Abstract
Tour operators' performance and recent changes in air inclusive tours (AITs) are traced. The difficulties tour operators face are identified in the light of economic factors influencing demand and supply. Attention is concentrated on the impact of economies and diseconomies of scale, concentration, integration, legal liabilities, technological change and the general economic climate. Discussion of trends indicates that in the face of increasing competition, continuing excess capacity and market instability, tour operators are confronted by varying and challenging prospects into the next century.
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