Explain the ways of being able to maximise profit throughout the different stages of selling, administering and operating a package holiday.
Maximise profits through selling package holidays
Tour operators can maximise profits by selling package holidays and using different methods and techniques. The main method is to sell package holidays at a lower price than what the customer may pay if they book it themselves. Tour operators aim to buy all of the components to make a package holiday at the lowest price they can and then selling it cheaper than competitors so customers choose them and the operators get a profit margin. Another way tour operators can maximise profits is by having their own airline; this is because they will then not to need to buy seats on aircrafts as they have their own aircrafts to fly their customers to the destinations of the package holidays.
Maximise profits through administering package holidays
Tours operators can maximise profits by the administering part of package holidays by making customers pay a fee: as a deposit of the package holidays (the lower the deposit, the more customers booking package holidays there will be), to make any amendments to the booking or on the tickets (changing the dates of the holiday) and to cancel the holiday completely will cost a lot. The administration part can also be: printing the tickets and sending them to the customers, making travel itineraries for the customers at a price, planning the trip down to the very last minute and finally they plan and book excursions for the customers to do whilst on the holiday. The customer may want the operators to book excursions as well as putting it into the itinerary.
Maximise profits through operating package holidays