Definition of Bulk Contract
A Bulk Contract is a type of agreement made between an airline and a third party to sell large blocks of seats at discounted prices. This agreement is beneficial for the airline as it helps them sell their unsold seats at a lower price, while also earning additional revenue. The third party can be a travel agency, tour operator, or any organization that wants to purchase seats in bulk. In return for the discount, the airline may impose certain terms and conditions on the resale of the bulk seats, such as restrictions on cancellations or changes to travel dates. Bulk contracts can be useful for large groups, such as corporate travelers or sports teams that need to travel together. As a result, airlines can ensure that they fill their flights and generate additional revenue, while third-party buyers can obtain seats at a lower price and offer them to their customers at a discounted rate.
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