7. A tour operator has negotiated a price of $160 per bed per week for 120 beds. They only sell 75% of the beds in one week. How much would they have to pay the hotelier for that week under a commitment contract and an allocation contract?

8. Complete the text with suitable words from the box.

on-request	negotiated	an allotment release back period
released	prior to	allotment contract
allotments

Allotments

¹⁾_____ in the tourism industry are used to designate a certain block of pre-negotiated hotel rooms which have been bought out and held by a travel organizer with a huge buying power like a wholesaler, tour operator or hotel consolidator, and more rarely by a retail travel agent.

Allotments can be purchased for a specific period of time such as a whole season, part of a season or for any single dates and then resold to travel partners and final customers around the globe. A couple of days ²⁾ _____ carrier departure/hotel check-in any unsold seats/rooms may be ³⁾ _____ back to the supplier if such an agreement exists between the two parties. ⁴⁾ ______ is also negotiated as part of the ⁵⁾ ______ (e.g. four days prior to check-in/departure).

Allotments can be ⁶⁾ _______ between a tour operator and a travel service supplier such a hotel/chain, or between two travel organizers such as a tour operator and a retail travel agent. Either way the buyer needs to prove a consistent level of business, because allotments are hardly granted without any previous sales history.

Rooms that have not been contracted between the travel company and the product supplier are handled as ⁷⁾ ______, where each booking of an airline seat or hotel room needs to be confirmed with the supplier before being confirmed with the client.