Definition of Consolidation
Consolidation refers to the practice of a charter tour operator canceling one or more flights associated with a specific charter departure or departure period and transferring passengers to another charter flight or flights departing on or near the same day. This is typically done to minimize the risk of a tour cancellation due to low sales or other reasons. Consolidation can also involve selling the same tour with identical departure dates through multiple wholesalers, cooperatives, or other outlets to increase sales and reduce the overall risk of tour cancellation. By consolidating flights and tours in this way, operators can better manage their resources and ensure that enough passengers are booked to make each tour or flight financially viable. Ultimately, consolidation helps to reduce the risk of disruption for passengers while ensuring that the tour operator can continue to operate profitably and sustainably.
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