Apackage tour,package vacation, orpackage holiday comprisestransport andaccommodation advertised and sold together by a vendor known as atour operator. Other services may be provided such as arental car, activities or outings during the holiday. Transport can be via automobile,bus, orcharter airline and may also include travel between areas as part of the holiday. Package holidays are a form ofproduct bundling.
Package holidays are organised bytour operators and sold to consumers bytravel agents. Some travel agents are employees of tour operators, while others are independent.
The first organised tours date back toThomas Cook who, on 5 July 1841, chartered atrain to take a group oftemperance campaigners fromLeicester to a rally inLoughborough, 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 Britishseaside resorts after theSecond World War, Thomas Cook & Son began promoting foreign holidays (particularlyItaly,Spain andSwitzerland) 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 theHorizon Holiday Group, pioneered the first mass package holidays abroad with charter flights betweenGatwick airport andCorsica in 1950, and organised the first package holiday toPalma in 1952,Lourdes in 1953, and theCosta Brava andSardinia in 1954. In addition, the amendments made in Montreal to theConvention 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 theUnited Kingdom to have affordable travel abroad. One of the first charter airlines wasEuravia, which commenced flights fromManchester Airport in 1961 andLuton Airport in 1962. Despite opening up mass tourism toCrete and theAlgarve 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 andClarksons. 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 withbudget 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 wereThomson Holidays andFirst Choice part ofTUI AG andThomas 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, withTUI UK following in second place. Under these umbrella brands are different holiday operators catering to different markets, such asClub 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 package.[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]
The combination trip is a newer form of package tour that allows travellers to visit multiple destinations with a single, bundled itinerary. Unlike traditional single-location packages, these trips include flights, accommodations, and intercity transportation, often at a discounted rate, making them ideal for travellers seeking diverse experiences, such as a multi-city tour of Europe.[6]
Travel providers often design themed routes, including self-drive, city, beach, and round-trip options. These providers allow travelers to choose their preferred transportation and lodging through dynamic packaging models (see above).
These combination trip packages offer a blend of multiple destinations, varied transportation options (flights, trains, buses, and boats), and accommodations ranging from hotels and boutique hotels to hostels. These trips cater to different budgets and travel styles. They offer structured itineraries while allowing for personal customization.[7]
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