Future Business Leaders of America (FBLA) Hospitality Management Practice Test

What is the role of a consolidator?

1. An agent who promotes travel packages

2. A buyer of unsold products reselling at a discount

3. An intermediary for booking flights

4. A supplier of promotional materials for travel agencies

The correct answer is: A buyer of unsold products reselling at a discount

The role of a consolidator primarily involves purchasing unsold inventory or seats from airlines, hotels, or other travel-related businesses and reselling them at a discounted rate to consumers or travel agents. This process helps in optimizing the available resources by reducing the impact of unsold capacity on overall business operations. Consolidators often have access to bulk purchasing options, allowing them to offer these discounts to travelers who are looking for more affordable options, making them an important player in the travel industry. In contrast, the other options focus on different aspects of the travel and hospitality industry. For example, agents who promote travel packages or intermediaries for booking flights serve different functions, such as facilitating travel arrangements or marketing specific offerings. Suppliers of promotional materials support travel agencies in their marketing efforts but do not engage in the buying and reselling of inventory like consolidators do. Understanding the specific functions of these roles helps clarify the unique impact of consolidators within the broader travel ecosystem.