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What is an air consolidator?


Hobo Travel Tips
By Andy the HoboTraveler.Com

ISSUE:  034
DATE:  June 11, 2001
TIP:  What is an air consolidator?
LOCATION:  Argentina

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~ TODAY’S TRAVEL TIPS

WHAT IS AN AIR CONSOLIDATOR

by Andy the hobo
hobotraveler.com

Air consolidators buy tickets below published price,
and sell at higher price. The difference is profit.
They sell tickets cheaper than published fares,
and MAYBE the buyer saves money.

OTHER NAMES FOR AIR CONSOLIDATORS
- Wholesalers
- Bucket Shops
- Bucketshops
- Air wholesalers
- Air consolidators

HOW CONSOLIDATORS BUY TICKETS?
- Buy blocks of airline tickets directly from the carriers at a
heavily discounted prices (wholesale)
- Negotiate and buy direct from airlines.
- Sign and negotiate own contracts with the airlines.
- Specialize in specific routes, and negotiated discounts on
tickets to that region.
Example: Miami to Buenos Aires
- Some consolidators are owned by the airlines.
- There are usually multiple consolidators for major airlines.
- Negotiate discount agreements with the airlines to sell the empty seats.
- Commission rebates.
- They generally deal only with round trips originating in the country
where they are based.
- They buy the extra tickets.

HOW MUCH DO THEY SELL THE TICKETS FOR?
Full published price to
70% Discount.
Consolidators want to make money. They buy cheap, and sell
high. They earn difference between what they paid for the ticket,
and what they sell if for. When they sell to a Travel Agent,
the agent knows what is a good deal. The normal
public does not always know what is good.
A normal travel agent sells for a set commission.

WHO DO THEY SELL TO?
Each consolidator company has their own company policy on who
they will sell to, with various combinations.
- Only to travel agents (Wholesale only)
- Travel Agents and Public (Wholesale and Public)
The travel agent getting a discount, and the public paying more
- Internet web pages
- Bucket Shops

TYPES OF CONSOLIDATORS?
- Wholesale-only consolidators
- Destination specialists
- Bucket shops
- Multi-stop specialists

WHERE DO I FIND CONSOLIDATORS?
- Internet
- Travel Agents
- Sunday Travel Section of large papers
- Lists of wholesale suppliers maintained by the best retail discounters.
- Private list by individuals.
- Travel Agents
- Ethnic periodicals
- Tour Companies
- Charter companies

ADVANTAGE OF A CONSOLIDATORS?
- Buy below published price.
- Buy seats up till the day of departure

DISADVANTAGES OF CONSOLIDATORS
- Do not go to all destinations
- You should negotiate
- Will not help you to arrange itinerary, hotels, etc.
- Not for the business trip.

WHERE IS A COMPREHENSIVE LIST?
Lists are always being compiled by travel companies.
There are private list compiled by travel agents in cities,
but not available to the public. There are book
written with list of consolidators. Websites are being created
that specialize in these tickets.

PROBLEMS WITH LIST PROVIDED?
- Mix retail and (wholesale) consolidators together.
- Bait and switch. Offer cheap price, and try to sell expensive.
- Published prices easy to buy, unpublished or wholesale difficult to buy.
- Is a specialized list, that leave only from major gateway cities, and
may not be available at you local airport.
- Written books, and papers become obsolete.
- The normal person has no guidance.
- Expensive to maintain
- Different languages

WILL THE LIST BECOME OBSOLETE?
Yes, any list of companies changes. Telephone numbers
change, the business rents a new office. etc.
List needs to be maintained. A major problem with
books, and papers.

TRAVEL INDUSTRY CHANGES
Because of slim profit margins consolidators have traditional
sold directly to travel agents, with little or no advertising cost.
Consolidators advertised by trade publications, and word of mouth.

With the internet, advertising and communications has become
easier. The internet is making these tickets available
to the general public.

- Changes are immediate,
- Can be accessed by multiple users at the same time.
- Automated ticket sale are more efficient.
- Cheap to advertise on the internet.

With the internet consolidators are able to offer the same
prices to the public and maintain the same profit margins.
Because the internet provides cost effective advertising, and
cost efficient processing of ticket purchases
Small air consolidators websites are now offering fantastic buys.

Have fun! Life is Good!

As always, these are suggestions. Please realize I am
giving guidance, and there are always other opinions.
“One mans paradise, is another mans hell”
This way we do not all go to the same place.

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Article written by Andy hobotraveler.com
Visit for fun links about Budget Travel, Jobs, and Adventure, etc
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Hello, Here is a Travel Tip written by Andy of HoboTraveler.com. What is an air consolidator? http://www.hobotraveler.com


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