How the Travel Industry Works

When considering a first-rate resource like Platinum One Destinations, it helps to have a clearer idea of how the travel industry works. After all, a little knowledge can take you long way, not to mention save you a lot of money. It is key to becoming a happy, discerning traveler.

At any given time, travel industry resources (airlines, hotels, resorts, cruise lines, timeshares, etc.) are operating at a 30% - 40% vacancy rate. Rather than let this inventory of rooms and seats sit idle, travel and tour providers offer their vacancies to what are known as “consolidators” or “wholesale” travel distributors. These consolidators then make this discounted inventory available to insider travel agents and portals “online” booking engines like Expedia, Travelocity or Orbitz who then “mark up” the deals to make a profit.

The companies who operate these portals purchase “travel” at wholesale from a consolidator, mark up the price, then sell it to the general public. Without the need for a traditional business location and with the sales of paid advertising on their websites, they can pass on greater savings than traditional travel agencies who cannot compete with the slimmer profit margins and lower overhead of the online travel portals.

That is why traditional “brick and mortar” agencies are quickly giving way to such travel portals that offer convenience, discount pricing and access to thousands of destinations at the “click” of a button. In fact, nearly 50 percent of those travel agencies closed their doors between 1996 and 2006.

Worldwide, travel is a $3.7 trillion industry. But here’s what’s interesting: While the industry continues to grow (the Travel Industry Association predicts a continued growth rate of 4.6 percent annually for through the next decade), the big online portals have seen an unexpected decline in their customer base.

Turns out low price and online convenience are not the only reasons people buy. Discerning travelers like myself are more than a little frustrated with the one-size-fits-all approach. It doesn't fit well at all. We’ve become highly dissatisfied with the uncongenial and inhospitable nature of most online booking. And that’s why Platinum One Destinations works so well for us.

P1D offers us the best of both worlds: first-class service with the flexibility to cater to our individual desires along with significantly discounted prices that big portals and travel companies can’t match. Specifically, Platinum One Destinations provides luxury vacations at wholesale prices in addition to first-rate service and support.

Why spend more when you don't have to?