Vacation packages consist of transportation and accommodation services. Tour operators combine these services with rental cars with other activities during holidays. Transportation can be via airline charter to foreign countries, and may also include travel between regions as part of the tour — it is a form of product bundling.

Modern travellers enjoy package tours. However, these combined holidays existed long before the Wright Brothers made the first aircraft. On the 5th of July, in 1841, Thomas Cook organised the first combine holiday for a group of temperance campaigners. He took them in chartered train eleven miles across the United Kingdom

History of Vacation Packages

After World War II, the Cooks began promoting vacation packages worldwide. They showed advertisements in town halls across Britain. However, they still did not know about the idea of cheap holiday tours. They did not combine accommodation with transportation in one package. Hence, the high cost of their trips brought the company to a gradual decline.

Fortunately, a consortium of private business bought them out. Midland Bank headed this consortium. They bought Thomas Cook and Son’s company for a massive price of £22.5m. On May 26, 1972, the state-owned travel company became a privately owned firm.

The Return of the Packaged Holiday

Thomas Cook made the first organised tour in 1841. Thirty-one years later, taking on organised tours in small groups. His business grew to what is now known as Thomas Cook and Son. It became the largest and most famous travel company in the world.

However, in 2005, a growing number of travellers avoided vacation packages. Instead, they travelled with budget airlines and booked their accommodation themselves. However, the trend on packaged holiday bookings returned in 2009. These travellers found greater financial security in these package tours. With the issue of late holidays where they have to make bookings at the last moment, consumers find booking packaged holidays pretty convenient.


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