You may be wondering how the luxury travel business works and what makes it possible for The Coastal Vacations to bring you all this and more at such affordable rates. We’d like to take some time to lay it all out for you and give you a top-level view of how the industry really works.
You are probably familiar with travel businesses such as Expedia™, Travelocity™, Orbitz™ and Hotwire.com™. You may have even used these sites in the past. These websites are popular because they use the connectivity of the internet to help you sort through lots of vacation deals in a quick and easy manner. The Coastal Vacations uses the same technology to bring you vacation deals from all over the globe, but there is one big difference between our vacation deals and theirs that makes it possible for you to purchase dozens of Florida vacation deals, Disney™ packages and all-inclusive resort packages to satisfy your own wanderlust, set up a fabulous employee reward program or offer other incredible workplace incentives.
But here we’re going to explain what sets us apart. Big name companies in the travel industry such as Marriott, Hilton, Disney and Carnival™ sell their inventory via two main channels: retail and wholesale. The retail channel is the one that you have worked with in the past when you purchased vacations like Disney packages and Florida vacation deals from companies like Expedia or Hotwire.
These companies work with “middle men” called travel consolidators who sell them package vacations at retail prices. This means that when you buy your all-inclusive resort packages from the other guys, you’re at the bottom of a very large retail chain and all those retail costs are passed down to you. These travel consolidators make it easier for retailers to bring you package vacations, but the catch is that you’re paying extra for all that connectivity.
The markups you are paying are extremely high. There is a lot of competition for your retail travel dollars because just about everyone in the business works with these Internet retailers. Inventory providers pay these companies HUGE commissions, but they are still selling their inventory at retail prices. These guys are in the business to make money and their mark ups are unbelievably high, anywhere from 25 to 50 percent! That gets passed on the Internet retailers who mark those prices up AGAIN by another 25 to 50 percent and retail travel agents mark their prices up even more. We’re talking 50 to 100% markups!