Demand, supply and market price
- A holiday tour operator, such as Thomson Holidays, will be offering holidays to tourists from the UK to a great variety of resorts and hotels, apartments etc. The range of holidays they each offer is contained in the company’s brochure obtainable from a travel agent. There are a number of such tour operators offering similar packages to UK tourists.

- Use demand and supply analysis to examine the factors that will determine the brochure price of a holiday in Cyprus to tourists from the UK. How will the price of a holiday in any year be affected by shifts in demand and supply and explain what might cause such shifts?

Holiday Bargains
Each year package tour operators offer some cut price holidays through travel agents as ‘ last minute bargain

These holidays will be offered at a discount on the price of the same holiday in the original brochure. The original brochure price will reflect the cost and expected demand for holidays in that year.

Use demand and supply analysis to explain the rationale for these ‘last minute bargains’.

I would say the demand of something directly relates to the price and how the price will be influenced the following year. If a holiday is 'in demand' or popular then it can be offered at a higher price with a relatively safe guarantee that it would sell out. With low demand the price also has to be lowered in order to sell the product. Often direct marketing will affect the supply/demand of a product. A very well advertised or 'hyped' product will obviously sell better than a less well advertised product. Also the popularity of that product (or in this case the destination) will also have a bearing, and also be more popular during different times of the year. The demand for holidays in Cyprus are obviously going to be greater in the summer months when people are on holiday from school/work compared to other times of the year, at the same time the weather and attractions abroad are at their most favourable. Last minute bargains are usually not. They're just advertised as that to encourage sales of products they either want to get rid of quickly or know aren't selling well. E.g. If a hotel has to fill 200 rooms and they know they'll make a profit on 175 of them by selling at £100 per person, then they can offer the remaining 25 rooms at discount to guarantee they'll have a full hotel, from which they'll subsequently generate additional profit from food/drink/entertainment etc.

Someone once told me that you can just show up to the airport with your bag packed and book a last minute vacation package going anywhere and leave the same day as you booked. (Note: I would be leaving from Pearson International -- Toronto)

Is this possible? I have talked to some people who say it isn't. I just thought it would be a cheap and exciting way to go somewhere literally last minute.

Do airports even offer this service? And if so, does it work out to be cheaper? Or is booking last minute cheapest a few days in advance?

If anyone has any great travel sites, please let me know!

Airports are generally not in the business of acting as travel agents. If you want to book a vacation package, you can either do it yourself or else take advantage of travel agencies.

I'm looking to go to Maui the first week of August. I've never been and need any information possible. I want to know of any good travel agents/websites, last minute package deals, all inclusive, vs condos... just any information would be helpful. I haven't booked yet, but plan to soon. I live in Nor Cal. Thanks!

Hello,
How are you? If you are looking to travel to Maui, here is where to go http://www.cassandralanetravel.org I have access to everything that is listed in your question.

We are a family of 4 and suddenly have a couple of weeks free and can travel for a week anytime between 12 and 18 july, which means before the big rush. I had hoped to find a good all-inclusive deal but the prices seem much the same now as they usually are. Apart from the obvious last minute dot com and travel supermarket, along with the travel agents own sites I didn't know if there was some other site that would be good. I can't believe that hotels and flights would rather be empty than sell the places and I don't really mind where we go as long as there is sun, sea and good food!
the mian school holidays in UK do not start until the end of July - my kids break up 2 weeks before the other schools and so there is a big difference in costs between going now and going at the end of the month.
*main! not mian...
this is for holidays from UK - not US
yes but scottish holiday makers don't usually fly from Gatwick and all the southern schools are still in school until 22-25 July

ascail is correct. Scottish schools have started their summer holidays last week and the UK prices always rise then.

Try www.kayak.com I have always found them cheapest for flights

Or book it earlier like a week or more before the travel? Please advise. Plus which sites/travel agents offer the best packages? Thanks!

Book as soon as possible as prices rise the closer to the vacation date. Book separate air and hotel. Airlines do not discount fares to anyone anymore. The price will be the same no mater what site you look at. Be careful in that site will charge a fee at the very end when you go to pay.

http://www.hotelclub.net/enter.asp?id=65383&lc=&cr=USD&ru=searchresults%2Easp%3Fid%3D154

The problem with package deals is they have the worst times for the flights and mix with the worst rooms available at the hotels.

So the earlier to book the better.