Consolidators just the ticket for last-minute travel

Every international traveler wants cheap airfare. And often they want to fly off to Europe or Asia right now.

If airlines aren’t serving up low fares (and they usually don’t for last-minute departures), bargain hunters turn to the Internet to see what Expedia, Orbitz, Priceline and Travelocity are offering. But savings can be minimal, especially during high season when planes are filled. So some savvy (and not so savvy) people turn to consolidators.

Consolidators, sometimes called wholesalers, help the airlines fill empty seats by contracting with carriers to buy seats in bulk at a deeply discounted and unpublished price.

The consolidator can mark up the price of a ticket to make a profit and sell to a travel agent scouting a low fare for a client. The consolidator can also sell to the general public at a price lower than the airlines’ published fares, but not as low as the consolidator sold to the travel agent. It’s a legitimate system in which everyone wins, helping airlines with their bottom line.

But as with everything else, you must know how the system works because the process can be aggravating. And you’ve got to ask questions.

Experienced travelers probably know that when demand is high and seats are limited (as it is now for travel to Europe), prices from consolidators are not going to be dramatically lower than what they can get from the airlines or online booking services. But travelers unfamiliar with consolidators — whose ads usually are little more than an inch or two, with no room for fine print — may not understand this.

The consolidator process boils down to what the airlines call inventory management, explained Ajay Gidwaney, executive vice president of Intra World Travel and Tours ( www.intrawld.com) in Evanston, Ill.

“Consolidators are given a certain inventory (by the airlines) that they can book,” he said. “The consolidator will set the price, depending on the season, the competition and market conditions. And, of course, they look at their historical (sales) data.

“Every consolidator has a contract with an airline or several airlines. That way you can cover most of the world. Our largest markets are Israel and India, but we have products for Asia, Europe, South America — anything but transborder or domestic flights.”

Pricing consolidator tickets is a tricky issue. Gidwaney said he will not sell directly to the consumer at the same price he sells to a travel agent.

“Travel agents get their special price,” he said. “If I undercut my travel agent I’m cutting off my arms and my legs. Consumers usually are one-time buyers; travel agents are regular. We give the agent a margin to earn money, too, from $50, $60, $70, depending on season. When the seats are higher and tougher to get, our markups are much higher.”

Gidwaney noted that some airline sale fares are so low they undercut consolidator contract fares, but normally consolidator fares are 25 percent to 40 percent lower than published fares. Consolidator tickets also have different restrictions than the regular airline ticket. Often you can stay longer at a destination, and advance purchase restrictions are waived, he said.

But the American Society of Travel Agents ( www.astanet.com) points out that consolidator tickets often carry stricter requirements than regular tickets. They can be nonrefundable, nonexchangeable, nontransferable and nonendorsable — in other words, use it or lose it.

If you miss a flight during your trip, even if it’s not your fault, or if a flight is delayed or canceled, or the airline you are traveling on goes bankrupt, your consolidator ticket may become worthless and you will have to purchase a new ticket at full fare to continue or return home, ASTA says.

One good way to find a consolidator, Gidwaney suggested, is to call the sales office of an airline that flies to your destination. Another is to check with colleagues or friends.

If you are going to pursue a consolidator ticket, here’s some important information to consider before you plunk down your money:

• How long has the consolidator been in business?

• What airlines does the consolidator have contracts with and will you have a choice of carriers? Can you earn frequent-flier miles?

• What’s the fare to your destination; what restrictions apply?

• How soon can you be ticketed for the flights you want?

• Is there a cancellation fee should you have to cancel?

• Does the consolidator take a credit card? Avoid paying by check. If a consolidator does not take a credit card, go to one who does.

Just remember, if a consolidator fare sounds too good to be true, it might well be.