A tour wholesaler buys travel services in bulk to create tour packages. They sell these packages to tour operators and travel agents, who then sell directly to travelers.
How Wholesalers Operate
- Wholesalers negotiate discounted rates from vendors.
- They resell products to retail agencies.
- Wholesalers make money from the difference between net and public rates.
- Tour operators combine components from suppliers into packages sold to the public.
Earning Profits
- Wholesalers profit from the difference between net and public rates.
- Travel agents sell tour operator packages and receive commissions.