A package tour, package vacation, or package holiday comprises transport and accommodation advertised and sold together by a vendor known as a tour operator. Other services may be provided such as a rental car, activities or outings during the holiday. Transport can be via automobile, buses, charter airline, and may also include travel between areas as part of the holiday. Package holidays are a form of product bundling.
Package holidays are organised by a tour operator and sold to a consumer by a travel agent. Some travel agents are employees of tour operators, others are independent.
The first organised tours dated back to Thomas Cook who, on 5 July 1841, chartered a train to take a group of temperance campaigners from Leicester to a rally in Loughborough, 18 kilometres (11 mi) away. By 1872 he was undertaking worldwide tours, albeit with small groups. [1] His company, Thomas Cook & Son (commonly called Thomas Cook or simply "Cook's"), grew to become one of the largest and most well known travel agents before being nationalised in 1948.
With the gradual decline of visits to British seaside resorts after the Second World War, Thomas Cook & Son began promoting foreign holidays (particularly Italy, Spain and Switzerland) in the early 1950s. Information films were shown at town halls throughout Britain. However they made a costly decision by not going into the new form of cheap holidays which combined the transport and accommodation arrangements into a single 'package'. The company went further into decline and were only rescued by a consortium buy-out on 26 May 1972. [2]
Vladimir Raitz, the co-founder of the Horizon Holiday Group, pioneered the first mass package holidays abroad with charter flights between Gatwick airport and Corsica in 1950, and organised the first package holiday to Palma in 1952, Lourdes in 1953, and the Costa Brava and Sardinia in 1954. In addition, the amendments made in Montreal to the Convention on International Civil Aviation on 14 June 1954 was very liberal to Spain, allowing impetus for mass tourism using charter planes.[ citation needed ]
By the late 1950s and 1960s, these cheap package holidays — which combined flight, transfers, and accommodation — provided the first chance for most people in the United Kingdom to have affordable travel abroad. One of the first charter airlines was Euravia, which commenced flights from Manchester Airport in 1961 and Luton Airport in 1962. Despite opening up mass tourism to Crete and the Algarve in 1970, the package tour industry declined during the 1970s. On 15 August 1974, the industry was shaken by the collapse of the second-largest tour operator, Court Line, which operated under the brand names of Horizon and Clarksons. Nearly 50,000 tourists were stranded overseas and a further 100,000 people faced the loss of booking deposits.[ citation needed ]
In 2005 a growing number of consumers were avoiding package holidays and were instead travelling with budget airlines and booking their own accommodation.[ citation needed ] In the UK, the downturn in the package holiday market led to the consolidation of the tour operator market, which is now dominated by a few large tour operators. The major operators were Thomson Holidays and First Choice part of TUI AG and Thomas Cook AG.[ needs update ] Thomas Cook Group ceased operations in 2019 due to bankruptcy. As of 2023, Jet2holidays is the UK's largest tour operator, with TUI UK following in second place. Under these umbrella brands are different holiday operators catering to different markets, such as Club 18-30, traveleze Jet2CityBreaks and Jet2Villas.[ needs update ]
The trend for package holiday bookings saw a comeback in 2009, as customers sought greater financial security in the wake of a number of holiday and flight companies going bust, and as the hidden costs of 'no-frills' flights increased. Coupled with the search for late holidays as holidaymakers left booking to the last moment, this led to a rise in consumers booking package holidays. [3]
Dynamic packaging is a method that is becoming increasingly used in package holiday booking procedures that enables consumers to build their own package of flights, accommodation, and rental car instead of a pre-defined packages. [4]
Dynamic Packaging allows guests to create their own vacation, similar to a private or custom tour. This method allows guests to use a company's itinerary or create their own to allow for more flexible options while using an agency's services. [5]
JMC Airlines Limited was a charter airline in the United Kingdom formed by the merger of Caledonian Airways and Flying Colours Airlines, following the purchase of Thomas Cook & Son by the Carlson Leisure Group. JMC Air primarily served the Thomas Cook holidays brand and was rebranded in March 2003 to Thomas Cook Airlines UK.
A travel agency is a private retailer or public service that provides travel and tourism-related services to the general public on behalf of accommodation or travel suppliers to offer different kinds of travelling packages for each destination. Travel agencies can provide outdoor recreation, arranging logistics for luggage and medical items delivery for travellers upon request, public transport timetables, car rentals, and bureau de change services. Travel agencies can also serve as general sales agents for airlines that do not have offices in a specific region. A travel agency's main function is to act as an agent, selling travel products and services on behalf of a supplier. They are also called Travel Advisors. They do not keep inventory in-hand unless they have pre-booked hotel rooms or cabins on a cruise ship for a group travel event such as a wedding, honeymoon, or other group event.
A tour operator is a business that typically combines and organizes accommodations, meals, sightseeing and transportation components, in order to create a package tour. They advertise and produce brochures to promote their products, holidays and itineraries. Tour operators can sell directly to the public or sell through travel agents or a combination of both.
Britannia Airways was a charter airline based in the United Kingdom. It was founded in 1961 as Euravia and became the world's largest holiday airline. Britannia's main bases were at London Gatwick, London Stansted, London Luton, Cardiff, Bristol, East Midlands, Birmingham, Manchester, Newcastle, Leeds Bradford, Liverpool, and Glasgow. It had its headquarters at Britannia House in Luton.
MyTravel Airways Limited was a British scheduled and charter airline with headquarters in Manchester, England. It operated worldwide holiday charter services mainly for its parent company, the MyTravel Group. The airline merged with Thomas Cook Airlines UK Limited in 2008 and was renamed Thomas Cook Airlines Limited.
Dynamic packaging is a method used in package holiday bookings to enable consumers to build their own package of flights, accommodation, and car rental instead of purchasing a pre-defined package. Dynamic packages differ from traditional package tours in that the pricing is always based on current availability, escorted group tours are rarely included, and trip-specific add-ons such as airport parking and show tickets are often available. Dynamic packages are similar in that often the air, hotel, and car rates are available only as part of a package or only from a specific seller. The term "dynamic packaging" is often used incorrectly to describe the less sophisticated process of interchanging various travel components within a package, however, this practice is more accurately described as "dynamic bundling". True dynamic packaging demands the automated recombination of travel components based on the inclusion of rules that not only dictate the content of the package but also conditional pricing rules based on various conditions such as the trip characteristics, suppliers contributing components, the channel of distribution, and terms of sale. Dynamic packages are primarily sold online, but online travel agencies will also sell by phone owing to the strong margins and high sale price of the product.
TUI fly Nordic is a charter airline headquartered in Stockholm, Sweden, and is a part of the TUI Group. It operates short, medium and long-haul flights to leisure destinations from several airports in the Nordic countries, on behalf of the tour operators TUI Danmark (Denmark), TUI Suomi (Finland), TUI Norge (Norway) and TUI Sverige (Sweden). In 2016, the airline carried approximately 1,500,000 passengers.
Inter Airlines was a charter airline based in Antalya, Turkey. It operated holiday charter flights from Belgium, Germany and the Netherlands to Turkish resorts, as well as wet lease services for other airlines. Its main base was Antalya Airport.
ABTA Ltd, operating as ABTA – The Travel Association and formerly known as the Association of British Travel Agents, is a trade association for tour operators and travel agents in the United Kingdom.
First Choice Holidays Limited is a British online travel agency and tour operator, headquartered in Luton, England. It is a subsidiary of TUI UK, itself a subsidiary of TUI Group, and its holidays are sold solely online. It also operates own brand hotels.
Thomas Cook & Son, originally simply Thomas Cook, was a company founded by Thomas Cook, a cabinet-maker, in 1841 to carry temperance supporters by railway between the cities of Leicester, Nottingham, Derby and Birmingham. In 1851, Cook arranged transport to the Great Exhibition of 1851. He organised his first tours to Europe in 1855 and to the United States in 1866.
Orion Airways was an airline based in the United Kingdom with its head office on the grounds of East Midlands Airport in Castle Donington, North West Leicestershire. It was established as the charter airline of Horizon Travel and went on to develop scheduled services. The airline operated a fleet of Boeing 737-200s, Boeing 737-300s and Airbus A300s between 1979 and 1989.
Air Travel Organisers' Licensing (ATOL) is a United Kingdom Civil Aviation Authority (CAA) scheme to give financial protection to people who have purchased package holidays and flights from a member tour operator.
Thomas Cook Group plc was a global travel group, headquartered in the United Kingdom and listed on the London Stock Exchange from its formation on 19 June 2007 by the merger of Thomas Cook AG — successor to Thomas Cook & Son — and MyTravel Group until 23 September 2019, when it went into compulsory liquidation. The group operated as a tour operator and airline, and also operated travel agencies in Europe. At the time of the group's collapse, approximately 21,000 worldwide employees were left without jobs and 600,000 customers were left abroad, triggering the UK's largest peacetime repatriation.
Kuoni Travel is a tourism company, operating various services including charter and scheduled passenger airlines, package holidays, cruise lines, and hotels in destinations around the world across nine different geographic regions.
TUI Airways Limited is the British arm of the TUI Airline group, which is owned and operated by the TUI Group. They offer scheduled and charter flights from the United Kingdom and Ireland to destinations in Europe, Africa, Asia and North America.
Clarksons Travel Group was a pioneering package tour operator in the UK during the 1960s and early 1970s. Its founder, in 1959 as Clarksons Tours, a subsidiary of the long-established City firm of H. Clarkson shipbrokers, was Tom Gullick, a former flag lieutenant in the Royal Navy.
Cosmos is a UK independent tour operator providing a range of package holidays to the UK market. The tour operator is connected to the international Globus Travel Group, founded in 1928, which remains family owned with headquarters in Lugano, Switzerland. Under parent company Cosmos Tours Ltd, the tour operator offers holidays through two brands: Cosmos and Avalon Waterways.
Jet2holidays is a British package holiday provider and tour operator. It was formed in 2007 as a subsidiary of Dart Group plc, and a sister to Jet2.com, the third-largest scheduled airline in the UK. As of 2023 Jet2holidays is the largest tour operator in the United Kingdom, by ATOL licenses in 2023.
Thomas Cook Tourism (UK) Company Limited, known as Thomas Cook UK, is a British package holiday provider which offers 'Flight + Hotel' packages and Hotel only bookings. The company was launched in 2019, when Chinese firm Fosun International purchased the brand from the insolvent Thomas Cook Group, and began trading in September 2020.