I work in Travel. This is not a self promotion and I have namechanged. I'm giving my personal advice on Tour Operators who sell ATOL bonded package holidays, because, that's what we do.
Everyone wants to watch the pennies. There's a lot of opinion about booking all the elements of travel to make it cheaper and not going through a Tour Operator because they are more expensive. It's hard enough as it is ATM, but I'll try and convince you why (in most cases and especially with us) booking with a Tour Op is better.
- Tour operators who put package holidays get "Inclusive Tour flights" (low priced fares know as IT Fares).
IT Fares can only be sold in conjunction with a hotel/resort (part of the contract for selling them at a reduced rate). On long haul the flight costs alone, could save you a few quid.
- Tour operators get direct contracts from the hotels, or the hotel's marketing company. The hotel's contract rates (may vary between operator) gives Tour Ops reduced room rates, special promotions and incentives (like stay 7 pay for 5) when sold in conjunction with a flight to make a package holiday. We are sometimes given unique rates, especially when we book lots of rooms, or support them through a marketing campaign.
Joe Public going direct to the hotel will have to pay the 'rack rate' which is more expensive than the contracted rates. The hotels can't/don't sell you a single room at the reduced Tour Op rate because, they are contracted not to undercut them. They do this as it is the many Tour Ops that the hotels rely on to sell 100 or so rooms each month compared to you booking one room. Also it's the Tour Operators that pay to market the hotels as holidays, through pay for click on google, brochures or national advertising. The hotels rarely chip in to this marketing cost.
I'm not even going to comment on the benefits of financial protection via ATOL. This is about cost and why it is not always cheaper to book a holiday yourself.
Anyway back to work now for me.