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Experts in the airline industry believe that there are three main reasons why people travel. There are: business, visiting friends and relatives (the so – called “ethnic” market), and holiday.
The businessman, forced to travel at time that suit his business, will pay the full fare. But the holiday and “ethnic” travelers, unlike the businessman, are under no real compulsion to go abroad, so the airlines have to make more attractive offers to persuade these kinds of travelers to buy an airline ticket.
The attractiveness of the offer is usually directly related to the price. The airlines know that the more they can trim the cost of a holiday, the more people will buy it. So, with the help of travel agents, they can arrange bulk travel and accommodation at holiday hotels at very low rates because of the large numbers of bookings they can provide. Then they pass the benefits of these quantity discounts on to the holiday – maker in the form of low – price inclusive tours.
This kind of holiday travel has been so successful that the airlines themselves are helping to finance new hotels. Many of them are already major investors in big international hotel chains. As more hotels become available, airlines can fly more people to fill them.
UNIT 3
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