Sign up to access the complete lesson and track your progress!
Unlock This Course
Holiday packages are pre-arranged combinations of travel services sold at an inclusive price. They're designed to make travel planning easier for customers while offering better value than booking components separately. Understanding what goes into these packages is essential for anyone studying Travel and Tourism.
Key Definitions:
Most holiday packages include these essential elements:
These elements may be included or offered as add-ons:
Transport is a fundamental component of any holiday package, determining how quickly, comfortably and conveniently travellers reach their destination.
Types: Scheduled, charter, low-cost
Benefits: Speed, global reach
Considerations: Airport transfers, baggage allowances, flight times
Types: Ferries, cruise ships
Benefits: Scenic routes, part of the experience
Considerations: Weather dependence, longer travel times
Types: Coach, rail, self-drive
Benefits: Flexibility, scenery, cost-effective
Considerations: Journey time, comfort levels
The type of accommodation included in a package significantly impacts the overall holiday experience and price point. Tour operators select accommodation based on the target market, destination characteristics and expected quality standards.
TUI, one of the world's largest travel companies, offers various package types:
Each package type combines transport, accommodation and additional services tailored to specific market segments, demonstrating how tour operators create distinct products from similar components.
While not always included in the base price, attractions and activities are key components that tour operators use to enhance packages and differentiate their products.
Museums, historical sites, cultural performances, guided tours of heritage sites
Water sports, skiing, hiking, cycling tours, adventure experiences
Theme parks, evening shows, local festivals, cooking classes
Ancillary services are supplementary components that enhance the holiday experience. They may be included in premium packages or offered as optional extras.
Tour operators carefully combine components to create appealing, profitable packages that meet the needs of their target markets.
Different packages are designed for specific customer groups:
Traditional package holidays are being challenged by 'dynamic packaging' – where customers or travel agents assemble customised packages from separate components.
Companies like Expedia allow customers to build their own packages by selecting flights, hotels, car hire and activities separately but booking them together for a discount.
This approach offers more flexibility than traditional packages while still providing some cost savings. It's particularly popular with independent travellers who want more control over their holiday components.
However, dynamically packaged holidays may not offer the same level of financial protection as traditional packages covered by regulations like the Package Travel Regulations in the UK.
Understanding why packages remain popular helps explain their continued importance in the tourism industry.
Holiday packages combine multiple travel components to create convenient, value-for-money products for tourists. The core elements typically include transport, accommodation and transfers, while additional components like meals, excursions and entertainment enhance the basic package.
Tour operators carefully select and combine these components to create packages that appeal to specific market segments, from budget-conscious families to luxury travellers. The way these components are combined significantly affects the nature, quality and price of the final holiday product.
Understanding how packages are constructed helps tourism professionals develop appealing products and helps consumers make informed holiday choices.