if they did so.
Airlines usually gain bigger profit margins from traveling to international destinations than to local. This is why you see consolidator airfare applying only to international destinations. This way, airlines don’t have to put their financials in too much of a risk.
Consolidator airfare rates act upon a different logic. They focus on selling large numbers of airfares with lower profit margins than trying to sell a little amount of tickets for a higher margin. This concept introduced a new dimension of competition to travel agents. The end result was that the advantage was given to the travelers. So you can now decide to travel to any corner of the world for competitive airfare rates. Isn t it great?
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