IGCSE Travel and Tourism Practice Exam

What do tourism wholesalers typically do?

1. Sell directly to consumers at retail prices

2. Buy goods in large quantities at low prices typically for retailers

3. Focus solely on providing direct flights

4. Manage tourist accommodations

The correct answer is: Buy goods in large quantities at low prices typically for retailers

Tourism wholesalers play a crucial role in the travel and tourism industry by purchasing goods or services, such as hotel accommodations, transportation, and tour packages, in large quantities. By doing so, they are able to negotiate lower prices with suppliers, thanks to the bulk buying that enhances their bargaining power. This allows them to offer competitive pricing to retailers and travel agents who, in turn, sell these packages to consumers. The nature of their business model means they do not sell directly to the end consumer at retail prices, nor do they exclusively focus on providing direct flights or managing tourist accommodations. Instead, they act as intermediaries between suppliers and retailers, facilitating tourism sales and ensuring that a variety of travel services are available to the market. This makes the role of the tourism wholesaler essential for maintaining the flow of goods and services within the tourism sector.