Tourists purchasing packages tours at a reduced costs is an example of:

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Economies of scale refer to the cost advantages that a business gains as its production or output increases. In the case of tourists purchasing package tours at a reduced cost, this is an example of economies of scale as the tour operator is able to offer reduced prices due to the increased volume of customers. Collaboration refers to cooperation between different entities, downstream activities refer to the stages in the production process after the initial production or creation of a product, and economic leakages refer to the loss of income from a tourism destination due to money being spent outside of the destination.

Tourists Purchasing Packages Tours at a Reduced Costs Is an Example