Why are package holidays cheaper than non-package holidays?

Question

Please answer soon for I need this for my homework for tomorrow! I may choose a best answer as well!

Answer 1

if this is an answer for homework, then I would say because the travel agents bulk-buy airline seats and hotel rooms usually a year or so in advance and so they get the best rates - when it comes to airline seats some of the big travel agents even have their own airlines (or airlines that are owned by the same group as own the travel agency) so they are in effect getting their seats at cost price

Answer 2

Because they have a bad image attatched to them. But usually, depends who you go with though, they are pretty good. I guess because you haven't got any freedom as well? Like you HAVE to eat their meals and they might be gross. And the hotels couldn't be as good. OH and because you are paying with the whole company, like you are paying for their flights and stuff so they can afford to give a discount, wheras if you go with lots of different ones you have to pay a premium. Hope this helps :D