Originally Posted by
sbm12
Which is to say that they get a discount on the list price but also are on the hook to sell the seats. In many industries one can negotiate favorable terms if guaranteeing a certain amount of revenue to a vendor.
Not necessarily, many consolidator fare contracts allow cancellation of all or part of the commitment by the consolidator at various times. That is why TPAC routes, where consolidators are used most, are often heavily overbooked relatively far in advance.