Why is it cheaper to book a package holiday/vacation than it is to book a return/round trip, flight only?

1 The regular flight prices are always the same. The discounts are either from negotiated charter flights (the travel company books a whole special flight at a negotiated lower price, or the company buys up blocks of seats at lower prices) or from discounts from the hotels which sell blocks of rooms at a discount. Some "packages" don't even exist when you buy them.

The travel agency sells you the trip and then goes out and negotiates the best deals it an find on air/hotel/car rental. That's why they don't give you your flight/hotel information until shortly before you leave. They don't know what it is until then.

Cruise lines are big at that...and their "cheap" flight to Miami that takes 3 hours by regular flight takes 10 hours on patched together low travel level connectors that they picked up for a song.

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