European tour operators have always sold integrated package holidays, combining flights, hotel rooms (or cruise berths) and extras such as car hire, excursions and events. This has offered not only convenience, but typically value for money compared with assembling all the elements separately. Moreover, in the pre-internet era, it was almost impossible to do it all without a travel agent.
Then LCCs came along and things changed. Their core product was flight seats, which they offered very cheaply, but they also started to offer third-party travel services, such as hotels and car hire, through their websites. This gave consumers the opportunity to self-assemble their own package holiday.
In response, the integrated tour operators started to unbundle their package holidays. Their charter airlines began to increase their seat-only offer and to grow scheduled services.
Now, a number of leading low cost airlines, in partnership with third party suppliers, are bundling up the distinct elements of a holiday (that they have long sold) to offer package holidays. Recent comments from easyJet about growing its share in this market and Ryanair's ongoing plan to be the 'Amazon of travel' demonstrate LCC ambitions in holiday sales.